Michael Milken, one of America's shrewdest and most controversial investors, has dubbed education the hot new market for Wall Street. He's bought into the nation's leading for-profit schooling firm, and observers say he believes electronic textbooks and internet-delivered courseware are key to turning a profit in school operations.

Technology is instrumental in marketing proprietary education as well. Using an array of high-tech classroom equipment as a primary inducement for parents to enroll their children, Nobel Education Dynamics Inc. has become the nation's fastest growing for-profit schooling company. Now, Nobel has sharply increased its high-tech...

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