The U.S. Department of Education (ED) dismissed with prejudice an unprecedented $37.7 million fine against the largest Christian university in the United States following a years-long legal battle.
Grand Canyon University, based in Phoenix, Arizona, was cleared of any wrongdoing by a Joint Stipulation of Dismissal order issued by ED’s Office of Hearings and Appeals, which said “there are no findings against GCU, or any of its employees, officers, agents, or contractors, and no fine is imposed,” according to a Friday press release from the school.
GCU was founded in 1949 as a nonprofit college by the Southern Baptist Convention but became a for-profit institution in 2004 amid financial struggles, and has since grown to be the country's largest Christian college by enrollment. The school graduated 31,104 students last month, including 25,435 online students and 5,669 on-campus students.
In October 2023, the Department of Education slapped GCU with a $37.7 million fine after an investigation by the department's Office of Federal Student Aid found that "GCU lied about the cost of its doctoral programs to attract students to enroll" to more than 7,500 current and former students.
The department alleged that the school misrepresented the cost of its doctoral programs on its website by advertising that they cost $40,000 to $49,000 when less than 2% of graduates completed their course of study within that price range.
Required "continuation courses" often tacked an additional $10,000 to $12,000 onto the final cost, the department said at the time, and investigators dismissed GCU's fine-print disclosures about the additional costs as inadequate notice of "substantial misrepresentations regarding cost."
GCU President Brian Mueller welcomed the dismissal in a statement provided to The Christian Post.
“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,” said Mueller.
“GCU is a leader in innovation, transparency and best practices in higher education and we look forward to working cooperatively with the Department in the future — just as we have with all regulatory agencies.”
During an interview with CP in 2023, Mueller pushed back against the ED’s allegations and suggested the fine — which was the largest the department ever levied — was part of a larger attempt by the federal government to discriminate against Christian institutions. He noted it was almost identical to the $37 million fine against Liberty University for alleged violations of the Clery Act.
"We've presented at seven major conferences because of our level of transparency," he told CP. "We give the cost of the entire program to students up front at all three levels — bachelor's, master's and doctoral — when all you're required to do is provide the first year for first-year freshmen."
"And so, to come in and fine any amount to a university that is recognized within the industry as setting the gold standard for transparency, there's no logic to that," he added.
Mueller also observed how the penalties against GCU and Liberty University dwarfed the $2.4 million fine levied against Penn State for not reporting Jerry Sandusky's sexual abuse of boys, as well as the $4.5 million fine against Michigan State for failing to address Larry Nassar's sexual assaults against hundreds of students.
In the wake of the fine from the ED, GCU was also hit with lawsuits from the Federal Trade Commission and a financial audit from the Department of Veterans Affairs, which the school claimed was a coordinated effort by government agencies to single out GCU for punishment.
The U.S. District Court of Arizona dismissed the FTC’s lawsuit against GCU in March, finding the FTC did not have jurisdiction over GCU.
The American Principles Project, a conservative think-tank, published a report last year citing the Department of Education’s Office of Enforcement actions against Christian schools.
Though Christian colleges and universities have fewer than 10% of students in the U.S., they make up around 70% of the penalties imposed by the Office of Enforcement, according to the report. The average fine against Christian schools was $815,000, compared to the $228,571 fine against public and private academic institutions that violated federal law on campus crime.
A department spokesperson commented on the latest in the GCU situation by contrasting the department’s behavior under President Donald Trump compared to his predecessor, according to The Washington Times.
“Unlike the previous administration, we will not persecute and prosecute colleges and universities based on their religious affiliation,” the spokesperson said. “The Trump administration will continue to ensure every institution of higher education is held accountable based on facts — but department enforcement will be for the purpose of serving students, not political bias.”
Originally published by The Christian Post
