Career Education to cut jobs, shut campuses

Thu Nov 8, 2012 5:17pm EST

Nov 8 (Reuters) - Career Education Corp said it will close 23 campuses and cut 900 jobs, amid declines in student enrollments.

The for-profit education company also said its $185 million credit agreement expired on Oct. 31 and it was in talks with banks to renew it.

Career Education posted a net loss of $33.1 million, or 50 cents per share, in the third quarter, compared with a profit of $10.6 million, or 10 cents per share, a year earlier.

Revenue fell 22 percent to $332.8 million. New student sign-ups fell 23 percent.

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The bubble has burst, and all of online education is hemorrhaging due to DOE regs, negative publicity, the effective lobbying by traditional ivory towers and the ineffectiveness of curriculum to develop even basic skills among a recruited student population that enters at the 8th grade level or below, and has no reasonable expectation of success.

These students will amass debt, fail to complete, never find work and default on their loans, that are guaranteed by the gov’t.

Nov 13, 2012 11:52am EST  --  Report as abuse
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