June 25 Education Management Corp said
it found errors in the U.S. education department's data on the
gainful employment rule that could determine whether the company
would be eligible for federal funds.
The department issued the gainful employment rule last year
to judge whether programs offered by for-profit colleges
presented students enough opportunities to get a job and pay
The programs stand to lose funds from the government if they
do not meet the rule standards. The department was expected to
reveal data from the first year of its review this week.
Education Management, in a regulatory filing on Monday, said
it identified errors on debt amounts for certain groups of
It did not say how many of its programs did not pass the
The company, which owns the Art Institutes, Argosy
University and Brown Mackie College, said it has contacted the
department to inform them of the errors but that it did not know
if the issues it has raised will trigger a correction in the
Separately, larger rival Apollo Group in a
conference call said one of its programs failed to meet the
gainful employment rule.
Shares of the EDMC had closed at $6.73 on Monday on the