Donald Trump will sign an executive order today to close the Department of Education to save money. I did a little more research into what effect this could have on stocks and came across the following post.
What do you think about this and the effects on these stocks?
BREAKING: President Donald Trump is expected to sign an executive order as soon as Thursday to abolish the Department of Education!
----
"I spent 3 hours researching intensively last night and came up with the following 5 stocks that are heavily dependent on the US Department of Education and could come under considerable pressure today.
Disclaimer: I have now gone short on a few of them.
------
"If Donald Trump were to disband the Department of Education (DoE) and transfer its functions to the states, the following companies would face significant negative impacts.
Here's why for each company:
1. Nelnet Inc.
Nelnet is one of the largest student loan servicers in the U.S. and administers federal student loans.
Eliminating the DoE would mean significantly restructuring or eliminating the Federal Student Aid (FSA) program.
If the states create their own programs, Nelnet could lose customers and revenue because there would no longer be a centralized lending agency.
2. Lincoln Educational Services
This company operates private career and technical schools that rely heavily on federal funding, particularly Pell Grants and federal loans.
Without the DoE, it could become more difficult for students to access financial aid, leading to declining enrollment.
3. Adtalem Global Education
Parenting company of several private colleges, including medical schools, that benefit greatly from federal student loans and accreditation through the DoE.
Without the DoE, accreditation processes could shift to the states, creating an inconsistent system and uncertainty.
The reduced availability of federal funding could lead to a decline in student enrollment and revenue.
4. Navient Corporation
Similar to Nelnet, Navient is a loan servicer that manages large volumes of federal student loans.
If the DoE is dissolved, existing loan agreements could be restructured or eliminated, which would massively impact business operations.
5. Grand Canyon Education
Operates Grand Canyon University, a large private college that relies on federal student aid programs.
The elimination of the DoE could mean that students from different states would have different access to loans and aid, which could threaten the university's enrollment and revenue.
Summary
All of these companies are heavily dependent on federal student loans, grant programs, and accreditation policies that the DoE administers.
Transferring these responsibilities to the states could lead to uncertainty, a decrease in funding sources, and an uncoordinated system, which would significantly threaten their business models.
NO INVESTMENT ADVICE
ITS JUST MY OPINION
I COULD BE COMPLETELY WRONG
DO YOUR OWN DD!
STOCKS SHORTING IS VERY RISKY. DONT DO IT."