Student Aid and Student Gambling: A Risky Connection (Glen McGhee)

A growing body of research points to an unsettling trend on U.S. college campuses: a significant percentage of students are using financial aid—including federal loans and grants—to gamble.

Multiple recent surveys show that approximately 1 in 5 college students in the United States have used student aid to place bets, particularly through online platforms. With the explosive growth of sports betting apps and the normalization of gambling among young adults, this misuse of public and private education funds raises serious financial, ethical, and policy concerns.

A Look at the Data

Since the Supreme Court struck down the federal ban on sports betting in 2018, gambling—particularly online—has surged in popularity among college-aged individuals. Students have access not only to traditional campus distractions like card games or local casinos, but also to 24/7 mobile apps and websites offering fast payouts and endless opportunities to bet on sports, poker, and other games.

Financial aid, meant to support students' educational costs—tuition, books, housing, and food—is increasingly being used for riskier pursuits. A 2022 survey from Intelligent.com of nearly 1,000 students found that 16.7% of respondents admitted using financial aid or student loan funds to gamble. A follow-up survey in 2023 showed the number had risen to 20%, with most students confirming that access to aid increased their ability to place bets.

Other state-level reports from Nevada and Florida suggest a similar pattern, with 20–21% of students reporting misuse of aid for gambling purposes.

A Dangerous Cycle

The convergence of accessible credit, mobile betting platforms, and normalized gambling culture—often promoted through campus partnerships with major sports betting companies—has created an environment where student gambling is both easy and, in some cases, encouraged.

This behavior comes with serious consequences. Gambling with student aid can lead to:

• Missed tuition or rent payments

• Accumulation of unmanageable debt

• Academic disruption

• Increased psychological distress and financial insecurity

Students who gamble with loan money not only put their academic futures at risk but also burden themselves with debt obligations that cannot be discharged through bankruptcy. In effect, the use of student loans for gambling amounts to converting long-term federal debt into high-risk leisure spending.

What’s Being Done?

A handful of universities have begun implementing gambling awareness campaigns, and a few states have introduced legislation restricting betting advertisements on campuses. The NFL Foundation has pledged $600,000 toward gambling prevention efforts in higher education, but these measures are modest given the scale of the issue.

Financial aid offices and higher education institutions face difficult questions. Should students who use financial aid for gambling face penalties? Is financial literacy enough to deter this behavior, or is regulation required? Should gambling apps be restricted from targeting students?

Managing Madness

The use of student aid for gambling highlights a critical weakness in how we monitor and distribute public funds in higher education. As gambling becomes more prevalent and more accepted, especially through mobile platforms, policymakers and university leaders will need to consider stronger safeguards—not just to protect taxpayer dollars, but to preserve the financial stability and well-being of students themselves.

Sources:

• Intelligent.com. (2022, 2023). Surveys on college student gambling habits.

• GamblingHelp.org. "Problem Gambling Among College Students."

• Nevada Council on Problem Gambling. (2024).

• Time Magazine. (2024). “An Explosion in Sports Betting Is Driving Gambling Addiction Among College Students.”

• The New York Post. (2025). “Online Gambling on the Rise Among High School Students.”

• Florida Council on Compulsive Gambling. (2023).

Get Wise, Guys: The Perils of the Sports Betting Culture

The NCAA Calls it a Nightmare 

It's easy to get caught up in the excitement of betting on college sports, the potential for quick money, and the social aspect of it all. But let's peel back the curtain and examine the real dangers that lurk beneath the surface of the sports betting culture.  

The Illusion of Easy Money
While it may seem like a simple way to make extra cash, the reality is much more complex. The odds are stacked against you, and the house always has an edge. Chasing losses can lead to a dangerous cycle of debt and despair.

The Mental Toll
The emotional rollercoaster of sports betting can take a significant toll on your mental health. The highs of winning can be fleeting, while the lows of losing can be devastating. The constant stress, anxiety, and disappointment can lead to serious mental health issues.

The Social Impact
Gambling addiction can strain relationships with friends and family. It can lead to isolation, secrecy, and a breakdown of trust. Your academic performance may suffer as you prioritize betting over your studies.

Get Wise, Stay Wise
While it's tempting to indulge in the thrill of sports betting, it's important to approach it with a level head. If you are underage, don't do it.  If you are over 25 and don't have an addiction, stick to a few small bets and a small budget, and know when to walk away. Don't drink or do drugs before, during, or after wagering. If you find yourself struggling with a gambling addiction, seek help immediately.  And if someone notices problems before you do, consider them an ally, and listen. 

Remember, the true joy of sports lies in the game itself, not in the financial outcome.

The National Problem Gambling Helpline (1-800-GAMBLER) is operated by the National Council on Problem Gambling. The helpline serves as a one-stop hub connecting people looking for assistance with a gambling problem to local resources. This network includes 28 contact centers which cover all 50 states and the U.S. territories. The National Problem Gambling Helpline offers call, text and chat services 24/7/365.

Digital Dope: How Internet Addiction Mirrors the Great Crises of Gin, Opium, Meth, and Fentanyl

In the 18th century, gin swept through the working-class neighborhoods of London, offering brief euphoria and long-term devastation. In the 19th century, opium dulled the pain of colonialism and industrial collapse. The 20th century brought methamphetamine and its promise of energy and escape, followed by fentanyl—cheap, potent, and deadly.

Now, in the 21st century, we face a new form of mass addiction: not chemical but digital. The most addictive substances of our time are not smoked, snorted, or injected—they are streamed, swiped, and scrolled.

The internet, once hailed as a revolution in knowledge and communication, has been weaponized into an empire of distraction and dependency. Social media, pornography, and online gambling—backed by surveillance capitalism and unchecked corporate power—are engineered for compulsive use. And like the addictive epidemics of the past, they are eroding individual agency, family life, and the very foundations of civic society.

The Gin Craze and the Algorithmic Binge

In 18th-century Britain, the Gin Craze turned city streets into open-air taverns. Cheap, potent alcohol flooded the market, leading to widespread addiction, crime, and social decay. The state profited from taxes while the poor drowned in despair.

Today’s equivalent is the infinite scroll. Social media platforms like TikTok, Instagram, and Facebook—like gin—are engineered to be consumed endlessly. The user is reduced to a set of engagement metrics. Like the gin drinker numbing pain, the social media user seeks validation, escape, or identity in a flood of curated images and outrage. Depression, anxiety, and loneliness have exploded, especially among teens and young adults. Suicides, particularly among girls, have surged in tandem with social media usage.

Opium Dens and the Porn Empire

The opium den offered oblivion. It soothed pain but eroded will. Victorian elites warned of its moral decay while quietly indulging themselves.

Today, online pornography is the new opium—widely available, hyper-stimulating, and often degrading. Once confined to private spaces, it is now accessible to children, monetized by multi-billion-dollar platforms, and normalized by mainstream culture. The effects—especially on young people—include desensitization, unrealistic expectations, isolation, and difficulty forming real-life relationships.

Research has shown that excessive porn consumption alters brain chemistry similarly to addictive drugs. It hijacks the reward system, rewires sexual expectations, and in many cases, contributes to erectile dysfunction, compulsive behavior, and emotional detachment.

Meth, Fentanyl, and the Speed of the Feed

Meth promised productivity; fentanyl promises relief. Both deliver destruction.

Digital addiction today mimics the frenetic highs of meth and the numbing power of fentanyl. The constant rush of notifications, likes, and headlines overstimulates the brain and crushes attention spans. Apps and games are engineered like slot machines, delivering intermittent reinforcement that keeps users hooked. The average smartphone user touches their phone over 2,500 times a day.

University students struggle to read long texts or concentrate for extended periods. Professors battle declining classroom attention and rising rates of anxiety and burnout. Like meth, the digital feed gives the illusion of efficiency while grinding the mind into dust.

Online Gambling: Casino in Your Pocket

The rise of online sports betting and casino apps has brought Vegas to every dorm room and bedroom. Targeted ads on Instagram and YouTube lure young people into betting with "free" money. Many students—especially young men—develop compulsive behaviors, losing thousands before they graduate. Some turn to credit cards, payday loans, or family bailouts.

States, like governments in the gin and opium eras, have embraced online gambling for its tax revenues. Universities, meanwhile, remain largely silent—even as students destroy their finances and futures through legalized digital addiction.

Higher Education: From Ivory Tower to Digital Trap

Colleges were once sanctuaries of thought and reflection. Today, they are nodes in the digital economy—where learning management systems monitor clicks, and students are nudged toward screens at every turn. Social interaction is filtered through group chats and Reddit threads. Pornography, gambling, and endless scrolling are a click away on the same device used to write term papers and attend virtual lectures.

Even counseling services are digitized. The solution to tech addiction, students are told, is often more tech—apps that monitor screen time, AI chatbots for mental health, or video therapy that feels detached and impersonal.

The Profiteers and the Pushers

In every addiction crisis, there are profiteers: distillers, opium traders, pharmaceutical companies, and cartels. Today, Big Tech plays the same role. Meta, TikTok, YouTube, Pornhub, DraftKings, FanDuel, and hundreds of smaller apps compete for attention with algorithms that exploit human weakness.

Their business model depends on addiction. They study neuroscience, behavioral psychology, and micro-targeted advertising with military-grade precision. Like the drug lords of the past, they deny responsibility while reaping billions.

And just as the poor suffered most in the gin and opioid crises, it is the working class, the unemployed, the chronically ill, and the disconnected who fall hardest into the digital pit.

The Need for Radical Intervention

Digital addiction is not a moral failing—it’s a public health emergency. Like past addiction epidemics, the solution requires:

• Public awareness campaigns

• Stricter age and content regulation

• Taxation on digital vice industries

• Digital literacy education at all levels

• Offline spaces and activities that foster real connection and attention

Higher education must lead. Not by digitizing every service, but by teaching students to reclaim their minds, their time, and their agency. Faculty must model mindful engagement and challenge the corporatization of the university by tech companies. Administrators must reconsider their reliance on LMS systems, data harvesting, and digital surveillance.

Will We Wake Up in Time?

In the past, addiction crises forced society to reflect on what was lost: family cohesion, civic virtue, mental clarity, and freedom itself. We stand again at such a crossroads. The digital drug is in every hand, and the overdose is slow—but devastating.

Like gin, opium, meth, and fentanyl, the internet addiction crisis is about more than chemicals—it’s about despair, disconnection, and exploitation. And like those earlier epidemics, it is not an individual failing, but a systemic one. The good news? As with past crises, awareness is the first step toward recovery. The question is: Will we act before another generation is lost?

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The Higher Education Inquirer continues to investigate the intersection of capitalism, addiction, and the commodification of human attention. Reach out if you have a story to share.

The Disillusioned Young Man and Higher Ed in the US

Across the United States, growing numbers of young men are dropping out—of college, of the labor market, and of public life. They are disillusioned, disappointed, and increasingly detached from the institutions that once promised stability and purpose. Higher education is at the center of this unraveling. For many young men, it has become a symbol of a broken social contract—offering neither clear direction nor tangible reward.

Enrollment numbers reflect this retreat. Women now account for nearly 60 percent of U.S. college students. Men, particularly working-class men, have been withdrawing steadily for years. They are not disappearing from education simply out of disinterest—they are being priced out, pushed out, and in some cases replaced.

College has become a high-risk gamble for those without economic security. Some students take out tens of thousands of dollars in loans and find themselves dropping out or graduating into dead-end jobs. Others gamble in a more literal sense. The explosion of online sports betting and gambling apps has created a public health crisis that is largely invisible. Research shows that college students, particularly men, are significantly more likely to develop gambling problems than the general population. Some have even used federal student aid to fund their gambling. The financial and psychological toll is severe.

Alcohol remains another outlet for despair. While binge drinking has long been part of campus life, it is now more frequently a form of self-medication than social bonding. The stresses of debt, job insecurity, isolation, and untreated mental illness have led many young men to drink excessively. The consequences—academic failure, expulsion, addiction, violence—are often invisible until they are catastrophic.

The education system offers few lifelines. Counseling services are understaffed. Mentorship is scarce. For-profit colleges and nonselective public institutions offer quick credentials but little career mobility. Internships are often unpaid. Adjunct professors, who now make up the majority of the college teaching workforce, are overworked and underpaid, with little time for student engagement. The result is an environment where young men are left to fend for themselves, often without guidance, community, or hope.

Into this vacuum step political influencers who promise meaning and belonging—but offer grievance and distraction instead. Charlie Kirk, founder of Turning Point USA, has become one of the most recognizable figures appealing to disaffected young men. His message is simple: college is a scam, the system is rigged against you, and the left is to blame. But Kirk’s rhetoric does little to address real economic suffering. Instead of empowering young men with tools for analysis, organizing, or resilience, he offers them a worldview of resentment and victimhood. It's ideology without substance—an escape route that leads nowhere.

Compounding the crisis is the transformation of the U.S. labor market. Union jobs that once offered working-class men decent wages and stability have been gutted by automation, offshoring, deregulation, and union-busting campaigns. The pathways that allowed previous generations to thrive without a college degree have largely disappeared. Retail and service jobs dominate the landscape, with low pay, high turnover, and little dignity.

Meanwhile, higher education institutions have increasingly turned to international students to fill seats and boost tuition revenue. Many universities, especially at the graduate level, rely on international students—who often pay full price—to subsidize their operations. These students frequently gain access to internships, research positions, and jobs in STEM fields, sometimes edging out U.S. students with less financial or academic capital. While international students contribute intellectually and economically to American higher ed, their presence also reflects a system more concerned with revenue than with serving local and regional populations.

This mix of economic decline, addiction, alienation, and displacement has left many young men feeling irrelevant. Some turn to substances. Some drop out entirely. Others embrace simplistic ideologies that frame their loss as cultural rather than structural. But the deeper truth is this: they are caught between institutions that extract from them and influencers who exploit them.

The American higher education system has failed to adapt to the reality of millions of young men who no longer see it as a path forward. Until colleges address the psychological, social, and economic pain these men are facing—until they offer real support, purpose, and value—the disillusionment will deepen. Until labor policy creates viable alternatives through union jobs, apprenticeships, and living wages, higher education will continue to function not as a ladder of mobility but as a mirage.

Sources:
National Student Clearinghouse Research Center, Current Term Enrollment Estimates
University at Buffalo, Clinical and Research Institute on Addictions
International Center for Responsible Gaming
Centers for Disease Control and Prevention, Youth Risk Behavior Surveillance
Turning Point USA public statements and financial filings
U.S. Department of Labor, Bureau of Labor Statistics: Union Membership Data
Institute of International Education, Open Doors Report on International Educational Exchange
The Higher Education Inquirer archives on student debt, labor displacement, and campus disinformation campaigns

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

The Higher Education Inquirer is conducting an extensive investigation of the reemergence of fascism in US higher education.  The examination aims to: define and operationalize the concept of fascism, investigate the roots of American fascism since the 17th century, and chronicle the most important cases of fascism in US higher education today.  As part of a democratic process, we ask readers to be involved in the research and writing of this project.  

Reader Input

Additions and corrections will be made with input from readers of the Higher Education Inquirer.  Please add your comments in the section at the bottom. For those who wish to remain anonymous, you can provide feedback by emailing me at dahnshaulis@gmail.com. 

Definition(s) of Fascism(s)

The word fascism has been used by politicians and American writers on the Left and Right for generations.  It may not be possible to create a consensus of what fascism is, or how it appears in US society. This space is likely to be edited as more comments are received.  

*Laurence W. Britt, the author of Fascism Anyone, described 14 elements of fascism here. 

*Italian historian Umberto Eco described 14 elements of fascism here.

*Yale professor Jason Stanley explains "How Fascism Works" here.  

Origins of Fascism in US Higher Education 

US higher education was founded on the taking of land from indigenous people, and oppressing people of color for four centuries. Enslaved Africans and their descendants were part of the origin and continuation of elite American schools for two hundred years.  White, Protestant, males from elite backgrounds had most of the higher educational opportunities--and the names of robber barons and tobacco magnates (Stanford, Carnegie Mellon, Johns Hopkins, Duke) became part of the elite pantheon.  Thorstein Veblen and Upton Sinclair provided a great deal of information on this. 

While there has been more democracy at times, people of color, women, and working-class folks have been excluded or discriminated against for all of US history.  The federal government (Department of Defense, CIA) and US corporations (particularly federal contractors) have also held great importance in the direction of higher education, servicing their most oppressive anti-democratic, colonial elements.  

In the 21st century, historians Craig Steven Wilder and others dug up the white supremacist roots of elite universities. In a zero-sum game, historically privileged groups and individuals may also feel aggrieved and oppressed when others succeed or are placed ahead of them in line.    

Propagation of Fascism in 2022 (Contemporary Examples in No Particular Order) 

This section will evolve with the help of reader comments.  Here are some preliminary examples of varying importance: 

Role in Mass Surveillance 

"Savage Inequalities" in the K-12 Pipeline 

Hunger, poverty, prostitution, and drug sales among college students 

Sexual assault of college students

Anti-intellectualism in America

Rise of Charlie Kirk, Turning Point USA, Turning Point Action, and Students for Trump  

Turning Point USA's Professor Watchlist

Police State and Strong Military Supported 

Use of Propaganda and Disinformation to Oppress "Minorities" and Empower Big Corporations

Predatory Marketing and Advertising 

Legalization of Hate Speech in US Higher Education 

Book Burning and Censorship in US Society

Role of Corporate Power in Higher Education (e.g. Boards, Endowments, Contracts)

Role of Elite Families in Higher Education (e.g. Walton Family Foundation, Koch Brothers) 

Land Theft Through Gentrification and College Expansion 

Tax Avoidance by Elite Schools to Rob Public Coffers 

Colleges Colluding to Limit Financial Aid 

Role of Higher Education in Educating Reactionary Judges and Politicians

State-Sponsored Think Tanks to Support Elites and Oppress Others (e.g. Liberty Institute at University of Texas)

Bomb Threats Against Historically Black Colleges and Universities

End of Affirmative Action for African Americans but Continued Use of Legacies 

Reduction of Needs Based Grants and Scholarships 

Management Corruption, Robocolleges, and the Loss of Labor Power in US Higher Education 

Expenditure of Elite Endowment Funds to Fund Anti-Democratic Organizations

Role of NCAA Football in Promoting Oppressive Values (No Wages, Poor Safety, Sports Gambling) 

Role of US Universities in Supporting Human Rights Violators (e.g. Russia, People's Republic of China) 

Role of US Universities in Undermining Foreign Efforts in Democratization  

Use of "Credentials" as a Legal Form of Discrimination 

Non-Disclosure Agreements

Anti-Union Efforts in Higher Education

Student Loan Peonage, Declining Social Mobility, and the "Educated Underclass"

Related link: US Higher Education and the Intellectualization of White Supremacy

Related link: UT Austin President Eats Cake in a Pandemic (Austin Longhorn*)

Related link: Coursera IPO Reveals Bleak Future For Global Labor

Related link: Guild Education: Enablers of Anti-Union Corporations and Subprime College Programs

Related link: Maximus, Student Loan Debt, and the Poverty Industrial Complex

Related link: Community Colleges at the Heart of College Meltdown

Related link: The Tragedy of Human Capital Theory in Higher Education (Glen McGhee*)

Related link: Higher Education Inquirer: The Growth of "RoboColleges" and "Robostudents"

Related link: SLABS: The Soylent Green of US Higher Education

Dahn Shaulis

Higher Education Inquirer

An Email of Concern to the People of Arkansas about the University of Phoenix (Tarah Gramza)

February 26, 2023. 

Hi! My name is Tarah Gramza. Dahn Shaulis has been talking with me about the University of Phoenix/University of Arkansas situation. I offered to share my knowledge as I have quite a bit with years of experience in this mess of subprime colleges and student loan debt.  

I am the creator/administrator of a quite popular Facebook group with approximately 14,000 members. Theresa Sweet and I came together by sheer accident and became close friends. We have managed this group together for a few years now. 

Theresa started her battle with the US Department of Education (aka ED) nearly a decade ago trying to get anyone’s attention to hear her story and draw attention to the fraud being committed by these schools right under everyone’s noses. Our stories are all similar: we attended schools who promised a future full of butterflies and roses, misled quality of education, pressured enrollment, false advertised job placement, lied about costs...the list goes on. 

Following the bread crumbs

Our lawsuit started as a mission to hold the Department of Education accountable for delaying the processing of Borrower Defense to Repayment applications. These delaying actions broke ED's own rules and regulations. The last several administrations tried to change rules for their own agendas and to satisfy their paid cronies. We know for a fact many congressional leaders have been deeply invested and made millions from this for-profit schools fraud. This includes the Secretary of Education at the time, Betsy DeVos. 

The first settlement forced ED to process applications fairly within a period of time. The department made a big mistake, they decided to deny 90% of class members applications and used illegal denial letters, which ultimately stopped the settlement and sent us back to litigation/discovery. During the discovery it was uncovered that ED had internal emails showing they were intentionally not reviewing applications per the law requirement (a policy of mass denial), withheld evidence by the department on many of the main culprit schools, and knew about the fraud being committed at the highest levels. This led to additional claims by the class and now opened the department up for direct financial liability and undue harm. This led to the final settlement that sits today. 

Between the first settlement and the illegal denials and the present one, the administrations changed and Betsy DeVos quit her job. During the discovery (testimony) it was found that upper leadership under Betsy DeVos pointed their fingers directly at Betsy herself and that she directed these policies, an attempt was made to make her testify. As government always does, they protected her and their own tails in the process and she was allowed to skate by unscathed. The new administration decided it was time to start doing the right thing; the sheet was pulled back enough for everyone to see they well knew about the fraud for over a decade. 

This lawsuit also brought forward the fact that ED had not used its own rules to go after schools for recoupment costs on the taxpayers behalf and recoup funds from these executives, schools, leaders. This includes some of the leaders of major school collapses such as Corinthian Colleges and ITT Tech. Sadly, the executives just jumped from one school to the next bringing their fraud with them along the way, leaving a wake of schools with damaged students. 

Putting it together

The final settlement (Sweet v Cardona) was signed and all of a sudden four schools from the list of 151 known offender schools decided to intervene on the lawsuit. They used every excuse they could to conjure up to stop this case and hold up the settlement--even though the settlement didn’t hold them accountable for the class discharged claims. The judge ultimately denied their requests leading a final settlement approval. Three of those four schools then appealed the judge for a stay,which was officially denied Friday evening. 

Why would four schools appeal a lawsuit that doesn’t involve them of which ultimately has no recoupment against them for the class?

Well- here’s why, the post class group AND any following applications will have recoupment. The department, right around the time of the announcement, had recently announced the recoupment efforts against Devry University and this terrified the schools. They knew full well they were next and that it would put them out of business and these shareholders would be left holding the bag. Now a plan needed to be put into place to try to find a way out. 

The plan

University of Phoenix is one the biggest offenders and probably one the largest schools to profit from this business model of fraud. We’ve seen evidence that much of the fraudulent activity came directly out of the University of Phoenix training manuals. They also had some of biggest lawsuits, so intervening as University of Phoenix was a bad idea. 

The well-known school lobbying group Career Education Colleges and Universities (CECU) led by Jason Altmire banded together to not only bundle money from these subprime schools to stop this lawsuit, by using these four smaller less widely known, less lawsuits, as pawns in a bigger game. Jason has been known and deeply ingrained in this scandal for over 20 years, even before he was lobbying. He was an elected official voting for this for profit game. Holding up the lawsuit benefited every single school named on Exhibit C and you will see why below. 

The new rules and regulations were published a few months back with hard targeted rules that establish a line in the sand starting July 2023. These regs held harsh consequences for all schools not only into the future but also for past bad deeds. The rules also clarified and hardened the rules for information sharing (evidence) and group discharges. 

It became apparent that the shareholders and owners of University of Phoenix needed out and now. This is because the recoupment efforts follow owners. If they can sell the school, they can cash out what is left of their $1 Billion investment and run intact. Which leads to the point of this email, if Arkansas, or any other buyer decides to buy University of Phoenix they will be the target for the recoupment efforts which I estimate to be approximately $600M dollars as it stands today with the number pending recoupable borrower defense applications. If things go as expected this number could exceed $1B. The rules call for recoupment of funds and also steep consequences such as loss of title IV funds. 

Jason Altmire and his lobbying group are so desperate to prevent these rules, they are suing in Texas to prevent them from being implemented.

Why would the Governor of Arkansas pursue this deal?

The Governor of Arkansas knows full well the risks. The political side of this story is administrations. Republican administrations have been very friendly to these schools and have in the past created and changed ED rules in the schools favor and turned a blind eye to the fraud. Democrats have also been guilty of this but in today’s climate we have to think of the present state of the Republican position in student debt relief. The state of Arkansas is offered a sweet deal of a percent of profits on a private deal which they claim doesn’t cost tax payers. 

The hidden agenda by the governor is she is gambling against a change in administration that is friendlier and will either not pursue recoupment against a state owned (affiliated) school OR she is thinking the Biden administration will lose the next election in which they will push to change the rules again! This is a steep gamble as I suspect the secrets in this deal don’t offer protections to the state as presented in press briefings. If the state is signing a contract for profits, what happens if the school goes under? As you may be aware, much of these warnings have been shared with the leadership of Arkansas by many student advocate groups including our lawyers for the Sweet case, the Project on Predatory Student Lending-PPSL. 

Recent announcements made by the Department of Education have added an additional layer of risk for anyone purchasing University of Phoenix as ED recently announced it “may require certain individuals to assume personal liability as a condition of allowing the schools they own or operate to participate in the federal financial aid programs and likely to require an individual to assume personal liability on behalf of the institutions or groups of affiliated institutions that pose the largest financial risk to the United States. This is determined based on institutions with the most serious and significant sets of concerns.” The question becomes, who will be putting their personal assets as collateral? University of Phoenix is not only a risk, it is one the primary reasons for the need for additional protections to the tax payers.

What value would the purchase of University of Phoenix have to the state of Arkansas if it can’t have its Title IV renewed? This fact alone combined with the University of Phoenix history, should scare away even the most riskiest investor!

Now you know the big picture. I hope it helps guide your actions and I hope you are willing to write and share with the public how this dangerous gamble is being wagered against the people of the state of Arkansas. For the records, I am a Republican and my focus is to point to facts of the situation and the truth of the climate in politics leads toward the assessment I’ve given. Let me know if you have any questions. I’m happy to help where I can. I also hold a large document that provides significant evidence against all the schools but the University of Phoenix file speaks volumes and will likely expand on the depth of the fraud, if you are interested.

Sincerely,

Tarah Gramza