Grand Canyon University’s $37.7 Million Fine Overturned: No Wrongdoing Found in Doctoral Program Costs

PHOENIX — Grand Canyon University (GCU) has successfully overturned a substantial fine previously imposed by the U.S. Department of Education. In October 2023, the Department had accused GCU of misleading approximately 7,500 students regarding the true costs associated with its doctoral programs, leading to a $37.7 million penalty.

Earlier this month, GCU announced that the fine was rescinded following the issuance of a joint stipulation order by the Department’s Office of Hearings and Appeals. This order confirmed that no violations of Title IV requirements were established against the university, including allegations of significant misrepresentation regarding program costs.

“ED confirmed it has not established that GCU violated any Title IV requirements,” stated GCU in a press release. The dismissal also noted that there are “no findings against GCU, or any of its employees, officers, agents, or contractors,” and thus, no fine would be imposed.

Brian Mueller, President of GCU, expressed relief at the outcome, emphasizing that the university stood firm against the accusations. “The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students,” he said. Mueller underscored GCU’s commitment to best practices in higher education and its intention to collaborate with the Department moving forward.

This fine was reported as the largest ever levied against a university. GCU had appealed the finding, arguing that the accusations were based on out-of-context statements and that students received comprehensive information throughout their enrollment process.

The recent dismissal aligns with favorable actions from two federal courts, the Higher Learning Commission, and the Arizona State Approving Agency of the Department of Veterans Affairs, reinforcing GCU’s position.

As developments unfold, 12News has sought additional comments from the Department of Education but has yet to receive a response.