2013/2/13 - For-Profit Educators Look to Benefit as Pell Grant Program Not Expected to Receive Budget Cuts

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For-profit educators were also boosted by a report from the Congressional Budget Office that showed the Pell Grant Program, which provides need-based grants to low-income undergraduate students, is on pace to run a surplus in 2013 and 2014. There had been many experts within the industry that had expected a budget deficit accompanied by budget cuts.

"In a fiscal environment where unbudgeted programs are all under intense scrutiny, we believe this is a major victory for college students, but in particular for-profit students, who are more likely to be eligible for Pell funding as a result of lower incomes and financial independence," said William Blair & Co. analyst Brandon Dobell.

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Apollo Group is one of the world's largest private education providers and has been in the education business for approximately 40 years. The Company offers programs and services throughout the United States and in Latin America and Europe, as well as online throughout the world. The company reported revenues of $1.1 billion in the first quarter.

Career Education Corp. offers high-quality education to a diverse student population of more than 80,000 students through campuses in the United States, France, the United Kingdom and Monaco. For the third quarter of 2012 the company reported revenues of $332.8 million, a year-over-year decrease of 22.3 percent. Career Education is scheduled to release results for the fourth quarter on February 28th.

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