Tuesday, July 22, 2025

Neoliberalism, Accreditation, and the Endless Reinvention of Higher Ed Scams

Fraudsters are like cockroaches: persistent, hard to eliminate, and always scurrying just beneath the surface. And like cockroaches, when you see one, you can assume many more are hidden from view. In the sprawling, trillion-dollar ecosystem of American higher education—built on trust, hope, and credentials—fraud has been a constant companion. And under neoliberalism, it doesn’t just survive. It adapts, multiplies, and thrives.

The case of Anthony Bieda and the newly formed National Association for Academic Excellence (NAAE) is a vivid reminder of how this ecosystem protects and even rewards those who have failed the public. Bieda, a former executive at the disgraced Accrediting Council for Independent Colleges and Schools (ACICS), is now fronting a fresh accreditation startup, backed by conservative donors and political forces aligned with Donald Trump’s vision for higher ed deregulation.

NAAE’s mission is to provide a “holistic,” “anti-woke” alternative to traditional accreditors, evaluating colleges not on outcomes like graduation rates or job placement, but on how they shape the “human person.” It's vague, ideological, and intentionally opaque. Even Bieda admits the metrics are a secret—soon to be intellectual property.

Fraud in American higher education didn’t start with Trump University or Corinthian Colleges. It dates back to the 19th century, when diploma mills sold degrees like snake oil. In the early 20th century, accreditation systems emerged to clean up the mess—but fraud simply evolved. As the federal government opened the spigot of student aid after World War II, for-profit colleges and shady operators followed the money.

By the 2000s, the con had been professionalized. Publicly traded companies like Corinthian and ITT Tech learned how to game the system, using slick advertising, inflated job placement rates, and predatory recruiting to rake in billions in Title IV funds. The students—often low-income, Black, Latino, veterans, or single mothers—were left with broken promises and ballooning debt.

The watchdogs failed them. And some, like ACICS, weren’t just negligent—they were complicit.

In theory, accreditors are gatekeepers. In practice, they’ve too often been enablers. Accreditation bodies are funded by the very institutions they review, leading to deep structural conflicts of interest. ACICS became notorious for accrediting schools that federal and state regulators had flagged as predatory. After years of scrutiny, it was finally shut down in 2022.

Yet here we are, three years later, with ACICS’s former leader launching a new accrediting agency, this time cloaked in the language of "freedom of thought" and "anti-wokeness." Backed by the American Academy of Sciences and Letters (AASL), which insists it’s apolitical despite pushing overt culture war themes, NAAE is asking to be trusted with federal gatekeeping power.

It’s neoliberalism in action: dismantle public systems, defang oversight, and recycle failed leaders with fresh branding. The logic isn’t about protecting students—it’s about deregulating markets under the guise of reform.

The digital age has only made things worse. Online colleges with low academic standards, limited faculty oversight, and profit-driven motives are booming. AI will soon be used not just in instruction and grading, but in accreditation assessments themselves. NAAE promises to use AI to detect inconsistencies and enforce its vague standards. But when the standards themselves are ideological and untested, automation becomes a smokescreen.

Meanwhile, shady consultants, student loan relief scammers, and credentialing platforms are multiplying. It's not just about bad schools anymore—it’s an entire financialized ecosystem that treats students as data points and debtors.

Occasionally, the public sees the fraud for what it is. Corinthian and ITT collapsed. Whistleblowers have emerged. Borrower defense lawsuits have won relief. But like cockroaches, fraudsters scatter and reassemble elsewhere. They form new schools, new agencies, new lobbies. They rebrand and wait for the political winds to shift.

And with Trump pushing to dismantle the Department of Education and rewrite accreditation rules by executive order, the roaches are back in the kitchen.

At the Higher Education Inquirer, we believe fraud is not just a byproduct of capitalism—it’s a feature of an underregulated, investor-driven model of education. The solution is not to invent new accreditors with old ideas, but to demand radical transparency and public accountability.

That means open data on outcomes, default rates, and executive pay. It means public audits of accreditor decisions. It requires whistleblower protections for staff and students. And it must include criminal and financial penalties for institutional fraud.

Because fraudsters are like cockroaches. You may never eliminate them all—but you can turn on the lights, close the cracks, and make it a lot harder for them to scurry back into power.

Sources
Theo Scheer, “He Helped Lead a Disgraced College Accreditor. Under Trump, He Might Have Another Shot.” The Chronicle of Higher Education, July 21, 2025
U.S. Department of Education actions on ACICS (2016–2022)
Higher Education Inquirer reporting on for-profit colleges, accreditation failures, and Trump-era education policy
Interviews with whistleblowers and former students of collapsed institutions

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