Thursday, July 25, 2024

2U Declares Chapter 11 Bankruptcy. Will Anyone Else Name All The Elite Universities That Were Complicit?

2U declared Chapter 11 bankruptcy today and the company is now valued at less than $5M. That's a small shadow of the $5.4B perceived value it had in mid-2018.

As a company that will be owned and operated by vulture capitalists (VCs), 2U (TWOU) and its subsidiary edX will fall below the radar. But that won't stop the company from ensnaring more students for overpriced "elite" and "brand name" degrees and certificates--as it tries to survive. In fact, it might make it easier. The visible economic market and its media won't care anymore. 

According to Higher Education Dive, backers of the latest scheme include three vulture capital firms: Mudrick Capital Management (Madison Avenue in NYC), Greenvale Capital (London) and Bayside Capital (Miami/London). 

Somehow, these VC firms will try to extract value from the bankruptcy deal. But how they do that is a mystery. C-suite executives have already gotten some of their bonuses, leaving little else for workers. Reducing labor costs (firing people) will be essential. Not paying their bills is another. Continuing to deceive consumers would be difficult to change. Even after the deal, 2U will still be laden with more than $400M in debt.

Since 2019, we have tried to expose 2U and its business practices, as well as the role of elite university partners in enabling the sale of advanced degrees and edtech certificates that led to few good jobs and lots of consumer debt.  When they acquired edX from Harvard and MIT for $800M, we doubled down.

The Higher Education Inquirer has been the only outlet to name the elite schools that were complicit in this scheme that took money away from consumers just trying to get ahead. Not just USC, but Harvard and MIT, and Yale, and Cal Berkeley, and the University of North Carolina, and Syracuse, and Pepperdine, and many others. Check out the links below to learn more about how this higher ed scheme developed and collapsed. And how this is just the latest wave of edugrift. 

 


Related links:

HurricaneTWOU.com: Digital Protest Exposes Syracuse, USC, Pepperdine, and University of North Carolina in 2U edX Edugrift (2024)

2U-edX crash exposes the latest wave of edugrift (2023)

2U Virus Expands College Meltdown to Elite Universities (2019)

Buyer Beware: Servicemembers, Veterans, and Families Need to Be On Guard with College and Career Choices (2021)

College Meltdown 2.1 (2022)

EdTech Meltdown (2023)  

Erica Gallagher Speaks Out About 2U's Shady Practices at Department of Education Virtual Listening Meeting (2023)

Wednesday, July 24, 2024

TuitionFit: Negotiate Your College Tuition

 


University of Idaho acquisition of the University of Phoenix has become a silly Monty Python sketch

The University of Idaho continues to spend money on the possibility that it (or the State of Idaho) may buy the University of Phoenix from Apollo Global Management. According to Kevin Richert at Idaho Ed News, the University of Idaho has already spent $14.2 million on this purchase, with the chance of a money back guarantee--sort of.

Over the last year, University of President C. Scott Green has accepted the ridicule of Saturday Night Live and the questioning of the NY Times. In addition to investing his reputation on the deal, Green has spent thousands of his personal dollars trying to line up allies in the Idaho Legislature to help him out. But some of them have already lost their election bids. 

Phoenix has told President Green what a great buy this is for the University of Idaho, seemingly unaware that this is a school that is not well, with almost a million student debtors holding more than $21 billion in student loan debt.  

In addition, more than 73,000 University of Phoenix student loan debtors have filed for debt forgiveness, alleging the school has defrauded them--and that of that group, 19,000 are getting immediate relief from the Sweet v Cardona case--something the owner or future owner may be liable for. 

What more does President Green need to know before pulling the plug on this deal? Are there that many Idaho politicians that can be bought and sold?  We don't think so.

This sir, is a dead parrot. And for those who do not know the cultural reference...


Related links:

New Data Show Nearly a Million University of Phoenix Debtors Owe $21.6 Billion Dollars 

ED Completes Pre-Acquisition Review for University of Phoenix Deal. University of Idaho Continues Hiding Details of Transaction Fees, 43 Education "High-Risk" Bonds.


Monday, July 22, 2024

How Would Trump's Plans for Mass Deportations Affect US Higher Education?

 

Donald Trump and JD Vance promise to begin mass deportations in 2025 if they win the November 2024 US election. It's a populist idea that has a long history in the US. And it's understandable that many struggling Americans would favor a program that would eliminate from the competition those people who were not born in the US, and came here with or without documents. 

This America First plan would expel about 11 million men, women, and children, break up millions of families and an untold number of communities, and affect not just businesses but entire industries. Deportees would include those who have crossed the borders with Mexico and Canada. But it could also include hundreds of thousands of non-white workers who have had their visas expire for a number of reasons, including temporary unemployment.

Those folks who concerned about these mass deportations should take Trump and Vance's words seriously--and vote accordingly. Struggling citizens who believe they will get better work or have a better life as a result of Trump policies should also consider whether this is true--and also consider all the other structural reasons for their plight--and vote accordingly. Before November, everyone who is voting should also know about the potential effects of these policies for their communities, counties, states, regions, and the nation. 

The Heritage Foundation's 2025 Mandate for Leadership, makes this promise of mass deportations more than a pipe dream. Under a program this radical, we should also expect a backlash on and off college campuses. One that we hope would be nonviolent. Republicans such as Vance have already called professors and universities enemies of the state and of the People, and we should take them at their words.

Foreign relations under a second Trump Administration could also trigger mass surveillance and deportations of students from the People's Republic of China and other nations deemed as enemies. In 2024, Chinese students have already reported being interrogated and deported. 

Plans to deport legally documented persons labeled as enemies or radicals, such as those who protest the horrors in Palestine, or call for global climate action, are also a distinct possibility. 

A Trump-Vance Administration could also restrict named threats from entering and reentering the US, with help from the US Supreme Court, which they have done before. They could reinstitute the Trump "Muslim ban."

And we cannot rule out that a Trump Administration could require federal troops to use force, if necessary, to maintain order on college and university campuses.

Mass deportations of undocumented workers and foreign students would have several significant impacts on colleges and universities and the communities they serve. This includes:

1. Decreased enrollment and diversity: Many undocumented students and foreign students would be forced to leave, reducing overall enrollment numbers and campus diversity.

2. Loss of talent: Deportations would result in the loss of talented students and researchers, including those with college or graduate degrees, negatively impacting academic programs and research output.

3. Financial strain: Universities would lose tuition revenue from deported students, potentially leading to budget cuts and program reductions.

4. Workforce shortages: Higher education institutions rely on both undocumented and foreign workers in various roles. Their deportation would create staffing shortages across academic and support positions.

5. Research and innovation setbacks: The loss of foreign graduate students and researchers would hinder ongoing research projects and slow innovation in STEM fields and other areas.

6. Reduced global competitiveness: US universities may become less attractive to international students, potentially damaging their global rankings and competitiveness.

7. Economic impact on college towns: Many college towns rely on the economic contributions of international and undocumented students. Their removal would affect local businesses and housing markets.

8. Disruption of academic programs: Sudden deportations could disrupt ongoing classes, research projects, and academic collaborations.

9. Brain drain: The forced departure of educated immigrants and students could lead to a "brain drain," with talent and skills leaving the US higher education system.

10. Social and cultural impact: The loss of diverse perspectives from undocumented and international students would diminish the cultural richness and global understanding fostered on campuses.

11. Potential closure of specialized programs: Some niche academic programs that rely heavily on international student enrollment might face closure due to insufficient student numbers.

12. Increased administrative burden: Universities would face additional administrative challenges in complying with and managing the consequences of mass deportation policies.

These impacts highlight the significant role that undocumented workers and foreign students play in the US higher education system, and the potential disruptions that mass deportations could cause across academic, economic, and social dimensions.

Citations:

Higher Education Inquirer Views, By Nation (Includes Hong Kong, Israel, Hungary, China, and Iran)

Here's a Google graphic of views by nation of the Higher Education Inquirer over the last 30 days.  Almost every view from Israel came on one day last week.  Also note the views from Hong Kong, Hungary, China, and Iran. Is anyone else observing this type of internet traffic? And what exactly does it mean?    


Here are the all-time views.  





Thursday, July 18, 2024

The Degowning of America: A List of College Towns (And Towns with Colleges) Facing Financial Challenges (Updated July 18, 2024)

The decline of college towns (and the decline of towns with colleges) has been reported on for years, but there has never been a comprehensive list to illustrate the extent of this phenomenon we call the de-gowning of America. The schools include small private colleges, community colleges, HBCUs, and state universities that are not flagship institutions. 

The Hollowing Out of America

Like steel towns, mill towns, fishing towns, mining towns, and prison towns that have faced economic and population declines, these towns face challenges as the colleges and universities they have supported are struggling--and in some cases are closing or have closed.  

Some of these college towns will adapt well, especially if there are other businesses in the area, wealthy communities are nearby, and real estate is valuable. Others will muddle on. Some are in financial trouble and will face an exodus. 

Elite schools like Williams College are doing well but may not be paying sufficient taxes, and folks are leaving.  State university systems, like the University of Wisconsin, have closed branch campuses in order to save money as austerity occurs. Working-class towns, like Johnstown (PA), Flint, and Youngstown, previously known as industrial centers, will have to adapt again. 

The Financial Elites Know

We have no doubt that the financial industry (from banks to bond raters) has detailed proprietary data. Data that they can use for their advantage and the disadvantage of others. EY, for example, keeps tabs on the financial status of colleges and universities. Moody's, Standard & Poor's, and Fitch Ratings assess higher education institutions and municipal bonds.  

This list is not exhaustive, and it may be controversial, but it is a start to a conversation that needs to occur. We welcome your comments and feedback. 

  • Keene, NH (Keene State University)
  • Poultney, VT (Green Mountain College) 
  • Williamstown, MA (Williams College)  
  • Alfred, NY (Alfred University)
  • Aurora, NY (Wells College)
  • Fredonia, NY (SUNY Fredonia)
  • Oneota, NY (SUNY Oneota and Hartwick College) 
  • Bloomsburg, PA (PA System)
  • California, PA (PA System)
  • Cannonsburg, PA (Washington and Jefferson College) 
  • Clarion, PA (PA System)
  • Edinboro, PA (PA System)
  • Hazleton, PA (Penn State) 
  • Huntingdon, PA (Juniata College)
  • Indiana, PA (PA System)
  • Lock Haven, PA (PA System)
  • Mansfield, PA (PA System)
  • McKeesport, PA (Penn State)
  • Johnstown, PA (Pitt-Johnstown)
  • Gambier, OH (Kenyon College) 
  • Granville, OH (Denison University)
  • Greenville, OH (Edison State Community College)
  • Kent, OH  (Kent State University)
  • Oberlin, OH (Oberlin College) 
  • Youngstown, OH (Youngstown State University)
  • Wilberforce, OH (Wilberforce University and Central State University)
  • Wilmington, OH (Wilmington College)
  • Yellow Springs, OH (Antioch College)
  • Ada, OH (Ohio Northern University)
  • Muncie, IN (Ball State University)
  • North Manchester, IN (Manchester University) 
  • Gailsburg, IL (Knox College)
  • Adrian, MI (Siena Heights University and Adrian University) 
  • Albion, MI (Albion College) 
  • Flint, MI (University of Michigan) 
  • Kalamazoo, MI (Western Michigan University)
  • Mt. Clemens, MI  (McComb Community College)
  • Muskegon, MI (University of Wisconsin System)
  • Green Bay, WI (University of Wisconsin System)
  • Platteville, WI (University of Wisconsin System)
  • Oshkosh, WI (University of Wisconsin System)
  • Platteville, WI (University of Wisconsin System)
  • Waukesha, WI (University of Wisconsin System)
  • Ettrick, VA (Virginia State University)
  • Fairmont, WV (Fairmont State University)
  • Philippi, WV (Alderson-Broaddus University)
  • Shepardstown, WV (Shepard University)
  • Adairville, KY (Lindsey Wilson College) 
  • Sewanee, TN (University of the South) 
  • Orangeburg, SC (Claflin, South Carolina State)
  • Livingston, AL (University of West Alabama)
  • Albany, GA (Albany State University) 
  • Greenwood, MS (Mississippi Valley State University)
  • Kirksville, MO (Truman State University)
  • Pinebluff, AR (University of Arkansas) 
  • Emporia, KS (Emporia State University)
  • Ada, OK (East Central University)  
  • Ardmore, OK (East Central University)
  • Havre, MT (Montana State University-Northern) 
  • Silver City, NM (Western New Mexico University)
  • Arcata, CA (Cal Poly Humboldt) 
  • LeGrande, OR  (Eastern Oregon University)
  • Pullman, WA (Washington State University)

Related links:

Why College Towns Are Disappearing (Something Different Films)

IVM finds heightened risk in higher education as stimulus funds expire (Kasia Lundy, EY Parthenon, 2024)
 


"20-20": Many US States Have Seen Enrollment Drops of More Than 20 Percent 
 

Tuesday, July 16, 2024

Breaking the Chains of Debt and Contingent Labor (Debt Collective and Higher Education Labor United)

Join us on July 31 as we host a deep dive discussion into two related crises facing higher ed workers and students alike: debt and labor contingency. 

Often presented as both institutionally inevitable and as individually shameful, spiraling debt and rising labor precarity are in fact insidious products of policy decisions, and together they are eroding the conditions that make genuine higher education possible. Yet these widely shared and intersecting chains of debt and labor contingency also have the potential to bring us together: as faculty, students, and workers, in new ways.

How can we grasp the systems of debt and labor precarity that bind today’s academy in a way that can allow us to unleash potential for liberatory education, in the classroom and beyond? And how can our unions and pedagogical strategies help create alliances between students, faculty, and other campus workers—not by shamefully avoiding talk of our “delinquent” debt or “adjunct” status, but by placing them front and center?”

Speakers: Joe Ramsey, Chair of Contingency Task Force, Higher Education Labor United and Faculty at UMASS, Boston; Jeri O’Bryan-Losee, United University Professions (SUNY)

Facilitated by Jason Wozniak, Debt Collective

Co-Sponsored by Higher Education Labor United
 
Related links:
 
 
 
 
 

Sunday, July 14, 2024

Methods of Student Nonviolent Resistance

Resistance has been an essential part of democracy. And the Higher Education Inquirer has reported on a number of nonviolent actions taken by college students and workers across the US. We have also recognized the brutal physical and economic violence that has been a part of US history and social structure and a major contributor to the ineffective counter-violence that has sometimes resulted. 

According to the Albert Einstein Institution, "far too often people struggling for democratic rights and justice are not aware of the full range of methods of nonviolent action. Wise strategy, attention to the dynamics of nonviolent struggle, and careful selection of methods can increase a group’s chances of success." 

Nonviolent strategies include three broad categories: (1) nonviolent protest and persuasion, (2) noncooperation (social, economic, and political), and (3) nonviolent intervention. 

A list of 198 Methods of Nonviolent Action is posted on the Brandeis University website. The list is based on Gene Sharp's Methods of Nonviolent Action (1973), but this document is not exhaustive.  Strategies and tactics may need to change with what works in these times: with new technology and greater understanding about how humans think and behave.

 

Historical Examples

Nonviolent protests for justice and democracy and against white supremacy occurred at Shaw University (1919), Fisk (1924-25), Howard (1925), and Hampton Institute (1925-27).  

In the early 1940s, James Farmer, a Howard Divinity School graduate, with students from the University of Chicago established the Congress of Racial Equality (CORE), an interracial group focused on nonviolent direct action for civil rights. 

The 1960s were recognized for student activism, including the formation of the Student Nonviolent Coordinating Committee (SNCC), at Shaw University. This organization, and people like Ella Baker, were an essential part of the civil rights movement. 

In the 1970s and 1980s, divestment campaigns were an important part of the campaign against South African apartheid. Protesting for divestment against private prisons has also occurred on US campuses.  

Most recently, there were a number of campus occupations to protest the destruction of Gaza and the mass killing of civilians. And protests about climate change have been visible on a number of campuses for years. In these cases, we can expect more serious conflict to occur if these issues are not sufficiently addressed. 

As always, we appreciate your comments and constructive criticism.  

Related links: 

Black Study, Black Struggle (Robin D.G. Kelley, Boston Review)

A People's History of Higher Education in the US? 

Student Activism 

Student Nonviolent Coordinating Committee

Modeling civil unrest in the United States: some historical cases (Bryan Alexander)

One Fascism or Two?: The Reemergence of "Fascism(s)" in US Higher Education

US Higher Education and the Intellectualization of White Supremacy

Democratic Protests on Campus: Modeling the Better World We Seek (Annelise Orleck)

HurricaneTWOU.com: Digital Protest Exposes Syracuse, USC, Pepperdine, and University of North Carolina in 2U edX Edugrift

Wikipedia Community Documents Pro-Palestinian Protests on University and College Campuses

Rutgers University Workers Waging Historic Strike For Economic Justice (Hank Kalet)

University of California Academic Workers Strike For Economic Justice (November 14 to December 23, 2022)

Terri Givens and “Radical Empathy: Finding a Path to Bridge Racial Divides”

I Went on Strike to Cancel My Student Debt and Won. Every Debtor Deserves the Same. (Ann Bowers)

DEBT STRIKE! (Debt Collective)