07/17/2010 05:12 am ET Updated May 25, 2011

Robert Shireman Resignation Rumor Sends For-Profit College Shares Soaring

Education stocks including Apollo Group Inc. rallied on speculation that a proposal to toughen regulation of for-profit education companies may not materialize because one of its main backers is leaving his position.

U.S. Education Deputy Undersecretary Robert Shireman will leave and return to California, according to a person familiar with the situation. Shireman is pushing to produce tougher regulations that may reduce the amount of federal financial aid that for-profit colleges receive. He made an April 28 speech that was viewed as critical of the increasing taxpayer money provided to for-profit colleges.

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