Education at for-profit colleges in the United States has been under pressure as of late, but analysts remind investors there are companies in education beyond for-profit schools. One of the problems with for-profit colleges was the funds received from the federal government, and analysts say there are segments of the industry that don’t depend as heavily on government funds. Child care and premium K-12 has been doing better, as well as companies that help traditional universities get their materials online. In for-profit colleges, analysts say it’s like investing in a bad neighborhood, but there are homes that are better than others.
In China, the government has been encouraging investments in education, which includes international schools, forgoing taxes on tuition. Rising wages for the middle class means more spending in education, which is considered an investment in the future, and the expected growth in children following a change in the one-child policy is expected to grow the school-age population.
Full report available here.
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