WRAPUP 1-Corinthian, Strayer results top market

* Corinthian raises 2010 outlook

* Says some schools to exceed 2008 cohort default rate

* Strayer raises dividend By Amulya Nagaraj

BANGALORE, Oct 29 (Reuters) - Corinthian Colleges Inc (COCO.O) and Strayer Education Inc (STRA.O) posted better-than-expected quarterly profits, driven by strong enrollment growth.

The results came as a relief to investors who were concerned that the impending economic recovery could slow growth in the sector, which shone during the recession as more people returned to school.

Shares of most companies in the sector fell earlier this week after Apollo Group Inc (APOL.O) said the U.S. Securities and Exchange Commission (SEC) had launched an informal probe into the company's revenue recognition practice.

Strayer, however, said it did not have any issues with revenue recognition and had not received any type of inquiry from the SEC on the matter.

The company, which forecast a 20 percent increase in annual student enrollment in 2010, said it expects to open 13 new campuses to drive growth. [ID:nBNG516905]

Strayer's current focus is to expand domestically and become a nationwide university, CEO Robert Silberman told Reuters.

"And before we do that, we are unlikely to focus significantly on international," he added.

Strayer, which competes with peers such as DeVry Inc (DV.N), said bad debt as a percentage of revenue rose to 4.5 percent from 3.7 percent last year.

Bad debt would be in the 4 percent to 5 percent range in the second half of this year and will trend up towards 5 percent before it levels off, Silberman said.

COHORT DEFAULT RATE WORRIES

Corinthian, which operates 89 schools, said it does not expect any of the schools to exceed the 25 percent threshold for the cohort default rate for three consecutive years.

Cohort default rate is the percentage of a school's students who enter repayment on certain federal loan programs in a particular federal fiscal year and default prior to the end of the next fiscal year.

Educational institutions that have cohort default rates above 25 percent for three consecutive years become ineligible to receive certain federal funding.