DeVry shores up student loans

Shares of Oakbrook Terrace-based DeVry Inc. climbed more than 6 percent after the for-profit education company said it had selected several financial services providers to help provide student loans, easing worries that the widespread credit crunch will make it tough to attract and keep students.

Shares rose $2.73 to $46.91 in trading Tuesday after the operator of schools including DeVry University and Chamberlain College of Nursing said it had selected six financial firms as recommended financial services providers for three of its schools.

"We believe this is a good sign as it indicates major lenders are still willing to lend to students attending for-profit schools," said BMO Capital Markets analyst Jeffrey Silber in a note to clients.

DeVry said it has not seen any "material impact" on enrollment and expects its students to continue to have access to the funding they need to finance their education.

Shares of for-profit schools have tumbled in recent months as investors worry that enrollment may suffer as it becomes tougher to get education loans.

SLM Corp, a student lender known as Sallie Mae, had said it will stop funding a variety of loans as it has struggled with the credit market squeeze and legislation that cuts subsidies to student lenders.

DeVry said it tapped as recommended financial service providers: Bank of America Corp., JP Morgan Chase & Co.'s Chase Education Finance, Citigroup Inc.'s Citibank, Sallie Mae, Wachovia and Wells Fargo.

"We are pleased to significantly expand the funding options for our students," Daniel Hamburger, president and chief executive officer of DeVry, said in a statement.

"We are confident that these lenders not only provide superior products and services for our students, but also have the capacity to withstand the current credit and liquidity issues that are affecting some student loan providers," he said.