Grand Canyon University Exonerated by U.S. Department of Education
The U.S. Department of Education (ED) has formally rescinded a hefty $37.7 million fine that was imposed on Grand Canyon University (GCU) in 2023. This development is a significant turn of events, as it clears the university of previous allegations made against it concerning misleading claims about the cost of its doctoral programs.
ED spokesperson Ellen Keast addressed this shift, stating, "Unlike the previous Administration, we will not persecute and prosecute colleges and universities based on their religious affiliation." She emphasized that the current approach focuses on accountability and factual enforcement, prioritizing the interests of students over any political biases.
The initial fine stemmed from claims that GCU deceived over 7,500 students regarding their doctoral program expenses, a situation that was described by Richard Cordray, chief operating officer for Federal Student Aid, as causing harm to students, breaking their trust, and leading them to accrue unexpectedly high debt. Cordray remarked in 2023 that the aim was to protect students and taxpayers while maintaining the integrity of federal student aid programs.
However, GCU's recent release asserted that the case has been dismissed without any findings or penalties, confirming that ED failed to establish any violations of Title IV regulations regarding GCU’s program costs. President Brian Mueller expressed his relief and noted, "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."">
The resolution of this case does not eliminate all challenges faced by GCU. There is an ongoing private lawsuit over the university's representations of its doctoral programs that survived a motion to dismiss on May 6, and another lawsuit initiated by the Federal Trade Commission filed in December 2023 remains pending.
As the largest Christian university in the United States, GCU reports significant financial success, boasting nearly $1.9 billion in revenue, as per its Form 990. It has been rated with a five-star financial efficiency score but received a C for transparency and a donor confidence score of 72 out of 100 in the MinistryWatch database.
This case highlights significant intersections between education, governance, and religious affiliation, emphasizing the complexity of regulatory oversight in private educational institutions. Moving forward, stakeholders in higher education will closely watch how such institutions navigate legal challenges while maintaining trust with prospective students and their families.
The ongoing mission of MinistryWatch is to assist Christian donors to become more faithful stewards of their resources. Input from readers is encouraged as they continue to explore stories that fulfill this mission.
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