Gundy graduated from Goshen College with his B.A. in 1975. He received from Indiana University his Master of Arts in 1978 and Doctor of Philosophy in 1983.
Gundy worked as an associate instructor in English at Indiana University in Bloomington from 1977 and 1980. He was an assistant professor of English at Goshen College, Goshen in 1980. Then he was an instructor in English at Hesston College, Hesston between 1980 and 1984. From 1984 until 1989 he worked as an associate professor at Bluffton College, Bluffton and since 1989 - as a professor of English. In 1989 he was C. Henry Smith Peace Lecturer. Currently he gives lectures, workshops, and readings from his works at various colleges and universities, including Fresno Pacific College, Gtterbein College, Illinois State University, Conrad Grebel College, and University of Findlay.
He has been a member of Modern Language Association of America, National Council of Teachers of English, Poets, and Writers.
He married Marlyce Martens on November 27, 1973. The couple has 3 children: Nathan, Benjamin, Joel.