Elsewhere online
March 08, 2016

For-Profit Grand Canyon University Nixes Nonprofit Shift

The for-profit Grand Canyon University has abondoned plans to convert to a nonprofit, The Chronicle of Higher Education and The Wall Street Journal report. 

In filings with the Securities and Exchange Commission, Arizona-based Grand Canyon Education Inc. said the planned nonprofit institution would have been overly reliant on a separate commercial entity to provide student support and other services. Such outsourcing did not meet the eligibility requirements and criteria of Grand Canyon's accreditor, the Higher Learning Commission.

Grand Canyon, which was founded as nonprofit, began weighing a return to that status in October 2014, citing, among other factors, the increasingly negative perception of for-profit higher education. An analysis conductd by one education researcher last year suggested that for-profit colleges that switched to nonprofit status would actually be "covert for-profits," generating revenue for their backers.