A routine investigation that has sparked skittish investors.
K12 Inc. is facing a litany of regulatory problems and a new shareholder lawsuit, but as long as new students are signing up, none of that matters to investors.
According to Department of Education data, large percentages of business administration, culinary arts, interior design, and other programs would be deemed failing or at-risk under the Obama administration’s new guidelines.
Regulations proposed Friday will crack down on programs with low graduation rates and high student debt. Many of those are at for-profit schools like the University of Phoenix and Everest College, which get huge chunks of their revenue from federal dollars.