Grand Canyon Earnings Up for Q2
On Tuesday, Grand Canyon reported second-quarter profits of $19.1 million or $0.42 per share, up from $15.6 million or $0.35 per share in the same period last year.
In an earnings call with investors, Brian Mueller, CEO, Director, and President of Grand Canyon University, discussed some important statistics:
- In the second quarter of 2013, GCU enrollments grew by 15.2% and revenues by 18.6%, and new enrollments were up in the high-single digits year-over-year.
- For their traditional campus, in the fall of 2012, GCU had approximately 6,500 students and they’ll begin the fall 2013 semester with approximately 8,500 students.
- More than 70% of GCU’s traditional students are from Arizona.
- GCU is planning for over 5,000 new traditional students for the fall of 2014, which will bring total enrollment to approximately 10,500.
A transcript of the call can be found here.
College Enrollments Drop Even as the Economy Recovers
The New York Times ran an article this week that started with the following sentence, “The long enrollment boom that swelled American colleges — and helped drive up their prices — is over, with grim implications for many schools.”
The article went on to report that that college enrollment in 2012-13 fell 2 percent, the first significant decline since the 1990s and that nearly the entire drop hit for-profit and community colleges.
“There are many institutions that are on the margin, economically, and are very concerned about keeping their doors open if they can’t hit their enrollment numbers,” said David A. Hawkins, the director of public policy and research at the National Association for College Admission Counseling, which has more than 1,000 member colleges. Many colleges fear that their high prices and the concern over rising student debt are turning people away.
On Wednesday, President Obama again reached out to colleges challenging them to rein in their tuition increases. More can be found here.
Higher Ed Groups Say No to Plan to Expand Loan Data System
The Department of Education has proposed to expand the scope and reach of its database for student aid, which a group of higher education associations have argued would violate federal law and distort the database’s purposes.
The American Council on Education on behalf of the seven other groups sent a letter to the DoE in response to a request for comment published in the Federal Register in June.
The letter argues that some of the department’s goals are appropriately tied to the database’s original purpose, but it questions a plan to modify legal provisions related to gainful employment programs to collect information about students who do not receive federal financial aid.
A copy of the letter can be found here.
By Marc Apple