After Sallie Mae informed CECO that they wouldn't be offering student loans, Career Education announced stricter loan conditions which they predicted would adversely effect 4Q profits. This negative news has been amplified by the ongoing credit crisis; already it is becoming more difficult for students to obtain loans and this will decrease future enrollment.
The share prices for Career Education increased after Stifel Nicolaus and Co. upgraded the company’s rating to a ‘Buy’. The rating was upgraded as Stifel Nicolaus expected the turnaround efforts undertaken by Career Education to have a positive impact on the company’s performance.