Education Stocks Up Education Stocks Up On Reports
Federal Official Leaving Post
By Melissa Korn
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Shares of for-profit education companies jumped Monday after two trade publications reported Robert Shireman, deputy undersecretary at the U.S. Department of Education, is stepping down.
Representatives from the federal agency weren't immediately available for comment.
Shireman was seen by many investors as an opponent of the market-funded higher education model, although he vehemently--and frequently--denied the charge. His remarks on the schools have swayed stocks for months as his comments were scrutinized for signs of potential future regulation.
Many for-profit school stocks have been depressed over the last few months as the market awaits news of proposed rules governing a wide array of issues in higher education, including how recruiters are compensated, the measurement of a credit hour and how to quantify whether schools properly prepare students for gainful employment. Shireman has been overseeing the negotiations, which began last year.