Leaders of the for-profit Grand Canyon Training predict a extra accommodating regulatory atmosphere underneath President-elect Donald Trump.
“I consider that we’ll have a voice in what is going on to occur on this subsequent administration by way of what the way forward for greater training needs to be,” Brian Mueller, the corporate’s chairman and CEO and president of Grand Canyon College, stated on a name with analysts Wednesday.
The corporate, which primarily gives advertising and academic providers to Grand Canyon College, has had its share of clashes with the U.S. Division of Training underneath the Biden administration.
They embody a struggle over Grand Canyon College’s for-profit standing with the Training Division and a practically $40 million high quality the company leveled in opposition to it over advertising practices in Grand Canyon’s doctoral packages. The corporate has appealed each determinations..
On the time of the high quality a yr in the past, Mueller responded with fiery rhetoric, saying in a press release, “We have to struggle this tyranny from federal authorities companies.”
The division’s actions in opposition to and investigations into Grand Canyon have additionally paved the way in which for personal authorized actions.
This summer time, the corporate was hit with a class-action lawsuit alleging that it lied to college students about doctoral program prices at Grand Canyon College. The criticism cited Training Division evaluation as one piece of proof backing its allegations. The corporate labeled the allegations “utterly with out advantage.”
Laws in growth by the Biden administration may additionally affect the college and Grand Canyon Training. Mueller famous as a lot on the decision and cited the brand new gainful employment guidelines, which largely apply to the for-profit sector and stress establishments to make sure constructive financial outcomes for graduates.
“There are a whole lot of guidelines being mentioned for future implementation in greater training, they aren’t going to be useful to college students, and they aren’t going to be useful to the economic system,” Mueller stated.
He particularly pointed to the brand new gainful employment guidelines, describing them as “so counterproductive to what we’re doing right here.”
The Training Division in September delayed the reporting deadline underneath the principles from Oct. 1 till Jan. 15. Because it seems, that new deadline will now run proper into Trump’s Jan. 20 Inauguration Day.
Regardless of its run-ins and disagreements with the Training Division throughout Biden’s time period, Grand Canyon Training’s enterprise has been rising. Over the primary 9 months of its present fiscal yr, income grew 8.5% yr over yr to $740.4 million. Web earnings, in the meantime, jumped by roughly $20 million to $144.4 million.
Pushing the corporate’s income greater within the third quarter was higher-than-expected enrollment at Grand Canyon College. Its headcount reached 123,002 college students as of Sept 30, up 4% from 2023.
The Training Division’s delayed, glitch-ridden rollout of the brand new Free Utility for Federal Pupil Help had a damaging affect on the corporate’s enrollment.
Whereas Grand Canyon College’s general enrollment grew, Mueller stated each functions and registrations have been down for college kids who accomplished the FAFSA. Furthermore, enrollment at Grand Canyon College’s bodily campuses this quarter fell about 2.3% from final yr to 24,657 as of Sept. 30, pushed by a decline in conventional pupil enrollment that Mueller tied to the FAFSA issues.
“Though this can be a disappointing outcome, this is the same as or higher than what is happening nationwide,” Mueller stated.
He added that the corporate expects enrollment on the bodily campus to rebound and famous that preliminary outcomes have been constructive from the Training Division’s FAFSA fixes for subsequent yr’s enrollment cycle.
