And when you — back to your 20% increase, that seems dramatic given what we’ve done in the last year. But remember, we started over 6,000 students in these pre-recourses. And so the students being able to access those courses anywhere in the country and largely take them without the help of financial aid or without taking loans is another huge step in the right direction. If we can get 19, 20 and 21 year old students to understand that they can do the necessary academic work to prepare them without debt and they haven’t already accumulated debt from a previous baccalaureate program, the investment in the ABSN program makes unbelievable amount of sense given the number of — given the money they will make in their career as a nurse. And the shortages and all of that.
So we think we’ve turned the corner from the standpoint of the hybrid programs, and we’re very excited about where it’s going in the future.
Alex Paris: That’s great. And then, obviously, there’s a lag between new student enrollment and total student enrollment, although we expect total enrollment to be up in the first quarter. Yet, Dan, I think you said that you expect the hybrid pillar to still lose money in 2024. What level of revenue do we need or what level of enrollment do we need for it to break even? And do you expect it to be breakeven or better in 2025?
Daniel Bachus: We’re hopeful. I mean, we expect a significant decrease in the loss between ’23 and ’24, and we’re hopeful it will get back to profitability in ’25. The key, as I mentioned earlier, is to get these mature locations that were at capacity, pre-COVID and have seen significant declines in their enrollments back to or close to capacity. And so we’re obviously very focused on that, working along with our university partners and the things that Brian talked about. We’re on our way, but we have work to do to get those mature locations back to capacity.
Alex Paris: Great. And then last question, unrelated. CAFTA [ph]. Brian, I think you said that you’re watching it most closely for the ground campus. Why is it less of a concern for the online students or the hybrid students?
Brian Mueller: I guess I shouldn’t say it’s less concern. But it doesn’t — the — our ability to work with online students given the delays in FASA [ph] is easier than it is with ground students who are first-time students entering college, coming from backgrounds where their parents haven’t gone to college, understood college and that kind of thing. There’s just a little bit of — there’s a greater amount of uncertainty with the traditional ground students versus online students. And then in addition to that, remember that 50% of our online students are grad students and not eligible for grant anyway.
Alex Paris: Got you. That’s helpful. And then does it also — is it also easier with online students because of the frequent starts? So if you miss a start, you don’t have to wait an entire semester to enroll that student and risk losing that student in the interim?
Brian Mueller: That’s part of it, too. Yes, that is part of it.
Alex Paris: Great. Well, thanks for the color, guys. Appreciate it.
Daniel Bachus: Yes. Thank you. We’ve reached the end of our fourth quarter conference call. We appreciate your time and interest in Grand Canyon Education. If you still have questions, please contact myself, Dan Bachus. Thank you.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
