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Greenberg: Why Strayer Has Attracted Eisman
CNBC.com | August 30, 2010 | 03:01 PM EDT

Steve Eisman of FrontPoint Parnters got it right on subprime mortgages, as chronicled in Michael Lewis’ “ The Big Short .”

Several months ago, Lewis started beating the bushes on for-profit colleges in a provocative report titled, " Subprime Goes to College ."

One company he never mentioned, which has historically been considered among the best and cleanest: Strayer Education .

Eisman tells me that he is short Strayer and that it is a relatively new position.

His interest was piqued by the discrepancy between Strayer and the Department of Education over Strayer's student-loan repayment rate. (Going forward, under new “gainful employment” rules proposed to go into effect later this year, repayment rates will be an important metric in determining the amount of federal aids and loans a college can accept.)

As we've reported previously : Strayer says its repayment is 55.4 percent. The Ed Department claims it’s 25 percent.

Strayer defended itself on a conference call with analysts and has claimed the department made an error. As part of the call, Strayer prepared a two-page sheet in an effort to show how it did its calculation.

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