Steven Eisman is an American businessman and investor During a speech entitled “Subprime Goes to College” during the Ira Sohn Conference in May Eisman attacked companies. In a speech titled “Subprime Goes to College,” delivered Wednesday at the Ira Sohn Investment Research Conference, Eisman blasted the. One of those managers was Steven Eisman of FrontPoint Partners Steven Eisman & FrontPoint Partners entitled, ‘Subprime Goes to College’.
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For-profit college group: “Eisman is a self-serving nutcase” – Apr. 21,
In the past 10 years, eiwman for-profit education industry has grown times the historical rate of traditional post secondary education. The group, run by partners including Steve’s parents, Elliott and Lillian Eisman, manages portfolios of stocks for wealthy clients. The for-profit model seeks to recruit those with the greatest financial need and put them in high cost institutions. We mention tuition prices as little as possible.
Are we going to load up a new generation with student eimsan debt they can never afford to pay back?
After a discussion period, the rules will be issued in November and go into effect summer Follow Us On Twitter Tweets by marketfolly. They also go after GI Bill money and currently have separate teams set up to specifically target military students.
For-profit colleges fighting back hard
The University of Phoenix Enrollment………………………. Upon nearing completion, the students learned that not only would their credits not vollege to any community or four-year college, but also that their degree is not recognized by the American Association for Medical Assistants.
Post was not sent – check your email addresses! This page was last edited on 31 Decemberat The for-profit education industry has proven equal to the task. Once the floodgates were opened, the industry embarked on 10 years of unrestricted massive growth.
Investor Steve Eisman RAILS On For-Profit Colleges
But when the Bush administration took over, the DOE gutted many of the rules that governed the conduct of this industry. In order to be eligible for Title IV programs, the universities must be accredited. The answer is to control the accreditation process. Additionally, there are also numerous high profile detractors such as Jim Chanos colege gave a negative presentation on for-profit education at last year’s conference.
With billboards lining the poorest neighborhoods in America and recruiters trolling casinos and homeless shelters and I mean that literallythe for-profits have become increasingly adept at pitching the dream of a better life and higher earnings to the most vulnerable of society. He has been married to Valerie Feigen since Betting against subprime mortgages during the Financial Crisis.
In many instances, the for-profit institutions sit on the boards of the accrediting body. One example is Sally Stroup. The inmates run the asylum. The latest trend of for-profit institutions, meanwhile, is to acquire accreditation through collee outright purchase of small, financially distressed non-profit institutions.
For more great ideas from hedge fund managers, head to our aggregation of notes from the Ira Sohn Investment Conference and be sure to also check out our hedge fund portfolio tracking series. If nothing is done, then we are on the cusp of a new social disaster.
Subprime goes to college
Stocks That Matter T t You may be familiar with him as he was profiled as one of the successful subprime traders in Michael Lewis’ book, The Big Short. As we’ve detailed numerous times, the for-profit education space is an investor battleground with a clear divergence of opinion. After offering testimony to Senate Health, Education and Labor Committee on problems with for-profit higher education, Eisman was criticized by progressive groups such as Citizens for Responsibility and Ethics in Washington on the grounds that he stood to profit from proposed regulations due to his short positions against private colleges.
It did better inreturning There is no regard to whether a student really belongs in school, the goal is to enroll as many as possible. He attended the University of Pennsylvaniacolelge magna cum laude in In other words, she was directly in charge of ro the industry she had previously lobbied for. And now, Eisman has joined the mix with his negative view too.
He notes that a key to the problem here is the ‘rating’ these institutions receive from accreditation boards and he likens these boards to the ratings agencies who blessed subprime mortgages. Let me quote a bit from a former employee of Bridgepoint Education, operators of Ashford University: