By Alexandria Cullen | Cronkite News

WASHINGTON – Grand Canyon University said it “categorically denies” charges by the U.S. Department of Education that the school willfully misled prospective students about the costs of a doctoral degree, leaving those students deeply in debt.

The comments were in response to the department’s announcement Tuesday it will fine the school $37.7 million for lying about the costs of its doctoral programs to “more than 7,500 … students,” who wound up paying 25% more than they were told a degree would cost.

The department said it is the largest fine imposed against a school for misrepresentation.

“GCU lied about the cost of its doctoral programs to attract students to enroll,” said Richard Cordray, chief operating officer of the Office of Federal Student Aid, in a statement Tuesday. “GCU’s lies harmed students, broke their trust and led to unexpectedly high levels of student debt.”

Asked for comment, GCU officials pointed to university statements that accused federal regulators of retaliating against the school for its legal fight to revert from for-profit to nonprofit status. The university sued the Education Department when it refused to change the school’s classification and insisted on “mis-classifying GCU as a for-profit institution for purposes of federal student aid.”

The department “is now able to target the university as part of a coordinated effort … to ‘pursue the full range of sanctions’ against for-profit institutions that they...

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