The Department of Education dismissed the $37.7 million fine against Grand Canyon University

Prime Highlights

The U.S. Department of Education has revoked a $37.7 million penalty issued to Grand Canyon University (GCU) in November, which it initially imposed for misleading GCU doctoral program pricing.
The company is cleared of all charges and the case has been closed with prejudice permanently, which prohibits any legal proceeding on this case in the future.

Key Facts

The Education Department issued the record $37.7 million October 2023 penalty.
The department reversal came after GCU appealed and was marked by the department as “with prejudice” to keep the case from being re-filed.

Key Background

The U.S. Department of Education, in October 2023, penalized Grand Canyon University a record $37.7 million for allegedly deceiving students about the price of its doctorate programs. Federal regulators said more than 98% of the doctorate students were compelled to take continuation courses in numbers higher than the initial number, which they said was a provision of the Higher Education Act by deceiving potential students.

Grand Canyon University vehemently opposed the charges, asserting that it had been freely negotiating with students on possible expenses, such as additional courses to finish dissertation. The college clarified that course extensions are a normal part of regular doctoral study and are clearly explained in its study materials and correspondence.

After a formal complaint from GCU, the Department of Education’s Office of Hearings and Appeals reviewed the allegations in detail. The department made a final decision in May 2025, revoking the fine “with prejudice.” That is, the case is shut forever and cannot be reopened by the department at some future date, which indicates that there were no findings of misconduct against GCU.

GCU President Brian Mueller also applauded the decision, committing again to the university’s adherence to compliance, academic excellence, and student-focused education. He was equally critical of the original allegations, suggesting that GCU was being singled out because it had become a nonprofit university and had rapidly expanded as an exemplar of higher education. The case speaks to conflicts between federal regulation and more contemporary models of higher education requiring open communication and unbiased review by the regulatory agencies.