In a significant reversal, the U.S. Department of Education has rescinded a $37.7 million fine previously levied against Grand Canyon University (GCU), concluding that the university did not mislead students regarding the costs of its doctoral programs.
The fine, initially imposed in October 2023, was the largest ever issued by the Department against a single university. The Department had alleged that GCU misrepresented the total cost of its doctoral degrees, citing that a majority of students paid more than the advertised amount due to additional “continuation courses.” GCU contested these claims, asserting that the accusations were based on isolated and out-of-context statements.
In a Joint Stipulation of Dismissal issued by the Department’s Office of Hearings and Appeals, the case was dismissed with prejudice, meaning it cannot be refiled. The Department confirmed that it had not established that GCU violated any Title IV requirements and imposed no fines, liabilities, or penalties. The dismissal stated unequivocally that “there are no findings against GCU, or any of its employees, officers, agents, or contractors, and no fine is imposed.”
GCU President Brian Mueller welcomed the decision, stating, “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.” He emphasized the university’s commitment to innovation, transparency, and best practices in higher education.
The rescission aligns with previous findings from other regulatory bodies and courts that had disputed the Department’s allegations. Notably, two federal courts rejected similar claims related to GCU’s doctoral program disclosures, and the Higher Learning Commission deemed the university’s disclosures “robust and thorough” in a 2021 review. Additionally, the Arizona State Approving Agency of the Department of Veterans Affairs found “no substantiated findings” in its audit of GCU’s disclosures and processes.
Despite the Department’s reversal, GCU continues to face a lawsuit from the Federal Trade Commission (FTC) concerning similar allegations. The FTC claims that GCU and its service provider, Grand Canyon Education, misrepresented the cost and structure of their doctoral programs. GCU maintains that these allegations are unfounded and part of a broader pattern of regulatory overreach.
The Department’s decision to rescind the fine marks the end of a protracted legal battle and removes a significant financial and reputational burden from GCU. The university, which serves over 100,000 students, primarily through online programs, can now focus on its educational mission without the shadow of the record-setting fine.
