The Federal Trade Commission (FTC) has dropped its lawsuit against Grand Canyon University (GCU) and its president, Brian Mueller. This decision marks the end of a long-standing dispute over the university’s nonprofit status and claims that it misled students regarding the cost of its doctoral programs.
Mueller has always maintained that the accusations against GCU were false. “We strive for transparency, and we are often recognized as leaders in this area,” he stated in a press release. He criticized the investigations from federal agencies, calling them politically motivated and unfair compared to how other universities are treated.
FTC Chairman Andrew N. Ferguson indicated that the lawsuit, inherited from the previous administration, faced significant legal setbacks. He suggested that the Biden administration’s involvement may have complicated matters. GCU recently scored a legal win, with the Ninth Circuit Court of Appeals dismissing a hefty fine from the Department of Education, affirming that GCU’s 501(c)(3) nonprofit status is valid.
In January 2024, the FTC alleged that GCU deceived students about its doctoral program costs and engaged in illegal marketing practices. The Department of Education had previously imposed a staggering $37.7 million fine on GCU for misrepresenting fees, claiming that students often ended up paying between $40,000 to $61,000 due to additional required courses.
However, in May, an order from the Department of Education’s Office of Hearings and Appeals cleared GCU of all wrongdoing, affirming there were no findings against the institution or its staff.
GCU, established in 1949 by the Southern Baptist Convention, has experienced a tumultuous journey. Originally a nonprofit, it briefly became a for-profit institution in 2004. In 2018, it successfully petitioned to revert to its nonprofit status, which paved the way for eligibility for federal student aid.
Mueller believes that the harsh scrutiny faced by GCU and similar Christian institutions reflects wider political trends. He pointed to Liberty University’s recent $37 million fine and settlement as part of a pattern of targeting influential Christian colleges. Notably, he highlighted the contrast in penalties, such as the $2.4 million fine against Penn State for failing to report abuse cases.
This case sheds light on broader issues of scrutiny and support for religious colleges in the U.S. As universities navigate complicated regulatory landscapes, GCU’s experience exemplifies how institutions can face intense pressures based on political climates.
For more information on federal investigations and their impacts on educational institutions, the U.S. Department of Education offers resources and insights.
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Grand Canyon University, Federal Trade Commission, education
