Day before they were announced, Grand Canyon University announced that they are evaluating and seriously considering becoming a non-profit entity. The reason as stated: "the stigma of for-profit." The recently released gainful employment rules will strangle the remaining for-profits. Grand Canyon University is clearly the most successful financially of all the industry, and they essentially state it is not a growth future. When a for-profit goes to non-profit, it results in mass layoffs of enrollment staff and corporate office positions immediately...followed but a right sizing of remaining staff over time. The industry is dead, mass layoffs have been happening at all schools for over three years. Even in the unlikely event of a sale, the buyer will not need an army of telemarketers because I do not seeing them being a for-profit given the new rules and the composition of the CCI student base. Remaining enrollment staff will be eliminated and replaced by customer service reps who will be paid call center wages (I.e $15-$17 an hour.). Academic and Finance staff will be right sized over time as the student population falls. If you are holding on to hope ECMC is going to save you, you are in for a shitty holiday season. The industry is dead, you need to move on.
27 replies (most recent on top)
Oh 272, another brave asshole behind a keyboard. You keyboard insulters are the ones that need to grow up. When someone has the nerve to insult someone they better have the balls to back it up.
Hey 261, big words from a keyboard ranger. When one had to resort to violence it only unmasks just how unintelligent they truly are. How about you grow up and post here after you have passed puberty.
@257...Right on, you nailed the target.
It is not true unless Kamden Kid posts it, lol.
Have at it trolls.
Give it a rest, 261. There are losers and lovers and self proclaimed execs here. Don't be an asshole. Jack and his crooks are doin' it for you.
257, you are very brave insulting people while you sit behind a keyboard. How about we meet face to face and let's see how brave you really are. Let's see if your ass can defend your mouth. You're just a frustrated loser sitting in mommies basement playing on your computer.
The CCI dreamers are worse than I thought. Are they all unemployable outside of CCI? Why stay and pray for a miracle...for months on end..being strung along the whole way by CCI management? It's pathetic, but what do you expect from an organization full of ghetto rats and drug addicts? I guess praying for miracles is better than finding a new job.
48206 - please wear your helmet when you go outside, it seems enough damage has already been done.
I think 206 might be my boss from a couple years ago. He repeated himself over and over then. Now its worse.
48206 is clueless, talking a game it knows nothing about. Gainful employment will not survive this new Congress and will not receive funding to enforce. The real issue in education is universities like North Carolina, who sell athletic scholarships to high school athletes, sign them, and don't fulfill their promise to provide a quality education. We have terrible colleges in this country, not all are for profit
I give up. To those of you who understand the timing of the gainful employment challenge, the context in which it will take place, and the fact that it is expensive to enforce regulations, please straighten out those who can't read. To those of you who don't get it, good luck in the future. God bless our veterans.
sunshine = short investor who likes posting here to brighten everyone's day.
BS. Heald College for many years (30+) before becoming for-profit. Changes in leadership, culture, and goals remained unchanged through this transition. The real cultural change occurred when we became publicly traded. Don't scare people!
They can sue whomever they like. The fact of the matter is that lawsuits take both time and money...things that most in the industry are running very short of. On top of that, the general public doesn't have the greatest respect for the industry and they see it creating more problems then solutions. The OP mentioned GCU as considering non-profit status, which can be verified on the GCU website. Their CEO statement clearly portrays a dire future for the industry. To assume a successful outcome in a lawsuit is also dangerous.
Isn't that right , sunshine.
The OP probably doesn't work anywhere near CCi. Just someone with free time who felt like predicting everyone's future.
Second - it's pretty simple, as you said yourself. The Private and For Profit College trade association announced that it will sue Arne Duncan and DOE over the gainful employment requirement.
48213 I was responding to the OP
218, I think you might be confused about who is suing whom, in what order, and in what contexts.
Second - I think that gainful employment is still a potentially tricky political issue. Everyone's starting on the 2016 campaigns now, and there have been a few trends that have been noted in the last (very successful) round of Republican campaigning: populist issues normally associated with Democrats being used by Repubs. From income inequality to equal pay, they have been co-opting Democrat talking points. Most Americans don't like the idea of students (kids in their minds) graduating from college with high debt and low income opportunities. Gainful Employment is a popular notion, and they are going to have to tread very lightly. I don't know that a big public lawsuit of career colleges against the Dept of Ed will play well to the general public right now.
48213 If you're senior in the company, you would be correct in assuming it is time to move on. You probably shouldn't apply that to everyone though.
OP, is this a repost of something you wrote in June? A few days ago, the Private and For Profit College trade association announced that it will sue Arne Duncan and DOE over the gainful employment requirement. Even if gainful employment survives this well timed challenge, the GOP controlled congress is unlikely to approve funding to (wait for it) ENFORCE COMPLIANCE. Gainful employment has not killed the for profit college sector, despite the fact that CCi's assets have been deemed undesirable even at pennies per share.
(I'm 48209)
48210: If you're talking to me, I'm 99% sure I'm senior to you in the company. I'm not always proud of what I do, but I'm good at it and know the industry.
210 - Hey you lazy douche, why don't you go back to your online porn and leave us alone? What does VP stand for - Vacuous Perv?
Thanks for the report, sunshine. Can you empty the trash bins now please.
I think my issue with ECMC being the most rumored suitor isn't that they're non-profit, it's that they have no experience in running colleges. If they are buying our campuses, I could see them floundering for awhile and keeping a lot of unnecessary (ie management) staff on. I just don't see a long-term positive outcome. Every aspect of CCi's business model and all of our processes are based on profit. High-pressure sales, aggressive retention, high prices, easy grading, then pretending that a clerk position is being placed "in field" and forgetting about them. None of that works in a non-profit model. I've been at non-profits that have tried to adopt some of the career college mentality (eg students as customers), but they are still entirely different worlds with very different governance systems. I can't see CCi as a non-profit being viable, even with a total house cleaning of staff. We don't have much in the way of physical assets. If you get rid of our staff indoctrinated in our culture/shady practices, what do you have left?