Anne Bucher  |  May 18, 2017

Category: Consumer News

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GCU class action lawsuitGrand 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.

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135 thoughts onGrand Canyon University Class Action Challenges Non-Refundable Tuition Policy

  1. Angelina Falcon says:

    I also did 2 years into a Bachelors only to be called and told they had exhausted my Student Aid and I would have to pay for the remainder of the degree. I tried to cancel within the first week and could not get ahold of anyone. They charged me and they will not release my transcript unless I pay.

  2. APByland says:

    I am trying to finish my DNP and I was told at the end of my program with only 3 classes until graduation that I had to adjust or start over with my project. This resulted in my having a meltdown becoming physically ill, and now because of the delay (for a project that I wrote my entrance essay about and was accepted) I have been road blocked multiple times to graduate. I was diagnosed with ADD and when I asked for more time because of being overwhelmed to start over or “revise” my project I was told that is why there are extension classes. Again more money and time. I currently work full time and have been struggling to finish. I told my “advisor” (3rd one since starting) I did not feel comfortable without seeking some type of accommodation for my learning disability. I was told there was not option and I must complete as soon as possible. SO again I was unsuccessful due to the pressure and stress of starting my project all over and trying to accomplish, what I had done successfully in 2 yrs, the improvement project in 3-4months. So if I do not finish this last time I will have spent 3-4 yrs to achieve nothing. I questioned my last advisor only to have her tell me that I need to submit information to improve the program. What did I need at the start of program? What ideas did I have to make it better? I think she got ideas from me (I am an educator in the healthcare profession and have been in many accreditation reviews) and took the back to her meetings. Magically all these changes came about and now everything is been changed. I was told they made improvements. Originally (my co-worker heard this from the advisors mouth) she said she had no idea what she was doing and what she learned as an advisor was from nursing blog “Nurses.com”. Now I am left holding the $$$$$ and quite possibly without a degree. Huge disappointment.

  3. Teri FANNING says:

    Same thing happened to me and it was even after a fire destroyed my home and all contents including my computer. In addition, they failed to help me by telling me my financial aide would end before I could obtain mu degree. I have been unable to complete my bachelors because I can’t afford it and can’t request my transcripts until the balance is paid on the class I tried to drop.

  4. TS says:

    I had the same experience with a non-for-profit University that when I left the class two weeks in I was responsible for the entire class. This has nothing to do with being a for-profit School.

  5. Gloria DeBusman says:

    I withdrew from an on-line class 5 days after it started. I had posted one single sentence and the professor had not posted anything. I was told since I had posted the single sentence I was responsible for 25% of the tuition. This school has poor professors and the dissertation process is broken. My chair did not respond to e-mails and did not answer the phone for our scheduled meetings. When I expressed my concerns, he accused me of putting meetings on his calendar at the last minute. I always scheduled the meetings at least a week ahead of time. Beware of this school!

  6. Sara DeRosa says:

    I am currently i the same situation. I dropped classes three days into the semester. The school never refunded the government and so now as a disabled veteran I am having 100% of my disability payments with held. This school is a disgrace and is merely using Veterans as cash cows.

  7. Shawniene johnson says:

    I begin tomorrow @ GCU and asked why am i being charged for games and medical. I am 44 years old with no kids and will never attend a college game but was charged for seansonal tickets. Also being charged for on campus medical. First of all i have full coverage medical second I dont live on campus.

  8. Brandon says:

    I attend GCU for my Master and I believe they truly work hard to help students finish their degree and not give up. Although the school is not perfect. Out of all the online experiences I have had, GCU has been the best. I went to another school who was holding my credits due to a balance I was unaware of however, that did not hinder me from getting into GCU. They worked with me and once I was able to pay that balance I was still able to transfer my credits over.

  9. Chris E. Kay says:

    I received an online MSHA degree in 2013 from GCU. Skeptical of the online format, I scrutinized curriculum carefully, and was satisfied that instruction, materials and curriculum we’re legitimate. Higher education is expensive. Dropping out is also expensive. I did not see ANY unusual problems during my program, and I attended graduation ceremonies in Phoenix. A very good experience overall.

  10. Heather Kramer says:

    I took a couple of classes with GCU when I was working towards my Bachelor’s degree. I dropped a class within the first week yet was responsible for full tuition on the class, to the tune of $1,920.00. Of course I couldn’t afford to pay the full thing, and they did send a refund for my student loans, but I had to make payment arrangements for the full balance other wise they were holding my transcript hostage and wouldn’t release it. Worst experience ever for me! I still haven’t gone back to school to finish my Bachelor’s because of this experience.

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