Brian Mueller, the CEO of Grand Canyon Education, has expressed a positive outlook regarding the regulatory environment under the incoming administration of President-elect Donald Trump. During a recent earnings call, Mueller indicated that Grand Canyon Education anticipates a substantial opportunity to influence higher education policy, particularly in contrast to its previous interactions with the Biden administration.
These remarks come in light of ongoing disputes between the company and the U.S. Department of Education, which include challenges related to Grand Canyon University’s for-profit status and a significant $40 million fine concerning marketing practices in its doctoral programs, both of which are currently under appeal.
The company has encountered obstacles stemming from regulatory decisions made by the previous administration, which some stakeholders argue have facilitated private litigation against it. This includes a class-action lawsuit recently filed against Grand Canyon, claiming that the institution misled students regarding the costs associated with its doctoral programs.
Notably, despite facing these regulatory and legal challenges, Grand Canyon Education reported an 8.5% increase in revenue year-over-year, totaling $740.4 million for the first nine months of the fiscal year. This revenue increase has been largely attributed to a rise in student enrollment at Grand Canyon University, which reached 123,002, marking a 4% increase from the prior year.
Looking forward, Mueller has voiced concerns regarding the potential effects of new regulatory measures, such as the gainful employment rules, which evaluate the financial outcomes of for-profit institutions. He characterized these regulations as counterproductive, advocating for a reconsideration of policies that could better support students and address economic issues linked to higher education.
The transition to the new administration is perceived by leadership at Grand Canyon Education as a pivotal moment, with expectations that it may create a more favorable environment for educational institutions across the United States.
(Source: Higher Ed Dive)