Grand Canyon University, the largest for-profit college in the United States, has been fined $37.7 million by the Arizona Department of Education for improperly administering and using federal funds.
The Department announced the hefty fines after an investigation revealed that the university had failed to comply with numerous rules related to the federal student aid programs. According to the Department, the university had inappropriately used funds from the federal student aid program to cover operational costs, which is prohibited.
“The state of Arizona takes compliance with federal laws and regulations very seriously, and will not tolerate violations of these requirements by any school, for-profit or otherwise,” said Arizona Superintendent of Public Instruction Richard Crandall. “We will continue to vigilantly monitor the compliance of all institutions of higher education operating within our state.”
Grand Canyon University, which is located in Phoenix, Arizona, has a student population of 73,249. The university received $350 million in funding from the Department of Education in 2015, the most of any for-profit college that year.
In response to the fines, Grand Canyon University issued a statement expressing its disappointment and pointing to its long history of complying with all regulations. The university also noted that all of the issues identified by the Department of Education had already been addressed in previous years.
Despite this, the Department of Education still felt that the university should face repercussions for its actions, and has required that the fines be paid in full within the next 30 days. Failure to comply will result in the university’s loss of federal funding and a potential suspension of its ability to operate as an Arizona institution of higher education.
It is yet to be seen how this hefty fine will affect Grand Canyon University and its students, but it is clear that the university is facing an uphill battle as it seeks to properly administer its federal funding. It remains to be seen what further repercussions the university could face if it continues to fail to comply with Department of Education regulations.