Washington Post May Face Downgrade
(Washington Business Journal) — Moody’s Investors Service may downgrade its Washington Post Co. credit ratings because potential changes in student loan guidelines could curtail business for its profitable Kaplan Inc. education division.
Proposed Department of Education guidelines would impose minimum student loan repayment rates and cap debt-to-income requirements for students at for-profit schools to remain eligible for government student loans. Moody’s says it will monitor Kaplan’s level of compliance with any new guidelines, as well as its efforts to make changes to meet the new standards.
The Education Department has suggested some of Kaplan’s schools do not meet the proposed guidelines.
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