BMO sees lower regulatory risk for Capella and Strategic Education
BMO Capital Markets reports reduced regulatory risk for Capella Education (CPLA) and Strategic Education (STRA) due to improved program failure rates. Capella's rate dropped to 2% from 4%, while STRA's fell to 4% from 6%. Lincoln Educational Services (LINC) has no failing programs, and Grand Canyon Education (LOPE) has one. The for-profit sector averages a 30% fail rate, but these companies match non-profit and public institutions at 2%.



