Grand Canyon University recently became the largest for-profit college in history to receive a financial penalty. The company was fined a hefty $37.7 million by the Department of Education’s (DOE) Office of Federal Student Aid (FSA) due to its involvement in alleged violations of federal student aid rules in the past.
This is not the first time Grand Canyon University has run into trouble with federal regulations. In 2018, the college was fined $3.5 million by the Federal Trade Commission (FTC) for deceptive advertising practices related to its online programs. This case was based on the claims the institution made about the quality of their online program, job placement and credit transfer policy.
The latest scandal, however, appears to be spurred by issues surrounding Grand Canyon University’s Title IV student aid program. According to FSA, Grand Canyon University was found to have violated Title IV regulations when it failed to provide student borrowers with complete information and resources about loan repayment options. Additionally, the organization allegedly issued student loan disbursement notices without providing loan counseling, and charged students for graduation fees without providing them with a refund option.
In addition to paying out the $37.7 million fine, Grand Canyon University is also expected to make changes to its practices in order to comply with FSA’s rules and regulations going forward.
This is not the first time a major for-profit college has been fined for failing to comply with Title IV regulations. In recent years, both the University of Phoenix and ITT Technical Institute have been hit with hefty fines for similar violations.
Grand Canyon University’s president, Brian Mueller, issued a statement in the wake of FSA’s decision. He expressed his regret that the company had dropped the ball in this instance, but stated that they were taking the necessary measures to ensure the organization would not be hit with similar fines in the future.
It remains to be seen if this latest incident will have implications for other for-profit colleges. However, it is clear that the Department of Education’s Office of Federal Student Aid is closely monitoring the actions of these schools, and that major consequences are in store for those found to be in violation of Title IV regulations.
Grand Canyon University recently became the largest for-profit college in history to receive a financial penalty. The company was fined a hefty $37.7 million by the Department of Education’s (DOE) Office of Federal Student Aid (FSA) due to its involvement in alleged violations of federal student aid rules in the past.
This is not the first time Grand Canyon University has run into trouble with federal regulations. In 2018, the college was fined $3.5 million by the Federal Trade Commission (FTC) for deceptive advertising practices related to its online programs. This case was based on the claims the institution made about the quality of their online program, job placement and credit transfer policy.
The latest scandal, however, appears to be spurred by issues surrounding Grand Canyon University’s Title IV student aid program. According to FSA, Grand Canyon University was found to have violated Title IV regulations when it failed to provide student borrowers with complete information and resources about loan repayment options. Additionally, the organization allegedly issued student loan disbursement notices without providing loan counseling, and charged students for graduation fees without providing them with a refund option.
In addition to paying out the $37.7 million fine, Grand Canyon University is also expected to make changes to its practices in order to comply with FSA’s rules and regulations going forward.
This is not the first time a major for-profit college has been fined for failing to comply with Title IV regulations. In recent years, both the University of Phoenix and ITT Technical Institute have been hit with hefty fines for similar violations.
Grand Canyon University’s president, Brian Mueller, issued a statement in the wake of FSA’s decision. He expressed his regret that the company had dropped the ball in this instance, but stated that they were taking the necessary measures to ensure the organization would not be hit with similar fines in the future.
It remains to be seen if this latest incident will have implications for other for-profit colleges. However, it is clear that the Department of Education’s Office of Federal Student Aid is closely monitoring the actions of these schools, and that major consequences are in store for those found to be in violation of Title IV regulations.
