Federal Fine Against Grand Canyon University Rescinded, University Vindicated

PHOENIX, Arizona – The U.S. Department of Education (ED) has rescinded a proposed fine of $37.7 million against Grand Canyon University (GCU), exonerating the institution of any alleged wrongdoing. The fine, characterized as the largest ever imposed on a university, was announced in October 2023.

In a Joint Stipulation of Dismissal order issued by ED’s Office of Hearings and Appeals, the Department stated that it had not established any violation of Title IV requirements by GCU. This included the specific allegation that GCU “substantially misrepresented” the costs of its doctoral programs, which had been claimed during the Biden Administration.

The formal dismissal emphasized, “there are no findings against GCU, or any of its employees, officers, agents, or contractors, and no fine is imposed.” GCU President Brian Mueller expressed relief over the dismissal, declaring the university was always innocent of the allegations. “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,” said Mueller.

The allegations against GCU suggested that the university misled more than 7,500 current and former students regarding the actual costs of obtaining a doctoral degree. According to the Department, less than 2% of graduates completed the program at the advertised costs, leading to accusations of false advertising.

In its defense, GCU filed an appeal contesting the fine and argued that the accusations stemmed from mischaracterizations based on out-of-context statements from enrollment documents. GCU insisted it provides ample and clear information regarding costs and course requirements to its students.

The rescission follows recent legal victories for GCU, as other courts and regulatory bodies have similarly dismissed claims against the university. GCU officials highlighted that this dismissal aligns with refusals from several entities, including two federal courts and the Higher Learning Commission, regarding allegations of misrepresentation.

While GCU has been cleared of wrongdoing concerning the proposed fine, an ongoing lawsuit involving Grand Canyon Education, a separate for-profit entity providing services to GCU, continues. The lawsuit centers around similar allegations the university has vehemently denied.

Mueller maintained that GCU will continue to defend its practices and fight against any legal actions perceived as unjust. “GCU is a leader in innovation, transparency and best practices in higher education, and we look forward to working cooperatively with the Department in the future,” he added.