Grand Canyon University battles $37.7M federal fine, refutes allegations of misleading students about program costs
PHOENIX, ARIZONA: Grand Canyon University (GCU), recognized as the largest Christian university in the nation, is planning on contesting a hefty fine of $37.7 million levied by the Department of Education.
The federal authorities reportedly levied the fine based on an investigation conducted by the office of Federal Student Aid (FSA), which accused the university of providing misleading information to more than 7,500 students regarding the expenses of its graduate programs, per Fox Business.
Who runs Grand Canyon University?
Brian Mueller has been the President of the Grand Canyon University (GCU) since July 2008. He is also the CEO of Grand Canyon Education Inc. A graduate of Concordia University, Nebraska, Mueller holds a Master's degree in education. Before joining Grand Canyon University, he held 22 years of experience at the Apollo Education Group, where he was previously President.
What are the allegations against Grand Canyon University?
On October 31, the Education Department imposed a fine on Grand Canyon University following an investigation.
The investigation revealed that the university had misrepresented the cost of its doctoral programs to over 7,500 current and former students.
Dating back to 2017, the university had informed students that the cost of its doctoral programs would range between $40,000 and $49,000. However, the department’s findings indicated that less than 2% of graduates managed to complete their programs within this cost range.
In fact, 78% of students reportedly ended up paying an additional $10,000 to $12,000, per AP News. The department indicated that the extra expenses often stemmed from "continuation courses" that were necessary to meet the dissertation requirements.
What did the president of Grand Canyon University say?
Grand Canyon University, which boasts an enrollment of over 100,000 students primarily in online programs, has announced its intention to file an appeal with the Education Department on Thursday.
The Phoenix-based institution has stated that it is prepared to initiate a federal lawsuit should the appeal be unsuccessful.
In a speech that spanned 40 minutes, University President Brian Mueller labeled the fine as "ridiculous" and raised questions about whether the institution is being singled out due to its religious affiliation.
He drew attention to the fact that Liberty University, the second-largest Christian university in the nation, is reportedly facing a fine of $37 million over alleged underreporting of crimes.
"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 stated.
He added, "Now is there a cause and effect there? I don't know. But it's a fact."
President Brian Mueller denies wrongdoing
Mueller has categorically denied any misconduct. He asserted that students were provided with disclosures about continuation courses and other associated costs. He further stated that there is no evidence of any "nefarious" activities.
He alleged, "There’s a group of people in Washington, DC, that has every intention to harm us."
Grand Canyon University had previously expressed that they were being targeted by federal agencies. They reportedly believe it was retaliation for the school's lawsuit against the Education Department in 2021.
Federal agencies likely targeted Grand Canyon University
Grand Canyon University had previously expressed that it was being targeted by federal agencies in retaliation for an ongoing lawsuit that the school had filed against the Education Department in 2021.
The university had filed a lawsuit after its request to be reclassified as a nonprofit college was denied by the department.
Grand Canyon University had transitioned to a for-profit institution in 2004 when it was rescued from financial ruin by investors.
In 2018, it sought to revert to its nonprofit status, but this move was blocked by the Trump administration, which argued that the university maintained a close relationship with its former parent company.
Despite this, the university is recognized as a nonprofit by its accreditor and the Internal Revenue Service.
Grand Canyon University has a student population of approximately 20,000 at its Phoenix campus. However, the majority of its students are enrolled in online classes and are located outside of Arizona. As of 2021, the university had 80,000 students enrolled in its online programs, per AP News.
