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Sunday, January 4, 2026

Beyond the College Meltdown: Moral Decay, Dehumanization, and the Failure of Courage (Dahn Shaulis and Glen McGhee)

At the Higher Education Inquirer, our focus on the college meltdown has always pointed beyond collapsing enrollments, rising tuition, and institutional dysfunction. Higher education has served as a warning signal — a visible manifestation of a far deeper crisis: the moral decay and dehumanization of society, compounded by a profound failure of courage among those with the greatest power and resources.

This concern predates the current moment. Through our earlier work at American Injustice, we chronicled how American institutions steadily abandoned ethical responsibility in favor of profit, prestige, and political convenience. What is happening in higher education today is not an anomaly. It is the predictable outcome of decades of moral retreat by elites who benefit from the system while refusing to challenge its injustices.

Permanent War and the Moral Abdication of Leadership

Wars in Gaza, Ukraine, and Venezuela reveal a world in which human suffering has been normalized and strategically managed rather than confronted. Civilian lives are reduced to abstractions, filtered through geopolitical narratives and sanitized media frames. What is most striking is not only the violence itself, but the ethical cowardice of leadership.

University presidents, policymakers in Washington, and financial and technological elites rarely speak with moral clarity about war and its human costs. Institutions that claim to value human life and critical inquiry remain silent, hedging statements to avoid donor backlash or political scrutiny. The result is not neutrality, but complicity — a tacit acceptance that power matters more than people.

Climate Collapse and the Silence of Those Who Know Better

Climate change represents an existential moral challenge, yet it has been met with astonishing timidity by those most capable of leading. Universities produce the research, model the risks, and educate the future — yet many remain financially entangled with fossil fuel interests and unwilling to confront the implications of their own findings.

Student demands for divestment and climate accountability are often treated as public-relations problems rather than ethical imperatives. University presidents issue vague commitments while continuing business as usual. In Washington, legislation stalls. On Wall Street, climate risk is managed as a portfolio concern rather than a human catastrophe. In Silicon Valley, technological “solutions” are offered in place of systemic change.

This is not ignorance. It is cowardice disguised as pragmatism.

The Suppression of Student Protest and the Fear of Moral Clarity

The moral vacuum at the top becomes most visible when students attempt to fill it. Historically, student movements have pushed institutions toward justice — against segregation, apartheid, and unjust wars. Today, however, student protest is increasingly criminalized.

Peaceful encampments are dismantled. Students are arrested or suspended. Faculty are intimidated. Surveillance tools track dissent. University leaders invoke “safety” and “order” while outsourcing enforcement to police and private security. The message is unmistakable: moral engagement is welcome only when it does not challenge power.

This is not leadership. It is risk aversion elevated to institutional doctrine.

Mass Surveillance and the Bureaucratization of Fear

The expansion of mass surveillance further reflects elite moral failure. From campuses to corporations, human beings are monitored, quantified, and managed. Surveillance is justified as efficiency or security, but its deeper function is control — discouraging dissent, creativity, and ethical risk-taking.

Leaders who claim to champion innovation quietly accept systems that undermine autonomy and erode trust. In higher education, surveillance replaces mentorship; compliance replaces curiosity. A culture of fear takes root where moral courage once should have flourished.

Inequality and the Insulation of Elites from Consequence

Extreme inequality enables this cowardice. Those at the top are shielded from the consequences of their decisions. University presidents collect compensation packages while adjuncts struggle to survive. Wall Street profits from instability it helps create. Silicon Valley builds tools that reshape society without accountability. Washington dithers while communities fracture.

When elites are insulated, ethical standards erode. Moral responsibility becomes optional — something to be invoked rhetorically but avoided in practice.

Social Media, AI, and the Automation of Moral Evasion

Social media and Artificial Intelligence accelerate dehumanization while providing cover for inaction. Platforms reward outrage without responsibility. Algorithms make decisions without accountability. Leaders defer to “systems” and “processes” rather than exercising judgment.

In higher education, AI threatens to further distance leaders from the human consequences of their choices — allowing automation to replace care, metrics to replace wisdom, and efficiency to replace ethics.

The Crisis Beneath the Crisis

The college meltdown is not simply a failure of policy or finance. It is a failure of moral leadership. Those with the most power — university presidents, elected officials, financiers, and technologists — have repeatedly chosen caution over conscience, reputation over responsibility, and silence over truth.

War without moral reckoning. Climate collapse without leadership. Protest without protection. Surveillance without consent. Inequality without accountability.

These are not accidents. They are the results of decisions made — and avoided — by people who know better.

Toward Moral Courage and Rehumanization

Rehumanization begins with courage. It requires leaders willing to risk prestige, funding, and influence in defense of human dignity. Higher education should be a site of ethical leadership, not an echo of elite fear.

This means defending student protest, confronting climate responsibility honestly, rejecting dehumanizing technologies, and placing human well-being above institutional self-preservation. It means leaders speaking plainly about injustice — even when it is inconvenient.

Our concern at Higher Education Inquirer — and long before that, at American Injustice — has always been this: What happens to a society when those with the greatest power lack the courage to use it ethically?

Until that question is confronted, the college meltdown will remain only one visible fracture in a far deeper moral collapse.

Higher Education Inquirer Resources, Spring 2026

[Editor's note: Please let us know of any corrections, additions, or broken links.  We always welcome your feedback.]  

This list traces how U.S. higher education has been reshaped by neoliberal policies, privatization, and data-driven management, producing deepening inequalities across race and class. The works examine the rise of academic capitalism, growing student debt, corporatization, and the influence of private interests—from for-profit colleges to rankings and surveillance systems. Together, they depict a sector drifting away from its public mission and democratic ideals, while highlighting the structural forces that created today’s crises and the reforms needed to reverse them.











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Alexander, Bryan (2020). Academia Next: The Futures of Higher Education. Johns Hopkins Press.
Alexander, Bryan (2023). Universities on Fire. Johns Hopkins Press.
Alexander, Bryan (2026). Peak Higher Ed. Johns Hopkins Press.
Angulo, A. (2016). Diploma Mills: How For-profit Colleges Stiffed Students, Taxpayers, and the American Dream. Johns Hopkins University Press.
Apthekar, Bettina (1966). Big Business and the American University. New Outlook Publishers.
Apthekar, Bettina (1969). Higher Education and the Student Rebellion in the United States, 1960–1969: A Bibliography.
Archibald, R. & Feldman, D. (2017). The Road Ahead for America's Colleges & Universities. Oxford University Press.
Armstrong, E. & Hamilton, L. (2015). Paying for the Party: How College Maintains Inequality. Harvard University Press.
Arum, R. & Roksa, J. (2011). Academically Adrift: Limited Learning on College Campuses. University of Chicago Press.
Baldwin, Davarian (2021). In the Shadow of the Ivory Tower: How Universities Are Plundering Our Cities. Bold Type Books.
Barr, Andrew & Turner, Sarah (2023). The Labor Market Returns to Higher Education. Oxford University Press.
Bennett, W. & Wilezol, D. (2013). Is College Worth It? Thomas Nelson.
Berg, I. (1970). The Great Training Robbery: Education and Jobs. Praeger.
Berman, Elizabeth P. (2012). Creating the Market University. Princeton University Press.
Berman, Elizabeth Popp & Stevens, Mitchell (eds.) (2019). The University Under Pressure. Emerald Publishing.
Berry, J. (2005). Reclaiming the Ivory Tower: Organizing Adjuncts to Change Higher Education. Monthly Review Press.
Berry, J. and Worthen, H. (2021). Power Despite Precarity: Strategies for the Contingent Faculty Movement in Higher Education. Pluto Books.
Best, J. & Best, E. (2014). The Student Loan Mess. Atkinson Family Foundation.
Bledstein, Burton J. (1976). The Culture of Professionalism. Norton.
Bogue, E. Grady & Aper, Jeffrey (2000). Exploring the Heritage of American Higher Education.
Bok, D. (2003). Universities in the Marketplace. Princeton University Press.
Bousquet, M. (2008). How the University Works. NYU Press.
Brennan, J. & Magness, P. (2019). Cracks in the Ivory Tower. Oxford University Press.
Brint, S. & Karabel, J. (1989). The Diverted Dream. Oxford University Press.
Burawoy, Michael & Mitchell, Katharyne (eds.) (2020). The University, Neoliberalism, and the Politics of Inequality. Routledge.
Burd, Stephen (2024). Lifting the Veil on Enrollment Management: How a Powerful Industry is Limiting Social Mobility in American Higher Education. Harvard Education Press
Cabrera, Nolan L. (2018). White Guys on Campus. Rutgers University Press.
Cabrera, Nolan L. (2024). Whiteness in the Ivory Tower. Teachers College Press.
Cantwell, Brendan & Robertson, Susan (eds.) (2021). Research Handbook on the Politics of Higher Education. Edward Elgar.
Caplan, B. (2018). The Case Against Education. Princeton University Press.
Cappelli, P. (2015). Will College Pay Off? Public Affairs.
Carney, Cary Michael (1999). Native American Higher Education in the United States. Transaction.
Cassuto, Leonard (2015). The Graduate School Mess. Harvard University Press.
Caterine, Christopher (2020). Leaving Academia. Princeton Press.
Childress, H. (2019). The Adjunct Underclass. University of Chicago Press.
Chomsky, Noam (2014). Masters of Mankind. Haymarket Books.
Choudaha, Rahul & de Wit, Hans (eds.) (2019). International Student Recruitment and Mobility. Routledge.
Clay, Kevin (2026). I Guess This Is Activism?: Youth, Political Education, and Free-Market Common Sense. University of Minnesota Press.  
Cohen, Arthur M. (1998). The Shaping of American Higher Education. Jossey-Bass.
Collins, Randall (1979/2019). The Credential Society. Columbia University Press.
Cottom, Tressie McMillan (2016). Lower Ed.
Cottom, Tressie McMillan & Darity, William A. Jr. (eds.) (2018). For-Profit Universities. Routledge.
Domhoff, G. William (2021). Who Rules America? Routledge.
Donoghue, F. (2008). The Last Professors.
Dorn, Charles (2017). For the Common Good. Cornell University Press.
Eaton, Charlie (2022). Bankers in the Ivory Tower. University of Chicago Press.
Eisenmann, Linda (2006). Higher Education for Women in Postwar America. Johns Hopkins Press.
Espenshade, T. & Walton Radford, A. (2009). No Longer Separate, Not Yet Equal. Princeton University Press.
Faragher, John Mack & Howe, Florence (eds.) (1988). Women and Higher Education in American History. Norton.
Farber, Jerry (1972). The University of Tomorrowland. Pocket Books.
Freeman, Richard B. (1976). The Overeducated American. Academic Press.
Gaston, P. (2014). Higher Education Accreditation. Stylus.
Gildersleeve, Ryan Evely & Tierney, William (2017). The Contemporary Landscape of Higher Education. Routledge.
Ginsberg, B. (2013). The Fall of the Faculty. Oxford University Press.
Giroux, Henry (1983). Theory and Resistance in Education. Bergin and Garvey Press.
Giroux, Henry (2014). Neoliberalism’s War on Higher Education. Haymarket Books.
Giroux, Henry (2022). Pedagogy of Resistance. Bloomsbury Academic.
Gleason, Philip (1995). Contending with Modernity. Oxford University Press.
Golden, D. (2006). The Price of Admission.
Goldrick-Rab, S. (2016). Paying the Price.
Graeber, David (2018). Bullshit Jobs. Simon and Schuster.
Groeger, Cristina Viviana (2021). The Education Trap. Harvard Press.
Hamilton, Laura T. & Kelly Nielson (2021). Broke.
Hampel, Robert L. (2017). Fast and Curious. Rowman & Littlefield.
Hirschman, Daniel & Berman, Elizabeth Popp (eds.) (2021). The Sociology of Higher Education.
Johnson, B. et al. (2003). Steal This University.
Kamenetz, Anya (2006). Generation Debt. Riverhead.
Keats, John (1965). The Sheepskin Psychosis. Lippincott.
Kelchen, Robert (2018). Higher Education Accountability. Johns Hopkins University Press.
Kezar, A., DePaola, T., & Scott, D. (2019). The Gig Academy. Johns Hopkins Press.
Kinser, K. (2006). From Main Street to Wall Street.
Kozol, Jonathan (1992). Savage Inequalities. Harper Perennial.
Kozol, Jonathan (2006). The Shame of the Nation. Crown.
Kraus, Neil (2023). The Fantasy Economy: Neoliberalism, Inequality, and the Education Reform Movement. Temple University Press.
Labaree, David (1997). How to Succeed in School Without Really Learning. Yale University Press.
Labaree, David F. (2017). A Perfect Mess. University of Chicago Press.
Lafer, Gordon (2004). The Job Training Charade. Cornell University Press.
Loehen, James (1995). Lies My Teacher Told Me. The New Press.
Lohse, Andrew (2014). Confessions of an Ivy League Frat Boy. Thomas Dunne Books.
Lucas, C.J. (1994). American Higher Education: A History.
Lukianoff, Greg & Haidt, Jonathan (2018). The Coddling of the American Mind. Penguin Press.
Maire, Quentin (2021). Credential Market. Springer.
Mandery, Evan (2022). Poison Ivy. New Press.
Marginson, Simon (2016). The Dream Is Over. University of California Press.
Marti, Eduardo (2016). America's Broken Promise. Excelsior College Press.
Mettler, Suzanne (2014). Degrees of Inequality. Basic Books.
Morris, Dan & Targ, Harry (2023). From Upton Sinclair's 'Goose Step' to the Neoliberal University.
Newfeld, C. (2011). Unmaking the Public University.
Newfeld, C. (2016). The Great Mistake.
Newfield, Christopher (2023). Metrics-Driven. Johns Hopkins Press.
O’Neil, Cathy (2016). Weapons of Math Destruction. Crown.
Palfrey, John (2020). Safe Spaces, Brave Spaces. MIT Press.
Paulsen, M. & Smart, J.C. (2001). The Finance of Higher Education. Agathon Press.
Piketty, Thomas (2020). Capital and Ideology. Harvard University Press.
Reynolds, G. (2012). The Higher Education Bubble. Encounter Books.
Rojstaczer, Stuart (1999). Gone for Good. Oxford University Press.
Rosen, A.S. (2011). Change.edu. Kaplan Publishing.
Roth, G. (2019). The Educated Underclass. Pluto Press.
Ruben, Julie (1996). The Making of the Modern University. University of Chicago Press.
Rudolph, F. (1991). The American College and University.
Rushdoony, R. (1972). The Messianic Character of American Education. The Craig Press.
Schrecker, Ellen (2010). The Lost Soul of Higher Education: New Press.
Selingo, J. (2013). College Unbound.
Shelton, Jon (2023). The Education Myth. Cornell University Press.
Simpson, Christopher (1999). Universities and Empire. New Press.
Sinclair, U. (1923). The Goose-Step.
Slaughter, Sheila & Rhoades, Gary (2004). Academic Capitalism and the New Economy. Johns Hopkins University Press.
Smyth, John (2017). The Toxic University. Palgrave Macmillan.
Sperber, Murray (2000). Beer and Circus. Holt.
Stein, Sharon (2022). Unsettling the University. Johns Hopkins Press.
Stevens, Mitchell L. (2009). Creating a Class. Harvard University Press.
Stodghill, R. (2015). Where Everybody Looks Like Me.
Tamanaha, B. (2012). Failing Law Schools. University of Chicago Press.
Tatum, Beverly (1997). Why Are All the Black Kids Sitting Together in the Cafeteria? Basic Books.
Taylor, Barret J. & Cantwell, Brendan (2019). Unequal Higher Education. Rutgers University Press.
Thelin, John R. (2019). A History of American Higher Education. Johns Hopkins Press.
Tolley, K. (2018). Professors in the Gig Economy. Johns Hopkins University Press.
Trow, Martin (1973). Problems in the Transition from Elite to Mass Higher Education. Carnegie Commission on Higher Education. 
Twitchell, James B. (2005). Branded Nation. Simon and Schuster.
Vedder, R. (2004). Going Broke By Degree.
Veysey, Lawrence R. (1965). The Emergence of the American University.
Washburn, J. (2006). University Inc.
Washington, Harriet A. (2008). Medical Apartheid. Anchor.
Whitman, David (2021). The Profits of Failure. Cypress House.
Wilder, C.D. (2013). Ebony and Ivy.
Winks, Robin (1996). Cloak and Gown. Yale University Press.
Woodson, Carter D. (1933). The Mis-Education of the Negro.
Zaloom, Caitlin (2019). Indebted. Princeton University Press.
Zemsky, Robert, Shaman, Susan & Baldridge, Susan Campbell (2020). The College Stress Test. Johns Hopkins University Press.
Zuboff, Shoshana (2019). The Age of Surveillance Capitalism. PublicAffairs. 

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Thursday, January 1, 2026

College Meltdown 2026 (Glen McGhee)

As the United States moves deeper into the 2020s, the College Meltdown is no longer a speculative concept but a structural reality. The crisis touches nearly every part of the system: enrollment, finances, labor, governance, and the perceived value of a college degree itself. The forces fueling this meltdown are not sudden shocks but accumulated pressures — demographic contraction, policy failures, privatization schemes, student debt burdens, and decades of mission drift — that now converge in 2026 with unprecedented intensity.

The Waning of College Mania

For decades, higher education sold an uncomplicated dream: go to college, get ahead, and move securely into the middle class. This college mania was promoted by policymakers, corporate interests, university marketers, and a compliant media ecosystem. But the spell is breaking. Students at elite universities are skipping classes, disillusioned not only by campus turmoil but by the reality that a degree, even from a prestigious institution, no longer guarantees a stable future. Employers increasingly question the value of credentials that have become inflated, inconsistent, and disconnected from workplace needs.

Yet paradoxically, many jobs still require degrees — not because the work demands them, but because credentialing has become a screening mechanism. The U.S. has built a system in which people must spend tens of thousands of dollars for access to a job that may not even require the knowledge their degree supposedly certifies. This contradiction lies at the heart of the meltdown.

Moody’s Confirms the Meltdown: A Negative Outlook for 2026

The financial rot is now too deep to ignore. Moody’s Investors Service recently issued a negative outlook for all of U.S. higher education for FY2026, confirming what researchers, debtors, and frontline faculty have been warning for years. Demographic decline continues to shrink the pool of traditional college-age students, leaving hundreds of institutions with no plausible path to enrollment stability.

Moody’s expects expenses to grow 4.4% in 2026, while revenues will grow only 3.5% — and for small tuition-dependent institutions, revenue growth may fall to 2.5–2.7%. In other words, the business model simply no longer works. Institutions are already turning to hiring freezes, early retirements, shared services, layoffs, and mergers. These austerity strategies hit labor and students hardest while preserving administrative bloat at the top, mirroring broader patterns of inequality across the U.S. economy.

Compounding the problem, federal loan reforms — particularly the elimination or capping of Grad PLUS loans — threaten universities that rely on overpriced master’s programs as revenue engines. Many of these programs were built during the boom years as financial lifelines, not academic commitments. The bottom is falling out of that model too.


[Image: HEI's baseline model shows steady losses between 2026 and 2036. And it could get much worse].  

White-Collar Unemployment and the Broken Value Proposition

A new generation is confronting economic realities that undermine the old promise of higher education. Recent data show that college graduates now make up roughly 25% of all unemployed Americans, a startling indicator of white-collar contraction. The unemployment rate for bachelor’s degree holders rose to 2.8%, up half a point in a year.

If higher education was once treated as an automatic economic escalator, it is now a much riskier gamble — often with a lifetime of debt attached.

Demographic Collapse and Institutional Failures

The so-called “demographic cliff” is no longer a future event; colleges in the Midwest, Northeast, and South are already competing for shrinking numbers of high-school graduates. Some institutions have resorted to predatory recruitment, deceptive marketing, and desperate discounting — the same tactics that fueled the for-profit college boom and collapse.

Meanwhile, the FAFSA disaster, mismanagement at the Department of Education, and the chaos surrounding federal financial aid verification have caused enrollment delays and intensified uncertainty. Institutions like Phoenix Education Partners (PXED) are already trying to shift blame for their own recruitment failures and history of fraud onto the federal government, signaling a new round of accountability evasion reminiscent of the Corinthian Colleges and ITT Tech eras.

Student Debt, Inequality, and Loss of Legitimacy

Student debt remains above $1.7 trillion, reshaping the life trajectories of millions and reinforcing racial and class disparities. Black borrowers, first-generation students, and low-income communities bear the heaviest burdens. Many institutions — especially elite medical centers and flagship universities — are simultaneously cash-rich and inequality-producing, perpetuating the dual structure of American higher education: privilege for the few, precarity for the many.

Faculty and staff face their own meltdown. Contingent labor now constitutes the majority of the instructional workforce, while administrators grow more numerous and more insulated from accountability. Shared governance is weakened, academic freedom is eroding, and political interference is rising, particularly in states targeting DEI programs, history curricula, and dissent.

The Road Ahead: Contraction, Consolidation, and Possibility

The College Meltdown will continue in 2026. More closures are coming, especially among small private colleges and underfunded regional publics. Mergers will be framed as “strategic realignments,” but for many communities — especially rural and historically marginalized ones — they will represent the loss of an anchor institution.

Yet contraction also opens space for reimagining. The United States could choose to rebuild higher education around equity, public purpose, and social good, rather than market metrics and debt financing. That would require:

  • substantial public reinvestment,

  • free or low-cost pathways for essential programs,

  • accountability for predatory institutions,

  • democratized governance, and

  • a commitment to racial and economic justice.

Whether the nation takes this opportunity remains unclear. What is certain is that the system built on college mania, easy credit, and limitless expansion is collapsing — and Moody’s latest warning simply confirms what students, workers, and communities have felt for years.

The College Meltdown is here. And it’s reshaping the future of higher education in America.

Tuesday, December 30, 2025

Higher Education Inquirer nears 2 million views, with more than 1.5 million in 2025

As 2025 draws to a close, Higher Education Inquirer (HEI) is approaching a bittersweet milestone: nearly 2 million total page views since its founding, with more than 1.5 million of those views occurring in 2025 alone. At the same time, HEI will cease operations on January 6, 2026, bringing an end to one of the most independent and critical voices covering higher education in the United States.

The extraordinary growth in readership during 2025 came amid historic disruption across higher education. HEI documented the unraveling of federal oversight, the rise of hyper-deregulation, the expanding reach of for-profit colleges and private equity, and the worsening student debt crisis. These developments drove unprecedented interest from readers seeking analysis that challenged official narratives and corporate messaging.

HEI’s growing audience was fueled not only by comprehensive reporting, but by early warnings that were often ignored by institutions and policymakers. In August 2025, Higher Education Inquirer published a warning about escalating campus violence and political radicalization exactly one month before the Charlie Kirk was killed, underscoring the publication’s role as an early-warning system rather than a reactive outlet. That article was part of a broader series examining how extremist politics, lax security, and institutional denial were converging on U.S. campuses.

This foresight extended back further. In early 2024, HEI analyzed Project 2025, highlighting its implications for higher education, civil liberties, and democratic governance. At a time when much of the higher education press treated Project 2025 as speculative, HEI examined its explicit calls for mass deportations, the targeting of immigrants and international students, and the restructuring of federal agencies affecting education, labor, and research. Those warnings now read less like commentary and more like documentation.

HEI’s investigative work extended beyond reporting and analysis. Over the years, the publication submitted dozens of Freedom of Information Act (FOIA) requests to federal and state agencies, uncovering critical data about institutional misconduct, federal oversight failures, and the financialization of higher education. These FOIAs often revealed information that universities and regulators preferred to keep hidden, from financial irregularities to internal policy deliberations affecting students and staff.

Labor reporting was another cornerstone of HEI’s mission. The publication highlighted the struggles of underpaid and overworked faculty, staff, and healthcare workers connected to colleges, drawing attention to systemic exploitation across public and private institutions. Similarly, HEI closely tracked borrower defense to repayment claims, scrutinizing how the Department of Education and loan servicers handled student complaints, debt relief applications, and policy reversals—often exposing bureaucratic dysfunction that had direct consequences for tens of thousands of students.

HEI’s editorial record reflects a consistent effort to connect policy blueprints to real-world consequences before those consequences became headline news. Coverage spanned a vast array of topics, including predatory institutions like the University of Phoenix, Trump-era housing policies, climate change, militarization of campuses, labor exploitation, and the privatization of public institutions. Notable published articles from 2025 include:

Despite its growing influence, HEI’s independence came at a cost. The publication has never been backed by universities, education corporations, or major foundations. A lawsuit involving Chip Paucek became the final breaking point, imposing substantial legal fees that HEI could not absorb. While the publication stood by its reporting, the emotional toll of prolonged legal conflict made continued operations impossible.

Reaching nearly 2 million views—most of them in a single year—is not merely a metric of success; it is evidence that HEI’s work mattered to a wide and engaged audience. As Higher Education Inquirer prepares to shut down, its legacy remains in the thousands of articles that documented institutional abuse, policy failure, and human cost within higher education.

HEI ends not because its mission was fulfilled, but because the structural forces it scrutinized proved difficult to survive. The readership growth of 2025 suggests that the need for independent, adversarial higher education journalism is greater than ever—even as one of its most persistent voices is forced to fall silent.


Wednesday, December 24, 2025

The Expanding Crisis in U.S. Higher Education: OPMs, Student Loan Servicers, Deregulation, Robocolleges, AI, and the Collapse of Accountability

Across the United States, higher education is undergoing a dramatic and dangerous transformation. Corporate contractors, private equity firms, automated learning systems, and predatory loan servicers increasingly dictate how the system operates—while regulators remain absent and the media rarely reports the scale of the crisis. The result is a university system that serves investors and advertisers far more effectively than it serves students.


This evolution reflects a broader pattern documented by Harriet A. Washington, Alondra Nelson, Elisabeth Rosenthal, and Rebecca Skloot: institutions extracting value from vulnerable populations under the guise of public service. Today, many universities—especially those driven by online expansion—operate as financial instruments more than educational institutions.


The OPM Machine and Private Equity Consolidation

Online Program Managers (OPMs) remain central to this shift. Companies like 2U, Academic Partnerships—now Risepoint—and the restructured remnants of Wiley’s OPM division continue expanding into public universities hungry for tuition revenue. Revenue-sharing deals, often hidden from the public, let these companies keep up to 60% of tuition in exchange for aggressive online recruitment and mass-production of courses.

Much of this expansion is fueled by private equity, including Vistria Group, Apollo Global Management, and others that have poured billions into online contractors, publishing houses, test prep firms, and for-profit colleges. Their model prioritizes rapid enrollment growth, relentless marketing, and cost-cutting—regardless of educational quality.

Hyper-Deregulation and the Dismantling of ED

Under the Trump Administration, the federal government dismantled core student protections—Gainful Employment, Borrower Defense, incentive-compensation safeguards, and accreditation oversight. This “hyper-deregulation” created enormous loopholes that OPMs and for-profit companies exploited immediately.

Today, the Department of Education itself is being dismantled, leaving oversight fragmented, understaffed, and in some cases non-functional. With the cat away, the mice will play: predatory companies are accelerating recruitment and acquisition strategies faster than regulators can respond.

Servicers, Contractors, and Tech Platforms Feeding on Borrowers

A constellation of companies profit from the student loan system regardless of borrower outcomes:

  • Maximus (AidVantage), which manages huge portfolios of federal student loans under opaque contracts.

  • Navient, a longtime servicer repeatedly accused of steering borrowers into costly options.

  • Sallie Mae, the original student loan giant, still profiting from private loans to risky borrowers.

  • Chegg, which transitioned from textbook rental to an AI-driven homework-and-test assistance platform, driving new forms of academic dependency.

Each benefits from weak oversight and an increasingly automated, fragmented educational landscape.

Robocolleges, Robostudents, Roboworkers: The AI Cascade

Artificial Intelligence has magnified the crisis. Universities, under financial pressure, increasingly rely on automated instruction, chatbot advising, and algorithmic grading—what can be called robocolleges. Students, overwhelmed and unsupported, turn to AI tools for essays, homework, and exams—creating robostudents whose learning is outsourced to software rather than internalized.

Meanwhile, employers—especially those influenced by PE-backed workforce platforms—prioritize automation, making human workers interchangeable components in roboworker environments. This raises existential questions about whether higher education prepares people for stable futures or simply feeds them into unstable, algorithm-driven labor markets.

FAFSA Meltdowns, Fraud, and Academic Cheating

The collapse of the new FAFSA system, combined with widespread fraudulent applications, has destabilized enrollment nationwide. Colleges desperate for students have turned to risky recruitment pipelines that enable identity fraud, ghost students, and financial manipulation of aid systems.

Academic cheating, now industrialized through generative AI and contract-cheating platforms, further erodes the integrity of degrees while institutions look away to protect revenue.

Advertising and the Manufacture of “College Mania”

For decades, advertising has propped up the myth that a college degree—any degree, from any institution—guarantees social mobility. Universities, OPMs, lenders, test-prep companies, and ed-tech platforms spend billions on marketing annually. This relentless messaging drives families to take on debt and enroll in programs regardless of cost or quality.

College mania is not organic—it is manufactured. Advertising convinces the public to ignore warning signs that would be obvious in any other consumer market.

A Media Coverage Vacuum

Despite the scale of the crisis, mainstream media offers shockingly little coverage. Investigative journalism units have shrunk, education reporters are overstretched, and major outlets rely heavily on university advertising revenue. The result is a structural conflict of interest: the same companies responsible for predatory practices often fund the media organizations tasked with reporting on them.

When scandals surface—FAFSA failures, servicer misconduct, OPM exploitation—they often disappear within a day’s news cycle. The public remains unaware of how deeply corporate interests now shape higher education.

The Emerging Picture

The U.S. higher education system is no longer simply under strain—it is undergoing a corporate and technological takeover. Private equity owns the pipelines. OPMs run the online infrastructure. Tech companies moderate academic integrity. Servicers profit whether borrowers succeed or fail. Advertisers manufacture demand. Regulators are missing. The media is silent.

In contrast, many other countries maintain strong limits on privatization, enforce strict quality standards, and protect students as consumers. As Washington and Rosenthal argue, exploitation persists not because it is inevitable but because institutions allow—and profit from—it.

Unless the U.S. restores meaningful oversight, reins in private equity, ends predatory revenue-sharing models, rebuilds the Department of Education, and demands transparency across all contractors, the system will continue to deteriorate. And students, especially those already marginalized, will pay the price.


Sources (Selection)

Harriet A. Washington – Medical Apartheid; Carte Blanche
Rebecca Skloot – The Immortal Life of Henrietta Lacks
Elisabeth Rosenthal – An American Sickness
Alondra Nelson – Body and Soul
Stephanie Hall & The Century Foundation – work on OPMs and revenue sharing
Robert Shireman – analyses of for-profit colleges and PE ownership
GAO (Government Accountability Office) reports on OPMs and student loan servicing
ED OIG and FTC public reports on oversight failures (various years)
National Student Legal Defense Network investigations
Federal Student Aid servicer audits and public documentation

Tuesday, December 23, 2025

Guild: From Promise to Precarity — What’s New in 2026

When HEI published “Guild Education: Enablers of Anti‑Union Corporations and Subprime College Programs” in April 2021, the piece raised serious concerns about Guild’s business model, its corporate clients, and the value of its touted “education as a benefit” for working-class employees. That early reporting highlighted the risk that Guild’s platform — while appearing to offer opportunity — might deliver little meaningful upward mobility while embedding workers more deeply in corporate control.

Almost five years later, the unfolding story of Guild reveals a deeper crisis: repeated layoffs, leadership instability, and employee dissatisfaction have compounded internal challenges, creating a disconnect between the company’s outward mission and the lived realities of its workforce.

In 2021, HEI documented Guild’s extensive client network, which included major employers such as Walmart, Lowe's, and Chipotle. Its partnerships with both for-profit and nonprofit education providers raised questions about the quality of credentials and long-term outcomes. HEI noted that only a small percentage of eligible employees at these companies accessed Guild’s tuition benefits, highlighting limits in the platform’s reach. At the time, Guild was framed as part of a broader “robocollege” ecosystem, where corporate-sponsored online programs risked low completion rates and limited returns for learners.

The subsequent years have underscored these concerns. After a reported peak valuation of $4.4 billion in 2022, Guild’s value declined sharply by 2024, with secondary market activity placing it around $1.3 billion. The company experienced multiple rounds of layoffs, including a 25 percent workforce reduction in May 2024, adding to prior cuts and heightening employee insecurity. Under new leadership following the departure of founder CEO Rachel Romer Carlson, Guild pivoted strategically, rebranding itself from “Guild Education” to simply “Guild” and acquiring Nomadic Learning to expand its corporate learning offerings.

While the company reports significant growth metrics — including expanded access to nearly 500,000 new employees and over $1 billion saved in tuition — employee reviews reveal a starkly different internal reality. Former and current staff describe high stress, frequent goal-post shifts, and a demoralizing culture marked by favoritism and inequity. Coaching, once central to Guild’s mission, is now characterized by rigid metrics, performance improvement plans, and limited room for meaningful mentorship. Burnout, extended medical leaves, and frustration with stalled internal mobility are widespread. Many employees report that the company’s original social justice mission has been hollowed out in practice, leaving staff disconnected from the work they once found meaningful.

Guild’s pivot toward corporate learning reflects broader trends in workforce development, skills-based hiring, and talent management. While the shift may offer employers measurable returns in retention and internal mobility, it also signals a departure from the promise of genuine educational uplift. For employees drawn to Guild for its original mission, the change raises questions about whose needs are being prioritized and at what cost.

The story of Guild underscores several pressing concerns. Credibility gaps between marketing and internal realities leave workers vulnerable to exploitation. Corporate priorities have overtaken educational mission, demonstrating how profit motives can override commitments to social equity. The devaluation of coaching and credentials as meaningful education risks normalizing lower-quality programs tied primarily to employer needs. For other corporate-sponsored education and edtech ventures, Guild’s trajectory offers a cautionary tale: scaling and investor demands can quickly erode mission and employee well-being.

Guild’s rise was once seen as a model of opportunity creation for working adults, but the experiences of its employees reveal the fragility of that promise. By 2025, the company is less a beacon of social mobility than a case study in what can happen when education becomes a tool for corporate talent management. For readers committed to equity, accountability, and lifelong learning, Guild’s story serves as a warning: marketing and good intentions are insufficient protections when leadership and corporate priorities fail.


Sources

Saturday, December 20, 2025

Financial Logic and the Limits of Educational Governance: David R. Barker and the Marketization of Postsecondary Policy (Glen McGhee)

 “Barker’s background does not prepare him to navigate this tension. It predisposes him to resolve it in favor of the market—and to treat the casualties as acceptable losses.”

Dr. David R. Barker is an economist, wealthy real estate investor, and long-time Iowa Republican activist who currently serves as Assistant Secretary for Postsecondary Education at the U.S. Department of Education under President Donald Trump. A sixth-generation Iowan and former member of the Iowa Board of Regents, Barker previously worked as an economist at the Federal Reserve Bank of New York, taught economics and real estate at the University of Iowa and the University of Chicago, and now runs a real estate and finance firm that owns thousands of apartments and commercial properties across the Midwest.

In 2025, Barker was nominated and confirmed to oversee federal postsecondary policy, with a portfolio focused on “outcomes and accountability,” accreditation reform, student aid policy, and aligning federal grants with the administration’s ideological and fiscal priorities. His academic background—most notably his 1991 dissertation, Real Estate, Real Estate Investment Trust, and Closed End Fund Valuation—reveals a conceptual toolkit grounded in financial economics, asset valuation, property markets, and quantitative modeling. That training, reinforced by decades as a real estate investor and governance actor, shapes a distinctively market-oriented understanding of higher education—one that privileges measurable returns, financial discipline, and transactional accountability.

While these perspectives can contribute to cost control and fiscal stewardship, they also generate predictable and consequential blind spots when applied to institutions whose core purposes are epistemic, developmental, and democratic rather than market-optimizing.

Barker’s intellectual formation rests firmly within a positivist epistemological framework that treats value as something discoverable through quantification, comparability, and replicability. Real estate valuation depends on observable data—comparable sales, capitalization rates, discounted cash flows—to arrive at ostensibly objective measures of worth. Higher education, by contrast, encompasses vast domains of inquiry that resist quantification. The humanities and interpretive social sciences generate knowledge through close reading, archival reconstruction, ethnography, phenomenology, and critical theory—methods that foreground context, reflexivity, and meaning rather than numerical outputs.

An institutional ethnographer, for example, does not aim to optimize organizational efficiency but to understand how power, texts, and routines structure everyday academic life, often from the standpoint of marginalized actors. Such work deliberately rejects managerial abstraction in favor of situated understanding. From an asset-valuation perspective, this kind of scholarship appears unproductive, inefficient, or indulgent. Barker’s training offers little conceptual grounding for why a historian’s decade-long archival project on subaltern voices or a philosopher’s engagement with moral reasoning might be intrinsically valuable despite producing no immediate marketable deliverables.

This epistemological mismatch extends directly into student learning. Decades of higher education research conceptualize college as a developmental process encompassing cognitive complexity, identity formation, ethical reasoning, and critical consciousness. Theories such as Chickering’s vectors of identity development, Perry’s scheme of intellectual and ethical growth, and transformative learning theory emphasize qualitative shifts in how students interpret the world and their place within it.

Barker’s emphasis on return on investment and labor-market outcomes aligns instead with a human capital model that treats education as an economic input yielding wage premiums. This transactional framework struggles to accommodate the intrinsic, non-instrumental aims of liberal education—the cultivation of judgment, curiosity, civic responsibility, and reflective self-understanding. When learning is operationalized primarily through employment metrics, the deeper question of how students think, reason, and deliberate disappears from view.

Nowhere is the mismatch more consequential than in faculty governance and academic freedom. American higher education rests on shared governance, articulated in the AAUP’s 1966 Statement on Government of Colleges and Universities, which recognizes faculty as the primary stewards of curriculum, academic standards, and knowledge production.

Barker’s professional background emphasizes hierarchical authority, executive control, and fiduciary accountability—an orientation that mirrors corporate governance rather than collegial self-rule. His rhetoric echoes the managerial logic of the Jarratt Report era, which reimagined universities as corporate enterprises with academic units treated as cost centers. Barker has publicly described “battling a liberal university establishment,” mapping faculty political affiliations through voter registration data, closing departments, and curbing what he calls “indoctrination sessions.” These remarks reveal a view of faculty not as epistemic authorities but as politically suspect employees requiring surveillance and correction.

Applying asset-management logic to academic departments—judging their worth by enrollment figures or ideological balance rather than disciplinary contribution—misunderstands the distributed authority and intellectual autonomy on which academic quality depends.

Equally alien to financial logic are the tacit and relational dimensions of learning. Liberal education unfolds through mentorship, dialogue, sustained engagement with complexity, and the slow formation of intellectual dispositions. Its most profound effects often emerge years after graduation and cannot be pre-specified as metrics. Barker’s preference for standardizable outcomes and compliance-based accountability—reinforced by the Trump administration’s Compact for Academic Excellence—privileges what can be measured over what can be meaningfully understood.

The consequences are especially severe for community colleges and HBCUs. These institutions serve disproportionate numbers of low-income, first-generation, and historically marginalized students. Research consistently shows that equity gaps reflect structural inequalities in K–12 education, funding, and social stratification, not institutional inefficiency or lack of merit. Market-efficiency frameworks misread these realities, interpreting low completion rates as failure rather than as evidence of unmet structural obligations.

Saint Augustine’s University captured this tension in its response to Barker regarding the Compact for Academic Excellence, noting that restrictions on race-conscious policies conflict directly with HBCUs’ statutory mission under Title III of the Higher Education Act. Institutions designed to expand access cannot be evaluated using the same market metrics as selective research universities.

Barker’s antipathy toward critical pedagogy further reveals the limits of his framework. Educational traditions rooted in Paulo Freire, bell hooks, and Henry Giroux understand education as inherently political and aimed at developing critical consciousness and democratic agency. Barker’s efforts to eliminate diversity-related accreditation standards and suppress justice-oriented curricula position him in direct opposition to these traditions.

At stake are fundamentally different answers to the question of what education is for. Market logic prioritizes efficiency, credential exchange, and wage outcomes. Critical and liberal traditions prioritize human development, democratic participation, and knowledge for its own sake. Barker’s training provides no framework for adjudicating between these visions beyond market discipline.

The predictable consequences are already visible: epistemological narrowing, erosion of faculty autonomy, commodification of credentials, punitive accountability for equity-serving institutions, and deregulated accreditation that invites predatory actors. History shows that weakened oversight benefits for-profit extractive models, not students or the public good.

David R. Barker’s expertise equips him to manage balance sheets and assess asset performance. It does not equip him to steward institutions whose central purposes—knowledge creation, human development, and democratic citizenship—cannot be reduced to financial return. The conflict articulated by Saint Augustine’s University between equity mission and market mandate will define the next phase of federal postsecondary policy. Barker’s background does not prepare him to navigate that tension. It predisposes him to resolve it in favor of the market—and to treat the casualties as acceptable losses.


Sources

American Association of University Professors. Statement on Government of Colleges and Universities. 1966.

American Association of University Professors. 1940 Statement of Principles on Academic Freedom and Tenure, with 1970 Interpretive Comments.

Barker, David R. Real Estate, Real Estate Investment Trust, and Closed End Fund Valuation. Doctoral dissertation, University of Chicago, 1991.

Chickering, Arthur W., and Linda Reisser. Education and Identity. Second edition. Jossey-Bass, 1993.

Freire, Paulo. Pedagogy of the Oppressed. Continuum, 1970.

Giroux, Henry A. Neoliberalism’s War on Higher Education. Haymarket Books, 2014.

hooks, bell. Teaching to Transgress: Education as the Practice of Freedom. Routledge, 1994.

Jarratt, Alex. Report of the Steering Committee for Efficiency Studies in Universities. Committee of Vice-Chancellors and Principals, 1985.

Nelson, Cary. No University Is an Island: Saving Academic Freedom. New York University Press, 2010.

Perry, William G. Forms of Intellectual and Ethical Development in the College Years. Holt, Rinehart and Winston, 1970.

Scott, James C. Seeing Like a State: How Certain Schemes to Improve the Human Condition Have Failed. Yale University Press, 1998.

Slaughter, Sheila, and Gary Rhoades. Academic Capitalism and the New Economy. Johns Hopkins University Press, 2004.

Trow, Martin. “Problems in the Transition from Elite to Mass Higher Education.” OECD conference paper, 1973.

U.S. Department of Education. Compact for Academic Excellence. Trump administration policy framework, 2025.

U.S. Department of Education, Office of Postsecondary Education. Accreditation and State Authorization Regulations. Federal rulemakings and guidance, various years.

Yosso, Tara J. “Whose Culture Has Capital? A Critical Race Theory Discussion of Community Cultural Wealth.” Race Ethnicity and Education, 2005.