TESU/Study.com tuition discount going away July 1, 2020

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It is almost certainly financial. They make money from people taking classes at TESU and they don't make money from people transferring in credits.

True, although there are other ways of raising money that might involve ALL students, and not just the 114-ers. I assume the 114-ers make up a very small percentage of TESUs total enrollment numbers, and if you're looking to make more money, it's almost always better to scrape pennies off the 95% than dollars off the 5%.

I don't know much about how rankings work for US unis, but is there any difference in terms of rankings or reputation or even state funding that might be impacted by students actually taking courses from a uni vs. just getting a degree from a uni?

I suspect it probably is a reputation angle. I wonder what other changes are coming in July.