What happened

Shares of Grand Canyon Education (NASDAQ:LOPE) fell more than 15% on Wednesday, on concerns that new rules from the Department of Education will hurt its customers' ability to receive financial aid.

So what

A recent announcement by the Department of Education made students living in California who are enrolled in online programs at nonprofit colleges and universities located in other states ineligible for federal financial aid. The move could affect thousands of California students. 

Analysts at Baird expect the Department of Education's decision to hurt Grand Canyon Education's revenue in 2019. However, Baird maintained its outperform rating on the stock despite the potential revenue shortfall. 

A person pointing to a falling stock chart

Image source: Getty Images.

Now what

Investors can expect to hear an update on this situation from management when Grand Canyon Education reports its second-quarter results after the market close on Aug. 6, as well as during the company's subsequent conference call at 4:30 p.m. EDT that same day.