Todd S. Nelson: Massive Wealth Built on Soul-Crushing Student Loan Debt

Todd S. Nelson rose from academic beginnings—a B.S. from Brigham Young University and an MBA from the University of Nevada, Reno—to dominate the for-profit higher education space. Over nearly four decades, Nelson has amassed vast personal wealth leading University of Phoenix, Education Management Corporation (EDMC), and Perdoceo Education, even as each institution left embattled students and regulatory fallout in its wake.

Under Nelson’s leadership, Apollo Group (parent of University of Phoenix) mountains of revenue—$2.2 billion and over 300,000 students by 2006—coincided with a $41 million payday in that year alone. He resigned amid pressure over deceptive admissions practices.

Nelson’s move to EDMC in 2007 triggered another enrollment explosion—from 82,000 to over 160,000 students by 2011—propelled by federal student aid. Annual revenues reached nearly $2.8 billion, even as employees were alleged to be encouraged to enroll “anyone and everyone” to meet quotas. This aggressive focus on recruitment came with enormous personal compensation—approximately $13.1 million annually—while students endured mounting debt and dwindling outcomes.

A 2015 landmark settlement exposed EDMC’s alleged violations under the False Claims Act. The Justice Department accused the company of operating as a “recruitment mill,” illegally funneling federal funds through false certifications. EDMC agreed to pay $95.5 million in damages and forgive more than $102 million in student loans, affecting about 80,000 former students—averaging around $1,370 per student.Internal documents and court filings paint a grim picture: incentive-based pay for recruiters, breach of fiduciary duties, and a business model the trustee called “fundamentally fraudulent.”

Nelson’s chapter at Career Education Corporation (later Perdoceo) echoed the same script. Campuses shuttered, including Le Cordon Bleu and Sanford-Brown, left students stranded with untransferable credits—and yet Nelson’s compensation remained soaring. In 2019, he earned $7.4 million and held about $12 million in equity.

Whistleblower accounts from inside Perdoceo’s operations are damning. One former recruiter described pressure to enroll students “by any means necessary,” including coercive calls and emotional manipulation—often targeting vulnerable applicants with low income or lacking basic readiness. Despite those practices, Perdoceo reaped profits, with Nelson publicly touting revenue growth even as the Department of Education issued a formal notice in May 2021: thousands of borrower defense claims were pending against the company, alleging misrepresentations on credits, employment prospects, and accreditation.

Further regulatory investigations deepened through early 2022, focusing on recruiting, marketing, and financial aid practices—yet no executive accountability has followed.

The narrative that emerges is stark: Todd S. Nelson repeatedly led institutions to profit-fueled expansion using students’ federal dollars, while suppressing outcomes and exposing students to debilitating debt. Lawsuits, settlements, and investigative reports expose deceptive enrollment practices, false claims, and regulatory violations—but the executives—including Nelson—walk away with wealth and are rarely held personally responsible.

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Sources

• Wikipedia: Todd S. Nelson—compensation figures and resignation amid scrutiny.

• TribLIVE: Allegations of “anyone and everyone” being enrolled to meet quotas under Nelson’s reign at EDMC.

• Career Education Review: Insights on quality decline amid enrollment growth at EDMC and Perdoceo.

• Department of Justice and NASFAA: 2015 EDMC settlement—$95.5 million damages, $102 million in loan forgiveness for hundreds of thousands.

• Bankruptcy court filings: Allegations of fraudulent business model and incentive-driven recruitment.

• Republic Report & USA Today: Whistleblower testimony on Perdoceo’s predatory recruiting tactics.