Washington Post's Federally Subsidized Cash Cow Floundering

Most of the Washington Post's profits come not from reporting news, but with its sham, for profit college - Kaplan. Well it turns out that Kaplan overloads its students with loan debt that too many can't repay, a finding that could remove Kaplan from the student loan program, essentially killing Kaplan.

Kaplan, responsible for 67 percent of the Post Co.'s $92 million in second-quarter earnings, runs dozens of for-profit colleges nationwide, as well as pricey test-preparation classes and books.

The company's colleges -- as well as hundreds of others throughout the nation -- are under fire from the Department of Education for saddling students with debt loads without concern about whether they will be able to pay it back.

Shares of the Post tumbled 8 percent to $315.65 on the news as stocks of for-profit colleges nationwide plunged. Strayer Education Inc., an Arlington for-profit university, dropped 18 percent to $163.26.

The Department of Education estimated that only 28 percent of former Kaplan students are repaying their loans, compared with 36 percent at for-profit colleges nationwide and 54 percent at public universities nationwide.

Arlington-based Strayer University had a repayment rate of 25 percent. Devry University, with several campuses in the Washington region, inched near the average with 35 percent.

Under the new rules, most schools that fail to have 45 percent of their former students in repayment would not be fully eligible for federal funds. They would be subject to limits on enrollment growth and would need to demonstrate employer support for their academic programs.

Read more at the Washington Examiner: http://www.washingtonexaminer.com/local/Post-hit-as-feds-target-for-profit-colleges-499012-100811999.html#ixzz0ws7IxjhE