In October 2023, the U.S. Department of Education alleged GCU lied to students about the cost of its programs – an accusation the university's president denies. "An … investigation [by DOE's office of Federal Student Aid] found GCU lied to more than 7,500 former and current students about the cost of its doctoral programs over several years," says a related press release. "GCU falsely advertised a lower cost than what 98% of students ended up paying to complete certain doctoral programs."
In a letter to GCU, the DOE announced it intended to fine the school $37.735 million for what it considered violations of Title IV of the Higher Education Act of 1965.
An attorney for GCU writes: "… It is difficult to view the fine against GCU as not an act of neutral adjudication but one of calculated reprisal."
Picking on GCU for 'going against the tide'
Joe Setyon, senior communications manager at Phoenix-based Goldwater Institute, says it seems as though the Biden administration has a bone to pick with GCU.
"Last year the Department of Education [DOE] under the Biden administration imposed what was the largest fine in history, $37.7 million, against GCU," he explains. "Now, you might think 'Wow, they must have really messed up, what did they do?' Well, what the feds are alleging is … that PhD students are unable to read the fine print in tuition brochures."
Setyon points out that Penn State, which covered up and did not report crimes committed by football coach Jerry Sandusky, was fined $2.4 million. Michigan State, which mishandled sexual assaults committed by athletic trainer and physician Larry Nasser, faced a $4.5 million fine.
"Compare that to $37.7 million against GCU [which has] by all measures done most things right," the Institute's spokesman argues.
"It has not meaningfully raised tuition in 15 years. It's become very successful. It's become a large school, and it's become a good school – and it seems that the Biden administration is targeting them because they're not like most other institutions of higher learning."
He contends that many colleges and universities today are "just going along with the tide when it comes to bureaucracy and ideological conformity to DEI, and of course when it comes to increasing tuition." GCU, in contrast, has rejected those things, says Setyon.
"They are focusing on graduating students who are prepared and educated and capable. Their achievements … expose that the higher education model is just not working. It's inefficient, it's unsustainable – and that's why we think that what the feds are doing against GCU is unfair, and the Trump administration has an opportunity to make things right."
In February 2024, Goldwater Institute – seeking transparency in the legal battle – took the Department of Education to court for withholding documents in a Freedom of Information Act (FOIA) request.
"We did get a few documents, and it's kind of disturbing what they revealed," Setyon shares. "There are emails between the Department of Education and the White House where it seems like the Department [was] looking for input on how to roll out what was an unprecedented public media blitz when this fine happened.
"So, the Department launched an unprecedented media blitz after that department official had reached out to the White House to suggest that there was a political agenda – not a fair and independent investigation."
GCU president Brian Mueller has denied any wrongdoing in various phone calls with AFN. In terms of the fine, Mueller said he would not pay it if it was one dollar.
Read previous AFN stories about GCU and the Dept. of Education
