One of the largest providers of higher education in North America, DeVry Inc. (DV) recently introduced Newton D. Becker Scholarship program under its professional education segment, Becker Professional Education. Newton D. Becker Scholarship program has been formed in honor of Newton Becker, the founder of the organization. The program will provide financial assistance worth more than $200,000.
Newton D. Becker Scholarship program will offer 20 full CPA Review scholarships of $3,300 each. The program will also offer other scholarships of amounts ranging from $800 to $1,600. Candidates can apply for these scholarships through February 13, 2013.
Becker Professional Review offers professional exam review and training programs for Certified Public Accountant (“CPA”) examination, Chartered Financial Analyst (“CFA”) professional certification examinations, and the Project Management Professional (“PMP”) certification examination.
DeVry derives a significant portion of its revenues from federal student financial aid programs, referred to as Title IV programs, which are administered by the Department of Education (DoE). The Title IV programs include loans given directly to students at below market interest rates by the Department of Education. However, educational institutions are constantly being monitored due to the increasing abuse and misuse of Title IV funds. As such, the DoE is now being stringent about providing this financial assistance and DeVry faces the uncertainty involved with the changing regulations in the education sector.
The recent introduction of Newton D. Becker Scholarship program will provide financial assistance to the students and encourage enrollment growth at Becker Professional Education.
A peer of Universal Technical Institute, Inc. (UTI), DeVry intends to invest heavily in scholarships to support students who are facing the brunt of recent cuts to the federal loan program. In fiscal 2013, the company expects its scholarships to be in the low $50 million range, up from prior expectations of mid-$40 million range.
We currently have a ‘Neutral’ recommendation on DeVry Inc. over the long term. The stock carries a Zacks #2 Rank that translates into a short-term ‘Buy’ rating owing to its better-than-expected new enrollment growth at healthcare institutions and sequential improvement in new enrollments at the flagship DeVry University.