Grand Canyon University: Misleading Students And Broken Promises

Grand Canyon University (GCU) is a private for-profit Christian university in Phoenix, Arizona. In 2023, the U.S. Department of Education fined GCU $37.7 million for misleading over 7,500 students about the cost of its doctoral programs. The Department of Education's investigation found that GCU had been advertising some doctoral programs as costing between $40,000 and $49,000, when in reality, only 2% of graduates completed their degrees within that price range. The university's response to the allegations was to deny every accusation and claim that federal officials were coordinating efforts to unjustly target GCU.

Grand Canyon University (GCU) fined $37.7 million for misleading students about the cost of its doctoral programs

Grand Canyon University (GCU) is a private for-profit Christian university based in Phoenix, Arizona. It is the country's largest Christian university, with more than 100,000 students enrolled online and in person.

In October 2023, the U.S. Department of Education fined GCU $37.7 million, alleging that the university had misled students about the cost of its doctoral programs. The Department's Federal Student Aid (FSA) investigation found that GCU had falsely advertised a lower cost for some doctoral programs than what students ended up paying. Specifically, GCU advertised some doctoral programs as costing between $40,000 and $49,000, while the investigation found that less than 2% of graduates completed their degrees within that price range. About 78% of graduates in those programs paid up to $12,000 more in tuition costs than advertised, amounting to a 25% increase in tuition fees.

The investigation, which spanned as far back as 2017, found that the additional costs came from "'continuation courses' that were required for most GCU students to fulfill dissertation requirements. GCU responded to the claims by pointing to "fine print disclosures" included in some enrollment agreements and other documents distributed to students. However, the Education Department deemed these disclosures insufficient and asserted that GCU had misled more than 7,500 former and current students.

GCU has vehemently denied the accusations, stating that the "coordinated accusations are not corroborated by any organization that provides oversight to GCU," including the IRS, the Higher Learning Commission, and state regulators. The university's president, Brian Muller, accused the Department of Education of unfairly targeting GCU in retaliation for an ongoing lawsuit regarding its nonprofit status. GCU has 20 days to request a hearing or appeal the fine.

The $37.7 million fine is the largest ever handed down by the Education Department, surpassing the previous record of a $30 million fine imposed on Corinthian Colleges in 2015. The fine and accusations against GCU are part of the Biden administration's focus on for-profit colleges accused of misleading students.

GCU allegedly advertised a lower cost than what 98% of students ended up paying

Grand Canyon University (GCU) allegedly advertised a lower cost than what 98% of students ended up paying. The Department of Education's investigation found that GCU advertised some doctoral programs as costing between $40,000 and $49,000, but only 2% of graduates completed their degrees within this price range. The investigation, which spanned as far back as 2017, revealed that the majority of students incurred additional costs from "continuation courses" that were required to fulfil dissertation requirements. These extra courses resulted in tuition costs that were up to $12,000 more than the advertised price, amounting to a 25% increase in tuition fees.

GCU has denied the allegations, stating that the "coordinated accusations are not corroborated by any organisation that provides oversight to GCU", including the IRS, the Higher Learning Commission, and state regulators. The university claims that its marketing practices have been deemed appropriate, clear, and transparent by the relevant authorities. GCU also pointed to "fine print disclosures" included in enrolment agreements and other documents distributed to students, although the Department of Education deemed these insufficient to address the misrepresentations about tuition costs.

The Department of Education's investigation found that GCU lied about the cost of its doctoral programs to attract students to enrol, resulting in unexpectedly high levels of student debt. This led to the Department imposing a record fine of $37.7 million on GCU, the largest penalty ever handed down by the agency. The fine is based on $5,000 per student enrolled in the doctoral programs, but it is much lower than the maximum fine the Department could have imposed, which could have exceeded $500 million.

In response to the fine, GCU has 20 days to request a hearing or appeal the decision. The university has stated that it will take all necessary measures to defend itself and refute the allegations. GCU also launched a website, SupportGCU.com, to garner support and push back against the accusations.

The controversy surrounding GCU's doctoral program costs is not an isolated incident. The university has had a tumultuous history, including attempts to switch between for-profit and nonprofit status, lawsuits against the Department of Education, and accusations of securities-law fraud. The Department of Education's refusal to acknowledge GCU's nonprofit status has been a point of contention, with GCU suing the department over this decision.

The university denied the claims, suggesting federal officials were coordinating efforts ... [+] with frivolous accusations

Grand Canyon University (GCU) has been accused of misleading students about the costs of its doctoral programs. The Department of Education fined the university $37.7 million, claiming that GCU falsely advertised a lower cost for some doctoral programs than what students ended up paying. The investigation found that GCU advertised some doctoral programs as costing between $40,000 and $49,000, while in reality, less than 2% of graduates completed their degrees within that price range.

GCU has vehemently denied the accusations, suggesting that federal officials were "coordinating efforts ... [+] with frivolous accusations." The university claimed that the investigation was in retaliation for a lawsuit regarding its nonprofit status and that federal officials were "unjustly targeting" the university. GCU's president, Brian Muller, stated that the school's accreditor, the Higher Learning Commission, found its marketing practices to be appropriate, clear, and transparent.

GCU further argued that the "coordinated accusations" were not corroborated by any oversight organization, including the IRS, the Higher Learning Commission, and state regulators. The university also pointed to "fine print disclosures" included in enrollment agreements and other documents distributed to students. However, the Education Department deemed these disclosures insufficient and asserted that they failed to address the misrepresentations about tuition costs.

The dispute between GCU and the Department of Education has been ongoing, with GCU challenging its classification as a for-profit university by the department. While the IRS and the Higher Learning Commission recognize GCU as a nonprofit, the Department of Education has refused to acknowledge this status. The university filed a lawsuit against the department in 2021, which is still ongoing.

The fine imposed on GCU is the largest ever handed down by the Education Department, and the university has indicated that it will take all necessary measures to defend itself and refute the allegations.

The Department of Education imposed five additional requirements for GCU to participate in Federal Student Aid

In addition to a $37.7 million fine, the Department of Education imposed five additional requirements for Grand Canyon University (GCU) to continue participating in Federal Student Aid programs. These requirements, known as Conditions A through E, are as follows:

Condition A:

GCU must not make substantial misrepresentations related to the cost of obtaining a degree in its doctoral programs. If GCU informs prospective or current doctoral students about the cost of completing its doctoral programs, it must disclose the average total tuition and fees paid by graduates and the maximum number of credits eligible for Title IV funds.

Condition B:

GCU must engage a monitor to oversee its compliance with Condition A. In other words, an external party will be involved in ensuring that GCU accurately represents the costs of its doctoral programs.

Condition C:

GCU must report to the Department of Education on a quarterly basis about any investigations, actions, or legal proceedings by its accrediting agency or any government agency. Additionally, GCU must disclose any pending litigation in which a plaintiff seeks class certification. This condition enhances transparency and allows the Department of Education to monitor GCU's activities closely.

Condition D:

GCU is required to send a notice to all currently enrolled doctoral students, informing them of the process for submitting complaints to the Department of Education's feedback center. This condition empowers students to voice their concerns directly to the Department of Education if they feel that GCU is not meeting its obligations.

Condition E:

GCU must notify all current employees who provide recruiting, admissions, and other services to doctoral students about how to use the FSA Tips line. This condition ensures that employees are aware of the proper channels to report any misconduct or violations they may witness within the university.

These five conditions were implemented to hold GCU accountable for its previous actions, protect students and taxpayers, and uphold the integrity of the federal student aid programs.

GCU is taking steps to provide greater transparency

Grand Canyon University (GCU) is taking steps to provide greater transparency in the wake of allegations that it misled students about the cost of its doctoral programs. The university has denied any wrongdoing and is taking measures to defend itself against the accusations.

GCU is committed to ensuring that its students and stakeholders have access to accurate and transparent information. As part of its efforts to enhance transparency, the university has launched a website, SupportGCU.com, dedicated to providing information and updates on the matter. The website serves as a platform for the university to share its perspective and engage with its community.

Furthermore, GCU has stated that it is taking steps to provide greater levels of transparency beyond what is required. This includes being more forthcoming with information about continuation courses, which have been a point of contention in the allegations. The university has asserted that it informs students about these courses through various means, including video presentations, and that this information is readily available throughout the student lifecycle.

In addition to its public statements and website, GCU is also taking legal action to defend itself. The university has disputed the allegations, claiming that its marketing and financial practices are clear, transparent, and appropriate. GCU's accreditor, the Higher Learning Commission, has supported this claim, stating that the university's marketing materials are clear and provide a transparent picture of the academic and financial path for prospective students.

GCU has also suggested that the accusations are retaliatory in nature, stemming from its ongoing lawsuit regarding its nonprofit status. The university believes that the Education Department's refusal to acknowledge its nonprofit status and the subsequent investigation into its tuition costs are unjustly targeting the university. GCU intends to continue its legal battle and defend its practices, ensuring that all information is presented and that transparency is maintained throughout the process.

The university's efforts to provide greater transparency extend beyond its public statements and legal actions. GCU is also working to ensure that its students are informed and protected. The university has stated that it conducts end-of-year surveys, which have not revealed any concerns or complaints from students regarding unexpected costs. This indicates that students are aware of the costs associated with their programs, including continuation courses, and have not felt misled or deceived.

In summary, GCU is taking proactive steps to provide greater transparency and ensure the trust of its students and the public. Through its public statements, website, legal actions, and commitment to student protection, the university is striving to address the allegations and maintain the highest standards of transparency and accountability.

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