US Department of Education drops record $37.7 million fine against Grand Canyon University

Time of India

21-05-2025

Grand Canyon University cleared in record US education fine reversal. (AI Image)
In a major development for higher education in the US, the Department of Education has rescinded a $37.7 million fine previously levied against
Grand Canyon University
(GCU), the nation's largest
Christian university
. The decision was made official through a Joint Stipulation of Dismissal issued by the Office of Hearings and Appeals, which concluded that there were no findings against GCU or its employees, and no fine would be imposed.
The fine was originally described as the largest in the department's history. GCU announced the outcome through a press release, stating that the ruling fully cleared the institution of any wrongdoing and closed a years-long legal dispute with the federal agency.
Background of the record-breaking fine
The Department of Education had accused GCU of misleading more than 7,500 students regarding the actual cost of its doctoral programs.
According to the agency, the university advertised tuition ranges between $40,000 and $49,000, though fewer than 2% of graduates completed their programs within that price range. The department cited additional required 'continuation courses' as a factor that pushed costs higher, often by $10,000 to $12,000.
GCU strongly denied the allegations, maintaining that it clearly disclosed all tuition-related information. GCU President
Brian Mueller
, as quoted by Christian Post, stated, '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.'
Claims of bias against Christian institutions
M
ueller has previously argued that the fine was part of a larger pattern of unfair targeting of Christian universities by federal agencies. In comments reported by Christian Post, he noted that GCU has been widely recognized for transparency, saying, 'We give the cost of the entire program to students up front at all three levels — bachelor's, master's and doctoral.'
He also highlighted discrepancies in penalties against institutions, pointing out that the fines imposed on GCU and another Christian university dwarfed penalties issued to major public universities involved in high-profile abuse scandals.
According to data cited by the American Principles Project, Christian colleges — though they serve fewer than 10% of US students — account for about 70% of the enforcement actions by the Department's Office of Enforcement.
The average fine against Christian schools was reported to be significantly higher than that for non-religious institutions.
GCU faces additional scrutiny
Following the original fine, GCU was also targeted by a Federal Trade Commission lawsuit and an audit by the Department of Veterans Affairs. As reported by Christian Post, the lawsuit was later dismissed by the US District Court of Arizona, which ruled that the FTC lacked jurisdiction over GCU.
A department spokesperson, quoted by Christian Post, contrasted the current administration's approach with that of the previous one, stating that the Trump administration would not target institutions based on religious affiliation, and enforcement would be based strictly on facts and fairness.
Founded by the Southern Baptist Convention, GCU transitioned to a for-profit model amid financial challenges and has since become the largest Christian university in the country by enrollment. The university continues to position itself as a leader in transparency and innovation in higher education.
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