"The companies with less flexibility from a capital standpoint are the ones to be concerned about," he said. "If you're a for-profit college that's had regulatory pressures, capital pressures, you have to think about this more seriously than ever before."
ITT Educational has kept the Education Department informed about its issues with the SEC and that submission of its documents would be delayed, said Nicole Elam, a company spokeswoman, in an e-mailed statement. The company intends to file by July 31, she said.
Most for-profit college companies have the needed financial flexibility, at least for the time being. Steven Azarbad, chief investment officer of Maglan Capital LLC in New York, holds about 150,000 shares of University of Phoenix owner Apollo Education Group Inc., and says he's confident both in the company's cash position and its regulatory compliance.