'Government overreach': GCU to appeal fine from feds over marketing of doctoral degrees

Grand Canyon University officials say they're appealing a $37.7 million fine leveraged by the U.S. Department of Education after an investigation into the school's marketing of doctoral degrees.

"Of course we're going to appeal this," GCU President Brian Mueller said at a Thursday news conference. "This is government overreach."

It is the latest chapter in a saga that began when Mueller publicly aired grievances with the investigation in early October, accusing the Department of Education of coordinating with other federal agencies to "unjustly target" his school.

School officials suggested the agencies' actions were related to the school's religious affiliation and a yearslong dispute between GCU and the Department of Education over the school's efforts to regain its nonprofit status. GCU is one of the largest private Christian universities in the country.

"First question I get asked is: 'Is this religious?'" Mueller said on Thursday. "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 an identical amount at almost an identical time. Is there cause and effect? I don't know. That's a fact, though."

But federal regulators pushed back on that narrative. While announcing it would fine GCU, the agency said its investigation determined the university misrepresented the cost of its doctoral degrees, with most students paying thousands of dollars more than the advertised cost. Regulators accused GCU of purposefully "deceiving" its students.

“GCU’s lies harmed students, broke their trust and led to unexpectedly high levels of student debt," Richard Cordray, federal student aid chief operating officer, said last month. "We are holding GCU accountable for its actions, protecting students and taxpayers, and upholding the integrity of the federal student aid programs.”

The fine is the largest of its kind ever levied in the Department of Education's history, federal officials said. The agency also added new terms to an agreement that allows GCU to participate in federal student aid programs.

The additional provisions include a requirement that the school engage a monitor to ensure that its advertising complies with federal law. GCU also must report any other investigations or lawsuits to the agency and must notify current doctoral students of how to submit a complaint to federal officials.

The school continues to deny it did anything wrong. Mueller said GCU leads the higher education industry in transparency and cost disclosures, pointing to tools such as the school's online degree program calculator. He also said the university's cost disclosures have previously been upheld in court.

University officials said Thursday they are filing an appeal with the Department of Education, but it's unclear when the agency might make a determination in the matter.

Mueller said school officials would be willing to take the case all the way to the U.S. Supreme Court, if needed.

He said his university could afford to pay the fine if need be, but that it would be a "hardship" and that costs will ultimately trickle down to the university's students.

Amid battle with regulators, GCU continues public cry for help

School officials have encouraged staff and other affiliates to contact lawmakers in the university's defense throughout their dispute with the Department of Education.

That strategy appears to be paying off.

In October, several Republican state lawmakers sent a letter to the Department of Education accusing it of conducting a "witch hunt against Christian education." It was signed by Senate President Warren Petersen and House Speaker Ben Toma, as well as several other lawmakers.

Last week, U.S. Rep. Eli Crane wrote a letter to the Department of Education calling on federal regulators to "immediately rescind this fine." The letter echoed GCU's claims of mistreatment by the agency and accused the regulators of stepping on religious freedom.

It was also signed by U.S. Reps. Debbie Lesko, Paul Gosar and Andy Biggs, Crane said.

"Your Department has been keen to repeal robust protections for religious freedom within your jurisdiction," Crane wrote. "Your Department has not made a compelling case to institute a multi-million dollar fine … and is overreach at best."

The representatives are all Arizona Republicans. None of them attended GCU.

Sasha Hupka covers higher education for The Arizona Republic. Do you have a tip? Reach her at sasha.hupka@arizonarepublic.com. Follow her on X, formerly Twitter: @SashaHupka. Follow her on Instagram or Threads: @sashahupkasnaps.

This article originally appeared on Arizona Republic: GCU to appeal $37.7M fine from Department of Education