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Jan23
Career Education Gets a Reprieve
Career Education Corporation had been forbidden to open or buy any new schools while it was being investigated.

However, yesterday, the Department of Education eased off on the restrictions.

The school can grow again...one International Academy of Design and Technology will be opened in San Antonio, TX and another in Sacramento by late spring 2007.

The Sacramento school, I know, had been on hold for more than a year.career.education.corporation.jpg

"Career Education has put forth a tremendous effort in restructuring our compliance and financial aid processes, and full compliance remains our top priority," said the interim chairman and CEO of Career Education.

When working for a CEC school, there was indeed a real concern for being compliant. There was not always follow through...but the right words were always spoken.

American InterContinental University, CEC's biggest money maker, is still under probation and in danger of losing its accreditation.

The damage in reputation from the AIU situation seems to be bigger than the reprieve when it comes to company stock value.

CEC still has a long way to go to get itself out of the hole.

What do you think?

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