Grand Canyon University (GCU) is located in Phoenix, Arizona in the heart of Maricopa County. You know, the Maricopa County that was somehow established in 1871, around 40 years prior to Arizona being recognized as a State of the Union.
GCU refers to itself as a private, Christian university and some refer to it as the “largest Christian” university in the United States.
It is our understanding that GCU and its campus has become a stimulant to the local economy and student enrollment continues to grow and expand.
However, it appears that GCU is like the red-headed step child of the rather liberal, higher education sector. It is different from other colleges and universities. In fact, it is so different that it would appear that its parents have decided to punish their red-headed step child for bad behavior. What do we mean by “parents?” We mean the US Department of Education. The red-headed step child has apparently started to wreak “havoc” by achieving some success so the parent seems to be wanting to step in to put its “out of line” child back in his/her place. Allow us to explain.
Plainly stated, the US Department of Education is NOT recognizing GCU’s nonprofit conversion as it pertains to the IRS.
GCU published this open letter to the Department of Education on or around 10/24/23.
In our initial meetings with the Department of Education back in 2014, we had productive discussions with former Under Secretary Ted Mitchell in which he said he would assist GCU in its proposed nonprofit conversion and indicated that the Department would follow the ruling of the IRS as it always has when it comes to nonprofit status determination. We proceeded under that guidance and are at a loss to understand why things have changed so significantly regarding the Department’s stance on GCU, particularly since similar nonprofit conversions such as Purdue-Kaplan have been approved.
The US Department of Education, now led by Secretary Miguel Cardona, responded by fining GCU $37.7M for their egregious behavior towards students - offering a wide range of educational opportunities at affordable prices. A redacted copy of the letter can be accessed here.
Largest Christian University in US fined record amount (11/1/23)
Are we witnessing the ultimate act of bullying on the school playground? Is the US Department of Education “flexing its muscles” while “standing ominously over” a Christian university?
GCU responded quickly and concisely to the baseless claims being made by the US Department of Education.
GCU categorically refutes Department of Education’s lies and deceptive statements (10/31/23)
Grand Canyon University categorically denies every accusation in the Department of Education’s statement and will take all measures necessary to defend itself from these false accusations.
What are we to make of all of this? A thriving, Christian university has the US Department of Education breathing down its neck for what would appear to be little or no reason. Is it because GCU is now able to lay claim to being a “Top 20” college campus?
Government agencies unjustly targeting GCU (10/5/23)
Government officials associated with the U.S. Department of Education (ED), Federal Trade Commission (FTC) and under the authority of the Department of Veterans Affairs (VA) are coordinating efforts to unjustly target GCU in what appears to be retaliation for the university filing an ongoing lawsuit against ED regarding its nonprofit status. While such accusations may sound extraordinary, the facts in this document make clear that this is occurring at an alarming level for government agencies to be taking against the largest Christian university in the country.
So again, is this outright bullying? This recent fine of $37.7M appears to be targeted retaliation. The US Department of Education has apparently been weaponized against a Christian university. Set aside the “Christian” aspect for a minute. Would this be acceptable for any university? Why is the US Department of Education digging in their heals on this? Why GCU?
GCU was a nonprofit institution from its inception in 1949 until 2004, when it partnered with private investors in order to avoid closing and gain access to capital to grow the university. The university returned to its historic 501(c)(3) tax-exempt Arizona nonprofit status in 2018, which has been recognized by the IRS, Higher Learning Commission, State of Arizona, Arizona Private Postsecondary Board and NCAA Athletics. ED, however, has refused to acknowledge GCU’s nonprofit status for purposes of federal student financial aid. After trying to work cooperatively with ED both before and after the nonprofit transaction to find a solution, GCU was forced to file a lawsuit in February 2021 when it became apparent ED was unwilling to work with us in good faith and there was no path forward. That litigation remains active and ongoing today.
Why is the US Department of Education doing this?
By intentionally mis-classifying GCU as a for-profit institution for purposes of federal student aid, ED 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 frequently decry as bad actors due to the disproportionate number of Americans who attended those schools and then defaulted on federal student loans.
Again, why GCU? We can think of only one reason that GCU is being targeted. They make mention of the creator God on their campus. You know, the creator God mentioned in the preamble to the Declaration of Independence.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.
~ Preamble to the Declaration of Independence
Very few, if any, colleges hold publicly to a “Christian worldview.” It is one thing for the US Department of Education to put up with a small, “Christian” university with a few students. It is quite different to see that same university educating thousands of students and sharing the simple fact that God exists. Plainly speaking, the GCU model breaks the norm in higher education on a number of levels so it poses a threat to the establishment. Therefore, GCU and similar universities MUST heed the warning that the US Department of Education is in charge. Submit, or be crushed.
The other irony here is that GCU is surpassing minimum requirements.
The irony in these reviews, especially as it relates to ED’s accusations, is that a 2022 report by the U.S. Government Accountability Office (GAO) found that 91% of colleges in America have misleading information or understate the net price in their financial aid offers to prospective students. That includes 41% of colleges that do not even provide a net price in their offers to students. GCU provides greater levels of transparency than is legally required and is looked at by its peers as a leader in higher education transparency – yet these government agencies have chosen to single out GCU and threaten punitive actions in order to harm the university.
The question remains - who is wreaking HAVOC on whom? Does the GCU model wreak HAVOC on the establishment or is the establishment going to be able to wreak enough HAVOC on GCU to make it fall in line? Will GCU be forced to “submit” to the “bullying authorities?” Or will GCU recommit to its mission and tell the “authorities” to go pound sand?
It is a fitting name isn’t it? The GCU Havocs. That is the name that has been given to the GCU college basketball fans, much like Duke’s basketball fans being called the “Cameron Crazies,” referring to Cameron Indoor Stadium.
It has become clear to our team that GCU poses some sort of threat to the US Department of Education. The unique GCU higher education model might just be “laying waste” to the traditional model of higher education. We hate to say it, but it sure looks like the US Department of Education is about to be havocked.
Stealing a few lines from the “Seal Team” TV series from 2020:
HAVOC base this is Team BRAVO. We applaud you. Please continue to hold the line!
Translation: Please proceed to wreak as much HAVOC as needed with the US Department of Education so you can continue the work of educating a few leaders of tomorrow at affordable prices!