Judge dismisses Phoenix university lawsuit

GCU Aerial.jpg
Posted at 9:01 AM, Nov 22, 2021
and last updated 2021-11-22 11:01:34-05

A judge in the District Court of Arizona dismissed a lawsuit by Grand Canyon University in a move that will leave GCU students without millions of dollars in Covid-19 relief funding.

It's another example of how the U.S. Department of Education's designation of GCU as a for-profit university is impacting the university and its students.

Even though GCU reverted back to its original nonprofit status in July 2018 when it spun off of Phoenix-based Grand Canyon University Inc., the U.S. Department of Education continues to designate the private Christian university as a for-profit institution.

Earlier this year, GCU had filed a lawsuit against the education department for refusing to acknowledge its nonprofit status — at a time when the Internal Revenue Service recognizes the university as a nonprofit organization.

While that lawsuit is still ongoing and not yet resolved, GCU filed a separate lawsuit against Miguel Cardona, secretary of education, for the U.S. Department of Education's continued designation as a for-profit institution when Covid-19 relief funds were dispersed to universities across the country.

Read more of this story from the Business Journal.