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Finance
For-Profit Colleges Face New Regulations
Jul 24th
For-Profit colleges have seen a rapid rise over the last 10 years due to an increasing number of unemployed turning to education. This growth has resulted in soaring profits for publicly traded higher education companies with the average profit for 2009 being $229 million. That’s and increase of $79 million from 2008.
Most of the revenue raised by for-profit colleges comes from federal student aid. Critics say it’s not a wise use of tax payers money considering many students drop out or attend colleges that charge more than public universities while having students work online with little supervision.
The Department of Education on Friday announced a proposal that would reduce federal student aid to various programs within for-profit colleges. This new proposal would target those programs with a high drop out rate or with students who struggle to pay their loans after leaving college.
It is expected that 5% of programs run by for-profit colleges would be put out of business by the new regulation.
Surge In German Business Confidence
Jul 23rd
German business confidence has surged to its highest level in three years with a record jump that shows the German economy is in recovery.
Consumer spending during the World Cup may have contributed to the rise. The German Ifo index rose to 106.2 points, up from 101.8 points in June. This is its biggest jump since German reunification in 1990.
The Ifo index is based on a monthly survey of 7,000 German business executives. The sudden jump in sentiment shows they are more optimistic about the coming six months than they were in June.
The rise was well ahead of market forecasts and runs contrary to concerns about an economic slowdown.
The Euro rose to a high of $1.2939 after the data was published and continued its climb to $1.2947 by 1045 GMT.
Hans-Werner Sinn commented “The German economy is in a party mood,” and analysts are expected to improve their forecasts for the coming months.
Other signs of improved confidence have been coming out of the eurozone such as the Italian consumer confidence index which rose to 105.6 compared with forecasts of 103.9.