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Saturday, August 2, 2025

Time to Shut Off the Tap: The Case for Ending DoD Tuition Assistance to Predatory Colleges

On July 3, 2025, the Higher Education Inquirer received the latest response from the U.S. Department of Defense (DoD) regarding FOIA request 22-F-1203—our most recent effort in a nearly eight-year campaign to uncover how subprime and for-profit colleges have preyed on military servicemembers, veterans, and their families.

The response included confirmation that 1,420 pages of documents were located. But of those, 306 pages were withheld in full, and 1,114 were released only with heavy redactions. A few for-profit colleges—Trident University International, Grand Canyon University, DeVry University, and American Public University System (which includes American Military University and American Public University)—were specifically mentioned in the partially visible content.

And yet the larger truth remains hidden. The names of other institutions known to have exploited military-connected students—University of Phoenix, Colorado Technical University, American InterContinental University, Purdue University Global, and Liberty University Online, among others—were nowhere to be found in the documents we received. Their absence is conspicuous.

We have been pursuing the truth since December 2017, demanding records that would reveal how the DoD enabled these schools to thrive. We sought the list of the 50 worst-performing colleges receiving Tuition Assistance (TA) funds, based on data compiled under Executive Order 13607 during the Obama Administration. That list was never released. When the Trump Administration took power in 2017, they quietly abandoned the protective measures meant to hold these colleges accountable. Our FOIA request DOD OIG-2019-000702 was denied, with the Pentagon claiming that no such list existed. A second request in 2021 (21-F-0411) was also rejected. And now, more than three years after we filed our 2022 request, the DoD continues to deny the public full access to the truth.

The records we did receive are riddled with legal exemptions: internal deliberations, privacy claims, and most notably, references to 10 U.S.C. § 4021, a law that allows the DoD to withhold details of research transactions outside of traditional grants and contracts. In other words, the Pentagon has built legal firewalls around its relationships with for-profit education providers—and continues to shield bad actors from scrutiny.

But the complicity doesn’t end there. It extends deep into the institutional fabric of how the military interfaces with higher education.

Decades of Systemic Corruption

Since the 1980s, the U.S. Department of Defense has worked hand-in-glove with for-profit colleges through a nonprofit called the Council of College and Military Educators (CCME). What began in the 1970s as a noble initiative to expand access to education for military personnel was hijacked by predatory colleges—including the University of Phoenix—that used the organization as a lobbying front.

These schools infiltrated CCME events, using them to curry favor with military officials, often by hiring veterans as on-base sales agents and even providing alcohol to loosen up potential gatekeepers. While CCME publicly maintained the appearance of academic integrity and service, behind the scenes it served as a conduit for lobbying, influence, and enrollment schemes. Military education officers were schmoozed, manipulated, and in some cases, quietly co-opted. This is something you won’t find in CCME’s official history.

We have been told by multiple insiders that the partnership between DoD and these schools was not just tolerated but actively nurtured. Attempts at reform came and went. Investigations were buried. Promises to "do better" evaporated. No one was held accountable. No one went to jail. But the damage has been lasting—measured in ruined credit, wasted benefits, and lives derailed by fraudulent degrees and broken promises.

The Trump-Hegseth Department of Defense

And still, new scandals—except those uncovered by us—go largely unreported. The media has moved on. Congressional attention has shifted. And the same schools, or their rebranded successors, continue to operate freely, often under the protective shadow of military partnerships.

Today, the DoD continues to deny that the DODOIG-2019-000702 list of the 50 worst schools even exists. But we know otherwise. Based on VA data, whistleblower accounts, and independent reporting, we are confident that this list was compiled—and buried. The question is why. And the answer may very well lie in the unredacted names of institutions too politically connected or too legally protected to be exposed.

The Evidence Is Overwhelming

The most damning proof of institutional complicity remains publicly available. In GAO Report GAO-14-855, published in 2014, the Government Accountability Office detailed the deep flaws in DoD’s oversight of its Tuition Assistance program. The report highlighted inconsistent evaluations, unqualified contractor reviewers, vague standards, and incomplete data collection. The DoD had spent hundreds of millions of taxpayer dollars on schools without ensuring quality or protecting students. In response, DoD temporarily halted its school evaluations—then quietly resumed business as usual.

PwC audits from 2015 and 2018 confirmed widespread noncompliance with DoD’s Memorandum of Understanding (MOU). Schools violated marketing guidelines, offered misleading transfer information, and failed to provide basic academic counseling. Few were sanctioned, and even fewer were removed from eligibility lists.

Gatehouse Strategies, in its 2022 report, reinforced these conclusions. It warned of “a lack of consistent enforcement mechanisms,” and found that even institutions under investigation continued to receive DoD TA funding. The system appeared designed not to punish misconduct, but to tolerate and obscure it.

The Cost of Inaction

Meanwhile, service members seeking education are left exposed. Many receive low-value credentials, accumulate debt, and waste their limited benefits at schools that offer little academic rigor and even less career mobility. When those credits don’t transfer—or worse, when degrees are rejected by employers—the burden falls squarely on the individual.

Institutions like American Public University System, University of Phoenix, Colorado Technical University, DeVry, and Purdue Global have collected tens of millions in DoD TA funding. Some are under state or federal investigation. Others have quietly changed ownership or rebranded. But the underlying model—targeting military students with high-volume, low-quality online programs—remains largely intact.

We Don’t Need Another Report

The time for reflection is over. The data from GAO, PwC, Gatehouse, and from our own FOIA investigations are clear. What remains is the political will to act.

The Department of Defense should immediately:

– Revoke TA eligibility for schools with documented abuse, federal scrutiny, or repeat MOU violations.
– Release the suppressed list of the worst-performing colleges, as identified under Executive Order 13607.
– Mandate transparent outcome reporting—including transferability, job placement, and default rates—for every school in the TA program.
– Sever ties with lobbyist conduits like CCME that have enabled predatory behavior for decades.

This is not just a matter of bureaucratic reform—it is about justice. For the servicemembers who were deceived. For the families who sacrificed. For the taxpayers who unknowingly foot the bill for failure.

The Higher Education Inquirer will not stop pushing for those names, those documents, and that accountability. Behind every redaction is a veteran who trusted the system—and got scammed. Behind every delay is another student targeted by the same exploitative machinery. Behind every refusal to act is a government more loyal to profit than to people.

Related Reading
GAO-14-855: DoD Education Benefits Oversight Lacking
Military Times (2018): DoD review finds 0% of schools following TA rules
Military Times (2019): Schools are struggling to meet TA rules, but DoD isn’t punishing them. Here’s why.

Wednesday, July 30, 2025

Higher Learning Commission Passes the Buck on Ambow-CSU Deal

The Higher Learning Commission (HLC), the regional accreditor for Colorado State University (CSU), has refused to comment on whether it is investigating or overseeing any partnership between CSU and Ambow Education, a Chinese-American education technology company with a record of volatility, opacity, and questionable business practices.

In an email to the Higher Education Inquirer on July 28, HLC Public Information Officer Laura Janota wrote, “You would need to check with the institution regarding any specifics about its agreement with Ambow Education.” While acknowledging that HLC evaluates an institution’s offerings and operations as part of its ongoing accreditation relationship, Janota pointed to generic contractual guidance on the HLC website rather than offering any assurance that the accreditor is scrutinizing a deal involving Ambow—a company that has raised alarms due to its foray into the U.S. higher ed sector via its HybriU platform.

This type of response is not unusual for HLC, which has come under criticism for its lack of accountability and its longstanding pattern of accrediting both elite universities and subprime colleges.

As previously reported by the Higher Education Inquirer:

"Institutional accreditation is no sign of quality. Worse yet, accreditation by organizations such as the Middle States Association, Western Association of Schools and Colleges, and the Higher Learning Commission is used by subprime colleges to lend legitimacy to their predatory, low-standard operations."

According to the U.S. Department of Education, HLC currently accredits 946 Title IV-eligible institutions, opening the doors for them to collectively receive nearly $40 billion in federal student aid annually—along with billions more from the Department of Defense and Department of Veterans Affairs.

HLC accredits prestigious institutions such as the University of Chicago, University of Michigan, and Notre Dame. But it also accredits notorious subprime schools including Colorado Technical University, DeVry University, University of Phoenix, Walden University, National American University, and Purdue University Global. On the three pillars of regional accreditation—compliance, quality assurance, and quality improvement—HLC has consistently failed when it comes to oversight of predatory institutions.

Even as far back as 2000, critics within academia called out the ethical rot. The American Association of University Professors protested HLC’s support of for-profit schools. That same year, then-AAUP General Secretary Mary A. Burgan remarked:

"I really worry about the intrusion of the profit motive in the accreditation system. Some of them, as I have said, will accredit a ham sandwich."

HLC’s financial structure reinforces this compromised position: it is funded by the institutions it accredits. Over the last 30 years, HLC has collected millions of dollars in dues from some of the nation’s most predatory schools. This funding model mirrors the conflicts of interest that plagued credit rating agencies during the 2008 financial crisis—a comparison made explicitly by economists David Deming and David Figlio in a 2016 report:

“Accreditors—who are paid by the institutions themselves—appear to be ineffectual at best, much like the role of credit rating agencies during the recent financial crisis.”

Despite public attention, federal oversight of accreditors remains weak. Under the Trump-DeVos administration, regulatory protections were rolled back significantly. A 2023 internal investigation revealed that the U.S. Department of Education was not adequately monitoring accreditors, confirming what many higher education watchdogs already knew: that no one is truly watching the accreditors.

The Ambow-CSU situation underscores this systemic failure. Rather than acting as an independent reviewer, HLC has chosen to defer responsibility to the very institution it is tasked with overseeing. This is not just a case of passing the buck; it's another example of accreditors shielding themselves from accountability while public institutions are left to make private deals with for-profit entities—unchecked, unregulated, and largely unreported.

Sources:

Friday, July 25, 2025

Dreams I'll Never See: Higher Ed’s Broken Promises and the American Student

“I’m hung up on dreams I’ll never see.”

That Southern rock refrain from Molly Hatchet captures the bitter reality faced by millions of Americans who invested in higher education only to be left with debt, shattered hopes, and uncertain futures.

Educator Gary Roth’s The Educated Underclass points to a growing class of credentialed individuals caught in precarious economic and social positions—overqualified yet underpaid, burdened by debt without the stability education promised. Yet it is the borrowers’ own stories that reveal the human toll behind the numbers.

Over the past month, The Higher Education Inquirer has chronicled the experiences of borrowers misled by predatory institutions—mainly for-profit colleges—through its Borrower Defense Story Series. These narratives shed light on the deeply personal consequences of institutional deception and a federal loan forgiveness process that is often slow, bureaucratic, and uneven.

In one story, a single mother describes her experience at Chamberlain University School of Nursing. She followed every instruction, met every deadline, and committed herself fully to a career in health care. Yet she never earned her degree. Despite this, she remains burdened with thousands of dollars in student loan debt. Her borrower defense application has yet to yield relief.

Another borrower shares her journey with Kaplan University Online, where promises of flexible learning and job placement proved empty. After transferring and completing her degree elsewhere, she still faces uncertainty as her borrower defense claim drags on, highlighting the emotional toll of navigating a broken loan forgiveness system.

A third story critiques the broader system of higher education finance, describing how students—especially those without family wealth or institutional support—become trapped in debt relationships that limit their autonomy and economic mobility. Rather than offering a pathway to security, college becomes a mechanism of financial entrapment.

Most recently, a former fashion student recounts how private loans—unlike federal loans—offered no path for borrower defense relief after she attended a program marketed with glowing career outcomes that never materialized. The result was devastating financial consequences with little recourse.

These individual stories are not exceptions. As of April 30, 2024, over 974,000 borrowers had received more than $17 billion in loan discharges under borrower defense rules, mostly through group claims tied to scandals involving Corinthian Colleges, ITT Tech, and DeVry. Yet hundreds of thousands still await decisions, and many are excluded entirely due to private loans, school exclusions, or bureaucratic delays.

The borrower defense rule was meant to shield students from fraud, but political interference, legal challenges, and an overwhelmed bureaucracy have marred its implementation. Behind the statistics are people deceived, indebted, and left behind.

Meanwhile, elite institutions hoard resources, adjunct faculty struggle to survive, and the promise of higher education rings hollow for many.

“I’m hung up on dreams I’ll never see.” This lyric is not just poetry but the lived reality for millions. Unless there is radical change—debt cancellation, labor protections, honest admissions, and accountability—the cycle of exploitation will only grow louder.

Some were sold dreams they could never afford. Many of those dreams are now lost.


Sources

Roth, Gary. The Educated Underclass. Pluto Press, 2022
National Center for Education Statistics. “Debt After College”
The Institute for College Access and Success (TICAS). “Student Debt and the Class of 2023”
American Psychological Association. “Mental Health Impacts of Student Debt”
Bousquet, Marc. How the University Works. NYU Press, 2008
McMillan Cottom, Tressie. Lower Ed. The New Press, 2017
https://www.highereducationinquirer.org/2025/07/i-did-everything-right-and-im-still.html
https://www.highereducationinquirer.org/2025/07/fashion-gone-bad-for-private-student.html
https://www.gao.gov/products/gao-24-106530
https://standup4borrowerdefense.com
https://www.insidehighered.com/news/government/student-aid-policy/2023/10/24/colleges-concerned-about-rise-borrower-defense-claims

Monday, July 21, 2025

Borrower Defense Stories: The Human Cost of Higher Education Fraud

Over the past month, the Higher Education Inquirer has chronicled the experiences of borrowers misled by predatory institutions—mainly for-profit colleges—through its Borrower Defense Story Series. These narratives shed light on the deeply personal consequences of institutional deception and a federal loan forgiveness process that is often slow, bureaucratic, and uneven in its outcomes.

The stories are as diverse as the students who tell them, but they share a common theme: individuals who sought to improve their lives through education but were instead left with debt, broken promises, and uncertain futures.

In the first story, “I Did Everything Right. And I’m Still Paying for a Degree I Never Got,” a single mother describes her experience at Chamberlain University School of Nursing. She followed every instruction, met every deadline, and committed herself to a profession in health care. Yet she never earned her degree. Despite this, she remains burdened with thousands of dollars in student loan debt. Her borrower defense application has yet to yield relief.

In “Anxiety & Interest (KH),” another borrower shares her journey with Kaplan University Online. Lured by promises of job placement and flexibility, KH soon realized that the school’s assurances were empty. The debt accumulated rapidly. After transferring to another college and completing her degree elsewhere, she applied for borrower defense, but the outcome remains unclear. Her story highlights the emotional and psychological toll of dealing with deceptive institutions and a broken loan forgiveness system.

The third story in the series, “Modern Indentured Servitude,” critiques the broader system of higher education finance. It describes how students—particularly those without wealth or institutional support—are drawn into debt relationships that limit their freedom, autonomy, and economic mobility. Rather than offering a pathway to security or upward mobility, college becomes a mechanism of financial entrapment.

In the most recent installment, “Fashion Gone Bad for a Private Student Borrower,” a former fashion student recounts how she took on private loans to attend a program marketed with glowing career outcomes. In reality, the education was minimal, job prospects were nonexistent, and her private loans—unlike federal loans—offered no path for borrower defense relief. The result was financial devastation with no recourse.

These stories are not isolated. As of April 30, 2024, over 974,000 borrowers had received more than $17 billion in loan discharges under the borrower defense rule. Many of these were through group claims tied to settlements involving institutions like Corinthian Colleges, ITT Tech, and DeVry. However, hundreds of thousands of other borrowers still await decisions, and many more are excluded entirely—either because they took out private loans, their schools were not included in settlements, or their claims have been delayed indefinitely.

The Borrower Defense to Repayment rule was intended to protect students from institutional fraud. But implementation has been marred by political interference, legal challenges, inconsistent enforcement, and an overwhelmed bureaucracy. The HEI story series captures what those numbers and legal filings cannot: the lived experience of people who were deceived, indebted, and left behind.

HEI continues to collect and share these narratives—not only to document harm but to advocate for deeper accountability, faster relief, and a transformation of the credential-based education economy that profits from the desperation of working-class students.

Sources
https://www.highereducationinquirer.org/2025/07/i-did-everything-right-and-im-still.html
https://www.highereducationinquirer.org/2025/07/fashion-gone-bad-for-private-student.html
https://www.gao.gov/products/gao-24-106530
https://standup4borrowerdefense.com
https://www.insidehighered.com/news/government/student-aid-policy/2023/10/24/colleges-concerned-about-rise-borrower-defense-claims

Tuesday, July 15, 2025

HEI Files FOIA to Expose Delays and Disparities in Borrower Defense Discharges

The Higher Education Inquirer has submitted a Freedom of Information Act (FOIA) request to the U.S. Department of Education, seeking critical data on Borrower Defense to Repayment claims tied to some of the most notorious for-profit and career college chains in the United States. Filed on July 13, 2025, and formally acknowledged by the Department on July 14, this request seeks to uncover how many borrowers have received student debt relief, how many remain in limbo, and how many have been left in the dark despite being eligible.

The FOIA request includes a list of institutions with long histories of documented fraud, federal investigations, lawsuits, and closures. These include Corinthian Colleges (which operated Everest, Heald, and WyoTech), ITT Technical Institute, Westwood College, Marinello Schools of Beauty, the Art Institutes, Argosy University, American National University, Charlotte School of Law, DeVry University, Globe University/Minnesota School of Business, Independence University, Kaplan College/Kaplan University, Le Cordon Bleu, Missouri College, Mount Washington College, University of Phoenix, Virginia College, and Vatterott College.

For each institution, the Inquirer is requesting the number of borrowers identified for group discharge under the Borrower Defense authority. Of those, we are asking how many have had their loans discharged, how many cases remain pending, how many borrowers have been approved for discharge but not yet notified, and how many claims overlap with the class-action lawsuit Sweet v. McMahon (formerly Sweet v. Cardona and Sweet v. DeVos). For Corinthian Colleges specifically, the request also asks for the number of discharged borrowers under previous Department announcements and how many were also part of the Manriquez v. McMahon or Sweet settlements.

This data request covers the one-year period from July 13, 2024, to July 13, 2025, and asks for results in a structured, electronic format, preferably Excel.

The significance of this request cannot be overstated. Despite multiple well-publicized borrower defense settlements and mass discharge announcements, many defrauded students still have no clear idea whether they qualify for relief or when it might arrive. While the Department has made headlines for forgiving billions in student debt, especially for borrowers from predatory for-profit schools, those announcements often lack transparency and specificity. The FOIA request aims to fill those gaps and provide an accurate picture of the Department’s implementation of debt relief and justice for defrauded borrowers.

The Department of Education’s FOIA Service Center responded that the request has been received and is in queue. No further clarification is needed at this time, and no fees have been assessed. The Department did note that the current average processing time is 185 business days—over nine months. This timeline means that meaningful public disclosure may not happen until spring 2026, even as policymakers, advocates, and student debtors continue to push for faster relief and more accountability.

This FOIA request is part of the Higher Education Inquirer's ongoing efforts to investigate the afterlife of failed for-profit colleges, the bureaucratic delays in loan discharges, and the long shadow these schools have cast over the lives of working-class students. In many cases, these students were the first in their families to attend college and were aggressively targeted by institutions that promised fast-track careers and delivered financial ruin instead.

We will continue to monitor the Department’s response and will publish any findings we receive. If you are a former student of one of these schools and have filed a Borrower Defense claim—or have questions about whether you qualify—we invite you to share your experience. Your voice matters, and transparency is key to understanding how widespread the damage remains.

Contact the Higher Education Inquirer at gmcghee@aya.yale.edu.

Sources
U.S. Department of Education FOIA Acknowledgment Letter, July 14, 2025
FOIA Request No. 25-04397-F
Sweet v. Cardona (formerly Sweet v. DeVos), Case No. 19-cv-03674, N.D. Cal.
Manriquez v. DeVos, Case No. 3:17-cv-07210, N.D. Cal.
U.S. Department of Education Borrower Defense Updates – studentaid.gov

Monday, July 7, 2025

Trump Team Weakens Bipartisan Law That Protects Students and Veterans From Predatory Colleges (David Halperin)

On the eve of the 4th of July holiday, when they probably hoped no one was paying attention, the Trump Department of Education issued an Interpretive Rule that will make it easier for for-profit colleges to evade regulations aimed at protecting students, and especially student veterans and military service members, from low-quality schools.

The Department’s 90-10 rule, created by Congress, requires for-profit colleges to obtain at least ten percent of their revenue from sources other than taxpayer-funded federal student grants and loans, or else — if they flunk two years in a row — lose eligibility for federal aid. The purpose is to remove from federal aid those schools of such poor quality that few students, employers, or scholarship programs would put their own money into them.

For decades, low quality schools have been able to avoid accountability through a giant loophole: only Department of Education funding counted on the federal side of the 90-10 ledger, while other government funding, including GI Bill money from the VA, and tuition assistance for active duty troops and their families from the Pentagon, counted as non-federal. That situation was particularly bad because it motivated low-quality predatory schools, worried about their 90-10 ratios, to aggressively target U.S. veterans and service members for recruitment.

After years of efforts by veterans organizations and other advocates to close the loophole, Congress in 2021 passed, on a bipartisan basis, and President Biden signed, legislation that appropriately put all federal education aid, including VA and Defense Department money, on the federal side of the ledger.

The Department was required by the new law to issue regulations specifying in detail how this realignment would work, and the Department under the Biden administration did so in 2022, after engaging in a legally-mandated negotiated rulemaking that brought together representatives of relevant stakeholders. In an unusual development, that rulemaking actually achieved consensus among the groups at the table, from veterans organizations to the for-profit schools themselves, on what the final revised 90-10 rule should be.

The new rule took effect in 2023, and when the Department released the latest 90-10 calculations, for the 2023-24 academic year, sixteen for-profit colleges had flunked, compared with just five the previous year. These were mostly smaller schools, led by West Virginia’s Martinsburg College, which got 98.73 percent of its revenue from federal taxpayer dollars, and Washington DC’s Career Technical Institute, which reported 98.68 percent. Another 36 schools, including major institutions such as DeVry University, Strayer University, and American Public University, came perilously close to the line, at 89 percent or higher.

The education department last week altered the calculation by effectively restoring an old loophole that allowed for-profit colleges to use revenue from programs that are ineligible for federal aid to count on the non-federal side. That loophole was expressly addressed, via a compromise agreement, after Department officials discussed the details with representatives of for-profit colleges, during the 2022 negotiated rulemaking meetings.

All the flunking or near-flunking schools can now get a new, potentially more favorable, calculation of their 90-10 ratio under the Trump administration’s re-interpretation of the rule.

In the lawless fashion of the Trump regime, the Department has now undermined a provision of its own regulation without going through the required negotiated rulemaking process. (The Department’s notice last week included a labored argument about why its action was lawful.)

As it has done multiple times over its first six months, the Trump Department of Education, under Secretary Linda McMahon, has again taken a step that allows poor-quality predatory for-profit colleges to rip off students and taxpayers.

[Editor's note: This article originally appeared on Republic Report.]

Friday, July 4, 2025

What the Pentagon Doesn’t Want You to See: For-Profit Colleges in the Military-Industrial-Education Complex

[Editor's note: The Higher Education Inquirer has emailed these FOIA documents to ProPublica and the Republic Report.  We will send these documents to any additional media and any individuals who request for the information. We are also seeking experts who can help us review and decipher the information that has been released.]   

On July 3, 2025, the Higher Education Inquirer received the latest response from the U.S. Department of Defense (DoD) regarding FOIA request 22-F-1203—our most recent effort in a nearly eight-year campaign to uncover how subprime and for-profit colleges have preyed on military servicemembers, veterans, and their families. 

The response included confirmation that 1,420 pages of documents were located. But of those, 306 pages were withheld in full, and 1,114 were released only with heavy redactions.  A few for-profit colleges—Trident University International, Grand Canyon University, DeVry University, and American Public University System (which includes American Military University and American Public University)—were specifically mentioned in the partially visible content.

 

And yet the larger truth remains hidden. The names of other institutions known to have exploited military-connected students—University of Phoenix, Colorado Technical University, American InterContinental University, Purdue University Global, and Liberty University Online, among others—were nowhere to be found in the documents we received. Their absence is conspicuous.

We have been pursuing the truth since December 2017, demanding records that would reveal how the DoD enabled these schools to thrive. We sought the list of the 50 worst-performing colleges receiving Tuition Assistance (TA) funds, based on data compiled under Executive Order 13607 during the Obama Administration. That list was never released. When the Trump Administration took power in 2017, they quietly abandoned the protective measures meant to hold these colleges accountable. Our FOIA request DOD OIG-2019-000702 was denied, with the Pentagon claiming that no such list existed. A second request in 2021 (21-F-0411) was also rejected. And now, more than three years after we filed our 2022 request, the DoD continues to deny the public full access to the truth.

The records we did receive are riddled with legal exemptions: internal deliberations, privacy claims, and most notably, references to 10 U.S.C. § 4021, a law that allows the DoD to withhold details of research transactions outside of traditional grants and contracts. In other words, the Pentagon has built legal firewalls around its relationships with for-profit education providers—and continues to shield bad actors from scrutiny.

But the complicity doesn’t end there. It extends deep into the institutional fabric of how the military interfaces with higher education.

Decades of Systemic Corruption

Since the 1980s, the U.S. Department of Defense has worked hand-in-glove with for-profit colleges through a nonprofit called the Council of College and Military Educators (CCME). What began in the 1970s as a noble initiative to expand access to education for military personnel was hijacked by predatory colleges—including the University of Phoenix—that used the organization as a lobbying front.

These schools infiltrated CCME events, using them to curry favor with military officials, often by hiring veterans as on-base sales agents and even providing alcohol to loosen up potential gatekeepers. While CCME publicly maintained the appearance of academic integrity and service, behind the scenes it served as a conduit for lobbying, influence, and enrollment schemes. Military education officers were schmoozed, manipulated, and in some cases, quietly co-opted. This is something you won’t find in CCME’s official history.

We have been told by multiple insiders that the partnership between DoD and these schools was not just tolerated but actively nurtured. Attempts at reform came and went. Investigations were buried. Promises to "do better" evaporated. No one was held accountable. No one went to jail. But the damage has been lasting—measured in ruined credit, wasted benefits, and lives derailed by fraudulent degrees and broken promises.

The Trump-Hegseth Department of Defense

And still, new scandals—except those uncovered by us—go largely unreported. The media has moved on. Congressional attention has shifted. And the same schools, or their rebranded successors, continue to operate freely, often under the protective shadow of military partnerships.

Today, the DoD continues to deny that the DODOIG-2019-000702 list of the 50 worst schools even exists. But we know otherwise. Based on VA data, whistleblower accounts, and independent reporting, we are confident that this list was compiled—and buried. The question is why. And the answer may very well lie in the unredacted names of institutions too politically connected or too legally protected to be exposed.

The Higher Education Inquirer will not stop pushing for those names, those communications, and that accountability. Because behind every redaction is a servicemember who trusted the system—and got scammed. Behind every delay is a taxpayer footing the bill for worthless credentials. Behind every refusal to act is a government too intertwined with profit to protect its own people.

This is not just a story of bureaucratic inertia. It is a story of complicity at the highest levels. And it is ongoing.

Related links:
DoD review: 0% of schools following TA rules (Military Times, 2018)
Schools are struggling to meet TA rules, but DoD isn’t punishing them. Here’s why. (Military Times, 2019)

Thursday, June 26, 2025

Murky Waters 2: Ambow Education, Chinese Influence, and US Edtech, 2013-2025

In Chinese culture, there’s an old proverb: “混水摸鱼” — “In murky waters, it is easier to catch fish.” The lesson is clear: confusion and opacity benefit those looking to manipulate outcomes for personal gain. In politics, finance, and international affairs, it is a warning. In the case of Ambow Education Holding Ltd., it may be a roadmap.

On June 26, 2025, Ambow announced a partnership with the tiny University of the West (UWest), a Buddhist college in Rosemead, California, enrolling just 153 students. The deal will implement Ambow’s HybriU platform—a so-called “phygital” learning solution combining digital and physical education delivery—positioning the technology as a tool for expanding U.S. academic access to international students. But a closer look reveals a story less about educational innovation than about power, soft influence, and the financialization of struggling institutions.

Ambow, a Cayman Islands–registered and formerly Beijing-based EdTech firm, has quietly entrenched itself in U.S. higher education. While other sectors of the U.S. economy—especially semiconductors and AI—have become more cautious of Chinese-linked investment due to national security concerns, American higher education remains notably exposed. The Ambow-UWest partnership exemplifies that vulnerability.

This is not Ambow’s first foray into U.S. academia. In 2013, the company was delisted from the New York Stock Exchange and liquidated after accusations of accounting irregularities. Rebranded and restructured offshore, Ambow re-entered the market, acquiring distressed for-profit colleges. In 2017, it bought Bay State College in Boston. Three years later, Massachusetts fined the school $1.1 million for fraudulent advertising, inflated placement rates, and illegal telemarketing. The school shuttered in 2023 after eliminating key services, including its library, and squandering pandemic-era federal aid.

In 2020, Ambow acquired the NewSchool of Architecture and Design in San Diego. Since then, NewSchool has appeared on the U.S. Department of Education’s Heightened Cash Monitoring 2 list, signifying severe financial instability. Lawsuits followed, including one for unpaid rent and another over compensation disputes involving the school’s former president.

Still, Ambow continues to market itself as a leader in “AI-driven” phygital innovation. HybriU, its flagship platform, has been promoted at edtech and investor conferences like CES and ASU-GSV, with lofty promises about immersive education and intelligent classrooms. But the evidence is thin. The platform’s website contains vague marketing language, no peer-reviewed validation, no public client list, and stock images masquerading as real users. Its core technology, OOOK (One-on-One Knowledge), was piloted in China in 2021 but shows no signs of adoption by credible U.S. institutions.

Why, then, would a college like University of the West—or potentially a major public institution like Colorado State University (CSU), reportedly exploring a partnership with Ambow—risk associating with such an entity?

To understand the stakes, we must follow the money and the power behind the brand.

Ambow’s largest shareholder bloc is controlled by Jian-Yue Pan (aka Pan Jianyue), a Chinese executive with deep ties to the country’s tech and investment elite. Pan is general partner of CEIHL Partners I and II, two Cayman Islands entities that control roughly 26.7 percent of Ambow’s publicly floated Class A shares. He also chairs Uphill Investment Co., which is active in the semiconductor and electronics sectors, and holds board positions in tech firms with connections to Tsinghua University—one of China’s premier talent pipelines for its national strategic industries.

Pan’s voting control over Ambow gives him sweeping influence over its corporate decisions, executive appointments, and strategic direction. His role raises critical concerns about the use of U.S. higher education infrastructure as a potential channel for data access, market expansion, and soft geopolitical influence.

To further legitimize its U.S. operations, Ambow recently appointed James Bartholomew as company president. Bartholomew’s resume includes controversial stints at DeVry University and Adtalem Global Education. While at DeVry, the institution was fined $100 million by the FTC for deceptive marketing. At Adtalem, he oversaw operations criticized for offshore medical schools and active resistance to gainful employment regulations.

Even Ambow’s financial underpinnings are suspect. Its R&D spending hovers around $100,000 per quarter—trivial for a firm purporting to lead in AI and immersive tech. Its audits are performed by Prouden CPA, a virtually unknown Chinese firm, not one of the major global accounting networks. These red flags suggest not a dynamic tech company, but a shell operation kept afloat by hype, misdirection, and strategic ambiguity.

That makes its ambitions in U.S. public education all the more dangerous.

Reports that Colorado State University—a land-grant institution managing sensitive federal research—may be considering a partnership with Ambow should prompt urgent scrutiny. Has CSU conducted a full cybersecurity and national security risk assessment? Have university stakeholders—faculty, students, and the public—been involved in the review process? Or is the university racing blindly into an agreement driven by budget pressures and buzzwords?

American higher education has long been susceptible to bad actors promising solutions to enrollment declines and funding shortfalls. But in recent years, the cost of these decisions has grown. With campuses increasingly dependent on international student tuition and digital platforms, the door has opened to exploitative operators and geopolitical influence.

Ambow has already shuttered one U.S. college. Its remaining campus is on shaky footing. Its technology lacks serious vetting. Its leadership is tethered to past scandals. And its largest shareholder has interests far beyond education.

This is not just about Ambow. It is about the structural vulnerabilities in American higher education—an industry ripe for manipulation by financial speculators, tech opportunists, and foreign actors operating with impunity. The murky waters of privatized, digitized education reward those who operate without transparency.

Public universities must remember who they serve: students, faculty, and the public—not offshore shareholders or unproven platforms.

If Colorado State or any other institution moves forward with Ambow, they owe the public clear answers: What protections are in place? What risks are being considered? Who really controls the platforms delivering instruction? And most importantly, why are public institutions turning to unstable, opaque companies for core educational delivery?

As the proverb reminds us, murky waters are fertile ground for hidden agendas. But education, above all, demands clarity, integrity, and public accountability.


Sources:

  • SEC filings and 20-F reports: sec.gov

  • Massachusetts Attorney General settlement with Bay State College, March 2020

  • Federal Trade Commission settlement with DeVry University, December 2016

  • U.S. Department of Education Heightened Cash Monitoring List

  • NYSE delisting notices, 2013

  • CES and ASU-GSV conference archives, 2023–2024

  • Corporate data from MarketScreener and CEIHL Partners

  • Ambow’s 2023 Annual Report and quarterly 6-K filings


Wednesday, June 11, 2025

Ambow Education's Latest Move Raises Red Flags—A Second Warning to Colorado State University

On June 11, Ambow Education Holding Ltd. (NYSE American: AMBO) announced the appointment of James Bartholomew as its new president, emphasizing his leadership experience at DeVry University and Adtalem Global Education. While this move is being framed as part of a bold pivot toward global expansion through its hybrid learning platform, HybriU, the deeper reality of Ambow’s operations suggests that institutions like Colorado State University (CSU) should proceed with extreme caution.

Ambow Education is no stranger to controversy. In May 2022, The Higher Education Inquirer began investigating the company after credible tips about its mismanagement of Bay State College in Boston. The Massachusetts Attorney General had already fined the school in 2020 for misleading students. By August 2023, Bay State College closed abruptly, leaving behind a mess for students and staff. Throughout this time, Ambow operated with an alarming level of opacity, raising concerns among journalists, regulators, and public officials—including Senator Elizabeth Warren and Representative Ayanna Pressley.

Ambow’s financial practices and leadership structure have remained elusive, with lingering ties to the People’s Republic of China (PRC). The company sold its PRC-based assets in 2022 and relocated to a small office in Cupertino, California, but its auditor remains based in China, and it has expressed interest in projects in Morocco and Tunisia involving Chinese-affiliated partners. The proverb about fishing in murky waters aptly describes how Ambow has operated in both Chinese and American markets.

Now, Ambow is promoting HybriU, a “phygital” platform it claims is revolutionizing education and corporate communication. Marketed heavily at events like CES and ASU-GSV, HybriU has been linked to a $1.3 million contract with a small firm in Singapore, but no major U.S. clients have been named. Visuals from the company’s website include stock images, and there’s no publicly available evidence that HybriU is delivering measurable results in any real-world education setting. The platform’s “OOOK” (One-on-One Knowledge) technology was first introduced in China in 2021, but it has yet to prove itself in American classrooms.

James Bartholomew’s appointment appears to be aimed at lending credibility to the HybriU initiative. However, his background warrants a closer look. DeVry University, where Bartholomew previously served as CEO, was embroiled in a long list of scandals, including a $100 million settlement with the Federal Trade Commission in 2016 for deceptive advertising practices. These included inflated job placement claims and misleading earnings expectations for graduates. The Department of Education also scrutinized DeVry for poor student loan repayment metrics and aggressive recruiting tactics.

At Adtalem Global Education—DeVry’s former parent company—similar concerns persisted. Offshore medical schools under Adtalem’s umbrella, such as Ross University and American University of the Caribbean, were criticized for high tuition, student debt, and low U.S. residency placement rates. The company spent years lobbying against federal gainful employment regulations that were designed to protect students from predatory institutions. While Bartholomew may not have initiated these practices, he held leadership roles during a time when the institutions were navigating declining trust, financial turbulence, and increasing regulatory scrutiny.

Against this backdrop, reports have emerged that Colorado State University is considering a partnership with Ambow to implement the HybriU platform. On the surface, this might seem like a step toward innovation and flexibility in digital learning. But such a partnership could expose CSU to national security and data privacy risks, regulatory backlash, reputational damage, and questionable academic outcomes.

Given Ambow’s historical ties to the PRC, questions have been raised about the possibility of exposing sensitive university data to foreign surveillance or influence. CSU is a major research university with partnerships across science, defense, and technology. Even the perception that its digital infrastructure could be compromised could undermine public trust and jeopardize government grants and contracts.

The regulatory landscape is also increasingly cautious when it comes to foreign influence, particularly from China, in American higher education. Federal agencies have warned about the risks of partnerships that could compromise institutional independence or data integrity. Entering into a relationship with a firm like Ambow could place CSU under increased scrutiny or spark political backlash.

From a pedagogical perspective, HybriU is unproven. It has yet to demonstrate any significant results in U.S. education settings, and its claims are not substantiated by independent data. Adopting a platform without a strong record could endanger CSU’s teaching mission and student learning experiences at a time when the credibility of online education remains fragile.

Historically, investors and institutions have backed away from Ambow. The company was delisted from the NYSE in 2014 following accounting fraud allegations and shareholder lawsuits. It has struggled to maintain financial health and transparency. Its last remaining U.S. college, NewSchool of Architecture and Design in San Diego, has just 280 students and is currently under Heightened Cash Monitoring (HCM2) by the U.S. Department of Education. Lawsuits in San Diego allege non-payment of rent and unpaid compensation to the school’s former president. 

Meanwhile, Ambow has commissioned favorable research reports—like one from Argus Research—even though its spending on research and development remains remarkably low, at only $100,000 per quarter. Its current auditor, Prouden CPA, is new to the company’s books and based in China. Whether Ambow’s next annual report will bring clarity or further confusion remains to be seen.

For these reasons, The Higher Education Inquirer urges the leadership of Colorado State University to approach Ambow with skepticism and perform exhaustive due diligence. The CSU community deserves full transparency regarding Ambow’s ownership, financial practices, and data handling policies. Decisions should be made in consultation with cybersecurity experts, faculty, IT professionals, and government advisors. Alternative domestic edtech providers should be considered—especially those that are accountable, proven, and aligned with CSU’s mission.

At a time when public trust in higher education is strained and geopolitical tensions are high, it is not enough to adopt flashy technology for the sake of appearance. Colorado State University—and the taxpayers who support it—deserve better than an experiment based on unproven claims and a troubling history. CSU should reconsider any move forward with Ambow, before it finds itself entangled in another education debacle disguised as innovation.

Wednesday, April 23, 2025

Trump’s Higher Education Crackdown: Culture War in a Cap and Gown

In a recent flurry of executive orders, former President Donald Trump has escalated his administration’s long-running war on American higher education, targeting college accreditation processes, foreign donations to universities, and elite institutions like Harvard and Columbia. Framed as a campaign for accountability and meritocracy, these actions are in reality part of a broader effort to weaponize public distrust, reinforce ideological purity tests, and strong-arm colleges into political obedience.

But even if Trump's crusade were rooted in good faith—which it clearly is not—his chosen mechanism for “fixing” higher education, the accreditation system, is already deeply flawed. It’s not just that Trump is using a broken tool for political ends—it's that the tool itself has long been part of the problem.

Accreditation: Already a Low Bar

Accreditation in U.S. higher education is often mistaken by the public as a sign of quality. In reality, it’s often a rubber stamp—granted by private agencies funded by the very schools they evaluate. “Yet in practice,” write economists David Deming and David Figlio, “accreditors—who are paid by the institutions themselves—appear to be ineffectual at best, much like the role of credit rating agencies during the recent financial crisis.”

As a watchdog of America’s subprime colleges and a monitor of the ongoing College Meltdown, the Higher Education Inquirer has long reported that institutional accreditation is no sign of academic quality. Worse, it is frequently used by subprime colleges as a veneer of legitimacy to mask predatory practices, inflated tuition, and low academic standards.

The Higher Learning Commission (HLC), the nation’s largest accreditor, monitors nearly a thousand institutions—ranging from prestigious schools like the University of Chicago and University of Michigan to for-profit, scandal-plagued operations such as Colorado Technical University, DeVry University, University of Phoenix, and Walden University. These subprime colleges receive billions annually in federal student aid—money that flows through an accreditation pipeline that’s barely regulated and heavily compromised.

On the three pillars of accreditation—compliance, quality assurance, and quality improvement—the Higher Learning Commission often fails spectacularly when it comes to subprime institutions. That’s not just a bug in the system; it’s the system working as designed.

Who Watches the Watchers?

Accreditors like the HLC receive dues from member institutions, giving them a vested interest in keeping their customers viable, no matter how exploitative their practices may be. Despite objections from the American Association of University Professors, the HLC has accredited for-profit colleges since 1977 and ethically questionable operations for nearly two decades.

As Mary A. Burgan, then General Secretary of the AAUP, put it bluntly in 2000:

"I really worry about the intrusion of the profit motive in the accreditation system. Some of them, as I have said, will accredit a ham sandwich..."

[Image: From CHEA: Higher Learning Commission dues for member colleges. Over the last 30 years, HLC has received millions of dollars from subprime schools like the University of Phoenix.]

The Council for Higher Education Accreditation (CHEA), which oversees accreditors, acts more like a trade association than a watchdog. Meanwhile, the U.S. Department of Education—the only federal entity with oversight responsibility—has done little to ensure quality or accountability. Under the Trump-DeVos regime, the Department actively dismantled what little regulatory framework existed, rolling back Obama-era protections that aimed to curb predatory schools and improve transparency.

In 2023, an internal investigation revealed that the Department of Education was failing to properly monitor accreditors—yet Trump’s solution is to hand even more power to this broken apparatus while demanding it serve political ends.

Harvard: Not a Victim, But a Gatekeeper of the Elite

While Trump's attacks on Harvard are rooted in personal and political animus, it's important not to portray the university as a defenseless bastion of the common good. Harvard is already deeply entrenched in elite power structures—economically, socially, and politically.

The university’s admissions policies have long favored legacy applicants, children of donors, and the ultra-wealthy. It has one of the largest endowments in the world—over $50 billion—yet its efforts to serve working-class and marginalized students remain modest in proportion to its vast resources.

Harvard has produced more Wall Street bankers, U.S. presidents, and Supreme Court justices than any other institution. Its graduates populate the upper echelons of the corporate, political, and media elite. In many ways, Harvard is the establishment Trump claims to rail against—even if his own policies often reinforce that very establishment.

Harvard is not leading a revolution in equity or access. Rather, it polishes the credentials of those already destined to lead, reinforcing a hierarchy that leaves most Americans—including working-class and first-generation students—on the outside looking in.

The Silence on Legacy Admissions

While Trump rails against elite universities in the name of “meritocracy,” there is a glaring omission in the conversation: the entrenched unfairness of legacy admissions. These policies—where applicants with familial ties to alumni receive preferential treatment—are among the most blatant violations of meritocratic ideals. Yet neither Trump’s executive orders nor the broader political discourse dare to address them.

Legacy admissions are a quiet but powerful engine of privilege, disproportionately benefiting white, wealthy students and preserving generational inequality. At institutions like Harvard, Yale, and Princeton, legacy applicants are admitted at significantly higher rates than the general pool, even when controlling for academic credentials. This practice rewards lineage over talent and undermines the very idea of equal opportunity that higher education claims to uphold.

Despite bipartisan rhetoric about fairness and access, few politicians—Democratic or Republican—have challenged the legitimacy of legacy preferences. It’s a testament to how deeply intertwined elite institutions are with the political and economic establishment. And it’s a reminder that the war on higher education is not about fixing inequalities—it’s about reshaping the system to serve different masters.

A Hypocritical Power Grab

Trump’s newfound concern with educational “results” is laced with hypocrisy. The former president’s own venture into higher education—Trump University—was a grift that ended in legal disgrace and financial restitution to defrauded students. Now, Trump is posing as the savior of academic merit, while promoting an ideologically-driven overhaul of the very system that allowed scams like his to thrive.

By focusing on elite universities, Trump exploits populist resentment while ignoring the real scandal: that billions in public funds are siphoned off by institutions with poor student outcomes and high loan default rates—many of them protected by the very accrediting agencies he now claims to reform.

Conclusion: Political Theater, Not Policy

Trump's latest actions are not reforms—they're retribution. His executive orders target symbolic elites, not systemic rot. They turn accreditation into a partisan tool while leaving the worst actors untouched—or even empowered.

Meanwhile, elite institutions like Harvard remain complicit in maintaining a class hierarchy that benefits the powerful, even as they protest their innocence in today’s political battles.

Real accountability in higher education would mean cracking down on predatory schools, reforming or replacing failed accreditors, and restoring rigorous federal oversight. But this administration isn't interested in cleaning up the swamp—it’s repurposing the muck for its own ends.

The Higher Education Inquirer remains committed to pulling back the curtain on these abuses—no matter where they come from or how well they are disguised.

Monday, March 17, 2025

265,000 DeVry student loan debtors owe $5.2 Billion

The Higher Education Inquirer has recently received a Freedom of Information (FOIA) response regarding student loan debt held by former DeVry University students.  The FOIA was 25-01942-F.  



Monday, March 10, 2025

For-Profit College Barons Backed Trump, But Now May Be Scared (David Halperin)

Many top for-profit college industry owners supported Donald Trump’s bid to return to the White House. They had benefitted when, during Trump’s first term, his education secretary, Betsy DeVos, largely ended federal regulatory and enforcement efforts to hold for-profit schools accountable for deceiving students and ripping off taxpayers. But some industry barons, having contributed to the Trump 2024 campaign, now may be scared by efforts of the new Trump administration, including Elon Musk’s DOGE team, to disrupt operations of the U.S. Department of Education. Both Trump and his new Secretary of Education Linda McMahon publicly suggested last week that the Department will be abolished.

Although the for-profit college industry endlessly complained that the Biden and Obama education departments were unfairly targeting the industry with regulations and enforcement actions, they now seem concerned about the possibility that the Trump administration will shutter the Department entirely, abandon the federal role in higher education oversight, and leave regulation to the states. They likely are even more frightened that the proposed gutting of the Department will interfere with the flow of billions in federal taxpayer dollars to their schools.

The Chronicle of Higher Education reports that Jason Altmire, the former congressman who is now the CEO of the largest lobbying group of for-profit colleges, Career Education Colleges and Universities (CECU), says that his schools are worried about the potential disruption of funding for federal student grants and loans. Altmire apparently also expressed concern that turning regulation over to the states could create problems for online schools that operate in multiple states, especially because some states have relatively strong accountability rules.

Many for-profit colleges receive most of their revenue — as much as the 90 percent maximum allowed by U.S. law — from federal taxpayer-supported student grants and loans. For-profit schools have received literally hundreds of billions in these taxpayer dollars over the past two decades, as much as $32 billion at the industry’s peak around 2010, and around $20 billion annually n0w.

But many for-profit schools have used deceptive advertising and recruiting to sell high-priced low quality college and career training programs that leave many students worse off than when they started, deep in debt and without the career advancement they sought. Dozens of for-profit schools have faced federal and state law enforcement actions over their abuses.

CECU (previously called APSCU and before that CCA) has included in its membership over the years many of the most abusive, deceptive school operations, including Corinthian Colleges, ITT Tech, Education Management Corp., Perdoceo, Center for Excellence in Higher Education, DeVry, Kaplan (now called Purdue University Global), and Ashford University (now called University of Arizona Global Campus). (Republic Report highlighted the bad actors on CECU’s membership list for many years; CECU removed the list from its website about four years ago.)

Florida couple Arthur and Belinda Keiser are among those who have benefited the most from CECU lobbying and taxpayer funding. The Keisers run for-profit Southeastern College and non-profit Keiser University, which collectively have received hundreds of million in federal education dollars over the years. They also are among the most politically active owners in the career college industry.

While Belinda Keiser has run, unsuccessfully, for the state legislature, Arthur Keiser has been one of the most aggressive lobbyists for the career college industry in Washington. He has been a dominant figure on the board of CECU, and he hired expensive lawyers to go all the way to the U.S. Supreme Court in a failed effort to block a settlement that provides debt relief to students who attended deceptive colleges, including Keiser University. During Trump’s first term, Arthur Keiser chaired NACIQI, the Department of Education’s advisory committee reviewing the performance of college accreditors.

The Keisers created controversy and were eventually penalized by the IRS for a shady 2011 conversion of Keiser University from for-profit to non-profit, in a deal that allowed the couple to continue making big money off the school. Keiser University has also settled cases with the Justice Department and the Florida attorney general over deceptive practices.

In the two years leading up to the November 2024 election, according to Federal Election Committee records, Belinda Keiser donated more than $250,000 to various Republican candidates and political committees, including $35,000 to the Trump 47 Committee, $10,300 to the Trump-affiliated Save America PAC, $3300 to the Trump Save America Joint Fundraising Committee, and $33,400 to the Republican National Committee.

Ultra-wealthy college owner Carl Barney was another big Trump 2024 donor. Barney operated the Center for Excellence in Higher Education, another troubling conversion from for-profit to non-profit that kept taxpayer money flowing into his bank accounts, for schools including CollegeAmerica and Independence University. Barney’s schools lost their accreditation, and then their federal aid, after the Colorado attorney general in 2020 won a lawsuit accusing CollegeAmerica of deceptive practices. (The case is still pending after an appeal.)

Amid a torrent of donations to Republican committees last fall totaling over $1.6 million, Barney donated $924,600 to the Trump 47 Committee, $74,500 to the Trump-supporting Make America Great Again PAC, and $247,800 to the Republican National Committee, according to federal records.

In a September post on his personal website, Barney explained that he liked that Trump “wants to work with Elon Musk to reduce spending, regulations, waste, and fraud in the federal government.”

What exactly waste, fraud, and abuse seems to mean in the context of the Trump/Musk effort is troubling. There is little evidence that what DOGE has found and shut down relates to actual fraud, abuse, or corruption.

Instead it appears that much of what Musk and DOGE have focused on is weakening or eliminating either (1) federal agencies that have been investigating Musk businesses, or businesses of other top Trump donors; or (2) agencies that work on priorities — such as equal opportunity for Americans or alleviation of poverty or disease overseas — that Trump or Musk dislike.

And the Trump team has been firing, across multiple federal agencies, the inspectors general, ethics watchdogs, and other top officials actually charged with rooting out waste, fraud, and abuse — further undermining the claim that the Trump team is trying to bring about more honest and efficient government.

It’s doubtful that even the heaviest sledgehammer DOGE attack would eliminate the federal student grants and loans that Congress has mandated to give low and moderate income Americans of all backgrounds a better chance to improve their lives through higher education. Assuming such financial aid will continue, then if Trump, Musk, and DOGE truly wanted to root out waste, fraud, and abuse, and save big money for taxpayers, one thing they could do is strengthen, rather than abolish, the Department of Education — not to keep the money flowing to all for-profit colleges, as CECU seems to want, but to advance efforts to ensure that taxpayer dollars go only to those colleges that are creating real benefits for students and for our economy.

That would mean enforcing and building on, not destroying, the Department of Education rules put in place by the Biden administration, including: the gainful employment rule, which creates performance standards to cut off aid to for-profit and career programs that consistently leave graduates with insurmountable debt; the borrower defense rule, which cancels the debts of students scammed by their schools and empowers the Department to go after those predatory schools to recoup the taxpayer money; and the 90-10 rule, which helps keep low-quality programs out of the federal aid program and reduces the risk that poor quality schools will target U.S. veterans and service members.

It would also mean continuing the Biden administration’s efforts to more aggressively evaluate the performance of the private college accrediting agencies that oversee colleges and serve as gatekeepers for federal student grants and loans.

Fighting waste, fraud, and abuse would also mean strengthening, not gutting, efforts to investigate and fight predatory college abuses by enforcement teams at the Department of Education, Federal Trade Commission, Consumer Financial Protection Bureau, Justice Department, Department of Veterans Affairs, and Department of Defense. Many deceptive school operations remain in business today, recruiting veterans, single parents, and others into low-quality, over-priced college programs; they include Perdoceo’s American Intercontinental and Colorado Technical University, Purdue University Global, University of Arizona Global Campus, DeVry University, Walden University, the University of Phoenix, South University, Ultimate Medical Academy, and UEI College.

Fighting waste, fraud, and abuse also would likely require a different higher ed leader at the Department than Nicholas Kent, the Virginia state official whom Trump has nominated to serve as Under Secretary of Education. Kent previously worked at CECU as a lobbyist advancing the interests of for-profit schools. Prior to that, he worked at Education Affiliates, a for-profit college operation that faced civil and criminal investigation and actions by the Justice Department for deceptive practices.

Diane Auer Jones, who held the same job in the first Trump administration, had a career background similar to Kent’s, and she twisted Department policies and actions to benefit predatory colleges. That is presumably the world CECU and its for-profit college barons want to restore: All the money, none of the accountability rules.

In the end, the predatory college owners may get what they want. Given the brazen self-dealing, and fealty to corporate donors, of the Trump-Musk administration, and the sharp elbows of paid-for congressional backers of the for-profit college industry like Rep. Virginia Foxx (R-NC), we will probably end up with the worst of all outcomes: the destruction of the Department of Education but a continued flow of taxpayer billions to for-profit schools, without meaningful accountability measures to ensure that everyday Americans are actually protected from waste, fraud, and abuse.

Americans should demand from Trump and Secretary McMahon a different course — one that provides educational opportunity for all and strengthens the U.S. economy by investing in higher education, while removing from the federal aid program the abusive colleges that rip off students and scam taxpayers.

[Editor's note: This article originally appeared on Republic Report.]  

Monday, February 10, 2025

Walden University President Michael Betz Cashing In

Walden University President Michael Betz has sold $380,000 worth of Adtalem shares. Walden is one of America's largest robocolleges, proving online education to tens of thousands of folks in psychology, social work, nursing, education, business, and criminal justice each year.  

Adtalem, formerly known as DeVry Education, is Walden's parent company.  Adtalem also owns the Chamberlain College of Nursing and medical schools in the Carribean.  Walden and Adtalem have been profitable despite mediocre results for worker/consumers, a disproportionate number are women and people of color.  

In 2024, Walden settled a case for $28M that claimed the school systematically deceived black and female students.   

Tuesday, February 4, 2025

Robocolleges 2025

Overall, enrollment numbers for online robocolleges have increased as full-time faculty numbers have declined. Four schools now have enrollment numbers exceeding 100,000 students.  

Here's a breakdown of the key characteristics of robocolleges:

  • Technology-Driven: Robocolleges heavily utilize online platforms, pre-recorded lectures, automated grading systems, and limited human interaction.
  • Focus on Profit: These institutions often prioritize generating revenue over providing a high-quality educational experience.
  • Aggressive Marketing: Robocolleges frequently employ aggressive marketing tactics to attract students, sometimes with misleading information.
  • High Tuition Costs: They often charge high tuition fees, leading to significant student debt.
  • Limited Faculty Interaction: Students may have limited access to faculty members for guidance and support.
  • Questionable Job Placement Rates: Graduates of robocolleges may struggle to find employment in their chosen fields.

Concerns:

  • Student Debt Crisis: The high tuition costs and potential for low job placement rates contribute to the student debt crisis.
  • Quality of Education: The emphasis on technology and limited human interaction can raise concerns about the quality of education students receive.
  • Ethical Considerations: The aggressive marketing tactics and potential for misleading students raise ethical concerns.

Here are Fall 2023 numbers (the most recent numbers) from the US Department of Education College Navigator:

Southern New Hampshire University: 129 Full-Time (F/T) instructors for 188,049 students.*
Grand Canyon University 582 F/T instructors for 107,563 students.*
Liberty University: 812 F/T for 103,068 students.*
University of Phoenix: 86 F/T instructors for 101,150 students.*
University of Maryland Global: 168 F/T instructors for 60,084 students.
American Public University System: 341 F/T instructors for 50,187 students.
Purdue University Global: 298 F/T instructors for 44,421 students.
Walden University: 242 F/T for 44,223 students.
Capella University: 168 F/T for 43,915 students.
University of Arizona Global Campus: 97 F/T instructors for 32,604 students.
Devry University online: 66 F/T instructors for 29,346 students.
Colorado Technical University: 100 F/T instructors for 28,852 students.
American Intercontinental University: 82 full-time instructors for 10,997 students.
Colorado State University Global: 26 F/T instructors for 9,507 students.
South University: 37 F/T instructors for 8,816 students.
Aspen University 10 F/T instructors for 5,195 students.
National American University 0 F/T instructors for 1,026 students

*Most F/T faculty serve the ground campuses that profit from the online schools.

Related links:

Wealth and Want Part 4: Robocolleges and Roboworkers (2024) 

Southern New Hampshire University: America's Largest Robocollege Facing Resistance From Human Workers and Student Complaints About Curriculum (2024)

Robocolleges, Artificial Intelligence, and the Dehumanization of Higher Education (2023)