Record $37 million fine against Grand Canyon University rescinded by Department of Education
The Brief
Grand Canyon University announced the Department of Education has rescinded its $37 million fine against the university for deceptive practices.
The fine was the largest ever issued by the DOE against a single university.
GCU was originally accused of misrepresenting the actual cost of doctoral programs, causing students to pay more than $10,000 than originally advertised.
PHOENIX - A record $37.7 million fine against Grand Canyon University for deceptive practices has been rescinded by the U.S Department of Education.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.
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.
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.
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