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Here’s Why For-Profit Colleges Could Prosper Under Donald Trump

November 14, 2016

ITT Technical Institutes Shuts Down After 50 Years in OperationITT Technical Institutes Shuts Down After 50 Years in Operation
The Chantilly Campus of ITT Technical Institute sits closed and empty on Tuesday, September 6, 2016, in Chantilly, VA. ITT Educational Services, one of the largest operators of for-profit technical schools, ended operations at all of its ITT Technical Institutes, citing government action to curtail the company's access to millions of dollars in federal loans and grants, a critical source of revenue.Photograph by Jahi Chikwendiu—The Washington Post via Getty Images

For-profit education stocks have surged on expectations that President-elect Donald Trump and a Republican Congress may ease regulations imposed on the industry by the Obama administration, Barron’s said in a report.

Stocks such as Grand Canyon Education (LOPE), DeVry Education Group (DV), and Capella Education (CPLA) rose about 14% last week. Trump won an upset victory in Tuesday’s presidential election.

Jeff Silber at BMO Capital Markets said Trump’s election could be good news for for-profit education companies, according to Barron’s.


A federal court trial in San Diego is set to begin on Nov. 28 over claims by former students of now-defunct Trump University that they were defrauded by a series of real estate seminars. A Trump lawyer has requested that the trial be delayed until after Trump’s inauguration on Jan. 20. Trump denies the students’ allegations.