For-Profit Education Stocks Hit On Word Obama May Make Changes to 90/10 Rule

Shares of for-profit education stocks are under pressure Wednesday following comments from analysts at Height Analytics suggesting that President Obama could use an executive to bypass Congress and roll all military funds into the 90-10 calculation, cutting the threshold to 85% from 90%.

Commenting on this, analysts at Piper Jaffray said any change to the government's 90/10 rule is likely not "imminent" and Obama would not likely want to risk political capital on a move.

Around the sector:
Apollo Group, Inc. (Nasdaq: APOL) down 8%
Bridgepoint Education, Inc. (NYSE: BPI) down 5%
DeVry Inc. Common Stock (NYSE: DV) down 5%
Corinthian Colleges, Inc. (Nasdaq: COCO) down 4%
Strayer Education, Inc. (Nasdaq: STRA) down 4%
Career Education Corporation (Nasdaq: CECO) down 2%
Lincoln Educational Services Co (Nasdaq: LINC) down 1%

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