Grand Canyon University Class Action Challenges Non-Refundable Tuition Policy

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Grand Canyon Education Inc. d/b/a Grand Canyon University is facing a class action lawsuit accusing it of refusing to refund tuition charges when students notify the school of their intention to drop classes or withdraw their enrollment.

Plaintiff Lee Ward says he signed up to take online courses from Grand Canyon University, a for-profit college. According to the Grand Canyon University class action lawsuit, nearly 80 percent of the college’s students take courses online and have never visited the campus in Arizona.

“Defendant has assembled a massive marketing and recruiting operation to keep new students enrolling, even though tens of thousands of students drop out each year without a diploma or anything to show for their time as a student,” the Grand Canyon University class action lawsuit states.

The majority of GCU’s funding comes from the federal government, the bulk of which comes from tuition financed through federal student loans and grants, the Grand Canyon University class action lawsuit alleges.

“Since students in many of GCU’s online programs quickly realize that their ‘classes’ and ‘curriculum’ are nothing more than a sham, Defendant’s refund policies are critical to its financial results,” Ward alleges in the GCU class action lawsuit.

According to the Grand Canyon University class action lawsuit, online students are charged excessive fees when they drop a class or withdraw from the college unless they do so before classes begin. If a student drops the course in the first week, that student will be charged at least 25 percent of the tuition. However, a student who fails to drop the course or withdraw after the first week will reportedly be ineligible for a refund. These refund policies are listed in the University Policy Handbook.

“Federal law and regulations do not allow GCU to keep federal grant or loan amounts when a student promptly withdraws from a course,” Ward alleges. GCU has adopted practices designed to discourage online students from dropping or withdrawing from courses so that it can prevent students and the federal government from getting refunds, the GCU class action lawsuit alleges.

Emails and phone calls are not valid methods of dropping classes, according to the GCU class action lawsuit. Although there is an online drop request option, it is not easily accessed by students. Further, the form is written in a manner that discourages students from completing it, Ward alleges.

Ward says he experienced issues when he tried to withdraw from courses in the first week of classes. He says he submitted the withdrawal form online and received an automated notice on the screen indicating his request had been sent, but he says he never received a confirmation. He completed the form three times in the first week without response, the GCU class action lawsuit says.

In the second week of classes, he again submitted the online withdrawal form because he still didn’t receive confirmation. He received a response informing him that, because he waited until after the first week to withdraw, he would still owe the full tuition. He claims he should not owe the full tuition because he initially submitted the withdrawal form in the first week of classes.

Ward has filed the class action lawsuit on behalf of himself and a Class of all Grand Canyon University students whose tuition was not properly refunded or recredited.

The GCU class action lawsuit asserts claims for breach of contract, unjust enrichment and declaratory judgment.

Ward is represented by E. Adam Webb and G. Franklin Lemond Jr. of Webb Klase & Lemond LLC.

The Grand Canyon University Class Action Lawsuit is Lee Ward v. Grand Canyon Education Inc. d/b/a Grand Canyon University, Case No. 1:17-cv-01749, in the U.S. District Court for the Northern District of Georgia.