Covering the business of education and training

Career Education posts quarterly loss .

This report hits close to home because I work for one of their schools.

Though analysts said they were expected to make money, they came up short instead.

The reasons:

1. Shelling out $85 million for "goodwill impairment" to its health education segment.

2. Negative publicity - a few very disgruntled ex-students, faculty and stock holders tried to raise a stink. 60 Minutes picked it up and ran it twice.

3. AIU (American Continnental University) one of their larger campuses was put on probation by the Commission on Colleges of the Southern Association of Colleges and Schools - an accrediting body.

As for us teachers, in the trenches, we didn't notice that the company lost money. But, when a similar situation happened with a branch campus and another accrediting association, we saw a very serious buckling down and tigthening up.

The two year probation was shortened and within a year, full accreditation status was reinstated.

My bet is that AIU will be back on track within a year.

What do you think?