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Grand Canyon Education has signed a nonbinding agreement to provide online program management services to Valparaiso University, a private institution in Indiana.
A memorandum of understanding published this week outlines two agreements -- one between the university and Grand Canyon Education to create and manage online graduate programs, and a separate agreement between the university and Orbis Education to create and manage hybrid in-person and online nursing and health-care programs. Orbis is an OPM company that focuses on health-care education and was acquired by Grand Canyon Education in 2018. Orbis currently has 25 university partners.
The deal is notable, as Valparaiso would be the first OPM customer of Grand Canyon Education outside of the Orbis subsidiary aside from Grand Canyon University. Grand Canyon University maintains a close business relationship and shared leadership with Grand Canyon Education. Brian Mueller is both president of Grand Canyon University and CEO of Grand Canyon Education.
Grand Canyon University split into two entities in 2018 -- creating a new nonprofit university that turns over 60 percent of its tuition to for-profit Grand Canyon Education in exchange for a broad range of support services. The nonprofit conversion bid was approved by the IRS, the state of Arizona and the Higher Learning Commission in 2018. But a 2019 report by the U.S. Department of Education ruled that Grand Canyon University was still a for-profit institution for purposes of federal funding due to "obviously conflicting loyalties."
Note: This article has been updated.
