Grand Canyon University Settles $28 Million Fraud Case Amid Canceled Federal Fine

The Department of Education under the Trump administration recently revoked a $37.7 million fine against Grand Canyon University, which had been imposed during the Biden presidency. The fine stemmed from an investigation revealing that the school misled doctoral degree students about program costs. The decision to cancel the fine was reportedly based on claims that the Biden administration targeted the institution due to its Christian orientation. Shortly after, the Trump-led Federal Trade Commission also dismissed a related lawsuit against the school, citing the same deceptive practices.

In December 2025, Grand Canyon University reached a settlement with Michelle Mackillop, a former recruiter who filed a lawsuit under the False Claims Act on behalf of the U.S. government. The settlement, approved by the Trump Justice Department, required the school to pay $28 million. Of this amount, $19.9 million will be returned to federal taxpayers, while the remainder serves as a finder’s fee for Mackillop and her legal team. Grand Canyon did not admit liability in the settlement.

Mackillop alleged that the university engaged in unlawful practices by compensating recruiters based on the number of students they enrolled. This violated federal law, which prohibits incentive compensation schemes for institutions participating in the federal student aid program. The law aims to prevent aggressive recruitment of students who may not benefit from the school’s programs.

The complaint detailed how Grand Canyon imposed strict monthly enrollment targets, disguised as “retention rates,” and rewarded recruiters who met these goals with promotions and salary increases. Those who failed to meet the targets faced corrective action or termination. Recruiters were also trained in high-pressure sales tactics, including role-playing sessions to overcome objections such as lack of time or financial resources.

Mackillop’s complaint further highlighted predatory tactics directed at military veterans. Colleagues reportedly advised her to target homeless veterans with military education benefits, suggesting the school’s practices exploited vulnerable populations. These allegations underscore broader concerns about the ethical and legal practices of for-profit educational institutions.

The case reflects a pattern of violations by many for-profit and career colleges over the years. While the Trump administration canceled a significant fine, the settlement with Mackillop illustrates the ongoing challenges in holding institutions accountable for deceptive practices. The incident raises questions about the balance between institutional accountability and the protection of students’ rights and financial well-being.

Micah 6:8 calls for justice, mercy, and humility. As institutions serve students, especially those in vulnerable circumstances, they must uphold integrity and transparency. The case of Grand Canyon University serves as a reminder of the need for vigilance in ensuring that educational practices align with these principles.

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