Stocks that suffer if Congress cuts costs
For-profit colleges also depend on the federal government to guarantee the student loans that pay for their students to attend. Without loans, most students couldn't go, and without federal guarantees few lenders would issue the loans. Corinthian Colleges Inc., which gets 90% of its revenue from Uncle Sam, appears to be particularly vulnerable to spending cutbacks. Another worry: many of Corinthian's students are struggling to pay back their loans.