For-Profit Colleges Surge as U.S. Student Aid Rules Eased

For-profit colleges surged the most in six years in U.S. trading after the Obama administration eased rules that would cut off federal aid to schools whose students struggle the most to repay their government loans.

Under the rules published today, companies including University of Phoenix owner Apollo Group Inc., won’t risk losing their federal funding until 2015, three years later than under a previous draft, the Education Department said. Phoenix-based Apollo, the largest for-profit college company, rose $4.71, or 11 percent, to $46.90 at 4 p.m. in Nasdaq Stock Market trading. The Bloomberg U.S. For-Profit College Index of 13 stocks rose 12 percent, the most since January 2005.