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.

How University of Phoenix Failed. It's a Long Story. But It's Important for the Future of Higher Education.

Fraud Claims Against University of Phoenix Continue to Mount

University of Phoenix articles 

Borrower Defense articles

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

The Higher Education Inquirer has just received a Freedom of Information Act (FOIA) response from the US Department of Education, stating that about 971,000 current student loan debtors who have attended the University of Phoenix have accumulated an estimated $21.6B in debt. The FOIA is Department of Education FOIA 23-02912-F. These debt numbers are consistent with a previous HEI analysis. 

We have been unable to learn whether this accumulated debt includes the hundreds of millions in debt that has already been forgiven--and that its present and future owners may be liable for. In 2023, we reported that approximately 73,000 debtors from the University of Phoenix had filed borrower defense fraud claims, and that more than 19,000 cases were granted immediate relief in the Sweet v Cardona settlement.

Through another FOIA request, we also discovered 6,265 consumer complaints in the Federal Trade Commission database made after its current owners took over. In 2019, the FTC and the University of Phoenix settled a claim for $191M for deceptive employment claims. It would appear that Phoenix has not done enough to clean up its act.  

The Higher Education Inquirer has been working for more than six years to get data about the school's noncompliance with the Department of Defense Tuition Assistance (TA) program, where servicemembers have been systematically preyed upon--and where Trump officials and their surrogates worked to cover up malfeasance by subprime schools--including the University of Phoenix. We hope to report on this topic later.  

The University of Phoenix is presently owned by Apollo Global Management and Vistria Group, who have been unsuccessfully trying to sell the school for at least three years. Previous potential suitors, held to secrecy, have included Tuskegee University, UMass Global, and the University of Arkansas System. 

Apollo Global Management is currently negotiating with the State of Idaho, which would incur $685M in debt to acquire the school. State officials are wary of the deal, and those with strong principles are unlikely to approve. But it's possible that other politicians may change their minds: if they or their families are properly compensated, directly or indirectly, for taking the risks to their reputations and careers. 

Related links:

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

How University of Phoenix Failed. It's a Long Story. But It's Important for the Future of Higher Education.

Fraud Claims Against University of Phoenix Continue to Mount

University of Phoenix articles 

Borrower Defense articles

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

A new website to inform student consumers has popped up. It's called HurricaneTWOU.com. The website authors identify themselves as a group of former graduate students who want to warn prospective students about what's happening at brand name programs managed by 2U and edX. And they are asking existing students to take a strategic leave of absence. 

The authors also provide information on submitting borrower defense to repayment (fraud) claims to the US Department of Education to have federal student loans forgiven.

The problem is, many consumers are unaware that the brand name schools they are attending online are paying a lion's share back to an online program manager, 2U-edX.  When some consumers cannot find gainful employment after completing their programs, enough to pay off their student loans, they start digging. What they find is that the brand name schools are barely involved in the schemes, other than to take their cut. Even the instructors, poorly paid adjuncts, are employees of the online program manager.

A number of 2U-edX programs are mentioned on HurricaneTWOU.com, to include certificate and graduate degree programs at Syracuse, USC, Pepperdine, and the University of North Carolina.  The authors are organizing an effort through a number of non-violent means, including a petition to the Consumer Financial Protection Bureau. In addition, they are asking people at 2U-edX to provide information to help their cause. 

 

Related links:

2U-edX crash exposes the latest wave of edugrift 

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

 2U Virus Expands College Meltdown to Elite Universities