grand canyon education

Grand Canyon University, Grand Canyon Education Enter New Era With Completion Of Nonprofit Transaction

Development office, research and assistance to Christian schools among initial priorities

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Jul 02, 2018, 13:00 ET

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PHOENIX , July 2, 2018 /PRNewswire/ -- Today marks the beginning of a new era for Grand Canyon University (GCU) and Grand Canyon Education, Inc. (GCE).

Under the terms of a transaction that closed on July 1, 2018 , Grand Canyon Education sold Grand Canyon University to a nonprofit entity that will retain the GCU name. The transaction returns GCU to its historical roots as a nonprofit university and ensures the long-term legacy of both GCU and GCE.

"We are incredibly proud of the journey that has helped us get to where we are today," said University President and GCE Chief Executive Officer Brian Mueller . "We have taken a university that was on the brink of bankruptcy and created a higher education structure that has greatly benefitted thousands of students and families, the inner-city community in which we reside and U.S. businesses that covet the graduates we produce. That is a testament to the free market system and an American success story that should be celebrated.

"Today, GCU is on solid footing financially and it is time to change that structure again by reverting to the nonprofit status that the University held from 1949 to 2004 – a status that puts us on a level playing field with other traditional universities with regard to tax status; that ensures our students and faculty have the same access to research opportunities and grants as other universities; that opens up the world of philanthropic giving to GCU; that allows GCU to participate in NCAA governance at the Division I level; and, most importantly, that better enables us to continue to freeze tuition, which we have done for 10 straight years on our ground campus."

GCE has transferred to GCU the real property and improvements comprising the GCU campus as well as tangible and intangible academic and related operations and assets related to GCU. The purchase price, following post-closing adjustments, will be approximately $875 million , which GCU paid through the issuance of a seven-year, senior secured note.

In addition, GCU's faculty, academic leadership and related staff, which includes approximately 35 percent, or 1,400, of GCE's full-time employees and substantially all of GCE's 6,000 part-time and adjunct employees and student workers, transferred their employment from GCE to GCU. GCE continues to employ approximately 2,600 full-time employees and owns an office complex from which most of its continuing employees will continue to work.

As part of the transaction, GCE and GCU also entered into a long-term master services agreement in which GCE will provide technological, counseling, marketing, financial aid processing and other support services to GCU. The shared services arrangement is similar to that at hundreds of nonprofit universities in the country that outsource services to for-profit third-party providers.

GCU and GCE have completely independent governing boards. In fact, no member of GCU's Board of Trustees has ever served in a management or corporate board role with GCE. GCU has adopted a conflict of interest policy that prohibits any trustee from having a financial interest in, or role with, GCE.

Brian Mueller , who has served as CEO of GCE since 2008 and Chairman of the Board of GCE since 2017, will continue to serve in those roles for GCE. Mr. Mueller will also continue to serve as President of GCU, a position he has held since 2012. Such dual roles are permitted under guidelines adopted by the Higher Learning Commission. Aside from Mr. Mueller, no other employee of GCU or GCE has a dual role in both organizations.

More details of the transaction are spelled out in these FAQS .

Among GCU's initial priorities are establishing a Development Office to pursue grants and other philanthropic giving, and embarking on academic research initiatives with a focus on science, technology, engineering and math (STEM).

For GCE, it allows that organization to continue as a tax-paying, multi-billion-dollar market cap, publicly traded company in the fast-growing educational services industry, with its headquarters in Phoenix . There is the potential for GCE to provide services not only to other universities but also to Christian high schools across the country.

Mueller said the current structure is the best of both worlds for GCU and GCE and will allow the University to continue to expand and serve its community. GCU enrollment is expected to reach nearly 21,000 students on its 275-acre ground campus this fall, with an additional 70,000 students online – making it one of the largest universities in the country.

"The structure behind the scenes will change, but our goals and mission remain the same – to provide high-quality Christian education that is affordable to all socioeconomic classes of Americans," Mueller said. "The aligned goals of both organizations, as well as the integrity and ethics of both organizations, will only increase our efficiencies by utilizing resources strategically that further the teaching and assessment of student learning, as well as the overall student experience."

GCU, which is regionally accredited, was founded as a nonprofit institution in 1949 and earned a reputation as Arizona's premier private Christian school. In 2004, on the brink of bankruptcy with $20 million in debt and less than 1,000 traditional students, GCU changed its structure by taking on investors and becoming a for-profit university. The structure changed further in 2008 when GCE was incorporated as a publicly traded company in order to secure the capital needed to develop a state-of-the-art online learning platform and expand its West Phoenix campus. As a for-profit, publicly traded institution, it should be noted that GCE never paid a dividend to its shareholders, reinvesting all profits back into the University.

Mueller stressed that the move to revert GCU to its nonprofit status is not being done to escape current regulations that are imposed only on the for-profit sector. Because GCU maintains affordable tuition, none of its programs failed the gainful employment regulations. GCU's loan default rate will be an estimated 6.2 percent for the most recent cohort – well below federal guidelines. For the 90/10 rule, GCU sits at 72.3 percent (and dropping). The University supports measures that ensure educational institutions are meeting recognized standards – particularly as it relates to student support services, academic integrity and financial transparency – and believes those measures should apply to all institutions (for-profit and nonprofit).

"We pride ourselves on being innovative and forward-thinking, and this transaction is further testament to that," Mueller said. "The future is bright, not only for GCU and GCE but also for anyone interested in affordable, private Christian education."

DLA Piper LLP (US) ( Phoenix, Arizona ) served as outside corporate counsel to GCE in the transaction, while Hogan Marren Babbo & Rose Ltd. ( New York ) served as outside regulatory counsel. Barclays Capital served as financial advisor to GCE.

Gallagher & Kennedy ( Phoenix, Arizona ) served as outside corporate counsel to GCU in the transaction while Cooley LLP ( Washington, D.C. ) served as regulatory counsel. Wells Fargo Securities, LLC served as financial advisor to GCU.

About Grand Canyon University : Grand Canyon University was founded in 1949 and is Arizona's premier private Christian university. GCU is regionally accredited by the Higher Learning Commission and offers more than 225 academic programs, emphases and certificates for both traditional undergraduate students and working professionals. The University's curriculum emphasizes interaction with classmates, both in-person and online, and individual attention from instructors while fusing academic rigor with Christian values to help students find their purpose and become skilled, caring professionals. For more information, visit gcu.edu .

About Grand Canyon Education: Grand Canyon Education (GCE), incorporated in 2008, is a publicly traded education services company. GCE is uniquely positioned in the education services industry in that its leadership has 30 years of proven expertise in providing a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior service in these areas on a large scale. GCE provides services that support students, faculty and staff of partner institutions such as marketing, strategic enrollment management, counseling services, financial services, technology, technical support, compliance, human resources, classroom operations, curriculum development, faculty recruitment and training, among others. For more information, visit gce.com.

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Grand Canyon Education sees revenue growth as students return to campus

Dive Brief: 

• Revenue at Grand Canyon Education, or GCE, a publicly traded company that provides education services to more than two dozen universities, grew to $896.6 million in 2021, up 6.2% from the year before, according to documents filed with the Securities and Exchange Commission. The company's net income increased to $260.3 million in 2021, up 1.2% from the year before. 
• Increased revenue per student drove the growth , though it was partially offset by a decline in enrollment at GCE's partner institutions. GCE's largest partner is Grand Canyon University, a Phoenix-based Christian institution that split off from the company in mid-2018. 
• Enrollment at GCE's partner institutions dipped to 112,554 students at the end of 2021, falling 3% from the year before. Grand Canyon University accounted for the vast majority of the enrollment, with 108,139 students at year's end. 

Dive Insight: 

Grand Canyon University faced some of the same enrollment challenges that troubled other colleges in 2021. Nationwide, undergraduate enrollment slipped 3.1% in fall 2021 from the year before, representing a decline of nearly half a million students, according to the National Student Clearinghouse Research Center. Graduate enrollment — a boon in the early days of the pandemic — also declined, by 0.4%. 

The decreases at Grand Canyon University were driven by lower enrollment in online programs. Online enrollment at the end of 2021 fell 5.5% from the year before to 84,510 students, while on-campus enrollment grew 9.9% to 23,629 students.

"When COVID first hit, there was an initial surge of working adult students returning to college as online students," GCE CEO Brian Mueller said during a call with analysts Wednesday to discuss the company's yearly earnings. Mueller is also the president of Grand Canyon University. 

However, as the pandemic progressed, some potential students began questioning the value of higher education, while others who would have pursued nursing, for example, were busy at work taking care of COVID-19 patients, Mueller said. "2021 definitely saw a downturn in working adults attending universities online, and we experienced that as well," he said. 

Dan Bachus, the company's chief financial officer, said GCE is hopeful online enrollment will grow again in 2022. 

Despite the overall enrollment declines, Grand Canyon University saw higher fees from room, board and other auxiliary services as more students opted for a traditional residential experience in 2021 than the year before. In turn, GCE's revenue also grew, as it provides services to Grand Canyon University in exchange for 60% of its tuition and fee revenue. 

GCE also benefited from growing enrollment at its partner institutions' off-campus classrooms and laboratory sites. Enrollment at these locations grew to 4,684 at the end of 2021, up 5.9% from the year before. Grand Canyon University, which also has such sites, only accounted for 269 of these students.

These locations generally provide GCE higher revenue per student than the company earns under its contract with Grand Canyon University, as they usually provide a larger revenue-share percentage and the partners have higher tuition rates, according to an SEC filing. The majority of students in these programs are in an accelerated bachelor's program in nursing.

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Grand canyon education, inc. (lope).

• Previous Close 144.15
• Open 143.86
• Bid 142.80 x 100
• Ask 143.12 x 100
• Day's Range 141.79 - 143.99
• 52 Week Range 99.65 - 156.56
• Volume 157,289
• Avg. Volume 176,131
• Market Cap (intraday) 4.25B
• Beta (5Y Monthly) 0.64
• PE Ratio (TTM) 19.99
• EPS (TTM) 7.15
• Earnings Date Aug 1, 2024 - Aug 5, 2024
• Forward Dividend & Yield --
• Ex-Dividend Date --
• 1y Target Est 165.00

Grand Canyon Education, Inc. Overview Education & Training Services / Consumer Defensive

Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. It offers technology services, including learning management system, internal administration, infrastructure, and support services; academic services, such as program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support services comprising admission, financial aid, and field experience and other counseling services. The company also offers marketing and communication services that include lead acquisition, digital communications strategy, brand identity, media planning and strategy, video, business intelligence and data science, and market research services; and back-office services consisting of finance and accounting, human resources, audit, and procurement services. In addition, it provides education services to 25 university partners. Grand Canyon Education, Inc. was founded in 1949 and is headquartered in Phoenix, Arizona.

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Research Analysis: LOPE

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Is Grand Canyon University Accredited? Is GCU a Good School?

June 3, 2024

Is Grand Canyon University Accredited? Is Grand Canyon University a Good School? There’s a funny thing about these private, for-profit universities that crop up in the desert. Sometimes they’re super religious. Sometimes they operate online. But the thing they most have in common is scandal. Why is that? 

Well, we might say it’s because many of the tactics that are traditionally used in business to optimize profit run contrary to the legal regulations that protect the educational rights of paying students. Those regulations are in place, one could argue, because—unlike buying a car or a ticket to Disney World—deciding to pursue and pay for higher education involves making a choice that will directly affect your career, your finances, and your life prospects. As a society, we’ve decided that it’s important to keep the people who want to make that investment safe from potential scams that would put them into debt without providing them with the means to find gainful employment. 

So, if you’re Googling around searching for whether or not Grand Canyon University is accredited—hoping to discover whether or not it’s a legitimate place to study—I imagine it’s because you don’t want to fall into that trap. (The trap where you have a ton of student loan debt but can’t find a job because employers don’t respect your degree.) Most times, however, accreditation is only one piece of the larger credibility puzzle. 

Is Grand Canyon University Accredited? Is Grand Canyon University a Good School? (Continued)

In this post, we’ll hope to convey to you the nature of a university like Grand Canyon. (We’ve written similar posts on schools like the University of Phoenix , Liberty University , Capella University and Western Governors .) In the end, the choice to attend a school is up to you, but hopefully, we can provide information that will help you to inform yourself. 

If you’re looking right away for a great online program, you might also consider the schools on our list of the Best Accelerated Online Bachelor’s programs. Additionally, check out one of our “best colleges” lists, like the 73 Best Colleges Without Supplemental Essays , which could save you some headaches in terms of writing and applying. 

Is Grand Canyon University Legit? 

Grand Canyon University is a private, for-profit, Christian university located in Phoenix, Arizona. It offers more than 200 fields of study divided among 9 different colleges. GCU competes in NCAA Division I athletics as a part of the Western Athletic Conference. The school’s mascot is the Grand Canyon Antelope. 

GCU was founded in 1949 by the Arizona Southern Baptist Convention, but ended its affiliation with the Southern Baptist Convention in 2000. During this period, GCU was suffering financially. In 2004, it was sold to then-Significant Education, LLC, which has since transformed into Grand Canyon Education, Inc. Grand Canyon Education, Inc. (or GCE) is traded on the NASDAQ under the acronym LOPE, like the last part of the word “antelope.” 

What does this mean? 

It means that GCE wants to take on shareholders who will invest money into the project of Grand Canyon University. Those shareholders will have the objective of getting a return on their investment that is larger than what they put in. That means that GCE needs to use GCU as a profit-generating machine to increase the value of the traded stock and return more money back to GCE investors. 

That means an education at GCU—or any for-profit university controlled by a publicly-traded entity—is going to be dependent on what will make the most money.  That’s why you see so many of these schools embroiled in weird scandals that involve money-making schemes. But, you know, they have to be careful. They still have to sell you an education for which you’ll want to pay. So, yes, you can go there and study and graduate and get a job with your diploma, because they need to consistently bring in more students in order to grow the business. The Investor FAQ on the GCE website says as much: when GCE bought GCU, they came in with a plan to grow enrollment to 100,000 by 2020—and they did it. It’s in their best interest to sell you a quality product. 

On the surface, that’s not a bad thing. Universities are always trying to grow enrollment in order to bring in more money. They have to do this to run programs and pay administrators and build rock walls at the campus gym. (Some argue that the reason that colleges are expensive in the first place is due to two Bs: bureaucracy and buildings .) But if the education you’re sold and the education you’re given is always tilted towards lining someone else’s pockets, you might be being sold a product that isn’t that great. Or, simply, maybe you could do better. You know? 

To be clear, there is a whole set of arguments against the funding structures of nonprofit, public and private universities, too. It’s not like those folks are really doing that well, either. It’s just a different world over there— and a different set of arguments for why those funding structures are messed up . 

So, is GCU accredited? 

Yes, GCU is a regionally accredited university by the Higher Learning Commission, the HLC, which is tasked with accrediting colleges in the American Mid-and-Southwest. And that regional accreditation is good! It means GCU is meeting the academic standards broadly agreed upon to provide a quality education. 

I put the following “About Accreditation” section in every blog post of this nature that I write, because it’s a frequently misunderstood term in all of its complexity. If you’ve read this section before in another one of my posts, you’ve read it. Feel free to scroll to the next subhead for more on Grand Canyon University. But if you want to understand more about accreditation, read on. 

About Accreditation 

Colleges, universities, and all kinds of vocational programs get themselves accredited by outside institutions in order to demonstrate their legitimacy. Accrediting institutions set out specific standards and guidelines for course content and learning objectives that a college or a program must meet in order to become accredited. If a school is accredited by a recognized accrediting body, it means that the school is following best practice protocols to create a relevant, useful, and valuable educational experience for its students. 

Drexel University, a globally recognized, private research university in Philadelphia, has put together a guide to accreditation . They write, “ Educational institutions are either regionally or nationally accredited. Accreditation is a voluntary process that ensures a college, university, or degree program meets a universal standard for quality. This gives an institution and its graduates credibility with other institutions and employers.”

This distinction between national and regional accreditation is important to note. National accreditation focuses on vocational or technical programs. Regional accrediting bodies focus on academic institutions, including state-owned and private not-for-profit colleges and universities. 

If you’re going to attend a college or university, you want to make sure that it is accredited by a recognized regional accrediting association. Drexel lists those associations on its guide . This will not only ensure that you are attending a well-structured program that will prepare you for whatever step follows graduation, but it will also ensure that you have the ability to do things like transfer courses to another accredited school, should you choose to change directions. Employers and graduate schools will also recognize your accredited institution and be able to better verify your education as legitimate. 

Grand Canyon University Scandal

Way back in 2008, the federal government sued GCU for paying its enrollment counselors on the basis of how many students they enrolled while accepting federal financial aid. This is a violation of a Department of Education ban on incentive-based compensation. GCU did reach a settlement, and paid $5.2 million to a former employee and to the feds Other for-profit schools have been sued for similar violations. 

One of the biggest scandals you’ll hear about with GCU is its attempt to shift back to a nonprofit entity. Essentially, in 2014, GCU made an announcement that they wanted to go nonprofit again, and the school made a bid to the HLC (the accrediting body) to change its status. In 2016, the HLC said, “Nope,” because of GCU’s proposed plan to outsource things like curriculum development and student support services to external vendors. This didn’t meet the HLC for a return to nonprofit.

In 2018, the HLC did accept a further bid to change GCU’s status, however, the U.S. Department of Education did not change its tune on GCU. GCE did sell GCU to a nonprofit entity, however, the Department of Ed still calls GCU a for-profit school, mostly because GCU is still a “captive client” of GCE. The Department of Ed says that GCE and its shareholders are still the “primary beneficiaries” of GCU . Citron also called GCE the “Enron” of higher education and accused it of securities law fraud. Further, the report caused GCE stock to drop 10%. 

Part of the attempt to move to this nonprofit status came from an attempt to dodge the school’s hefty property tax status. As ESPN reported in 2018: 

“GCU topped all landowners in the city of Phoenix last year with its $9.2 million property tax bill, a number school officials say is unsustainable and will require a switch from for-profit to nonprofit status to reduce that burden. This will be the second time in three years that GCU has tried to eliminate the property tax burden. The school was rejected the first time.”

During the pandemic, GCU tried to sue the federal government, saying that it did not receive all the funds it was due because of its nonprofit status. GCU sued the Department of Education in 2021 for denying the bid to go nonprofit. In 2022 that lawsuit was dismissed. 

In 2023, GCU released a public statement saying that it felt under the attack of the concerted effort by the federal government because of all of the denials to GCU’s bids to go nonprofit. 

Is Grand Canyon University Accredited? Is GCU a Good School? (Continued)

In the same year, the Department of Education also fined GCU $37.7 million, alleging that GCU deceived prospective doctoral students about the cost of the degree. According to the Department of Education Office of Federal State Aid (FSA) press release : 

An FSA investigation found GCU lied to more than 7,500 former and current students about the cost of its doctoral programs over several years. GCU falsely advertised a lower cost than what 98% of students ended up paying to complete certain doctoral programs.

FSA’s investigation determined that as far back as 2017, GCU was not fully informing students about the cost of its doctoral programs. GCU stated that those doctoral programs cost between $40,000 and $49,000. GCU made these false claims about the cost on the school’s website and net price calculators, as well as in its enrollment agreements, catalogs, policy handbooks, and other marketing materials. These false claims violate the Higher Education Act and federal regulations prohibiting substantial misrepresentations. Based upon these substantial misrepresentations, the Department eventually determined that GCU failed to adhere to the fiduciary standard required of a Title IV participant.

GCU disputed the allegations saying it provides more information than they are required to by law. According to the FSA, GCU “disbursed the most federal student aid of all participating institutions for the past four award years.” 

In December 2023, the Federal Trade Commission sued Grand Canyon University in federal court, in a follow-up allegation to the FSA fine and the claims about deceptive statements about the cost of doctoral programs, as well as the school’s tax status. GCU responded saying that the lawsuit was absurd, because the HLC and the IRS call GCU a nonprofit, but GCU cannot legally market itself that way until the Department of Education approves the change. According to reporting by Inside Higher Ed : 

The university pays 60 percent of its revenue to Grand Canyon Education, and Brian Mueller, president of Grand Canyon University, is also CEO and a stockholder of Grand Canyon Education, the trade commission’s lawsuit asserts. Additionally, per the lawsuit, Grand Canyon University is the most significant source of revenue for Grand Canyon Education.

Grand Canyon University Tuition

The NCES lists costs for GCU as follows for the 2023–2024 academic year: 

• Tuition and fees: $17,450 
• Books and supplies: $750 
• On-campus/off-campus food and housing: $11,162 
• Other expenses: $4,300 
• Total costs: $33,662 

Average financial aid breaks out like this: 

• Grants and scholarships: $9,308 
• Loans, public and private: $7,503 

That makes the net price for full-time beginning students: 

• $22,239 for one year.

Grand Canyon University Notable Alumni

• Anthony Birchak, wrestler and mixed martial artist
• Henry Cejudo, mixed martial artist
• Bill Engvall, comedian
• Efrain Escudero, wrestler and mixed martial artist
• Bayard Forrest, professional basketball player
• Grandy Glaze, professional basketball player
• Steve Green, musician
• Niki Jackson, Major League Soccer player
• Killian Larson, professional basketball player
• Horacio Llamas, professional basketball player
• Randy McCament, professional baseball player

Is Grand Canyon University Accredited? Is it a Good School? (Continued)

• Josh McDermitt, actor and comedian
• Moriah Peters, musician
• Cody Ransom, professional baseball player
• Tim Salmon, professional baseball player
• Randy Soderman, professional soccer player
• Rachel Mitchell, attorney
• David Stapleton, professional baseball player
• Kevin Warren, professional football executive and college athletics commissioner
• Christine Weidinger, operatic soprano
• James White, theologian and minister
• Jacob Wilson, professional baseball player

Is Grand Canyon University a Good School? 

U.S. News & World Report had the following to say about Grand Canyon University: 

“Grand Canyon University is ranked #395-435 out of 439 National Universities. Schools are ranked according to their performance across a set of widely accepted indicators of excellence.” 

In conclusion, the nature of lists, like all things in life, is that they come to an end. Something, someone has to be at the end (or nearly the end) of every list. In the case of academic excellence, Grand Canyon University is helping to fill that role. 

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Brittany Borghi

After earning a BA in Journalism and an MFA in Nonfiction Writing from the University of Iowa, Brittany spent five years as a full-time lecturer in the Rhetoric Department at the University of Iowa. Additionally, she’s held previous roles as a researcher, full-time daily journalist, and book editor. Brittany’s work has been featured in The Iowa Review, The Hopkins Review, and the Pittsburgh City Paper, among others, and she was also a 2021 Pushcart Prize nominee.

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What is Biden's team hiding about its pledge to 'shut down' America's largest Christian university?

Education dept officials won't say why it has imposed the largest fine in its history on a top-performing private school.

Grand Canyon University president responds to lawsuit brought by the Biden admin

Grand Canyon University president Brian Mueller discusses the FTC's lawsuit over deceptive advertising on 'Fox & Friends.'

In testimony before Congress, Secretary of Education Miguel Cardona vowed to "shut down" Grand Canyon University (GCU), one of the nation’s largest and most successful private colleges – and the motive appears purely political. 

Secretary Cardona’s department has targeted GCU with a $37.7 million fine, the largest fine ever assessed in agency history. By comparison, the Department of Education fined Penn State $2.4 million for failing to report the sex crimes of Jerry Sandusky, and Michigan State $4.5 million for failing to address sexual assault committed by Larry Nasser. 

What is the basis for this extraordinary fine? The department alleges that GCU failed to properly inform Ph.D. students that they must take courses while completing their dissertations. This is a pretextual deceit. 

The Biden administration has besieged Grand Canyon University with a coordinated effort among various federal agencies and politically motivated bureaucrats.

Cardona’s testimony, and public records requested by the Goldwater Institute, reveal that the government’s real motive is not any misconduct on the part of GCU, but animus toward private, affordable education that does not tow the statist party line.

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By any metric, GCU is a success story . Starting with less than 1,000 students and few course offerings, now the university has over 100,000 students enrolled across its programs, and offers degrees in every conceivable discipline. 

GCU is known for helping the low-income community of Phoenix. It has a successful record of graduating students into good jobs, including in the trades. It celebrates diversity of viewpoints and ideas. And most impressively, GCU has not raised tuition for their students in over 15 years. 

This is in stark contrast to the public universities plagued with extreme ideologies, bloated administrations and crippling student debt.

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One would think that the Biden administration’s Education Department would applaud this success. Instead, it has besieged the university with a coordinated effort among various federal agencies and politically motivated bureaucrats. 

When news of the government’s assault on GCU broke, the Goldwater Institute, where we work, submitted a Freedom of Information Act request to the U.S. Department of Education, seeking communications among senior personnel at the department and other federal agencies. 

Secretary Miguel Cardona and Jessica Rosenworcel, chairwoman of the Federal Communications Commission, during a roundtable discussion at the Johnson County Central Resource Library as part of the Education Department's "Back to School Bus Tour 2023: Raise the Bar" campaign in Overland Park, Kansas, on Sept. 5, 2023. (Arin Yoon/Bloomberg via Getty Images)

We also sought the number of student complaints that were submitted regarding GCU’s graduate programs. Tellingly, no records of complaints have been produced. Instead, the department produced 800 pages of records that were almost entirely redacted. 

What is the federal government hiding, and why won’t Department of Education officials inform the public about how and why it imposed the largest fine in its history on one of the nation’s largest, best-performing private schools?

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Cardona’s congressional testimony , and one record that was produced, suggests the reason: the federal government’s decision to attack GCU is not an enforcement decision, it is a political one. 

When the agency imposed the fine on GCU, it did so with a ceremonious press release – odd by any measure, and especially odd for government authorities who should impartially conduct investigations and bring only bona fide enforcement cases. 

We now suspect that press releases were done in coordination with the White House. In emails between Shin Inouye, the deputy assistant secretary for communications at the Department of Education, and senior department officials, Inouye is coordinating the department’s messages with the "WH," or White House. 

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In one Oct. 6, 2023, email, Inouye asks senior officials about a document he is "sending to the WH," and seeks a "[l]ast call for edits." Inouye then states, "WH cleared. Sending to reporters now." 

Secretary Miguel Cardona speaks during the National Safer Communities Summit at Hartford University in West Hartford, Connecticut, on June 16, 2023. (Bing Guan/Bloomberg via Getty Images)

Unfortunately, the vast majority of these communications were redacted. So, it is unclear what sort of "clearance" department officials charged with investigating and prosecuting cases would seek from the White House. 

What is clear, however, is that politicians and political appointees appear more concerned with directing a press narrative than with fairly adjudicating legal allegations. This should alarm every American.   

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Cardona’s testimony that he aims to "shut down" GCU reveals that the federal government has no interest in allowing private colleges and universities to provide successful alternatives to the higher education status quo. 

And because the department is refusing to provide information about this extraordinary fine, the public is still left wondering why the Biden administration isn’t focused on improving higher education in America, but instead on a politically motivated prosecution that is only harming students trying to get a good and affordable education. 

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Stacy Skankey is an attorney at the Goldwater Institute, which has filed suit against the Department of Education to compel production of public records. 

Jon Riches is the director of national litigation at the Goldwater Institute.

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