Grand Canyon University Wins Lawsuit Over Denied Non-Profit Status, Appeals $37.7M Hidden Costs Fine
The court ruled the Department of Education misapplied standards in denying GCU's non-profit classification.
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Earlier this year, the Biden Administration's Department of Education (ED) threatened to shut down the largest Christian University due to its "predatory" profit-for-college stint.
Now, the institution, Grand Canyon University (GCU), recently won a similar legal case they filed against ED after it was denied non-profit status.
Fox News said that in a decision released unanimously, a three-judge panel of the 9th U.S. Circuit Court of Appeals sided with GCU, the court said the ED had applied wrong standards in order to deny the university its non-profit status.
If recalled, ED denied GCU's non-profit status just after regaining it in 2018. With this, educational institutions gain access to federal grants and programs. GCU argued that the ED overstepped its authority by rejecting the classification despite approvals from other regulatory bodies.
GCU's president, Brian Mueller, expressed relief, saying the decision corrected a long-standing issue. The ruling will now require the ED to reevaluate its stance on the university's status.
GCU Appeals Fine
The legal battle does not end here as GCU is also appealing a $37.7 million fine imposed by the ED in 2023, according to The Washington Post.
The fine stems from allegations that the university misled students about the cost of its doctoral programs. GCU strongly denies these claims, stating that the fine is disproportionately high compared to penalties given to other universities for more severe offenses.
GCU leaders believe that the actions against the school, including repeated investigations, are unfairly targeting the institution due to its size and influence.
Republican lawmakers have also voiced similar concerns, calling for an inquiry into the ED's handling of the case. They argue that the department's actions show signs of bias against the university.
The ruling is a major victory for GCU, but the university is determined to clear its name and protect its ability to operate as a non-profit institution.
