by Corinne Murdock | Mar 13, 2024 | Education, News
By Corinne Murdock |
Arizona’s auditing agency for the Department of Veterans Affairs (VA) found no wrongdoing in its recent audit of Grand Canyon University (GCU).
The Arizona State Approving Agency (SAA) undertook the audit in response to the ongoing Federal Trade Commission (FTC) lawsuit against GCU for allegedly deceptive advertising and illegal telemarketing. The FTC sued GCU in December, several months after the Department of Education (ED) fined the university over $37 million for allegedly deceiving doctoral students into paying more for their degrees than advertised.
In the SAA letter to GCU reviewed by AZ Free News, SAA said that its audit yielded no evidence supporting the Biden administration’s claims.
“The Arizona SAA did not have any substantiated findings based on our review of Grand Canyon University,” stated SAA’s letter to GCU. “There are no findings impacting the continued approval of Grand Canyon University at this time. There are no follow-up actions required by Grand Canyon University at this time.”
SAA announced its audit in January, the second one to take place in under a year; the last SAA audit occurred last May.
GCU President Brian Mueller told AZ Free News that the SAA’s findings were in agreement with two favorable court rulings in recent years, all of which found GCU to not be guilty of the issues that the Biden administration claims exist. Mueller said that these discrepancies were “troubling,” and further indication of an unjust and purposeful targeting.
“The SAA, our accrediting body and two federal judges all looked at the same set of facts as the bureaucrats in Washington, D.C. and came to the complete opposite conclusion,” said Mueller. “To have zero findings, praise and a court ruling that our disclosures are clear on one end and then have the U.S. Department of Education impose its largest fine ever on the other… that is very troubling. To be targeted in this manner by the federal government is an egregious example of overreach and the weaponization of these federal agencies.”
The Higher Learning Commission, GCU’s accrediting body, assessed the university’s doctoral disclosures to be “robust and thorough,” providing a “clear” academic and financial pathway for prospective students.
The Biden administration appears to be alone in its unfavorable assessment of GCU; further records to provide context as to why have not been made available for public review, either.
The lack of transparency prompted the Goldwater Institute to sue the Biden administration last month. ED denied their public records request seeking the documents that informed ED’s decision to fine GCU. The records request was spurred by the fact that ED didn’t include student complaints or visitations to GCU as part of their investigation into the university.
In our report issued several days before ED announced its record fine into the university, the Biden administration apparently coordinated efforts between ED, FTC, and VA to investigate GCU after the university sued ED for denying its nonprofit status. The IRS granted nonprofit status to GCU in 2018, but it took until late 2019 for ED to deny the status.
SAA recognized GCU as a private nonprofit in its most recent audit report.
Several months after GCU sued ED in early 2021, the agency launched a multi-year, off-site review of GCU. Several months after ED’s announcement, the FTC announced that it found GCU in violation of federal law; each violation incurs civil penalties of up to $50,000. The last time the FTC exercised the authority it leveled against GCU was in 1978.
The FTC, ED, and VA began their investigations into GCU in 2022.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Elizabeth Troutman | Feb 19, 2024 | Education, News
By Elizabeth Troutman |
The Goldwater Institute is suing the Biden administration for fining Grand Canyon University for $37 million without explanation.
The U.S. Department of Education assessed a record fine of $37 million against the private, Christian university in October 2023. This marks the largest fine of its kind ever assessed by the department.
The Goldwater Institute, a Phoenix-based conservative think tank, is suing the administration to get answers about the fine and hold the government accountable.
Fines on universities who have improperly dealt with sexual assault pale in comparison to those levied against GCU. The Department of Education fined Penn State University only $2.4 million for failing to report the crimes of serial pedophile Jerry Sandusky. Michigan State University was fined a mere $4.5 million fine for refusing to address sexual assaults committed by athletic director Larry Nassar, who abused more than 500 students.
The Education Department claimed to fine GCU for insufficiently informing P.h.D students that they may have to take continuing courses while completing their doctoral dissertations. The federal government report did not cite any student’s complaints, and Education Department personnel did not visit GCU as part of its so-called investigation.
The Goldwater Institute submitted a Freedom of Information Act request to the department to gain clarity on the fine against GCU.
“The records may help inform the public about this extraordinary fine, as well as coordination between various federal agencies in what appears to be the intentionally targeting of a successful university—one that’s no stranger to run-ins with the feds—based on extraordinarily thin allegations,” a Goldwater news release says.
The Department of Education refused to turn over these public records, the think tank said, so it is suing the agency in federal court to get them anyway.
“With its motto of ‘private, Christian, affordable’ and its track record of graduating students into high-demand and high-paying jobs, GCU is a success story by any metric,” Goldwater Institute staff attorney Stacy Skankey said. “And it stands apart from universities across the country that are facing declining enrollment, that are indoctrinating students with radical politics, and that are under attack for failing to defend the First Amendment.”
Correction: A previous version of this story incorrectly stated that the Goldwater Institute was founded by Barry Goldwater. The story has been corrected.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
by Corinne Murdock | Nov 18, 2023 | Education, News
By Corinne Murdock |
Grand Canyon University (GCU) is appealing the $37.7 million fine issued by the Department of Education (ED) for allegedly advertising false degree costs.
GCU maintains ED targeted their institution over ideological differences, not the public allegations of misrepresented doctoral program costs. GCU is a private Christian university.
In a press release on Thursday, GCU President Brian Mueller said that thousands of students, parents, employees, alumni, and community stakeholders felt ED was behaving tyrannically and had been weaponized against them.
“American people are losing confidence in the federal government to be fair and objective in their operations and there are clearly no checks and balances to prevent this type of behavior from the Department of Education, which is out of control and continues to broaden its authority and selective enforcement powers,” said Mueller.
ED announced its fine against GCU on Halloween. The agency accused the institution of deceiving over 7,500 doctoral students since 2017 — 98 percent of students reviewed — into paying more than advertised. ED said that GCU’s advertised cost of $40,000 to $49,000 amounted to false claims that violated the Higher Education Act, federal regulations on substantial misrepresentations, and Title IV’s fiduciary standard.
ED said that 78 percent of GCU’s doctoral program graduates paid $10,000 to $12,000 more in tuition costs for continuation courses to complete their dissertation requirements. The agency declared that GCU’s various fine print disclosures given to students were “insufficient to cure the substantial misrepresentations regarding cost.”
In addition to the fine, ED issued five conditions for GCU to meet: give prospective or current doctoral students the average total tuition and fees paid by graduates and the maximum number of credits that a student can take that are eligible for Title IV funds, and engage a monitor to oversee compliance; issue quarterly reports to ED about investigations, actions, or other legal proceedings by its accrediting agency or any government agency, as well as pending litigation in which a plaintiff seeks class certification; send a notice to all currently enrolled doctoral students informing them how to use ED’s feedback center to submit a complaint to ED; and send a notice to all current employees who provide recruiting, admissions, and other services to doctoral students about how to use the Federal Student Aid Tips line to submit information about misconduct or violations.
As AZ Free News reported previously, the ED investigation began after GCU challenged ED’s rejection of GCU’s nonprofit status by the Internal Revenue Service (IRS) in 2019. After several years of attempting to overcome ED’s denial, GCU sued in 2021. Following that, ED announced a coordinated effort with the Federal Trade Commission and Department of Veterans Affairs to investigate GCU for unfair or deceptive practices.
As part of GCU’s appeal, Mueller maintained that GCU doesn’t mislead or deceive its students. Mueller cited his institution’s favorable federal court rulings in Young v. GCU, in which two courts rejected claims of misrepresentation regarding the time or cost for doctoral program completion.
Mueller also cited a Government Accountability Office (GAO) report from last November, which determined that 91 percent of colleges mislead or understate the net price of financial aid to prospective students.
Additionally, GCU noted that it has undertaken its own preliminary internal study of doctoral program costs at 100 other universities. The university claimed that only two percent of those universities disclose full costs, 51 percent failed to clearly or fully disclose anything about the need for additional courses to complete a dissertation, and 45 percent made statements that a doctoral degree could be earned in a set number of years despite the varying length of time needed to complete a dissertation.
Mueller said that there was little incentive for their university to deceive doctoral program students, since it was their smallest degree program containing less than five percent of students. He pointed out that GCU hasn’t raised its tuition in 15 years.
“If our goal was to generate more revenue, rather than allegedly deceive students we could simply increase tuition three to four percent a year for a few years — as most universities have done — and no one would bat an eye,” said Mueller. “We haven’t done that. In fact, we have frozen tuition on our ground campus for 15 straight years because our innovative approach to managing this university, which the Department objects to, has allowed us to do that for the benefit of our students.”
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Corinne Murdock | Oct 27, 2023 | Education, News
By Corinne Murdock |
The Biden administration has set its sights on the largest private Christian university in the nation: Arizona’s Grand Canyon University (GCU).
For over half a decade the Department of Education (ED) has denied GCU’s IRS-granted nonprofit status. After GCU pushed back with legal action, the Biden administration responded with the full force of bureaucracy: a multi-agency attack to discredit and impose hefty fines on the university.
GCU President Brian Mueller told AZ Free News that ED’s rejection of a university’s IRS designation was new and unprecedented. Mueller maintained that ED offered “inapplicable criteria” for the denial.
The president couldn’t say with certainty whether the true cause of the ED targeting had to do with religious or political differences, but didn’t rule out the possibility.
“It’s obviously something other than the facts at hand,” said Mueller. “Is it because we have 30,000 graduates on an annual basis, where they’re studying from a Christian worldview?”
Although GCU is open about its Christian foundation and teachings, it doesn’t require its students to sign a statement of faith. Mueller estimated that 30 percent of incoming students don’t identify as Christians.
“We’re not a church, we’re a university,” said Mueller. “There’s free speech here. That’s one of the attractive things about us.”
GCU’s ethical positions do put it at odds with the federal government: GCU believes that God created the world and that truth comes from Him; that full personhood begins at the moment of conception and ceases at natural death; and that only the union between a man and a woman qualifies as a marriage.
“Resistance to the state is only appropriate when the state requires disobedience to the commands of God,” states GCU’s position on religious liberty. “Christian faith is a personal matter but the implications of faith in Christ should not and cannot remain private. Anyone who follows Christ in truth should strive to live in the way that Christ lived both in private and in public.”
In a public statement, GCU speculated that the targeting was due to ideological differences between their institution and the federal bureaucracy. GCU offers an education from a Christian worldview to its 30,000-odd graduates annually, though students aren’t required to sign a statement of faith. This year, the university brought in another 26,000 on-campus students and 92,000 online students.
“[W]e believe these agenda-driven actions are unprecedented against a regionally accredited 501(c)(3) designated nonprofit university and GCU categorically denies the claims being brought forth, which lack merit and illustrate extreme government overreach in what we believe is an attempt to harm a university to which individuals in these agencies are ideologically opposed,” said GCU.
ED has rejected GCU’s nonprofit status by the Internal Revenue Service (IRS) for over five years now. The IRS granted GCU its nonprofit status in July 2018; it took ED until November 2019 to deny the IRS classification, despite 26 other governmental, accrediting, and official entities accepting the nonprofit status including: the Arizona Corporation Commission, Arizona Private Postsecondary Board, Higher Learning Commission (HLC), and the NCAA.
ED maintains that since GCU’s majority revenues go to its former owner — Grand Canyon Education (GCE), a for-profit entity — that it doesn’t qualify as a nonprofit. GCU said that the revenues given to GCE were for education services at fair market value, as reported in investigations by two independent accounting and finance firms shared with the Biden administration.
GCU hasn’t raised its tuition in 15 years.
After GCU spent over a year attempting to resolve the ED denial, it sued the agency in February 2021. The timeline indicates that the lawsuit spurred a coordinated effort between ED, Federal Trade Commission (FTC), and Department of Veterans Affairs (VA) to target GCU. Several months later, ED launched a multi-year, off-site review of GCU.
Then, in October 2021, the FTC named GCU as one of 70 for-profit institutions on which it would exercise a decades-dormant punitive power: the Penalty Offense Authority (POA). The FTC alleged GCU, among others, to be a “bad actor” engaging in “unfair or deceptive” practices regarding “false promises” of graduate job and earning prospects. Each violation incurs civil penalties of up to about $50,000 (about $43,800 in 2021).
In that October 2021 announcement, the FTC declared their action was a “resurrection” of the POA, in which they would coordinate with ED and VA; the last time the FTC exercised the POA was in 1978.
Under the POA, the FTC may seek civil penalties if it can prove that its target was aware that certain conduct was unfair or deceptive, and that the FTC had previously issued a written decision on the conduct in question.
The three agencies began their investigations into GCU in 2022: the FTC in May, ED in June (regarding doctoral degrees), and VA in October.
One of FTC’s main accusations was that GCU had a disproportionate number of students who defaulted on federal student loans; GCU responded that its students have a lower loan default rate than the national average at nonprofit universities. FTC also accused Grand Canyon Education, GCU’s education services provider, with making inappropriate cold calls to prospective students. GCU maintained that GCE only reaches out to students who contacted them with interest first, never cold calls.
ED alleged that GCU conveyed substantial misrepresentation regarding its doctoral degree cost. In response, GCU cited the recent federal district and appellate rulings in Young v. GCU, which denied similar claims, and their last Higher Learning Commission (HLC) report declaring robust and transparent financial information practices.
“Their recruitment and marketing materials are clear and transparent, and financial information presented to students throughout the student lifecycle is robust,” said HLC. “The information and resources provided are robust and thorough, providing prospective students a clear picture of their academic and financial path toward a degree at GCU.”
GCU also cited its public calculator for the estimated costs for a 60-credit doctoral program and any potential continuation courses needed to complete a doctoral dissertation. ED requires universities to provide cost of attendance estimates for first year in college to first-year, first-time students, and only for undergraduate programs. GCU also reported that it goes beyond that, providing direct cost estimates for each year of the program of the study and for all its degree programs.
ED also disputed that an online student’s posting of a bio on the first day of class didn’t qualify as “academic-related activity.” GCU countered that ED’s Office of General Counsel told GCU in a 2012 written statement that such postings met that requirement, and that no accrediting bodies, nor ED, have questioned that practice previously, including ED’s last program review in 2014, which made no mention of the practice as problematic.
ED claimed that a 2011 rule change preempted the general counsel’s 2012 email to the university. It required GCU to review all student files from July 2014 to June 2021.
Under VA authority, the Arizona Veterans Services State Approving Agency (AZ SAA) told GCU that its advertising on cybersecurity demand was “erroneous, deceptive, or misleading.” Specifically, the AZ SAA took issue with describing cybersecurity experts as being “in high demand” and that all companies “need cybersecurity.”
GCU said that once it refuted the claim, AZ SAA accepted their refutations as true. GCU claimed that the AZ SAA was pressured by the VA to carry out a different type of audit in order to find fault with GCU’s advertising language regarding cybersecurity.
“It is our belief the SAA was unduly influenced by the U.S. Department of Veterans Affairs, in conjunction with other federal agencies, to conduct and carry out a risk-based audit in this manner rather than the audits it has performed in the past in which the University has received stellar reviews,” said GCU.
GCU says it has spent thousands of man hours and millions of dollars in legal fees to fulfill the Biden administration’s requests. It noted that these ongoing costs and potential fines threaten to upend its 15-year freeze on tuition — a major factor for its growth and, as a result, exposure of a Christian worldview-based education to more Americans.
“[B]ecause GCU, like almost all private universities, is dependent on tuition as a primary revenue stream and does not receive state funding like state universities, the university may be forced to raise tuition if the legal fees or fines associated with these actions continue to escalate,” stated the university. “We are, in essence, trying to protect our students from this government overreach.”
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Corinne Murdock | Dec 28, 2022 | Education, News
By Corinne Murdock |
Northern Arizona University (NAU) will offer illegal immigrant scholarships for the 2023-2024 academic year — even if they’re eligible for deportation. NAU partnered with TheDream.US, a scholarship program fund operated by the New Venture Fund: one nonprofit arm of the leading leftist dark money networks, Arabella Advisors.
The scholarships aren’t exclusively earmarked for Deferred Action for Childhood Arrivals (DACA) and Temporary Protected Status (TPS) recipients. Any illegal immigrant that came to the U.S. before the age of 16 and before 2017 may apply for these scholarships.
In a statement, NAU President José Luis Cruz Rivera said that the scholarships aligned with their university’s goal to make higher education accessible to all students. Rivera credited the passage of Proposition 308 for affirming this move.
“Through this partnership, NAU will further the will of the people of Arizona as expressed in the passage of Proposition 308, which affords Arizona Dreamers with in-state tuition and provides an invaluable pathway to upward economic mobility and social impact,” said Rivera.
Arizona State University (ASU), Benedictine University, and Grand Canyon University (GCU) also partner with TheDream.US.
Prop 308 awards in-state college tuition to Dreamers; voters approved the measure narrowly, 51 to 49 percent. The proposition was backed by at least $1.2 million of out-of-state dark money networks.
TheDream.US reports that at least 1.3 million illegal immigrant youth are eligible for DACA. Of the approximately 98,000 who graduate from high school each year, the program estimated that only five to 10 percent (65,000 to 130,000) enroll in college on average.
Per AZ Free News past reporting, New Venture Fund (NVF) has initiatives outside of immigration reform advocacy. NVF launched the Fair Elections Center, which is behind the progressive elections reform activist project, Campus Vote Project (CVP).
In October, Secretary of State Katie Hobbs, now governor-elect, selected CVP Vice Chair Anusha Natarajan for the 2022 John Lewis Youth Leadership Award: a Barretts Honors College student, Andrew Goodman Fellow, and digital producer for the student newspaper at Arizona State University (ASU).
In 2020, Oscar Hernandez Ortiz — a DACA and TheDream.US scholarship recipient, strategist with the Arizona Bar Foundation, former fifth-grade teacher, Greater Phoenix Economic Council member, ASU graduate, former state legislature policy intern, and Arizona Department of Education Latinx Advisory Council member — wrote an Arizona Republic op-ed attacking the Trump administration’s efforts to end DACA. While at ASU, Ortiz founded the Undocumented Students for Education Equity, a resource hub for illegal immigrants.
NAU isn’t the only partner school for TheDream.US. The program lists over 80 “Partner Colleges.”
TheDream.US offers two scholarship types: the National Scholarship, which the program suggests for Arizona applicants, offers up to $16,500 for an associate degree and $33,000 for a bachelor’s degree; and the Opportunity Scholarship, which offers up to $80,000 for a bachelor’s degree to illegal immigrant students located in states without access to college because they either must pay out-of-state tuition or can’t gain admission to state universities. Applications close Feb. 28.
(Note: TheDream.US removed award amounts from its National Scholarship page earlier this year).
TheDream.US founders are: Don Graham, chairman of Graham Holdings Company (formerly The Washington Post), former director of Facebook, and former member of the Pulitzer Prize Board; Carlos Guitierrez, chairman and CEO of Empath, former chairman and CEO of Kellogg’s, and former Secretary of Commerce for the Bush administration; and Henry R. Muñoz III, former finance chairman for the Democratic National Committee.
Among senior staff at TheDream.US: its president Candy Marshall, the former chief human resources officer for the Bill & Melinda Gates Foundation; director Maria Gabriela Pacheco, who immigrated illegally to the U.S. as a child; communications manager Sadhana Singh, a recipient of DACA and a TheDream.US scholarship; program manager Melanny Buitron, a DACA recipient; data manager, and Camila Salkhov, a Dreamer.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
