COLLEGE
07/19/2010 05:12 am ET Updated May 25, 2011

Robert Shireman's Resignation Sends For-Profit College Stocks Surging

Robert M. Shireman, deputy under secretary of education, is leaving Washington this summer, having achieved a goal he set almost 20 years ago: moving the bank-based federal student-loan program to direct lending by the government.

Data provided to The Chronicle by analysts with the Signal Hill Capital Group, Alexandra Chan and Trace A. Urdan, showed that in the hour between publication of the news of Mr. Shireman's impending departure and the 4 p.m. close of trading on Monday, shares of Corinthian Colleges Inc. rose more by more 12 percent. Share prices of Career Education Corporation rose by 9 percent, of Apollo Group Inc. by 7.3 percent, and of ITT Educational Services by 7.2 percent.

Read more on The Chronicle of Higher Education