Education

Student-loan case throws down regulatory gauntlet

18 Jan 2017

In a page from the crisis playbook, the CFPB accused Navient of cheating borrowers paying for college. Suing days before Donald Trump becomes president is a bold gambit for the same agency that nailed Wells Fargo for fake accounts. It's fighting as much for survival as consumers.

Pearson chief Fallon gets an F

18 Jan 2017

The education publisher's shares fell almost 30 pct after a profit warning from boss John Fallon - not his first. A hit to textbook sales through retailers should have been foreseen, and Fallon's tenure has been bad for investors. This latest shocker puts him on the naughty step.

Investment banks’ next trade will be EU education

30 Dec 2016

No European city has as many international school places as London. That’s a problem for firms thinking of asking staff to move their families out of the UK capital following the Brexit referendum. The solution will be for banks to get into the education business themselves.

A teachable moment in for-profit education

15 Dec 2016

DeVry is paying $100 mln to settle fraud accusations under a crackdown by the Obama administration. For-profit colleges can expect looser oversight when the founder of Trump U. takes office. DeVry's post-election stock surge suggests investors are discounting regulatory risk.

U.S. scandal is blot on China’s educational sector

9 Dec 2016

Shares of the $7 bln New Oriental have fallen 11 pct since Reuters reported allegations that staff helped applicants cheat to get into U.S. colleges. The claims are dismaying. But the financial fallout should be limited. Investing in Chinese education remains a first-class idea.

Trump voters may settle for less than his students

21 Nov 2016

The U.S. president-elect agreed to pay $25 mln to resolve accusations that his education venture was a scam. Averting trial lets Trump focus on picking his advisers and policies. Early choices suggest Americans who backed him will feel duped, too – and have almost no recourse.

Harvard struggles to overcome its hedge-fund past

23 Sep 2016

The Ivy League university's $36 bln endowment lost 2 pct in the year to June, falling short of its yardsticks and rival Yale's 3.4 pct gain. More than a decade after the champion of its partially in-house operation quit, Harvard faces problems of leadership and investment style.

Britain’s grammar school plan gets 5 out of 10

9 Sep 2016

Reintroducing selective schools won't necessarily fix the UK's two big problems: too-high inequality and too-low productivity. It fits, though, with an emerging trend of the state picking winners. Whether that works depends on the success of safeguards to protect the losers.

U.S. college industry being pushed back to basics

2 Sep 2016

An owner of higher-education institutions is suing the Obama administration for blocking their move from for-profit to non-profit status. Wanting better student results in exchange for federal funds makes good business sense. Colleges have more to learn about simple economics.

U.S. labor unions look increasingly white collar

25 Aug 2016

A ruling that lets Ivy League graduate students organize will add to the growing share of cubicle-dwellers in the union movement. Education is one of the few sectors in which membership is increasing, albeit from a low base. The blue-collar stereotype is slowly fading away.

Migration has masked UK skills shortage

7 Jul 2016

Britain has a paucity of negotiators to thrash out post-EU trade deals. This is not the only national shortage of know-how. Over a quarter of adults in England lack basic skills, the OECD says. Migrants have helped plug a gap that homegrown talent may struggle to fill quickly.

Brexit advocates: heed the tale of Herb Kelleher

6 May 2016

The co-founder of U.S. budget airline Southwest took the glamour out of air travel. But the increased connectivity has had unexpected benefits - like more scientific breakthroughs, a new study shows. Those who seek a British exit from the EU may be giving up more than they know.

Apollo Education owners risk flunking buyout 101

2 May 2016

Bidders for the University of Phoenix parent bumped their offer 5 pct to $1.14 bln. That’s generous, considering the for-profit college faces regulatory crackdowns and dimming financial prospects. With a vote on the deal imminent, investors grubbing for more may look like dunces.

Apollo Education buyout barely makes the grade

27 Apr 2016

The $1.1 bln offer is a big comedown for a company worth $14 bln in 2009. A White House crackdown on for-profit colleges has left Apollo wayward, however. Let investors backed by President Obama’s allies struggle to help the University of Phoenix owner rise from the ashes.

Students deserve debt relief but truth comes first

30 Mar 2016

More Corinthian Colleges alums may see their federal loans forgiven after the defunct U.S. university lied about job prospects. Meanwhile, a law school beat fraud claims over dodgy employment stats. Strict disclosure rules would be a better way to teach fibbing educators lessons.

Pearson buyout would go beyond textbook

19 Feb 2016

The $9.5 bln education publisher’s relatively clean balance sheet normally might attract private-equity buyers. The trouble for now is reticent debt markets and a stock price that isn’t especially cheap. There also have been duds in the sector. Even so, the math could work.

Illinois flunks a fix for Chicago school finances

28 Jan 2016

The state’s push for a takeover and possible bankruptcy of the system may have foiled a needed $875 mln bond sale, making a bad situation worse. Illinois has shown it can’t handle its own budget and Mayor Emanuel is too weak to fight back. It’s a lesson in fiscal incompetence.

Weills show why charity isn’t always selfless

23 Oct 2015

Ex-Citi boss Sandy and his wife Joan will not donate $20 mln to a New York college after a court ruled her name couldn’t adorn it. They are generous with many causes and can use their money as they wish. But it’s a reminder that contributions come with agendas beyond giving back.

Pearson profit scare raises existential questions

21 Oct 2015

Shares in the educational publisher fell more than 15 pct as Pearson warned earnings would suffer in part due to lower college enrolments in the U.S., a crucial market. The sharp share drop suggests investors believe Pearson faces structural, rather than cyclical, headwinds. 

Harvard endowment boss knows his thesis

23 Sep 2015

Stephen Blyth, in charge of the $38 bln stash since January, has laid down refreshingly clear performance goals. These require the university’s well-paid money managers do better than of late, including a 5.8 pct return in the year to June. Now Blyth has to deliver the results.