Grand Canyon University fined $37.7M for deceiving students about cost of doctoral degrees

The federal Education Department will fine Arizona-based Grand Canyon University $37.7 million for "deceiving" students in its marketing of doctoral degrees, officials announced Tuesday.

The news comes after GCU President Brian Mueller publicly aired grievances with the investigation in early October, accusing the Education Department 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 federal Education Department over the school's efforts to regain its nonprofit status. GCU is one of the largest private Christian universities in the country.

On Tuesday, federal regulators pushed back on that narrative. They said their investigation determined that GCU misrepresented the cost of its doctoral degrees, with most students paying thousands of dollars more than the advertised cost.

Fewer than 2% of students who graduated from GCU's doctoral programs requiring dissertations paid the amount the university advertised as the total cost, federal regulators said.

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Largest-ever fine of its kind

The fine is the largest of its kind ever levied by the department, according to federal officials. The agency has also added new terms to an agreement that allows GCU to participate in federal student aid programs, including a provision that will require the school to engage a monitor to ensure that its advertising complies with federal law.

“GCU lied about the cost of its doctoral programs to attract students to enroll,” said Richard Cordray, the U.S. Department of Education's Federal Student Aid chief operating officer. “FSA takes its oversight responsibilities seriously. GCU’s lies harmed students, broke their trust, and led to unexpectedly high levels of student debt. Today, we are holding GCU accountable for its actions, protecting students and taxpayers, and upholding the integrity of the federal student aid programs.”

In a statement, GCU said it "categorically denies every accusation in the Department of Education’s statement and will take all measures necessary to defend itself from these false accusations." It reiterated that it has previously refuted the investigation's findings and said the fine "is further evidence of the coordinated and unjust actions the federal government is taking against the largest Christian university in the country."

GCU also has said it provides more disclosure than legally required, pointing to tools such as its online degree program calculator.

Grand Canyon University is the largest recipient of federal financial aid dollars, taking in more than $1 billion during the 2020-21 academic year, federal records show. The university said in August that it would enroll more than 118,000 students this year, with 25,800 studying in person and another enrolled 92,000 online.

During a hastily scheduled employee meeting in early October, he encouraged staff and others affiliated with the school to contact federal lawmakers in the university's defense.

Several Republican state lawmakers last week sent a letter to the Education Department accusing it of conducting a "witch hunt against Christian education."

GCU has 20 days to request a hearing with the Education Department’s Office of Hearings and Appeals or submit written material indicating why the fine should not be imposed.

In addition to the fine, the Department imposed specific conditions on the school to continue participating in the federal student aid programs.

'Unjustly target': Grand Canyon University, to combat advertising investigation, appeals to staff

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: Grand Canyon University fined for understating cost of certain degrees