Grand Canyon University (GCU) is on the offensive, challenging a hefty federal fine and accusations of misleading students about doctoral program costs. Schools' officials, fueled by a favorable state audit, are refusing to pay up and are making moves to appeal to the highest court if necessary.
In October last year, the U.S. Education Department hit the Phoenix-based institution with a $37 million fine following claims that more than 7,500 students were duped on pricing details, as per a report obtained by FOX 10 Phoenix. Contrariwise, GCU stands firm, with president Brian Mueller labeling the fine as "ridiculous." He suggested the school, known for its online programs attracting over 100,000 pupils, might be in the government's crosshairs due to its religious affiliation.
The Arizona State Approving Agency of the Department of Veterans Services recently carried out an audit yielding zero misconduct on GCU's part. Mueller, in a statement to FOX 10, contested the Education Department's actions, deeming them nonsensical. This audit was catalyzed by the lawsuit against the university over alleged deceptive marketing tactics.
Adding fuel to the controversy, Mueller underscored in a 40-minute speech that GCU, heralded as the nation's largest Christian university, and Liberty University, the second largest, are both facing steep fines of nearly identical amounts at similar times. "It’s interesting, isn’t it," Mueller told FOX 10 Phoenix, questioning the timing and implying possible targeting due to their faith-based statuses. The school is ramping up its legal team, enlisting a former solicitor general renowned for Supreme Court cases, in hopes of overturning the ruling.
Grand Canyon University's saga with the federal government traces to previous clashes, including a lawsuit against the Education Department in 2021 over nonprofit status denial. Although classified as a nonprofit by its accreditor and the IRS, the Education Department's 2018 decision hindered GCU's transition from its for-profit incarnation. The battle continues as GCU prepares to bring its case to the nation's top court if its appeal falls flat in the face of federal scrutiny.
