Latest news with #BrianMueller
Time of India
21-05-2025
- Business
- Time of India
US Department of Education drops record $37.7 million fine against Grand Canyon University
Grand Canyon University cleared in record US education fine reversal. (AI Image) In a major development for higher education in the US, the Department of Education has rescinded a $37.7 million fine previously levied against Grand Canyon University (GCU), the nation's largest Christian university . The decision was made official through a Joint Stipulation of Dismissal issued by the Office of Hearings and Appeals, which concluded that there were no findings against GCU or its employees, and no fine would be imposed. The fine was originally described as the largest in the department's history. GCU announced the outcome through a press release, stating that the ruling fully cleared the institution of any wrongdoing and closed a years-long legal dispute with the federal agency. Background of the record-breaking fine The Department of Education had accused GCU of misleading more than 7,500 students regarding the actual cost of its doctoral programs. According to the agency, the university advertised tuition ranges between $40,000 and $49,000, though fewer than 2% of graduates completed their programs within that price range. The department cited additional required 'continuation courses' as a factor that pushed costs higher, often by $10,000 to $12,000. GCU strongly denied the allegations, maintaining that it clearly disclosed all tuition-related information. GCU President Brian Mueller , as quoted by Christian Post, stated, 'The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students and we appreciate the recognition that those accusations were without merit.' Claims of bias against Christian institutions M ueller has previously argued that the fine was part of a larger pattern of unfair targeting of Christian universities by federal agencies. In comments reported by Christian Post, he noted that GCU has been widely recognized for transparency, saying, 'We give the cost of the entire program to students up front at all three levels — bachelor's, master's and doctoral.' He also highlighted discrepancies in penalties against institutions, pointing out that the fines imposed on GCU and another Christian university dwarfed penalties issued to major public universities involved in high-profile abuse scandals. According to data cited by the American Principles Project, Christian colleges — though they serve fewer than 10% of US students — account for about 70% of the enforcement actions by the Department's Office of Enforcement. The average fine against Christian schools was reported to be significantly higher than that for non-religious institutions. GCU faces additional scrutiny Following the original fine, GCU was also targeted by a Federal Trade Commission lawsuit and an audit by the Department of Veterans Affairs. As reported by Christian Post, the lawsuit was later dismissed by the US District Court of Arizona, which ruled that the FTC lacked jurisdiction over GCU. A department spokesperson, quoted by Christian Post, contrasted the current administration's approach with that of the previous one, stating that the Trump administration would not target institutions based on religious affiliation, and enforcement would be based strictly on facts and fairness. Founded by the Southern Baptist Convention, GCU transitioned to a for-profit model amid financial challenges and has since become the largest Christian university in the country by enrollment. The university continues to position itself as a leader in transparency and innovation in higher education. Invest in Their Tomorrow, Today: Equip your child with the essential AI skills for a future brimming with possibilities | Join Now
Yahoo
20-05-2025
- Politics
- Yahoo
Education Department walks back $37.7M fine against Grand Canyon University
This story was originally published on Higher Ed Dive. To receive daily news and insights, subscribe to our free daily Higher Ed Dive newsletter. The U.S. Department of Education walked back a $37.7 million fine levied against Grand Canyon University under the Biden administration, the large Christian institution announced Friday. When the Education Department announced the fine in October 2023, it accused the university of misleading thousands of current and former students about the costs of its doctoral programs. Grand Canyon University quickly appealed the decision. The agency's Office of Hearings and Appeals has now ruled in Grand Canyon University's favor, dismissing the case 'with no findings, fines, liabilities or penalties of any kind,' according to the institution. The office dismissed the case with prejudice, meaning it cannot be reconsidered. When Grand Canyon University announced its intention to appeal the $37.7 million fine, it cast the financial penalty as government overreach and the Biden administration as targeting it for being a Christian institution. Grand Canyon University also said at the time that the Higher Learning Commission, its accreditor, deemed its disclosures 'robust and thorough' in a 2021 review — a point it reiterated last week. 'The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students and we appreciate the recognition that those accusations were without merit,' Brian Mueller, the university's president, said in a Friday statement. The Education Department confirmed the news Monday. 'Unlike the previous Administration, we will not persecute and prosecute colleges and universities based on their religious affiliation,' Ellen Keast, a department spokesperson, said in a statement. The university has notched other victories amid the handful of legal challenges it has faced in recent years. Just a few months after the Education Department fined Grand Canyon University in 2023, the Federal Trade Commission sued the institution over similar allegations regarding its doctoral programs. The lawsuit accused the university of telling applicants that they would only have to pay the equivalent of 20 courses to finish accelerated doctoral programs, even though almost all required more. A federal judge dismissed the lawsuit's claims against the university in March. However, the FTC's case is still ongoing against Grand Canyon Education, a for-profit company that provides marketing and enrollment services to the institution. Grand Canyon University was a part of GCE until 2018. When it split off from the company, the university entered a 15-year contract for educational services in exchange for about 60% of its tuition and fee revenue. Mueller also serves as the CEO of GCE. Last September, the FTC filed an amended complaint alleging that GCE has falsely advertised Grand Canyon University as a nonprofit institution, made 'abusive telemarketing calls,' and misled students about how long it would take to complete the university's doctoral programs. Although the IRS considers Grand Canyon University a nonprofit, whether the Education Department does as well was the subject of a long-running legal battle. In 2019, the Education Department denied Grand Canyon University's request to be considered a nonprofit for federal financial aid purposes. But a federal court ruled late last year that the agency applied the wrong legal standard when making that determination and ordered it to reconsider the university's request under the correct statute. Grand Canyon University said Friday it hopes that process will be completed soon. In Friday's announcement, Grand Canyon University described the ongoing allegations against GCE as 'the same manufactured nonprofit and doctoral disclosure claims that have been refuted, rejected and dismissed.' Late last year, Mueller predicted during one of GCE's earnings calls that the company would face a friendlier regulatory environment under the Trump administration. In Friday's announcement, Grand Canyon University also pointed to a 2023 appeals court ruling that in part dismissed allegations from a former student, Donrich Young, who had argued in a class-action lawsuit that the institution breached its contract by making it impossible to finish doctoral programs in 60 credits as promised. In its ruling, the appeals court wrote that the university did not make such a promise and that enrollment documents said 60 credits was the minimum needed to complete a doctoral program. Young further argued that the university breached its contract by not providing the faculty support he was promised to complete his dissertation. A three-judge panel overturned a lower court's decision to dismiss that claim and sent the case back to it for further proceedings. The student and the university agreed to end the lawsuit in late 2023. GCE faces another major lawsuit alleging the company has engaged in a racketeering scheme by misleading students about the cost of the university's doctoral programs. Earlier this month, a federal judge rejected GCE's motion to dismiss the case. Recommended Reading Grand Canyon CEO expects a friendlier Education Department under Trump Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
LOPE Q1 Earnings Call: New Program Growth and Hybrid Enrollment Drive Guidance Update
Higher education company Grand Canyon Education (NASDAQ:LOPE) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 5.3% year on year to $289.3 million. The company expects next quarter's revenue to be around $240.3 million, close to analysts' estimates. Its GAAP profit of $2.52 per share was 2.9% above analysts' consensus estimates. Is now the time to buy LOPE? Find out in our full research report (it's free). Revenue: $289.3 million vs analyst estimates of $287.1 million (5.3% year-on-year growth, 0.8% beat) EPS (GAAP): $2.52 vs analyst estimates of $2.45 (2.9% beat) Adjusted EBITDA: $102 million vs analyst estimates of $101 million (35.2% margin, 0.9% beat) The company slightly lifted its revenue guidance for the full year to $1.09 billion at the midpoint from $1.09 billion EPS (GAAP) guidance for the full year is $8.53 at the midpoint, beating analyst estimates by 1.5% Operating Margin: 30.4%, in line with the same quarter last year Free Cash Flow Margin: 20.3%, down from 27.7% in the same quarter last year Students: 127,779, up 6,991 year on year Market Capitalization: $5.52 billion Grand Canyon Education's first quarter results were shaped by robust enrollment gains and continued investment in program expansion, as highlighted by CEO Brian Mueller. Management cited growth in online and hybrid enrollments as key contributors, with new program rollouts and partnerships with employers supporting a larger student base. CFO Dan Bachus noted that higher-than-expected enrollments offset a slight decrease in revenue per student, reflecting both the leap year impact and contract changes with university partners. Looking ahead, the company's updated guidance reflects ongoing expectations for mid-to-high single-digit online enrollment growth and mid-to-high teens growth in hybrid programs. Management attributed this outlook to a combination of new site openings, expanded academic offerings, and continued momentum from workforce development initiatives. While ongoing investments and higher benefit costs are expected to pressure margins in the short term, management believes profitability will improve in the second half of the year as traditional campus enrollments stabilize. Grand Canyon Education's leadership attributed the quarter's performance to targeted program expansion and partnerships that address unmet workforce needs. Management provided several qualitative insights into the drivers of growth and areas of continued investment, while also highlighting some headwinds impacting margins and revenue per student. Online enrollment momentum: Online enrollments grew nearly 8%, driven by continued rollout of labor-market-aligned programs and direct employer partnerships. Management emphasized that frequent program launches help differentiate Grand Canyon Education from competitors that are reducing offerings. Hybrid platform expansion: Hybrid campus enrollments increased over 16% (excluding closed sites), with success attributed to accelerated prerequisite coursework and new site openings. Management reported strong demand from younger students seeking efficient pathways into nursing and other healthcare fields. Retention improvement: The company saw higher student retention rates across platforms, which management connected to the relevance of academic programs and their alignment with career aspirations. This trend supports stable enrollment even as new student acquisition fluctuates. Cost pressures and investments: Margins were affected by ongoing investments in partner initiatives, increased benefit costs, and technology services. CFO Dan Bachus noted that these factors, along with changes in revenue-sharing contracts, led to a decline in revenue per student and short-term operating margin pressure. Programmatic partnerships: Grand Canyon Education continued to sign agreements with school districts, hospitals, and military bases, expanding its reach among working adults. These partnerships were highlighted as a significant source of new enrollment growth, especially in fields with persistent labor shortages. Management's full-year outlook centers on sustaining enrollment growth through new program expansion, hybrid site development, and ongoing employer partnerships, while managing near-term margin pressures from higher costs and investments. Enrollment-driven revenue growth: The company expects continued mid-to-high single-digit online enrollment growth and double-digit expansion in hybrid programs, supported by new academic offerings and additional campus locations. Margin recovery expected: While first-half margins are pressured by elevated benefit costs and investment in new sites, management indicated that margin improvement is anticipated later in the year if traditional campus enrollment trends remain positive. Benefit costs and legal expenses: Higher benefit costs and anticipated increases in legal fees were flagged as ongoing risks, with management planning to monitor these areas closely as they work to balance growth investments and profitability. Jeff Silber (BMO Capital Markets): Asked about the source of better-than-expected enrollments; management credited new program launches and direct contracts with employers and public sector organizations as primary drivers. Jeff Silber (BMO Capital Markets): Inquired about potential student concerns regarding federal funding; CEO Brian Mueller stated that Grand Canyon Education is not significantly exposed to federal research grants and expects no major impact from federal funding changes. Alex Paris (Barrington Research): Requested updated long-term enrollment targets by delivery platform; management reaffirmed a long-term 7% enrollment growth goal and highlighted strong momentum in online and hybrid segments. Alex Paris (Barrington Research): Asked about M&A strategy; CEO Brian Mueller emphasized a preference for building new programs and sites over acquisitions, citing recent success with organic initiatives. Steven Pawlak (Baird): Questioned the conversion rate from prerequisite programs to hybrid ABSN enrollments; management explained the multi-step process and expected that scaling these programs will accelerate as more partners adopt the model. Looking ahead, the StockStory team will monitor (1) the pace of new program launches and their effect on online and hybrid enrollment growth, (2) progress in opening additional hybrid sites and expanding into graduate and non-nursing healthcare programs, and (3) stabilization of operating margins as investments and cost pressures subside. The ability to maintain high retention and strengthen workforce partnerships will also be important indicators of sustainable growth. Grand Canyon Education currently trades at a forward P/E ratio of 22.1×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
19-05-2025
- Politics
- Yahoo
Education Department rescinds record $37 million fine against Grand Canyon University: 'Wrongly accused'
The U.S. Department of Education has rescinded a $37.7 million fine, with prejudice, against Grand Canyon University for alleged deceptive practices, according to the university. The proposed fine was the largest ever issued by the department against a university. University President Brian Mueller welcomed the decision to rescind the fine. "The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students, and we appreciate the recognition that those accusations were without merit," Mueller said in a statement. Harvard University President Takes 25% Pay Cut Amid Trump Administration Funding Freeze "GCU is a leader in innovation, transparency and best practices in higher education and we look forward to working cooperatively with the Department in the future – just as we have with all regulatory agencies," he continued. Read On The Fox News App The fine was imposed in October 2023 after the federal government reported that an investigation found that 78% of doctoral students who graduated between 2017 and 2022 required additional courses and incurred additional costs of at least $10,000 to complete their programs. The university appealed the fine the following month, with Mueller accusing the federal government of being "out of control" and targeting one of the largest Christian universities in the country, according to a statement at the time. Mueller also said in a speech at the time that the fine was "ridiculous" and noted that another top Christian university, Liberty University, was reportedly being threatened with a $37 million fine for allegedly underreporting crimes. Trump Title Ix Team Probing Education Chief Who Called It 'Inaccurate' To Say There Are Only Boys And Girls "It's interesting, isn't it, that the two largest Christian universities in the country, this one and Liberty University, are both being fined almost the identical amount at almost the identical time?" he said. "Now is there a cause and effect there? I don't know. But it's a fact." The Department of Education's move to rescind the fine ends a yearslong legal battle for the article source: Education Department rescinds record $37 million fine against Grand Canyon University: 'Wrongly accused'
Fox News
19-05-2025
- Politics
- Fox News
Education Department rescinds record $37 million fine against Grand Canyon University: 'Wrongly accused'
Print Close By Landon Mion Published May 19, 2025 The U.S. Department of Education has rescinded a $37.7 million fine, with prejudice, against Grand Canyon University for alleged deceptive practices, according to the university. The proposed fine was the largest ever issued by the department against a university. University President Brian Mueller welcomed the decision to rescind the fine. "The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students, and we appreciate the recognition that those accusations were without merit," Mueller said in a statement. HARVARD UNIVERSITY PRESIDENT TAKES 25% PAY CUT AMID TRUMP ADMINISTRATION FUNDING FREEZE "GCU is a leader in innovation, transparency and best practices in higher education and we look forward to working cooperatively with the Department in the future – just as we have with all regulatory agencies," he continued. The fine was imposed in October 2023 after the federal government reported that an investigation found that 78% of doctoral students who graduated between 2017 and 2022 required additional courses and incurred additional costs of at least $10,000 to complete their programs. The university appealed the fine the following month, with Mueller accusing the federal government of being "out of control" and targeting one of the largest Christian universities in the country, according to a statement at the time. Mueller also said in a speech at the time that the fine was "ridiculous" and noted that another top Christian university, Liberty University, was reportedly being threatened with a $37 million fine for allegedly underreporting crimes. TRUMP TITLE IX TEAM PROBING EDUCATION CHIEF WHO CALLED IT 'INACCURATE' TO SAY THERE ARE ONLY BOYS AND GIRLS CLICK HERE TO GET THE FOX NEWS APP "It's interesting, isn't it, that the two largest Christian universities in the country, this one and Liberty University, are both being fined almost the identical amount at almost the identical time?" he said. "Now is there a cause and effect there? I don't know. But it's a fact." The Department of Education's move to rescind the fine ends a yearslong legal battle for the university. Print Close URL
