GCU hit with $37.7 million fine as feds say school 'deceived' doctoral students

The U.S. Department of Education will fine Grand Canyon University $37.7 million for "deceiving" students in its marketing of doctoral degrees, officials announced Tuesday.

The news comes after GCU President Brian Mueller publicly aired grievances with the investigation in early October, accusing the Department of Education of coordinating with other federal agencies to "unjustly target" his school.

School officials suggested the agencies' actions were related to the school's religious affiliation and a yearslong dispute between GCU and the Department of Education over the school's efforts to regain its nonprofit status. GCU is one of the largest private Christian universities in the country.

On Tuesday, federal regulators pushed back on that narrative. The agency said its investigation determined that GCU misrepresented the cost of its doctoral degrees, with most students paying thousands of dollars more than the advertised cost.

Fewer than 2% of students who graduated from GCU's doctoral programs requiring dissertations paid the amount the university advertised as the total cost, federal regulators said.

The fine is the largest of its kind ever levied by the Department of Education, according to federal officials. The agency also has added new terms to an agreement that allows GCU to participate in federal student aid programs, including a provision that will require the school to engage a monitor to ensure that its advertising complies with federal law.

“GCU lied about the cost of its doctoral programs to attract students to enroll,” said Richard Cordray, the U.S. Department of Education's federal student aid chief operating officer. “FSA takes its oversight responsibilities seriously. GCU’s lies harmed students, broke their trust, and led to unexpectedly high levels of student debt. Today, we are holding GCU accountable for its actions, protecting students and taxpayers, and upholding the integrity of the federal student aid programs.”

GCU officials were not immediately available for comment. School officials previously refuted the investigation's findings. Muller said GCU provides more disclosure than legally required, pointing to tools such as its online degree program calculator.

During a hastily scheduled employee meeting in early October, he encouraged staff and others affiliated with the school to contact federal lawmakers in the university's defense.

Several Republican state lawmakers last week sent a letter to the Department of Education accusing it of conducting a "witch hunt against Christian education."

'Unjustly target': Grand Canyon University, to combat advertising investigation, appeals to staff

Sasha Hupka covers higher education for The Arizona Republic. Do you have a tip? Reach her at sasha.hupka@arizonarepublic.com. Follow her on X, formerly Twitter: @SashaHupka. Follow her on Instagram or Threads: @sashahupkasnaps.

This article originally appeared on Arizona Republic: Feds fine GCU over marketing of doctoral degrees