* Report says DOE official seeks more regulation
* S&P 1500 Education Services Sub-Industry index fall 5 pct
* Bellwether Apollo Group Inc fall 6 pct at $57.99
(Adds comment from the U.S. Department of Education; updates share movement)
April 29 (Reuters) - Shares of U.S. for-profit education providers fell after a website reported that a top Department of Education official made negative comments about the sector and encouraged the need for more regulation in the space.
The article on insidehighered.com, an online publication covering the education sector, summarized a speech by DoE Deputy Under Secretary Robert Shireman to state regulators Wednesday. According to the website, he said the for-profit education sector needed more regulation to ensure access and quality education for people.
'We've had constructive discussions in recent months, and look forward to continued thoughtful dialogue with the career education community,' the U.S. DoE told Reuters in an emailed statement.
The S&P 1500 Education Services Sub-Industry index fell 5 percent. Bellwether Apollo Group Inc was down about 6 percent at $57.99 Thursday afternoon on Nasdaq.
'While we believe the author of the article was not present to hear the speech, it is based on second-hand accounts from some who presumably did attend,' BMO Capital Markets analyst Jeffrey Silber said in a note to clients.
Last week, U.S. Education Secretary Arne Duncan said his department planned to issue proposals aimed at ensuring that vocational schools provide the training needed for students to find gainful employment without racking up excessive debt.
Earlier comments by Shireman have mostly been congenial to the sector, though he is viewed as one of the chief architects of the proposed gainful employment regulations, and is known for his work to limit student debt, Silber added.
(Reporting by Amulya Nagaraj in Bangalore; Editing by Saumyadeb Chakrabarty, Don Sebastian) Keywords: EDUCATIONSECTOR/ (amulya.nagaraj@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: amulya.nagaraj.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* S&P 1500 Education Services Sub-Industry index fall 5 pct
* Bellwether Apollo Group Inc fall 6 pct at $57.99
(Adds comment from the U.S. Department of Education; updates share movement)
April 29 (Reuters) - Shares of U.S. for-profit education providers fell after a website reported that a top Department of Education official made negative comments about the sector and encouraged the need for more regulation in the space.
The article on insidehighered.com, an online publication covering the education sector, summarized a speech by DoE Deputy Under Secretary Robert Shireman to state regulators Wednesday. According to the website, he said the for-profit education sector needed more regulation to ensure access and quality education for people.
'We've had constructive discussions in recent months, and look forward to continued thoughtful dialogue with the career education community,' the U.S. DoE told Reuters in an emailed statement.
The S&P 1500 Education Services Sub-Industry index fell 5 percent. Bellwether Apollo Group Inc was down about 6 percent at $57.99 Thursday afternoon on Nasdaq.
'While we believe the author of the article was not present to hear the speech, it is based on second-hand accounts from some who presumably did attend,' BMO Capital Markets analyst Jeffrey Silber said in a note to clients.
Last week, U.S. Education Secretary Arne Duncan said his department planned to issue proposals aimed at ensuring that vocational schools provide the training needed for students to find gainful employment without racking up excessive debt.
Earlier comments by Shireman have mostly been congenial to the sector, though he is viewed as one of the chief architects of the proposed gainful employment regulations, and is known for his work to limit student debt, Silber added.
(Reporting by Amulya Nagaraj in Bangalore; Editing by Saumyadeb Chakrabarty, Don Sebastian) Keywords: EDUCATIONSECTOR/ (amulya.nagaraj@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: amulya.nagaraj.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.