The US Department of Education has officially dropped a proposed $37.7m fine against Grand Canyon University (GCU), bringing an end to a lengthy dispute over alleged deceptive practices.

The university had been accused of misleading doctoral students about the cost of their programmes, claims it strongly denied, as reported by Fox News.

The fine, initially imposed in October 2023, was the largest ever issued by the department against a university.

The investigation alleged that over three-quarters of GCU's doctoral graduates from 2017 to 2022 had to take extra courses, costing them more than $10,000 in additional fees.

University president Brian Mueller welcomed the decision, telling the outlet: “The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students, and we appreciate the recognition that those accusations were without merit.”

Mueller had previously criticised the fine as politically motivated, questioning whether faith-based institutions were being unfairly targeted.

He noted that Liberty University, another prominent Christian school, was facing a similarly large penalty at the same time.

With the fine now rescinded “with prejudice”, the legal case is closed and Mueller says GCU is committed to continued cooperation with regulators.

“GCU is a leader in innovation, transparency and best practices in higher education,” he added.