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Obama to Revamp Two Year Colleges

Online Degrees are exceedingly popular. There are over 400,000 students enrolled annually and that number is expected to keep growing. Those looking to earn their associates degree will find that the Obama administration is earmarking money to help more people go back to school.

President Barack Obama's $12 billion community college initiative could have an impact on the fortunes of for-profit education companies that offer associate degrees, but analysts say funding for the program is not big enough to make much difference.

Obama's 10-year program, unveiled last week, focuses on associate and vocational degree programs at government-funded community colleges and is aimed at getting people back to school and have them ready for "21st century jobs."

However, they said the amount of money earmarked for the program would result in only a marginal increment in budgets for community colleges and have a small impact on these companies in the short term.

The for-profit education industry, already concerned with the increased scrutiny on the companies by the Department of Education under the Obama administration, was keeping its fingers crossed over Obama's proposed revamp of the education sector, fearing it could disadvantage them against state-funded colleges.

"We would be more cautious on the market-funded sector had President Obama added another zero to the proposed $12 billion targeted for community colleges," analyst Ariel Sokol of Wedbush Morgan Securities said.

Those who earn their associates degree online or on campus will find many benefits to holding a degree. Those who earn a degree on average have higher incomes than those who just hold a high school diploma. In today's workforce, it is almost necessary to have some either an associates degree or bachelors degree.


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