The Biden administration has issued a $37.7 million fine against Grand Canyon University (GCU) after an investigation by the Department of Education found that the school misrepresented the cost of its doctoral degree programs. The investigation revealed that the majority of doctoral students who graduated between 2017 and 2022 had to pay $10,000 to $12,000 more than what GCU initially advertised due to the need for "continuation courses" to complete their dissertation requirements. GCU, which enrolls over 118,000 students mostly online, denies the allegations and plans to appeal the fine.

This is the largest fine ever issued by the Department of Education against a university for deceptive practices. It is also one of the first significant enforcement actions taken by the enforcement unit of the Federal Student Aid office since it was reestablished two years ago.

The Education Department argues that GCU's disclosures about continuation courses are insufficient and fail to address the misrepresentations made about the program's cost. GCU, however, contends that its disclosures are more extensive than those of other universities and that it is being unfairly targeted.

In addition to the fine, the Department of Education has added new terms to GCU's agreement to participate in federal student aid programs. These terms include engaging a monitor to ensure compliance with federal law and reporting any other investigations or lawsuits to the agency.