1013934--2/17/2009--STRAYER_EDUCATION

related topics

{regulation, government, change}

{acquisition, growth, future}

{product, market, service}

{system, service, information}

{loan, real, estate}

{personnel, key, retain}

{stock, price, operating}

{competitive, industry, competition}

If we fail to maintain our institutional accreditation, we would lose our ability to participate in Title IV programs. If we fail to maintain any of our state authorizations, we would lose our ability to operate in that state and to participate in Title IV programs there. If we fail to obtain recertification by the Department of Education when required, we would lose our ability to participate in Title IV programs. A failure to demonstrate administrative capability or financial responsibility may result in the loss of eligibility to participate in Title IV programs. Student loan defaults could result in the loss of eligibility to participate in Title IV programs. We are subject to sanctions if we fail to calculate and make timely payment of refunds of Title IV program funds for students who withdraw before completing their educational program. We are dependent on the renewal and maintenance of Title IV programs. Investigations, legislative, and regulatory developments and general credit market conditions related to the student loan industry may result in fewer lenders and loan products and increased regulatory burdens and costs. Our school could lose its eligibility to participate in federal student financial aid programs or be provisionally certified with respect to such participation if the percentage of our revenues derived from those programs were too high. Our failure to comply with the Department of Education s incentive compensation rules could result in sanctions. Risks Related to Our Business We may not be able to sustain our recent growth rate, and we may not be able to manage future growth effectively. Our future success depends in part upon our ability to recruit and retain key personnel. Our success depends in part on our ability to update and expand the content of existing academic programs and develop new programs in a cost-effective manner and on a timely basis. Our strategy of opening new campuses and adding new services is dependent on regulatory approvals and requires significant resources. Our financial performance depends in part on our ability to continue to develop awareness of the academic programs we offer among working adult students. We face strong competition in the post-secondary education market. Strayer University relies on exclusive proprietary rights and intellectual property, and competitors may attempt to duplicate Strayer programs and methods. Seasonal and other fluctuations in our operating results could adversely affect the trading price of our common stock. Regulatory requirements may make it more difficult to acquire us. Capacity constraints or system disruptions to Strayer University s computer networks could damage the reputation of Strayer University and limit our ability to attract and retain students. Strayer University s computer networks may be vulnerable to security risks that could disrupt operations and require it to expend significant resources. Strayer University, with its online programs, operates in a highly competitive market with rapid technological changes and it may not compete successfully. We may not be able to successfully complete or integrate any future acquisitions.

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1013934--2/17/2009--STRAYER_EDUCATION_INC