Biden Admin Hits University With Massive Fine

Biden Admin Hits University With Massive Fine

( – President Joe Biden has canceled roughly $127 billion in student debt since assuming office despite an adverse ruling by the Supreme Court regarding some of his methodology. Recent reports indicate the US Department of Education is aggressively pursuing action against higher learning institutes, including imposing millions of dollars in administration fines.

Team Biden recently imposed a record fine on an Arizona-based university. Here’s what we know so far.

Biden Administration Officials Hit Arizona University With a Massive Fine

On October 31, the US Department of Education (DoE) issued a press release detailing the circumstances surrounding a $37.7 million fine it levied against Grand Canyon University (GCU). Media outlets reported it was the largest penalty of its type ever assessed against an educational facility.

The DoE notice stated that investigators with its Federal Student Aid (FSA) division uncovered evidence that GCU lied to thousands of its students regarding the cost of its doctoral programs over several years. The Phoenix-based Christian school reportedly misled prospective students by advertising lower fees than roughly 98% of them ended up paying.

FSA investigators determined that fewer than 2% of the students enrolled in its doctoral-level programs paid fees consistent with the advertised costs for finishing their degrees. The university assessed the “vast majority of graduates” with requirements for so-called “continuation courses” that the GCU required to complete their doctoral program’s dissertation requirements.

Using GCU’s own data, the FSA determined as many as 78% of its doctoral program graduates ended up paying between $10,000 and $20,000 as a result of those unadvertised courses. That additional payout created a roughly 25% increase, depending on the program.

“GCU lied about the cost of its… programs to attract students,” FSA head Richard Cordray stated, adding that the DoE was holding the university “accountable for its actions [and] protecting students and taxpayers.” GCU received federal student aid, and its alleged actions violate the Higher Education Act. Additionally, the DoE determined the school “failed to adhere” to fiduciary standards required as a Title IV “participant.”

The Wall Street Journal reported that the DoE actions follow “years of piecemeal debt-forgiveness actions” orchestrated by the Biden administration. Officials targeted school loan cancellations for students who attended schools that deliberately misled students about services and fees or engaged in fraudulent activities.

Likewise, the Consumer Financial Protection Bureau is probing allegations of “botched customer service” activity by school loan processors as repayments begin after a three-year pause related to the recent health emergency.

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