The fallout was evident, with an astonishing 78% of graduates from certain programs forced to pay an extra $10,000 to $12,000 in tuition costs compared to GCU’s explicit advertising.
Grand Canyon U. $37M Fine : Deceptive Disclosures
In response to the investigation, GCU pointed to fine print disclosures in enrollment agreements as a means of mitigating their misleading advertising. The Department of Education, however, dismissed these disclosures as inadequate, asserting that they failed to rectify the substantial misrepresentations regarding the program’s cost. Moreover, the department noted that the disclosures were buried within dense documents, far less prominent than the initial misrepresentations.
Strict Conditions and Accountability
Aside from the substantial fine, the Department of Education has laid out stringent conditions for the next three years regarding GCU’s participation in federal student aid programs. These include enhanced monitoring and reporting requirements to ensure the accurate representation of the doctoral program’s actual cost. The university must also educate enrolled doctoral students and staff on how to submit complaints and report any misconduct or violations through the department’s tip line.
A Statement from FSA
Expressing their resolve, Richard Cordray, Chief Operating Officer of the Federal Student Aid office, declared, “GCU lied about the cost of its doctoral programs to attract students to enroll. 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.”
