Grand Canyon University, a giant in for-profit education, has returned to its nonprofit roots.
With that transition comes a new business model, questions about the transformative effect such a move could have on the world of higher education, and a shift away from federal for-profit regulations.
Grand Canyon Education sold the school for $875 million to a newly formed nonprofit that will assume the Grand Canyon University name.
In addition to his presidential role at GCU, Brian Mueller will serve as the CEO for Grand Canyon Education Inc, the former owner, which will provide educational services for the university, handling technological needs, marketing and promotions, financial-aid and more. That model may be a nod to the future, notes The Chronicle of Higher Education, with more for-profits shifting to the role of service provider for nonprofit arms. According to a corporate filing, the newly minted nonprofit will pay out 60% of tuition and fees to its not-so-distant owner.
“[Grand Canon Education Inc] no longer owns and operates a regulated institution of higher education, but instead provides a bundle of services in support of New GCU’s operations. These services include technology, academic and counseling services and support and marketing for New GCU’s ground traditional and online students. Technology services include the ongoing improvement and maintenance of educational infrastructure, including online course delivery and management, student records, assessment, customer relations management, and other internal administration systems,” reads part of the corporate filing with the Securities and Exchanges Commission.