The U.S. Department of Education has rescinded a record-setting $37.7 million fine against Grand Canyon University (GCU), closing a years-long legal battle over the school’s nonprofit status.
The Phoenix-based university, one of the nation’s largest Christian institutions of higher learning, celebrated the outcome in a statement on May 17, saying the case was dismissed with “no findings, fines, liabilities or penalties of any kind.”
GCU was founded in 1949 as a nonprofit, but converted to for-profit status in 2004 while on the brink of bankruptcy. The institution flourished financially during its for-profit years, especially through an expansion of online degree programs. In the face of increased regulatory scrutiny under the Obama administration, GCU restructured to return to its nonprofit roots….