PHOENIX — Grand Canyon University officials announced Thursday they will be appealing the U.S. Education Department's decision to fine the private university over $37 million for allegedly "deceiving" students.
GCU President Brian Mueller said the university is prepared to proceed with filing a lawsuit if they're not successful in appealing the agency's large fine.
VERSIÓN EN ESPAÑOL: La Universidad del Gran Cañón apelará alta multa por parte del gobierno federal
"This whole thing is completely ridiculous," Mueller said during Thursday's press conference.
The federal agency announced last month it was penalizing GCU for allegedly making false advertisements of the cost of its doctoral programs.
GCU has denied the claims and argued that the university has been unfairly targeted by federal officials since GCU decided a few years ago to shift back to a nonprofit status.
The school previously sued after the Education Department rejected its request to be classified as a nonprofit college. Grand Canyon became a for-profit college in 2004 when investors saved it from financial collapse. It applied to become a nonprofit again in 2018, but the Trump administration blocked the move, saying the college remained too close to its previous parent company.
It’s considered a nonprofit by its accreditor and the Internal Revenue Service.
The university enrolls roughly 20,000 students at its campus in Phoenix, but most of its enrollment comes from students who take online classes from outside Arizona. It had 80,000 students in online programs as of 2021.
Watch 12News+ for free
You can now watch 12News content anytime, anywhere thanks to the 12News+ app!
The free 12News+ app from 12News lets users stream live events — including daily newscasts like "Today in AZ" and "12 News" and our daily lifestyle program, "Arizona Midday"—on Roku and Amazon Fire TV.
12News+ showcases live video throughout the day for breaking news, local news, weather and even an occasional moment of Zen showcasing breathtaking sights from across Arizona.
Users can also watch on-demand videos of top stories, local politics, I-Team investigations, Arizona-specific features and vintage videos from the 12News archives.
Roku: Add the channel from the Roku store or by searching for "12 News KPNX."
Amazon Fire TV: Search for "12 News KPNX" to find the free 12News+ app to add to your account, or have the 12News+ app delivered directly to your Amazon Fire TV through Amazon.com or the Amazon app.
UP TO SPEED
Catch up on the latest news and stories on the 12News YouTube channel. Subscribe today.