Biden administration fines Gran Canyon University $38 million over graduate programs, but the school is pushing back.
The Biden administration hit an Arizona college with a record fine over claims the school misrepresented the cost of its graduate programs to students, the Department of Education announced Tuesday.
The fine comes roughly two years after FSA reconstituted its enforcement unit, a group of staffers that oversees and investigates colleges participating in the federal student loan program, with an eye toward rooting out fraud, abuse of federal financial dollars and other illegal practices. The unit was dismantled under the Betsy DeVos-era Department of Education.
Based on the school’s data, less than 2% of Grand Canyon’s graduates completed their degree within the cost that the school advertised, according to the Department. Roughly 78% of graduates of these programs paid $10,000 to $12,000 more in tuition, according to the agency. Romantic reiterated accusations the school has made previously, alleging “coordinated and unjust actions the federal government is taking against the largest Christian university in the country.” The school has said before that it believes the government to be retaliating against it for suing the Department of Education.
In a memo discussing its decision, the agency focused in part on the relationship between Grand Canyon University and Grand Canyon Education, LOPE, +0.18% a for-profit company that provides support services to the school. The two entities are led by the same person. “We’re glad to see the Department of Education take action to prevent graduate schools from misleading students about the costs of their programs, and we hope they will continue to crack down on these types of predatory schemes,” Aaron Ament, the president of the National Student Legal Defense Network, which is representing the students in that case, said in a statement Tuesday.
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