What is Grand Canyon University?

The university is one of the foundations of liberal Western Civilization. The concept of academic freedom originated at the University of Bologna in 1158. The University of Paris and University of Oxford were among the earliest institutions of higher learning. In America, Harvard was established in 1636. The United States typically had three types: private, church originated (the University of Southern California was affiliated with the Methodist Church), and those established by states. A very different Republican Party passed legislation in the 19th century for land-grant colleges and universities.

This landscape existed through most of American history. In addition, states created normal schools to train teachers — most became universities, the most notable being Arizona State University. Many also created institutions of higher learning for African-Americans. Beyond this, communities had junior colleges — Phoenix College was founded in 1920 — which morphed into community colleges. And entrepreneurs set up business schools or "colleges" to teach such basic skills as typing and bookkeeping. But this latter operation was a trade school, not a university.

When I was young, Grand Canyon College was a small liberal-arts Southern Baptist institution. It was the only other four-year or higher institution in metropolitan Phoenix besides ASU. Phoenix is by far the largest American city with so few real colleges and universities. This is a major drag on the metro's intellectual, research, and talent-attracting life. One cause is that Phoenix came of age after the era when wealthy patrons established universities (E.g. the University of Chicago, backed by John D. Rockefeller in 1890). The Church of Jesus Christ of Latter-day Saints bought land for a Brigham Young University in Phoenix in the 1960s but it was never built.

Now the Baptist affiliation is long gone and we have Grand Canyon University. But, as a former editor of mine was fond of saying, what does that mean? 

The term university has gradually been stretched so far as to lose its meaning. The most notable example is the University of Phoenix, founded in 1976 by John Sperling. At one time, this would have been a simple business school. Sperling built it into a nationwide empire that even confers doctoral degrees. Sperling — who became wildly rich but did virtually no philanthropy for his company's namesake city — and his imitators added to their reach by being online early.

But were these really universities, providing a universal liberal education? How could an online graduate have benefited from the mind-expanding experience of being on a diverse campus and facing rigorous classroom and library work? Were these "universities" producing citizens with critical thinking abilities and liberal (I don't mean it in the political way) sensibilities as had always been one of their essential functions?

As far as I can tell, these for-profit outfits were tricked-out business schools churning out round pegs to fit in round holes in corporate America, giving a whole new meaning to "diploma mill." One University of Phoenix pamphlet showed the institution's library — but such didn't exist. The company used an image of the ASU West Fletcher Library.

The biggest cause of explosive growth in this industry was the availability of enormous amounts of federal student loans.  Even so, graduation rates were poor and defaults high. These for-profit schools were often expensive, but marketed themselves aggressively and were gold mines for investors and owners. Scandals and fraud allegations abounded. Predatory abuses caused investigations and lawsuits. Students from real public institutions consistently outperform those who fell for the for-profit scheme. The Obama administration targeted the worst scams. But the sector hopes for better treatment from Trump — and the anti-fraud unit is indeed being disbanded.

Back to Phoenix's little Baptist liberal arts college. In 2004, it was sold to Significant Education LLC, a unit of an investment management firm out of Solona Beach, north of San Diego. The founder, Michael Clifford, is a venture capitalist, professed Christian and has operated a web of different companies. Yet Clifford and his for-profit schools have faced criticism and regulatory scrutiny. Grand Canyon University was both intended to be Christian and make money. In 2010, it's corporate parent paid $5.2 million to settle a lawsuit over recruiter pay practices.

And yet, unlike enterprises such as the UofP, Grand Canyon has a real campus, having used a huge capital infusion to build out its campus at 3300 W. Camelback (totally car dependent, of course, and far from urban amenities). It has new classrooms, student housing, an arena, and a stadium. Its teams compete in the Western Athletic Conference (the old home of ASU and UA), where every other member is a traditional institution of higher learning.

GCU claims to offer 220 degree and certificate programs and has grown from less than 1,000 to a student body of more than 90,000, including almost 19,000 at the main campus. It has a college of fine arts and a hotel. But, as far as I can tell, it lacks a university library. Jerry Colangelo is honored by GCU. Now the company/entity/university is going back to non-profit status. Parent Grand Canyon Education Inc. trades on the Nasdaq, share prices doubling since 2016. If I understand the deal, it would separate the main GCU from the parent, with the parent acting "as a third-party provider of services to Grand Canyon University."

I'm sure this carries benefits for investors, especially in the age of Trump. And it's part of the alternative education infrastructure that's been erected by the right, which claims to despise higher education. Liberty University is the leading example of using federal loans and the hard sell to build a "Christian" higher-ed empire (as opposed to church affiliated institutions such as Baylor or Southern Methodist University). And GCU is part of this new firmament. But is it what Americans historically considered a real university? I think the answer matters.

[Postscript] In November 2019, the federal Department of Education denied GCU's non-profit status, concluding it is a "captive client" of a for-profit company operating mostly for the benefit of its shareholders.

[Postscript II] On May 28th, 2020, the Arizona Republic reported that "A lawsuit filed by a Florida pension plan alleges that Phoenix-based Grand Canyon Education Inc. artificially inflated its stock price through financial dealings with a university that it continued to control even after selling the institution."

 

 

 

 

Comments

[Ex Phx Planner]

GCU probably pays around $7M-10M per year in property taxes on their campus. If they are a non-profit, they pay zero. Not sure if this is a lot of money for them or not, but is one benefit (and of course another loss for the impoverished governments in AZ).

I suspect it's also an optics/PR move as potential students become more suspicious of for-profit universities.

[Ruben]

They've grown too big, too fast. Their nursing program, once one of the best, has been put on notice to improve or else. Too large a percentage of their graduates are unable to pass the state licensing exam.

why is it when you mix religion and education, the chase for the $$$$$ becomes the major focus. .???

[Cal Lash]

John Calvin of course. And the spawn of Elmer Gantry.

[B. Franklin]

Exactly.

Like the man says:

"Now I ply my trade in the land of king dollar
Where you get paid and your silence passes as honor
And all the hatred and dirty little lies
Been written off the books and into decent men's eyes."

[Emily Long]

I remember hearing at the time Clifford purchased GCU, that he gave himself an Honorary Doctorate! I also heard that he did not have a college degree. Wonder if this is true?

[Sanjeev Ramchandra]

Restructure the Arizona University System to provide greater accessibility, affordability, and accountability to a public university education for many more Arizonans:

http://PSUandAzTech.blogspot.com

[Mike Doughty]

In my experience of business,there are streakers and plodders.When a streaker grows much faster than everybody else,there is usually a illegal or illogical reason for it.Put your money on the plodder.There are no shortcuts to success.

[Rob Spindler]

Then there was the spat between ASU's Michael Crow and GCU over admission to NCAA Division I athletics. Crow's question was whether a for-profit should be admitted to NCAA DIV1, but one suspects there were lots of other issues at play here, not the least of which was competition between the GCU and ASU online education programs. We're competing while we are not competing. https://www.azcentral.com/story/sports/heat-index/2017/08/17/gcu-president-brian-mueller-blasts-asu-president-michael-crow-remarks-z/576023001/

[Hamblin]

I got my M.A. at Grand Canyon in 1996 when it was still College, not University. Tuition was high, I had student loans, some teachers still prayed befor the start of class. The best part? Class sizes were small.....my largest was maybe 80, my smallest 1........me.

It is VERY different now.....not sure it’s better, but it’s different.

[Russell]

@Reubin: Nursing school is doing great.

https://news.gcu.edu/2018/07/nursing-students-post-stellar-licensure-exam-rating/

@Hamblin: the largest classes on campus are still less than 100.

[Matt Mendenhall]

I'm not particularly a fan of what I call the corporate Jesus school, but I will say this. No other entity has bothered to invest in redevelopment of the area at this scale. GCU's recent and very visible expansion in the Camelback corridor between I-17 and 35th Avenue has cut crime and added some new architecture of substance to what was the 'hood. I have driven through this area for 20 years daily to work, and there's no denying the physical change for the better. So as I pass it each day, it is with mixed feelings.

[Will]

GCU was granted non-profit status before this article was published.

[Will]

My apologies, they were granted nonprofit status one month after this was published.