Shares of for-profit schools drop as Strayer Education reports enrolment decline

Shares of for-profit institutions and training schools tumbled yesterday after Strayer Education Inc. stated new student enrolments for its winter semester dropped 20%. That's a marked change from last year, when new student enrolments jumped 16% during the winter term. If the trends of Strayer's winter semester continue throughout 2011, total student enrolment will be down 5%. Rising student loan defaults and increased government regulations have begun to weigh on for-profit institutions' enrolment rates following years of double-digit increases in enrolment. This past fall, the University of Phoenix warned that it expected new student enrolments to drop 40% during the fiscal first quarter as it revised its practices amid heavy criticism from politicians and consumer advocates. Associated Press