On the heels of a record-breaking $37.7 million fine from the United States Department of Education (ED), Grand Canyon University (GCU) in Phoenix is facing a lawsuit by the Federal Trade Commission (FTC) for “deception.”
“To be frank, the substance of these claims is so frivolous that they could have easily been resolved in a 10-minute phone call had the agencies chosen to do so,” a lengthy GCU press release response stated.
Grand Canyon University Faces Lawsuit and Fines
GCU, which is the largest Christian university in the United States, is breaking enrollment records this school year with nearly 120,000 students. It boasts extensive degree programs—both undergraduate and graduate—to help students “find your purpose.”
According to a press release dated Dec. 27, 2023, the FTC filed a lawsuit against GCU, Grand Canyon Education (GCE), and Brian Mueller—president of GCU and CEO of GCE—for “deceiving prospective doctoral students about the cost and course requirements of its doctoral programs and about being a nonprofit while also engaging in deceptive and abusive telemarketing practices.”
Based on complaints, the FTC claims the university told prospective students that its “accelerated” doctoral program required 60 credits, while students would also need to take continuing education credit hours, adding thousands of dollars in tuition costs.
Late last year, the United States Department of Education already issued its largest fine in history—$37.7 million dollars—to the university for falsifying tuition and program costs. The university is also ordered to accurately report an exhaustive estimate of program costs to potential students.
The Education Department’s Federal Student Aid (FSA) claimed that GCU has lied to prospective and existing students since 2017. FSA chief operating officer Richard Cordray said, “FSA takes its oversight responsibilities seriously. GCU’s lies harmed students, broke their trust, and led to unexpectedly high levels of student debt.”
The university appealed the “unprecedented and unjust $37.7 million fine” in November 2023.
Grand Canyon University Leadership Claims Unjust ‘Targeting’
GCU leadership has been involved in legal battles since its first meetings with the Department of Education in 2014. In discussion with former Secretary Ted Mitchell, the university was assured of his assistance with GCU’s proposed nonprofit conversion.
The university claims the recent fine by the Department of Education to be part of “coordinated and unjust actions the federal government is taking against the largest Christian university in the country.”
Mueller argues the federal agencies are unfairly attacking the educational institution. “By intentionally mis-classifying GCU as a for-profit institution for purposes of federal student aid, ED is now able to target the university as part of a coordinated effort,” he said.
Within the press release, GCU responded to the claims made by federal agencies with two distinct statements:
- “GCU categorically denies these unsubstantiated allegations and will take all measures necessary to refute them.”
- “GCU does not mislead or deceive students. In fact, the opposite is true as it relates to the levels of transparency and service levels provided by the university.”
