Record $37 million fine against Grand Canyon University rescinded by Department of Education
GCU announces Department of Education rescinds fine
A record fine of $37.7 million levied against Grand Canyon University by the Department of Education in 2023 has been rescinded by the new administration.
PHOENIX - A record $37.7 million fine against Grand Canyon University for deceptive practices has been rescinded by the U.S Department of Education.
The university announced the reversal in a release on May 16.
The backstory:
It was set to be the largest fine ever issued by the Department of Education against a university.
The DOE justified the fine by claiming the university used deceptive advertising practices to trick students into thinking the cost of a doctoral degree would be less than the actual cost.
The fine was levied on Oct. 31 after an investigation found 78% of graduates paid an additional $10,000 to complete their graduate programs.
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Grand Canyon University President speaks out ahead of federal fine appeal
The head of Grand Canyon University is vowing to fight all the way to the U.S. Supreme Court, weeks after the university was fined millions of dollars by federal officials.
What they're saying:
GCU President Brian Mueller says the dismissal was welcome news after appealing the decision in November 2023.
"The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students and we appreciate the recognition that those accusations were without merit," Mueller said.
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Grand Canyon University, federal officials spar again over multimillion-dollar fine
Officials with Grand Canyon University and the U.S. Department of Education have engaged in a war of words once again over the cost of attendance for some of the private Christian university's doctoral programs.
Dig deeper:
At the time the fine was levied, Mueller called the actions "ridiculous" and questioned if the school was targeted because it is the nation's second-largest Christian university. At the time, Liberty University was being threatened with a similar fine.
"It’s interesting, isn’t it, that the two largest Christian universities in the country, this one and Liberty University, are both being fined almost the identical amount at almost the identical time?" he said. "Now is there a cause and effect there? I don’t know. But it’s a fact," he said.
The decision ends a years-long legal battle for the university, which enrolled a record 125,000 students in the 2023-24 school year.
The university is located near the intersection of Camelback Road and 35th Avenue.