Grand Canyon University, a Christian school based in Phoenix, is facing the largest fine of its kind ever handed down by the U.S. Department of Education.
The federal government alleges that Grand Canyon University “misled students about the cost of its graduate programs” and must therefore pay $37.7 million and satisfy a number of other conditions in order to keep receiving federal education funds, according to The Associated Press.
In a statement, Grand Canyon leaders denied the government’s claims.
“Grand Canyon University categorically denies every accusation in the Department of Education’s statement and will take all measures necessary to defend itself from these false accusations,” the statement said.
What is Grand Canyon University?
Grand Canyon University is a private, Christian higher education institution. It’s based in Phoenix, but most of its nearly 100,000 students take part in online programs, The Associated Press reported.
“The university enrolls roughly 20,000 students at its campus in Phoenix,” the article said. “It enrolled 80,000 students in online programs as of 2021, with a roughly even split between undergrad and graduate programs.”
On its website, Grand Canyon markets itself as a Christian school working to meet the needs of a wide variety of students.
“We provide a quality education from the context of our Christian heritage for both traditional students as well as working professionals. To help our students find their purpose and achieve their full potential, we integrate our biblical worldview into everything we do,” the website says.
Grand Canyon University tuition
The Grand Canyon University website notes that school leaders try to keep tuition costs “competitive” and “affordable.” It advertises scholarship options, as well as the opportunity to apply for federal financial aid.
The information Grand Canyon University provided certain students on school costs is what got the school in trouble with the Education Department. Biden administration officials say that “Grand Canyon lied to more than 7,500 current and former students about the cost of its doctoral programs,” according to The Associated Press.
The school reportedly told prospective students that a doctoral degree would cost between $40,000 and $49,000. In reality, additional costs tied to required courses led most students to pay much more.
“The department found that less than 2% of graduates completed programs within the ($40,000-49,000) range, with 78% paying an additional $10,000 to $12,000,” The Associated Press reported.
In its statement, Grand Canyon University described these accusations as “frivolous.”
Grand Canyon University lawsuit
Ahead of the announcement of the $37.7 million fine, Grand Canyon University issued a separate statement in early October alleging that three federal agencies were unfairly targeting its work, according to Inside Higher Ed.
This earlier statement suggested that government officials were retaliating against Grand Canyon for filing a lawsuit in 2021 over the government’s refusal to allow the school to switch from a for-profit to a nonprofit institution.
“While we have taken the high road and continuously worked cooperatively and professionally with these individuals over the past five years, given their clear motivations and recent actions, we can no longer stay silent and allow their coordinated efforts to impugn the reputation of this university and the many faculty and staff who go above and beyond to ensure we provide the best possible service to our students,” the statement said, according to Inside Higher Ed.
The Oct. 5 statement highlighted investigations by the Education Department, the Federal Trade Commission and a state office associated with the Department of Veterans Affairs.
In its new statement about the fine, Grand Canyon again accused the federal government of unfairly targeting its work.
“This speaks volumes about their agenda-driven motivation to bring harm to the university and the coordinated efforts being taken against GCU,” the school said.
Grand Canyon leaders have until 20 days after the fine was imposed to “request a hearing with the Education Department’s Office of Hearings and Appeals or submit written material” explaining why the fine should be revoked, per USA Today.