And Away We Go!
Please excuse the old Jackie Gleason reference…..but the avalanche is underway. The University of Phoenix announced today that enrollment was down. Well,,that’s to be expected…it’s down across the board for colleges everywhere (except for the elites, of course)….BUT….down by HALF!? Yes friends, down by half! From 400,000 to 200,000+…and that is HUGE! That has death knell written all over it. Why? How could this happen? Could it be that prospective students and their parents aren’t seeing the value in the product? Probably. But it’s also because the free money (student loans) is drying up for the private for profit crowd. The Feds changed the borrowing rules for these guys on the heels of the failure of Coirnthian College last year and the results are showing themselves!
The Management at U.of P. sees the writing on the wall and has already issued earnings warnings for the future.
This frat party is about to end!