Grand Canyon University Accreditation Problems: HLC and Lawsuits

Grand Canyon University’s accreditation problems are not about the university losing its accreditation. GCU has been institutionally accredited by the Higher Learning Commission since 1968, and that accreditation was most recently reaffirmed with no monitoring requirements.1Grand Canyon University. Higher Learning Commission Reaffirms GCU’s Accreditation The problems sit one level down: several specific degree programs have lacked the specialized programmatic accreditation graduates need for professional licensure, and federal regulators, students, and courts have spent the last several years fighting over whether GCU disclosed that clearly.

Institutional Accreditation Is Not the Same as Programmatic Accreditation

This distinction is the key to everything else. Institutional accreditation from the HLC covers the university as a whole. It confirms GCU meets baseline educational standards and lets students receive federal financial aid. Programmatic accreditation is different. It is granted to individual degree programs by field-specific accrediting bodies, and in many professions it is what qualifies a graduate to sit for a licensing exam or work in the field.

A GCU degree can carry the university’s institutional accreditation and still leave the graduate unable to get licensed, if the specific program lacks the right programmatic accreditation for the state where the graduate wants to practice. Most of the complaints against GCU that get labeled “accreditation problems” are actually problems of this second kind, or problems with how the university disclosed the gap.

Where GCU Stands With the Higher Learning Commission

At the institutional level, GCU’s standing is not in dispute. The HLC reaffirmed accreditation after its most recent comprehensive review with no requirements for monitoring or interim reports, and the Commission continues approving new GCU degree programs into 2026, including an Education Specialist in School Psychology, a Bachelor of Science in Construction Management, a Doctor of Nursing Practice, and an Associate of Science in Pre-Nursing.2Higher Learning Commission. February 2026 Actions3Higher Learning Commission. January 2026 Actions

The Department of Education also officially recognized GCU as a nonprofit institution in December 2025, ending a six-year dispute over the university’s 2018 conversion from for-profit to nonprofit status.4Higher Ed Dive. Education Department Recognizes Grand Canyon University as Nonprofit Federal student aid eligibility, GI Bill eligibility, and 501(c)(3) tax-exempt status are all intact. A four-year IRS audit covering tax years 2014 through 2019 reaffirmed the tax-exempt status in May 2025.5Grand Canyon University. IRS Reaffirms 501(c)(3) Status for GCU

Which GCU Programs Hold Programmatic Accreditation

Several major GCU programs do hold the programmatic accreditation graduates typically need:

  • Nursing programs at the baccalaureate, master’s, and doctoral levels are accredited by the Commission on Collegiate Nursing Education (CCNE).6Grand Canyon University. College of Nursing and Healthcare Accreditation
  • The Clinical Mental Health Counseling master’s program received accreditation from the Council for Accreditation of Counseling and Related Educational Programs (CACREP), effective January 2024.7CACREP. Grand Canyon University Clinical Mental Health Counseling
  • The Colangelo College of Business holds accreditation from the Accreditation Council for Business Schools and Programs (ACBSP), initially granted in 1995 and covering more than 20 undergraduate, MBA, and doctoral programs.8ACBSP. Grand Canyon University ACBSP Membership

Which GCU Programs Don’t, and What That Means

Other counseling programs at GCU, including the Master of Science in Professional Counseling and the Master of Science in Christian Counseling, do not hold CACREP accreditation. In Arizona, the state Board of Behavioral Health Examiners recognizes them as “Board Approved Educational Programs,” which lets graduates meet Arizona’s curriculum requirements for licensure. Outside Arizona, the picture depends on the state, and GCU’s own program pages direct prospective students to check state-specific disclosures.9Arizona Board of Behavioral Health Examiners. Accredited or Approved Programs10Grand Canyon University. Master of Science in Clinical Mental Health Counseling

The Master of Science in Psychology is the program that has generated the most concrete legal exposure over this gap. It does not qualify graduates for licensure as a mental health therapist in states including California and New York.

The Psychology Degree Class Action

In Ogdon v. Grand Canyon University, former student Katie Ogdon alleges that GCU deceptively marketed the Master of Science in Psychology by failing to disclose that the degree does not lead to licensure in her state. She says she incurred more than $20,000 in program fees and over $22,000 in federal student loans for a degree she describes as functionally useless for her intended career, and that enrollment counselors omitted or misrepresented accreditation information to secure enrollments.11Courthouse News Service. Former Students Blast Grand Canyon University Over Worthless Degrees

GCU moved to dismiss in February 2026, arguing Ogdon lacks standing because her federal loans were forgiven in 2020 and that its academic catalog explicitly states the psychology program does not lead to licensure. At the hearing, U.S. District Judge Douglass Rayes asked GCU’s counsel: “If a degree program is not accredited and offers no opportunity for licensure, what value is that program to the students?” As of mid-2026, no ruling had issued.11Courthouse News Service. Former Students Blast Grand Canyon University Over Worthless Degrees

The Doctoral Program Cost Dispute

A separate line of controversy involves GCU’s doctoral programs. These programs were properly accredited at the institutional level, but federal regulators and students said GCU misled applicants about what the degree would cost.

In October 2023, the U.S. Department of Education proposed a $37.7 million fine, the largest the agency had ever levied against a university, finding that GCU had misled more than 7,500 doctoral students about program cost since at least 2017. GCU’s website listed doctoral program costs between $40,000 and $49,000. The Department found that fewer than 2% of graduates actually finished at those prices; roughly 78% needed additional “continuation courses” to complete their dissertations, adding $10,000 to $12,000 and pushing total cost about 25% higher than advertised.12Forbes. Grand Canyon University Fined $37.7 Million by Department of Education13Higher Ed Dive. Grand Canyon University Fined $37.7 Million

GCU denied the allegations, calling them “lies and deceptive,” and appealed. On May 16, 2025, the Department of Education’s Office of Hearings and Appeals dismissed the case with prejudice, stating there were “no findings against GCU, or any of its employees, officers, agents, or contractors, and no fine is imposed.”14Grand Canyon University. U.S. Department of Education Rescinds Record Fine With Prejudice Against Grand Canyon University

The private litigation on the same underlying facts is still open. Smith v. Grand Canyon Education, filed in June 2024 in federal court in Arizona, is a class action alleging violations of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act and state consumer protection laws. Plaintiffs allege GCE marketed doctoral programs based on 60 or 65 credits despite internal knowledge, dating to at least August 2017, that at least 70% of students would need to pay for continuation courses. In May 2025, U.S. District Judge Steven Logan denied GCE’s motion to dismiss, allowing four of the five original claims to proceed, including the RICO count. Plaintiffs moved for class certification in February 2026, and as of mid-2026 the court had not ruled and no trial date had been set.15Student Defense. Smith v. Grand Canyon Education, Inc.16Higher Ed Dive. Grand Canyon Education Racketeering Lawsuit to Proceed

Why the Nonprofit Fight Matters for Accreditation

GCU was founded as a nonprofit in 1949, sold to private investors and run as a for-profit from 2004, then repurchased by a new Arizona nonprofit in July 2018 for approximately $853 million.17U.S. Court of Appeals for the Ninth Circuit. Grand Canyon University v. Cardona, No. 23-15124 The HLC, Arizona regulators, and the IRS all recognized the nonprofit status. The Department of Education did not, denying GCU’s nonprofit application in 2019 and reaffirming that denial in 2021 on the ground that the deal was structured to “drive shareholder value” for the publicly traded service company Grand Canyon Education, Inc.18Higher Ed Dive. Grand Canyon Pushes Back in Response to Education Department Review Letter

In November 2024, a unanimous Ninth Circuit panel reversed the lower court and held that the Department had applied the wrong legal standard. On December 15, 2025, the Department officially recognized GCU as a nonprofit.17U.S. Court of Appeals for the Ninth Circuit. Grand Canyon University v. Cardona, No. 23-151244Higher Ed Dive. Education Department Recognizes Grand Canyon University as Nonprofit

The financial relationship the Department flagged still exists. Under a Master Services Agreement signed in 2018, GCE provides GCU with technology, marketing, enrollment counseling, human resources, and back-office services in exchange for 60% of GCU’s tuition and fee revenue, on an initial 15-year term with automatic five-year renewals. Early termination triggers a penalty equal to 50% of the prior year’s fees.19U.S. Securities and Exchange Commission. Grand Canyon Education 10-Q Filing, Q1 2026 GCU accounts for roughly 97% of GCE’s serviced students, and Brian Mueller serves as both CEO and chairman of GCE and president of GCU. In 2025, GCE said it had modified revenue-share terms with some university partners, reducing its percentage in exchange for no longer reimbursing certain faculty costs, though the exact revised figure for GCU was not publicly specified.20Grand Canyon Education. Grand Canyon Education Reports Fourth Quarter 2025 Results

GCU says the dual role is permitted under HLC guidelines, that Mueller is the only person holding a position with both entities, and that GCU and GCE maintain independent governing boards.21Grand Canyon University. GCU Nonprofit Transaction Completed None of this affects accreditation directly, but it is the structural backdrop courts and regulators keep returning to when they examine how GCU markets and prices its programs.

What to Check Before Enrolling at GCU

Institutional accreditation covers the university and your ability to receive federal aid. It does not tell you whether your specific program will let you get licensed in your state. For any GCU program leading to a licensed profession, verify three things directly:

  • Whether the specific program holds the programmatic accreditation your field’s licensing board requires. For counseling, that is often CACREP; for nursing, CCNE; for business, ACBSP.
  • Whether the state where you plan to work accepts the program for licensure. GCU’s program pages point to state-specific disclosures, and the answer differs by state, especially for non-CACREP counseling programs and for the Master of Science in Psychology.
  • The full expected cost, including any continuation courses required beyond the advertised credit total. This is the specific practice at the center of the RICO class action still pending against GCE.

The rescinded federal fine, the dismissed FTC lawsuit, and the recognized nonprofit status resolved several government cases in GCU’s favor in 2025. The private class actions over the psychology degree and doctoral program costs are still live, and the underlying questions they raise about program-level disclosures have not been decided by a jury or a final judgment.15Student Defense. Smith v. Grand Canyon Education, Inc.11Courthouse News Service. Former Students Blast Grand Canyon University Over Worthless Degrees