Washington Post to book $18M charge on Kaplan move
NEW YORK (AP) — The Washington Post Co. said Friday that it has halted new enrollments at nine Kaplan Higher Education campuses and will consolidate operations of four campuses into other locations as part of its restructuring of the business.
Students currently enrolled will still be taught at the campuses until they've completed their studies.
New federal regulations aimed at lowering student debt have led to lower enrollment at many for-profit schools. In response to federal scrutiny, Kaplan schools have raised admissions standards in recent years and given students a trial period before they commit to paying. They also have changed the way they market their programs
Revenue at the affected campuses represented about 2 percent of Kaplan Inc.'s total revenue for the first six months of the year.
The Washington, D.C., company said that it will book $18 million in restructuring costs on the consolidation, a portion of which will be booked in the third quarter and the rest by the end of 2013.
Washington Post shares fell $1.28 to $361.75 in after-hours trading after the filing, after closing up $4.48 at $363.03 in the regular session.