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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.

The Digital Dark Ages

In this so-called Age of Information, we find ourselves plunged into a paradoxical darkness—a time when myth increasingly triumphs over truth, and justice is routinely deformed or deferred. At The Higher Education Inquirer, we call it the Digital Dark Ages.

Despite the unprecedented access to data and connectivity, we’re witnessing a decay in critical thought, a rise in disinformation, and the erosion of institutions once thought to be champions of intellectual rigor. Higher education, far from being immune, is now entangled in this digital storm—none more so than in the rise of robocolleges and the assault on public universities themselves.

The Fog of Myth

The myths of the Digital Dark Ages come packaged as innovation and access. Online education is heralded as the great equalizer—a tool to democratize knowledge and reach underserved students. But as the dust settles, a darker truth emerges: many of these online programs are not centers of enlightenment, but factories of debt and disillusionment. Myth has become a business model.

The fantasy of upward mobility through a flexible online degree masks a grim reality. The students—often working-class professionals juggling jobs and families—become robostudents, herded through algorithmic coursework with minimal human interaction. The faculty, increasingly adjunct or contract-based, become roboworkers, ghosting in and out of online discussion boards, often managing hundreds of students with little support. And behind it all stands the robocollege—a machine optimized not for education, but for profit.

The Rise of Robocolleges

The rapid growth of online-only education has introduced a new breed of institutions: for-profit, non-profit, secular, and religious, all sharing a similar DNA. Among the most prominent are Southern New Hampshire University, Grand Canyon University, Liberty University Online, University of Maryland Global Campus, Purdue University Global, Walden University, Capella University, Colorado Tech, and the rebranded former for-profits now operating under public university names, like University of Phoenix and University of Arizona Global Campus.

These robocolleges promise convenience and career readiness. In practice, they churn out thousands of credentials in fields like education, healthcare, business, and public administration—often leaving behind hundreds of billions of dollars in student loan debt.

The Robocollege Model is defined by:

  • Automation Over Education

  • Aggressive Marketing and Recruitment

  • High Tuition with Low Return

  • Shallow Curricula and Limited Academic Support

  • Poor Job Placement and Overburdened Students

These institutions optimize for profit and political protection, not pedagogy. Many align themselves with right-wing agendas, blending Christian nationalism with capitalist pragmatism, while marketing themselves as the moral antidote to “woke” education.

Trump’s War on Higher Ed and DEI

Former President Donald Trump didn’t just attack political rivals—he waged an ideological war against higher education itself. Under his administration and continuing through his influence, the right has cast universities as hotbeds of liberal indoctrination, cultural decay, and bureaucratic excess. Public universities and their faculties have been relentlessly vilified as enemies of “real America.”

Central to Trump’s campaign was the targeting of Diversity, Equity, and Inclusion (DEI) initiatives. Executive orders banned federally funded diversity training, and right-wing media amplified the narrative that DEI was a form of “reverse racism” and leftist brainwashing. That playbook has since been adopted by Republican governors and legislatures across the country, leading to:

  • Defunding DEI Offices: Entire departments dedicated to equity have been dismantled in states like Florida and Texas.

  • Censorship of Curriculum: Academic freedom is under siege as laws restrict the teaching of race, gender, and American history.

  • Chilling Effects on Faculty: Scholars of color, queer faculty, and those doing critical theory face retaliation, termination, or self-censorship.

  • Hostile Campus Environments: Students in marginalized groups are increasingly isolated, unsupported, and surveilled.

This culture war is not simply rhetorical—it’s institutional. It weakens public confidence in higher education, strips protections for vulnerable communities, and drives talent out of teaching and research. It also feeds directly into the robocollege model, which offers a sanitized, uncritical, and commodified version of education to replace the messy, vital work of civic learning and self-reflection.

The Debt Trap and Student Loan Servitude

Today, more than 45 million Americans are trapped in a cycle of student loan debt servitude, collectively owing over $1.7 trillion. Robocolleges have played a central role in inflating this debt by promising career transformation and delivering questionable outcomes.

Debt has become a silent form of social control—disabling an entire generation’s ability to invest, build, or dissent.

  • Delayed Life Milestones

  • Psychological Toll

  • Stalled Economic Mobility

This is not just a personal burden—it is the product of decades of deregulation, privatization, and a bipartisan consensus that treats education as a private good rather than a public right.

The Dismantling of the U.S. Department of Education

Over time, and especially under Trump-aligned officials like Betsy DeVos, the U.S. Department of Education has been hollowed out, repurposed to protect predatory institutions rather than students. Key actions include:

  • Rolling Back Protections for borrowers defrauded by for-profit colleges.

  • Weakening Oversight of accreditation and accountability metrics.

  • Empowering Loan Servicers to act with impunity.

  • Undermining Public Education in favor of vouchers, charters, and online alternatives.

The result? Robocolleges and their corporate allies are given free rein to exploit. Students are caught in the machinery. And the very institution charged with protecting educational integrity has been turned into a clearinghouse for deregulated profiteering.

Reclaiming the Idea of Higher Education

This is where we are: in a Digital Dark Age where myths drive markets, and education has become a shell of its democratic promise. But all is not lost.

Resistance lives—in underfunded community colleges, independent media, academic unions, student debt collectives, and grassroots movements that refuse to accept the commodification of learning.

What’s needed now is not another tech “solution” or rebranding campaign. We need a recommitment to education as a public good. That means:

  • Rebuilding and funding public universities

  • Protecting academic freedom and DEI efforts

  • Canceling student debt and regulating private actors

  • Restoring the Department of Education as a tool for justice

  • Rethinking accreditation, equity, and access through a democratic lens

Because if we do not act now—if we do not call the Digital Dark Ages by name—we may soon forget what truth, justice, and education ever meant.


If you value this kind of reporting, support independent voices like The Higher Education Inquirer. Share this piece with others fighting to reclaim truth, equity, and public education from the shadows.

Tuesday, April 22, 2025

For-Profit College Corporation Perdoceo Gave Your Tax Dollars to Trump Inaugural Committee (David Halperin)

A new report filed with the Federal Election Commission shows that the troubled for-profit college operation Perdoceo Education Corp. donated $50,000 to the 2025 Trump-Vance Inaugural Committee. Almost all of Perdoceo’s revenue comes from U.S. taxpayers.

The report filed this week by the Trump committee lists, among hundreds of other gifts from corporations and individuals, a $50,000 donation from “CEC Educational Services,” which is the name of a Perdoceo subsidiary, and gives the donor address as the Schaumberg, Illinois, location of Perdoceo’s corporate offices.

The Trump inaugural committee raised $239 million, more than doubling the record-breaking amount raised by the Trump committee for the 2017 inauguration.

As the New York Times noted, presidential inaugurations, even with all the glitzy balls and other events, “have never cost anything near roughly a quarter-billion dollars, and the amount raised by the committee will resurface questions about where any leftover funds might go.” Trump associates have suggested it could be spent on other Trump projects, including a presidential library.

The Times speculated that the high volume of gifts was “driven by corporate America’s eagerness to win the president’s favor.”

Perdoceo, whose stock is publicly traded, is one corporation that would be motivated to win the transactional Trump’s favor. It is almost entirely dependent on federal government largesse. The two mostly online colleges it operates — American Intercontinental University and Colorado Technical University — have at times received as much as 97 percent of their revenue from taxpayer dollars in the form of federal student grants and loans; in the most recent reported year 83 percent came from the U.S. Department of Education alone, plus more from the departments of defense and veterans affairs.

That means, effectively, that almost all of the gift that Perdoceo made to curry favor with Trump was paid for by American taxpayers.

The donation is also consistent with Perdoceo CEO Todd Nelson’s past support for Republican politicians. More importantly, it reflects Perdoceo’s continuing need to have the federal government keep the money flowing and look the other way while the company’s schools, which have repeatedly faced law enforcement actions, offer low-quality, high-priced programs that leave many students deep in debt and without the career advancement they sought.

As Republic Report has chronicled for over a decade, Perdoceo has been one of the worst actors in all of for-profit higher education, taking in billions of dollars from taxpayers for student grants and loans while repeatedly engaging in predatory abuses.

Like Donald Trump’s own fraudulent Trump University, Perdoceo has faced multiple law enforcement investigations for predatory conduct.

In 2019, the company entered into a $494 million settlement with 48 state attorneys general, plus the District of Columbia, over allegations that it engaged in widespread deceptive practices against students.

Later that same year, Perdoceo agreed to pay $30 million to settle charges brought by the Federal Trade Commission that its schools have recruited students through deceptive third-party lead generation operations. In each case, the company did not admit guilt.

More recently, Perdoceo employees told media outlets USA Today and Capitol Forum, as well as Republic Report, that company recruiters continued to feel pressure to make misleading sales pitches and to enroll low-income people into programs that aren’t strong enough to help them succeed. Some of those former employees also spoke with federal investigators.

USA Today reported in 2022 that the U.S. Department of Education, in December 2021, requested information from Perdoceo; the Department also asked Perdoceo to retain records regarding student recruiting, marketing, financial aid practices, and more. Perdoceo confirmed the probe, while seeming to minimize its significance, in a February 2022 SEC filing. Perdoceo also acknowledged in May 2022 that it received a request for documents and information from the U.S. Justice Department.

The Department of Education provided AIU and CTU with more than $551 million in student grants and loans in the 2022-23 school year, the most recent year that was reported. A bachelor’s degree from CTU is priced at about $66,000.

But data released by the Department in 2023 show that Perdoceo’s two schools, AIU and CTU, deliver poor results for students, with low graduation rates and graduate incomes and high levels of student debt.

Before joining Perdoceo, company CEO Todd Nelson ran two of the other biggest for-profit colleges operations: the University of Phoenix and now-demised Education Management Corp. Both of those chains, like Perdoceo, ran into major law enforcement issues because of deceptive recruiting practices and other abuses that occurred on Nelson’s watch.

The Biden Department of Education never proceeded with an enforcement action to penalize Perdoceo or take away its federal aid. But it did issue a series of regulations that would make it more difficult for that company and others to engage in predatory practices going forward. The Trump administration, whose previous incarnation coddled predatory schools, and whose current incarnation has gutted the Department of Education and its accountability efforts, is likely to do nothing while Nelson’s schools keeping enrolling students, with taxpayer dollars, in substandard education programs.

$50,000 may not be a lot of money to Perdoceo or its CEO, but it’s a lot of money to each of the thousands of students across the country who are in debt to Perdoceo for multiples of that amount. Perdoceo’s donation to Trump’s inauguration, using your money, can only reinforce the company’s entitlement and impunity.

It’s wrong when a company can take money from students and taxpayers and use it curry favor with a president whose team is shutting down higher education enforcement efforts and aggressively seeking student loan repayments, even from borrowers who were deceived and abused by that company’s schools.

The donation from a supposed “education” company also sends a bad message to America’s students, because it celebrates the return to power of a twice-impeached, four-times-indicted, convicted felon and adjudged sexual assaulter who incited a murderous Capitol riot aimed at overthrowing a democratic election. Not a good civics lesson.

Perdoceo did not respond to a request for comment.

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

Thursday, April 17, 2025

The Destruction of ED General Counsel: "It will be like the Wild West"

With the US Department of Education firing 85 of an estimated 95 lawyers in General Counsel, subprime colleges and online program managers will have a field day. According to one industry expert, it could be "like the Wild West," with no oversight over the buying and selling of schools. And that also means that the College Meltdown could get worse even faster than we imagined. The Higher Education Inquirer is already monitoring a number of potential sales, including the University of Phoenix. We are also expecting a number of schools to be insolvent in 2025, leaving students in a lurch, with little or no warning. 

 

Friday, March 28, 2025

Higher Education Inquirer continues to follow IPO/sale of University of Phoenix

On March 6, 2025, Apollo and Vistria publicly announced a possible IPO or sale of the University of Phoenix.  These companies have been trying to sell the University of Phoenix since 2021, but there have been no takers. The owners claim the school is worth $1.5B to $1.7B, but we (and experts we know) are skeptical, given the financials we have seen so far. The University of Phoenix was previously on sale for about $500M-$700M but the University of Arkansas System, the State of Idaho, and apparently other colleges declined the offers. 

The University of Phoenix offers subprime education to folks, historically targeting servicemembers, veterans, and people of color. While some students may profit from these robocollege credentials, one wonders what these workers actually learn. The current student-teacher ratio at the University of Phoenix, according to the US Department of Education, is 132 to 1.   

The University of Phoenix has faced a number of scandalssometimes getting away with no penalty, and other times paying large fines.  

In 2023 we made a Freedom of Action (FOIA) request to the US Department of Education (ED) to get Phoenix's most recent audited financials. In March 2025, more than 20 months later, we were provided with a 35-page report, audited by Deloitte, with numbers from 2021 and 2022. 




This month the Higher Education Inquirer followed up with a Freedom of Information request with the ED to obtain more up-to-date financial numbers for the University of Phoenix. We hope they will be responsive and timely enough to get the word out to the public.   

Tuesday, March 18, 2025

AFT President Selling Out to Edtech?

American Federation of Teachers (AFT) President Randi Weingarten is scheduled to speak at the upcoming ASU-GSV summit. For 16 years, the conference has been a space for those in edtech to hype their ideas, both good and bad.  We have noted a few of these bad ideas from bad actors over the years, to include 2UGuild, and Ambow Education

Given Weingarten's track record as President of AFT, we don't expect much from her in terms of speaking truth to power. There are many people in edtech that Weingarten should criticize at the summit. But she is too much of a politician to do such a thing when it is needed.  

Weingarten has been the President of AFT since 2008, a union with about 1.7 million members across the US. While AFT has had some victories, those victories were won by the rank-and-file and the hard work of AFT organizers, not due to the actions of Weingarten. With numbers that large, AFT could pose as a serious presence at demonstrations in DC and across the nation. They have done that, when they had to, but not when other folks' lives were at stake. 

In 2013, while Weingarten was President of AFT, we recommended that the union use its clout to tell teachers' pension programs and state retirement funds from investing in for-profit colleges like Corinthian Colleges, Education Management Corporation, ITT Tech, and the University of Phoenix. They refused. We have not forgotten how AFT was unwilling to defend consumers, student debtors, and retirees. 

Since that time, AFT has done little to defend folks against subprime robocolleges and online program managers like 2U and Academic Partnerships/Risepoint when they certainly needed to call them out. And now their ranks are full of educators and administrators with marginal online degrees.

Monday, March 10, 2025

University of Phoenix Reportedly Considering Public Offering or New Buyer (David Halperin)

Bloomberg reports that the private equity firms Apollo Global Management and Vistria Group are considering a sale or an initial public offering for the for-profit school they jointly own, the University of Phoenix. Unnamed sources told Bloomberg an IPO could occur as soon as the third quarter of 2025.

For the past two years, Phoenix’s owners have been in talks with the University of Idaho about the state university acquiring the for-profit school. While U of Idaho President C. Scott Green has touted the deal as a revenue raiser and step into the future, the sale has bogged down amid concerns by legislators and others in the state. Last June, the two sides agreed to continue negotiations but that Phoenix’s owners could talk with other potential suitors.

The leak to Bloomberg may be a sign that Phoenix’s owners are ready to move on. But it could instead be a bluff aimed at fooling Green, a self-styled dealmaker, into revitalizing efforts to buy the school.

Green’s plan has been thwarted again and again, with negative votes in the Idaho legislature, a successful court challenge by the state’s attorney general, criticism from the state treasurer, and sharp scrutiny from news outlets in the state.

The Green school deal has assumed that operation of Phoenix would bring millions in new revenue to fund his university. But it ignores that running a for-profit college, one that has repeatedly gotten in trouble with law enforcement for deceiving students, would be a tremendous challenge: If Green pushed to end Phoenix’s predatory practices and improve student outcomes, it probably would start losing money, because predatory practices, coupled with high prices and low spending on education, have made up the school’s secret sauce. But if Green allowed the deceptive conduct to persist, the school could face more legal peril. And, whatever route he took, Green’s school might end up assuming massive liability for student loan debt the government has cancelled based on past abuses at Phoenix.

At its peak, Phoenix was the largest for-profit college in the country and got upwards of $2 billion a year in federal student aid, while reporting dismal graduation rates and high levels of loan defaults.

Phoenix’s owners pursued a deal with Idaho only after the trustees of the University of Arkansas rejected a similar purchase negotiated by that school’s president.

Phoenix’s parent company, Apollo Education Group, had been publicly traded until Apollo and Vistria took the company private in 2017.

There have been previous marriages between big state universities and large predatory for-profit colleges that were seeking to evade the stigma and regulations that the industry’s bad behavior has provoked. The University of Arizona’s purchase of Ashford University has turned into a fiasco both for Arizona, which rebranded the school University of Ariziona Global Campus (UAGC), and for Ashford’s previous owner, now-shuttered Zovio. Meanwhile, Graham Holdings sold predatory Kaplan University to Purdue, while locking that Indiana state school into a 30-year service contract that allows Graham to keep making big money. The arrangement harms Purdue’s reputation, and Purdue Global has struggled financially. Both Purdue Global and UAGC continue to enroll students in their sub-par, overpriced programs.

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

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.]  

The Council of College Military Educators: DOD's Complicity with Predatory Colleges Continues

Since the 1980's, the US Department of Defense has enabled bad actor colleges to prey upon servicemembers, veterans, and their families. Through a non-profit organization called the Council of College Military Educators, DOD and these questionable schools created a formal alliance.  

The Council of College Military Educators (CCME) formed in the 1970s with a noble goal, to provide free education to military personnel. But the organization was hijacked by the University of Phoenix and other predatory for-profit colleges who used a variety of questionable and sometimes illegal techniques to enroll students on military bases around the globe. Schools often hired veterans to act as shills for the school.  

In its heyday, CCME events were a prime place for predatory schools to lobby military educators. We were told that schools even paid for alcohol, to make the DOD personnel more receptive.  That's something you won't read in CCME's history. For nearly a decade we have tried to get justice for folks who have been preyed upon by those schools, and little has been done. Scandals have come and gone and been forgotten.  No one went to jail. But the ripple effects of folks who have been deceived by predatory schools have not receded. 

New scandals about those who serve being preyed upon by schools have not been revealed (except by us) and it's possible that they may never by full reported.  And so it goes.  

DODOIG-2019-000702 List of the 50 Worst Schools