Inc. (NASDAQ: APOL) is down 1.22 percent Thursday on news that the University of Phoenix
is expecting sanctions from the group that accredits the school.The Higher Learning Commission has been working on the school's once-every-10-years reaccreditation process. Apollo Chairman and Chief Executive Gregory Cappelli said the commission informed the school Tuesday that a forthcoming draft report will recommend putting the school "on notice" for several “areas of concern.”The areas of concern remain unspecified, however, Morgan Stanley downgraded Apollo yesterday to Equal-Weight, noting, among other issues, "new accreditor problems” that make it difficult to recommend the stock with conviction.First Analysis analyst, Corey Greendale, also downgraded Apollo. Greendale says that although he believes the University of Phoenix will be reaccredited, the accreditation uncertainty might weigh on its stock.Accreditation allows schools to be eligible for Title IV student loans from the U.S. Department of Education. This represents the vast majority of revenue ...
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