On November 7, the day before the election, stock of San Diego's troubled Bridgepoint Education sold for $7.02. The company is under investigation by the Consumer Financial Protection Bureau, the Securities and Exchange Commission, and the states of Iowa, New York, Massachusetts, California, and North Carolina, according to the company's most recent report to the Securities and Exchange Commission. It has been investigated by the Department of Education over several issues, particularly its marketing and financial aid practices.
The United States Senate Health, Education, Labor and Pension Committee did a special study of Bridgepoint in 2011, and then-senator Tom Harkin called the operation "an absolute scam."
Enrollment has dropped sharply. Bridgepoint lost $16.25 million for the nine months ended September 30. The stock was once around $30, but plummeted as the troubles multiplied.
But less than a month after the election, today (December 5), Bridgepoint stock closed at $10.45, up 1.46 percent on the day and a long way up from the $7.02 of November 7. The stock — and that of other for-profit colleges — has been rising sharply since the election of Donald Trump on November 8. Wall Street figures that Trump will give regulatory relief to the for-profit colleges, despite their reputations for aggressive marketing, poor education, high student costs, and inability of students to get jobs after leaving.
Here are November 7 and today's closing prices for some other for-profit colleges: DeVry University $22.80-$29.95; Capella Education $75.80-$87.75; Lincoln Educational Services $1.71-$2.12; Grand Canyon Education $48.18-$57.90.
In mid-November, Trump agreed to pay $25 million to settle lawsuits against his Trump University, which supposedly gave instruction to those who wanted to make it big in real estate.