Grand Canyon University is facing a massive $37.7 million fine after the federal government accused the educational establishment of misleading its students regarding the cost of its graduate programs.
The school is considered to be the largest Christian university in the United States and has more than 100,000 students, the majority of whom are enrolled in its online programs. The university is facing the largest fine of its kind ever dealt with by the U.S. Education Department.
Fine Against Grand Canyon University
The establishment had previously denied any wrongdoing and argued that it was being unfairly targeted in retaliation for an ongoing lawsuit. An investigation by the Education Department found that Grand Canyon University lied to more than 7,500 current and former students about the cost of its doctoral programs.
Investigators suggest that as far back as 2017, the school claimed that its doctoral programs would cost between $40,000 and $49,000. However, the department found that less than 2% of graduates completed programs within the cost range that was given. Roughly 78% of them paid an additional $10,000 to $12,000, as per ABC15.
The department said that the additional cost for students came from "continuation courses" that were apparently needed to finish dissertation requirements. The chief operating officer for Federal Student Aid, Richard Cordray, said that the university's lies harmed students, broke their trust, and led to unexpectedly high levels of student debt.
Cordray said that they were holding the school accountable for its actions, protecting students and taxpayers, and upholding the integrity of the federal student aid programs. Following the announcement of the fine, Grand Canyon University is given 20 days to appeal it.
Furthermore, the Education Department is adding new conditions that the school must meet to continue receiving federal funding. It would be barred from making "substantial misrepresentations" about the cost of doctoral programs and it is mandated to report any other investigations or lawsuits related to its conduct.
The school, which is based in Phoenix, Arizona, released a statement saying that it would take all measures necessary to defend itself from the false allegations. GCU added that the continuation courses are a typical occurrence in doctoral programs throughout higher education and that it provides financial disclosures that are prominently placed in its marketing materials, according to the Washington Post.
Misleading Students About the Cost of Graduate Programs
The university's statement also said that it believes its disclosures related to continuation courses were more extensive than other schools. In response, the Education Department said that the disclosures were wholly insufficient to address the alleged misrepresentations.
Cordray argued that the disclosures were buried inside dense documents and that they were much less prominent than the misrepresentations made. He noted that they do not address the net impression that the program will be less expensive and will require fewer credits than it actually does.
GCU also has an ongoing lawsuit against the Education Department over the federal agency's rejection of its bid to convert from a for-profit to a non-profit institution. The school put out a statement last month that accused the Education Department, the Federal Trade Commission (FTC), and the Department of Veterans Affairs of engaging in a coordinated effort to target it in retaliation for the lawsuit.
The fine against the school was disclosed in a letter to university President Brian Mueller and was dated Tuesday. It said that the rare disclosures of the cost of the continuation courses did not explain their costs, said NBC News.
