When Educators Back the Cheating Platform: The Strange Case of Chegg (Glen McGhee)

Chegg — once a poster child for pandemic-era edtech growth — is now in free fall. In 2025 the company announced it would slash 45 % of its workforce, citing plunging web traffic, collapsing revenue, and the onslaught of AI tools that let students bypass paid homework help altogether.

It’s a dramatic reversal for a company that sold itself as a learning aid. But behind that collapse lies an even more troubling paradox: many teacher pension funds and public retirement systems — in whose names educators put decades of trust — hold millions in Chegg stock. Why would those funds invest in a company whose business model many of their own beneficiaries see as unethical, even corrosive?

We’ve seen this pattern before. In the early 2000s, retirement funds like these were major institutional investors in for-profit higher education companies such as EDMC, ITT Tech, and the University of Phoenix. Those institutions promised strong returns but ultimately collapsed under fraud allegations, predatory practices, and declining enrollments. Many public-sector workers indirectly suffered as the funds lost money. Chegg’s story looks eerily similar: high growth promises, an ethically contested business model, and exposure of public retirement funds to extreme financial risk. The repetition suggests a structural pattern: when education is financialized and commodified, the people meant to serve it — educators and students — are exposed to both moral and economic hazards.

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The Downward Spiral: Why Chegg Is Crashing

Chegg’s decline didn’t begin yesterday. It was seeded by technological disruption and a fragile business model dependent on volume, content access, and student compliance. Generative AI tools such as ChatGPT and Bard have undercut Chegg’s core service: paid homework help and explanations. Students can often get free answers faster and more flexibly. Google’s “AI overviews,” which display answer snippets directly in search results, divert traffic away from Chegg’s site, reducing ad and subscription conversions. Chegg has even sued Google, alleging unfair competition.

Earlier in 2025, Chegg laid off 22 % of its staff and closed its U.S. and Canada offices to cut costs. That was supposed to be a stabilization move, but it foreshadowed deeper troubles. The more recent 45 % layoff is sweeping: 388 jobs are being cut, $15–19 million in severance charges are expected, and $100–110 million in cost savings are projected for 2026. Chegg’s stock has lost approximately 99 % of its value since its 2021 peak. Yet the company is still pursuing a pivot toward B2B “skilling” markets, though skeptics doubt whether this can make up for the erosion of its original model. In short, Chegg is facing structural obsolescence. The ecosystem that once made its growth plausible is collapsing around it.

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Pension Funds and the Strange Attraction to Chegg

Several public pension and teachers’ retirement systems hold millions in Chegg: Kentucky Teachers’ Retirement System owns $4.5 million, California State Teachers’ Retirement System owns $4 million, New York State Common Retirement Fund owns $13 million, Colorado Public Employees’ Retirement Fund owns $9.3 million, California Public Employees’ Retirement Fund owns $5.3 million, a Florida retirement fund owns $3.3 million, Ohio Public Employees Retirement owns $1.5 million, and the Teacher Retirement System of Texas owns $630,000.

These investments raise hard questions. Do pension fund managers assume Chegg will survive its technological disruption? Are they prioritizing short-term returns over long-term reputational or ethical risk? Do they believe the stock is undervalued and thus a “contrarian bet”? Are they following passive index allocations rather than making deliberate choices? Some fund managers defend such investments as fulfilling fiduciary duty: to maximize returns for their beneficiaries within acceptable risk parameters. Ethical considerations, they argue, should not trump financial sustainability — especially in a system underfunded and under stress. But when the bet fails, the consequences fall hardest on retirees, educators, and the public who trusted those funds to safeguard their futures.

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Do We Owe Them Sympathy?

It’s tempting to feel a bit sorry: pension funds losing money is a headline nobody wants. But sympathy is complicated. These funds store and grow the life savings of public-sector workers — teachers, librarians, and staff. A poorly timed speculative investment can damage retiree security and erode public trust. On the other hand, this is no innocent failure; it is a foreseeable risk in backing a business facing existential challenges. It reflects a broader pattern of financialization in education: turning learning into a profit-seeking venture, exposing it to wild swings, and treating educators and students as market participants. Losses are regrettable, especially at the human level, but they also demand accountability. Institutions must explain why they placed trust in Chegg when its vulnerabilities were visible.

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What This Reveals: Institutional Contradiction

This episode exposes several deeper contradictions at the intersection of education, finance, and values. Many educators see Chegg as a threat to academic integrity, yet the institutions managing their retirement funds believed in its upside. Some investors are attracted to the “turnaround bet,” seeing potential in a company trading at a fraction of its former value, though the risk is very high. Some funds may hold Chegg because their portfolios track broad indices, ceding moral discretion to the market. Education has become infrastructure built on venture logic, and the Chegg collapse is a warning: when learning becomes a commodity, its institutions become as unstable as any tech startup. Finally, if pension funds backed a cheating-enabled platform, what else might their capital support, and how does that affect trust in those institutions?

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A Moral and Institutional Reckoning 

Chegg’s collapse is not just a market drama; it’s a moral and institutional reckoning. A company built on a questionable model is now evaporating under AI pressure. Meanwhile, public pension funds — meant to safeguard the futures of educators — placed bets on that very evaporation.

We might feel a pang of sympathy for the financial losses. But our greater duty is to probe the judgment of those entrusted with public capital, and to demand coherence between values and investment. If the administrators of teacher retirement funds cannot align ethics with asset allocation, then their claims to serving the public good are weakened — and so is the trust on which the idea of public education depends.

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Sources

Barron’s: “Chegg Is Suing Google. The Stock Is Sinking.”
Reuters: “Chegg to lay off 22% of workforce as AI tools shake up edtech industry.”
SF Chronicle: “Bay Area educational tech company slashes 248 jobs as students turn to AI tools for learning.”
The Cheatsheet Substack: “Meet Chegg’s Biggest Backers.”
The Chronicle of Higher Education: “Work in Public Education and Hate Chegg? You Might Be an Investor.”
Wikipedia: “Chegg”

BORROWERS AGAINST APOLLO EVENT, FRIDAY NOVEMBER 7TH, NEW YORK CITY (HELU, AAUP, AFT)

[Editor's Note: Readers can sign up for the event at BORROWERS AGAINST APOLLO.  Ensure that you click on "Switch account" to submit the form from your Google account.]

BORROWERS AGAINST APOLLO

WHO:  American Association of University Professors (AAUP), NYU AAUP, Higher Ed Labor Union (HELU), The Professional Staff Congress-  City University of New York (PSC-CUNY), NY Metro Coalition for Higher Ed,  Sunrise Movement,  Hands Off  NYC,  American Federation of Teachers (AFT) union, and student loan borrowers. 

WHEN: Friday - November 7 at 11AM

LOCATION: Apollo Global Headquarters - 9 West 57th Street, New York, NY 10019

QUESTIONS? ApolloAction25@gmail.com 

Higher Ed Unions, Student Unions, and For-Profit College Borrowers Unite Against Trump’s “Higher Education Compact”

Several higher education unions, student unions, and former students of for-profit colleges are organizing in opposition to the Trump administration’s proposed “higher education compact”—a plan heavily shaped and promoted by private-equity billionaire Marc Rowan.

Rowan, the CEO of Apollo Global Management, has played a central role in advancing this proposal. Apollo owns several predatory for-profit institutions, including the University of Phoenix, one of the most notorious offenders in the industry.

In a recent New York Times op-ed, Rowan took public credit for the compact, writing:

“The evidence is overwhelming: outrageous costs and prolonged indebtedness for students; poor outcomes, with too many students left unable to find meaningful work after graduating…”

Yet, under Rowan’s leadership, the University of Phoenix has become the largest source of Borrower Defense claims of any for-profit school, with more than 100,000 pending applications as of July 2025. Borrower Defense is a federal protection that allows students to seek loan forgiveness if their school misled them or violated state or federal law.

The University of Phoenix has faced multiple law enforcement investigations for deceptive recruiting tactics that targeted veterans, service members, and working adults nationwide. The school’s misconduct led to a $191 million settlement with the Federal Trade Commission for falsely claiming partnerships with major employers. More recently, the university attempted to portray itself as a public institution while seeking to sell to two states—both of which ultimately rejected the deal after public backlash.

While Rowan’s personal fortune exceeds $7 billion, borrowers continue to shoulder crushing debt from degrees that delivered little to no value. His leadership has fueled a system that profits from student harm—and now, through this compact, he is setting his sights on reshaping major public universities.

We refuse to stay silent. Borrowers, students, and educators are standing together to demand accountability and defend higher education from predatory perpetrators.

JOIN THE FIGHT AGAINST FOR-PROFIT COLLEGE GREED – NOVEMBER 7

The for-profit college industry has harmed countless students — and it’s time they hear directly from us. Join us outside Apollo Global Management Headquarters on Friday, November 7 at 11:00 a.m. to make your voice heard and demand accountability.

We’re calling on borrowers from for-profit schools who were misled or left in debt by this predatory system. Travel support may be available for anyone within train distance of New York City. We’ll provide shirts, posters, and everything you need to show up strong. (Apollo’s offices are about 20 minutes from Penn Station by subway.)

We’re also looking for University of Phoenix borrowers willing to speak publicly or to the press about their experiences. Additional travel assistance can be arranged for those coming from outside the NYC area.

If you’re ready to share your story and take a stand, reach out today. Together, we can show Apollo — and the entire for-profit college industry — that borrowers are not backing down.

CAN’T MAKE IT BUT WANT TO GET INVOLVED?

We’re always looking to connect with borrowers and allies. There are many ways to take part in this fight — from sharing your story and supporting organizing efforts to helping spread the word. Reach out to learn how you can get involved and join the movement for justice in higher education.

The Higher Education Inquirer: Six Hundred Thousand Views, and Still Digging

The Higher Education Inquirer has crossed another milestone, reaching more than 600,000 views over the past quarter. For a niche publication without corporate backing, this is a significant achievement. But the real measure of success is not in page views—it is in the stories that matter, the investigations that refuse to die even when the higher education establishment would rather they disappear.

Since its inception, HEI has taken the long view on the crises and contradictions shaping U.S. colleges and universities. We continue to probe the issues that mainstream media outlets often skim or ignore. These are not passing headlines; they are structural problems, many of them decades in the making, that affect millions of students, faculty, staff, and communities.

Among the stories we continue to pursue:

• Charlie Kirk and Neofascism on Campus: Tracing how right-wing movements use higher education as a recruiting ground, and how student martyrdom narratives fuel a dangerous cycle.

• Academic Labor and Adjunctification: Investigating the systemic exploitation of contingent faculty, who now make up the majority of the academic workforce.

• Higher Education and Underemployment: Examining how rising tuition, debt, and credentials collide with a labor market that cannot absorb the graduates it produces.

• EdTech, Robocolleges, and the University of Phoenix: Following the money as education technology corporations replace faculty with algorithms and marketing schemes.

• Student Loan Debt and Borrower Defense to Repayment: Tracking litigation, regulatory shifts, and the human toll of a $1.7 trillion debt system.

• U.S. Department of Education Oversight: Analyzing how federal enforcement waxes and wanes with political cycles, often leaving students exposed.

• Online Program Managers and Higher Ed Privatization: Investigating the outsourcing of core academic functions to companies driven by profit, not pedagogy.

• Edugrift and Bad Actors in Higher Education: Naming the profiteers who siphon billions from public trust.

• Medugrift and University Medicine Oligopolies: Connecting elite medical centers to systemic inequality in U.S. healthcare.

• Student Protests: Documenting student resistance to injustice on campus and beyond.

• University Endowments and Opaque Funding Sources: Pulling back the curtain on how universities build wealth while raising tuition.

• Universities and Gentrification: Exposing the displacement of working-class communities in the name of “campus expansion.”

• Ambow Education as a Potential National Security Threat: Tracking foreign-controlled for-profit education companies and their entanglements.

• Accreditation: Examining the gatekeepers of legitimacy and their failure to protect students.

• International Students: Covering the precarity of students navigating U.S. immigration and education systems.

• Student Health and Welfare: Looking at how universities fail to provide adequate physical and mental health support.

• Hypercredentialism: Interrogating the endless inflation of degrees and certificates that drain students’ time and money.

• Veritas: Pursuing truth in higher education, no matter how uncomfortable.

These are the stories that make HEI more than just a blog—they make it a watchdog. As higher education drifts deeper into corporatization and inequality, we will keep asking difficult questions, exposing contradictions, and documenting resistance.

The numbers are gratifying. But the truth is what matters.

Todd S. Nelson: Massive Wealth Built on Soul-Crushing Student Loan Debt

Todd S. Nelson rose from academic beginnings—a B.S. from Brigham Young University and an MBA from the University of Nevada, Reno—to dominate the for-profit higher education space. Over nearly four decades, Nelson has amassed vast personal wealth leading University of Phoenix, Education Management Corporation (EDMC), and Perdoceo Education, even as each institution left embattled students and regulatory fallout in its wake.

Under Nelson’s leadership, Apollo Group (parent of University of Phoenix) mountains of revenue—$2.2 billion and over 300,000 students by 2006—coincided with a $41 million payday in that year alone. He resigned amid pressure over deceptive admissions practices.

Nelson’s move to EDMC in 2007 triggered another enrollment explosion—from 82,000 to over 160,000 students by 2011—propelled by federal student aid. Annual revenues reached nearly $2.8 billion, even as employees were alleged to be encouraged to enroll “anyone and everyone” to meet quotas. This aggressive focus on recruitment came with enormous personal compensation—approximately $13.1 million annually—while students endured mounting debt and dwindling outcomes.

A 2015 landmark settlement exposed EDMC’s alleged violations under the False Claims Act. The Justice Department accused the company of operating as a “recruitment mill,” illegally funneling federal funds through false certifications. EDMC agreed to pay $95.5 million in damages and forgive more than $102 million in student loans, affecting about 80,000 former students—averaging around $1,370 per student.Internal documents and court filings paint a grim picture: incentive-based pay for recruiters, breach of fiduciary duties, and a business model the trustee called “fundamentally fraudulent.”

Nelson’s chapter at Career Education Corporation (later Perdoceo) echoed the same script. Campuses shuttered, including Le Cordon Bleu and Sanford-Brown, left students stranded with untransferable credits—and yet Nelson’s compensation remained soaring. In 2019, he earned $7.4 million and held about $12 million in equity.

Whistleblower accounts from inside Perdoceo’s operations are damning. One former recruiter described pressure to enroll students “by any means necessary,” including coercive calls and emotional manipulation—often targeting vulnerable applicants with low income or lacking basic readiness. Despite those practices, Perdoceo reaped profits, with Nelson publicly touting revenue growth even as the Department of Education issued a formal notice in May 2021: thousands of borrower defense claims were pending against the company, alleging misrepresentations on credits, employment prospects, and accreditation.

Further regulatory investigations deepened through early 2022, focusing on recruiting, marketing, and financial aid practices—yet no executive accountability has followed.

The narrative that emerges is stark: Todd S. Nelson repeatedly led institutions to profit-fueled expansion using students’ federal dollars, while suppressing outcomes and exposing students to debilitating debt. Lawsuits, settlements, and investigative reports expose deceptive enrollment practices, false claims, and regulatory violations—but the executives—including Nelson—walk away with wealth and are rarely held personally responsible.

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Sources

• Wikipedia: Todd S. Nelson—compensation figures and resignation amid scrutiny.

• TribLIVE: Allegations of “anyone and everyone” being enrolled to meet quotas under Nelson’s reign at EDMC.

• Career Education Review: Insights on quality decline amid enrollment growth at EDMC and Perdoceo.

• Department of Justice and NASFAA: 2015 EDMC settlement—$95.5 million damages, $102 million in loan forgiveness for hundreds of thousands.

• Bankruptcy court filings: Allegations of fraudulent business model and incentive-driven recruitment.

• Republic Report & USA Today: Whistleblower testimony on Perdoceo’s predatory recruiting tactics.

Apollo Wants Investors to Buy Back the University of Phoenix. They Shouldn’t. (David Halperin)

Having failed to complete deals to sell the troubled giant for-profit University of Phoenix to major state universities in Arkansas and Idaho — after people in those states got cold feet — the school’s owner, private equity behemoth Apollo Global Management, just before the holiday weekend announced an initial public offering for the school. 

Phoenix’s parent company had been publicly traded until AGM and two other firms took the company private in 2017. Now they have gone back to Wall Street to re-sell the school to investors. 

But should investors want to buy this operation? The presence of the heavily-advertised University of Phoenix in the college market has been bad for U.S. students, taxpayers, and the economy, because it has led many students to enroll in a school that often deceives people, and often leaves students with heavy debts and without the careers they sought — when they could be using taxpayer support and their own money to enroll in better value programs. 

Moral and macro-economic concerns aside, it’s not even clear that buying Phoenix will be good for investor bottom lines. 

The University of Phoenix, which has received tens of billions from federal taxpayers for student grants and loans — at times more than $2 billion in a single year — has faced numerous law enforcement investigations and actions for its deceptive recruiting of veterans, military service members, and other students across the country.

Most notably, in 2019, Phoenix reached a record $191 million settlement with the Federal Trade Commission, which claimed the school had lured students with false claims about partnerships with major employers. Phoenix ran ads falsely indicating that the school had deals with companies including AT&T, Yahoo!, Microsoft, Twitter, and the American Red Cross to create job opportunities for its students and tailor school programs for such jobs, when that was not the case. The deceptive claim went to the heart of prospective students’ motivations for enrolling. Andrew Smith, then the Director of the FTC’s Bureau of Consumer Protection, said at the time of the agreement, “Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist.”

And last year California’s attorney general reached a settlement with Phoenix to resolve allegations that the school’s aggressive recruitment tactics directed at military students violated consumer protection laws. 

The now almost entirely online school did a two-year dance with the University of Idaho that drew immense criticism from lawmakers, executive branch officials, newspaper editorial boards, and others in that state before the deal was finally called off in June.

Bloomberg reported earlier this year that an IPO might value the University of Phoenix operation, which had $810 million in revenue for 2023-24 (81 percent of that from federal taxpayer dollars), at $1.5 billion to $1.7 billion. And the new Trump administration has signaled in multiple ways that it is reducing protections for students against predatory college abuses, a development that may make investors more willing to buy a piece of a school like Phoenix.

But new federal legislation requires schools to provide some financial value for students. Also, state attorneys general, who have curbed and even slayed a number of for-profit giants over a decade, are watching; the media understands this issue, as it did not in the last wild west era fifteen years ago; and more potential students are wary after a generation of abuses.

So it may end up being much tougher to thrive in the predatory college business than some might think. 

David Halperin

Attorney and Counselor

Washington, DC  

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

Climate Denial and Conservative Amnesia: A Letter to Charlie Kirk and TPUSA

Charlie Kirk and Turning Point USA have built an empire of outrage—rallying young conservatives on college campuses, feeding them culture war talking points, and mocking science in the name of “free thinking.” At the top of their hit list? Climate change. According to TPUSA, man-made global warming is a hoax, a leftist ploy to expand government, or simply not worth worrying about. But this isn’t rebellion—it’s willful ignorance. And worse, it’s a betrayal of the conservative legacy of environmental stewardship.

Let’s be clear: man-made climate change is real. It is measurable, observable, and already having devastating consequences across the planet. The science is not debatable. According to NASA and the National Oceanic and Atmospheric Administration, Earth’s average surface temperature has risen more than 2 degrees Fahrenheit since the late 19th century—largely driven by carbon emissions from human activities. The Intergovernmental Panel on Climate Change, which aggregates peer-reviewed science from around the world, states unequivocally that “human influence has warmed the atmosphere, ocean and land.”

If Charlie Kirk and TPUSA were interested in truth, they wouldn’t be spreading climate denial. They’d be listening to the 97 percent of actively publishing climate scientists who confirm that this warming is caused by humans. They’d look to the Department of Defense, which recognizes climate change as a national security threat. They’d pay attention to farmers losing crops to drought, families displaced by floods and wildfires, and millions of people suffering through record-breaking heat.

In 2023, Phoenix experienced 31 straight days above 110°F. In 2024, ocean temperatures reached the highest levels ever recorded, accelerating coral bleaching and threatening global fisheries. Canadian wildfires covered U.S. cities in toxic smoke. Coastal towns face rising seas. These are not “natural cycles.” They are the direct result of burning coal, oil, and gas at unsustainable levels—driven by short-term greed and fossil fuel lobbyists.

And that brings us to a painful irony. TPUSA claims to speak for the working class, for rural Americans, and for future generations. But these are exactly the people being hit first and hardest by climate change. Farmers in Texas and Kansas are watching their yields collapse. Gulf Coast communities are being battered by stronger hurricanes. Urban neighborhoods with little tree cover and poor infrastructure are turning into deadly heat islands. Denying climate change doesn’t protect these people—it abandons them.

But perhaps the worst betrayal is ideological. TPUSA calls itself conservative. Yet real conservatism means conserving what matters—our land, our water, our air, and our future. And in this regard, the Republican Party once led the way.

It was Republican President Theodore Roosevelt who pioneered American conservation. He created national parks, forests, and wildlife refuges. He didn’t call environmental protection socialism—he called it patriotism.

It was Republican Richard Nixon who signed the Clean Air Act, the Clean Water Act, and the Endangered Species Act. He founded the Environmental Protection Agency, understanding that pollution was not just bad for nature—it was bad for people and for capitalism itself.

Even Ronald Reagan, whose presidency is often associated with deregulation, signed the 1987 Montreal Protocol, an international agreement to phase out ozone-depleting chemicals. The result? The ozone layer began to heal—one of the greatest environmental successes in human history.

More recently, conservative leaders like Bob Inglis, Carlos Curbelo, Larry Hogan, and Susan Collins have advocated for carbon pricing, clean energy investments, and bipartisan climate action. Groups like RepublicEn, Citizens for Responsible Energy Solutions, and the American Conservation Coalition are working to reintroduce common-sense environmentalism to the Republican movement. These are not radicals. They are conservatives who understand that freedom means nothing without a livable planet.

Young Republicans increasingly agree. Polls show that Gen Z conservatives are far more likely than older Republicans to support climate action. They’ve grown up in a world of extreme weather, mass extinction, and economic uncertainty. They know the cost of inaction. They see through the oil-funded lies.

So what exactly is TPUSA conserving? Not the environment. Not scientific integrity. Not the truth. They are conserving ignorance—and protecting the profits of ExxonMobil, Koch Industries, and the very fossil fuel billionaires who knew the risks of climate change in the 1970s and chose to deceive the public anyway. (See: Harvard University’s 2023 study on Exxon’s internal climate models.)

If TPUSA is serious about freedom, they must realize that freedom cannot exist without responsibility. There is no free market on a burning planet. There is no liberty when wildfires choke your air, when hurricanes destroy your home, or when heatwaves kill your grandparents.

We challenge Charlie Kirk and TPUSA not to “own the libs,” but to own the truth. Talk to climate scientists. Visit frontline communities. Debate conservatives like Bob Inglis who actually care about the world they’re leaving behind. Break the echo chamber. Lead with courage instead of trolling for clicks.

The earth does not care about your ideology. It cares about physics. And physics is winning.

Sources:

NASA – Climate Change Evidence and Causes: https://climate.nasa.gov
NOAA – Global Climate Reports: https://www.ncei.noaa.gov
IPCC Sixth Assessment Report, 2023: https://www.ipcc.ch
Harvard – Exxon’s Early Climate Models, Science, Jan 2023
U.S. Department of Defense – Climate Risk Analysis, 2022: https://www.defense.gov
Pew Research – Gen Z Republicans and Climate Change, 2023
RepublicEn – https://www.republicEn.org
American Conservation Coalition – https://www.acc.eco
Montreal Protocol overview – United Nations Environment Programme

The truth is not left or right. It is grounded in science, history, and conscience. Conservatives once led on environmental protection. They still can—if they’re brave enough to face the facts.

Pigs on Parade: The University of Phoenix IPO

Apollo Global Management and Vistria have an offer only a pig would consider: the Phoenix Education Partners IPO.

Touted by Morgan Stanley, Goldman Sachs, Bank of Montreal, Jefferies, and Apollo Global Securities, the offering of Phoenix Education Partners brings the University of Phoenix (PXED) back to public markets—but few fans remain in the audience.

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A Decade of Decline: From Expansion to Erosion

In the early 2000s, the University of Phoenix was hailed as a pioneering force in adult education—cozy campuses near freeway exits and an advanced online infrastructure for working learners earned praise. Its founder John Sperling was seen as visionary.

But by 2010 enrollment had already begun plummeting after reaching nearly 470,000 students, and the school’s academic quality and recruiting ethics were under the microscope. Critics decried “The Matrix,” a perverse scheme where recruiters were aggressively incentivized to push enrollments—no matter the cost.

By 2018, more than 450 locations had shuttered, enrollment was down by approximately 80%, and half the remaining sites were no longer accepting new students. Even Hawaii, Jersey City, Detroit, and other major cities were on the closure list.

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Regulatory Fallout: Lawsuits, Settlements, and Borrower Defenses

From the early 2010s onward, the University of Phoenix (aka UoPX) saw an avalanche of legal scrutiny. In 2019, the FTC leveled a $191 million settlement against it for misleading advertising, including deceptive claims about job placement and corporate partnerships.

By late 2023, 73,740 borrower-defense claims had been filed by former students under federal programs. Many of these were settled under the Sweet v. Cardona class action, with estimates of the university’s potential liability ranging from $200 million to over $1 billion. Meanwhile, nearly one million debtors owed a combined $21.6 billion in student loans—about $22,000 per borrower on average.

Another flashpoint: UoPX agreed to pay $4.5 million in 2024 to settle investigations by California’s Attorney General over military-targeted recruiting tactics.

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The Ownership Unicorn: Apollo, Vistria, and Political Backing

After Apollo Global Management and the Vistria Group acquired UoPX in 2016, the school became a commodified unit in a larger private equity portfolio. The deal brought in figures like Tony Miller, a political insider, as chairman—signaling strategic power play as much as financial management.

Vistria’s broader stable included Risepoint (previously Academic Partnerships), meaning both UoPX and OPM entities were controlled by one private-equity firm—drawing criticism for creating a “for-profit, online-education industrial complex.”

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The IPO Circus: “Pigs on Parade”

Enter the Phoenix Education Partners IPO (PXED), steered onto the market with all the pomp of a carnival but none of the substance. The front-line banks—Morgan Stanley, Goldman Sachs, BMO, Jefferies, Apollo Global Securities—are being paid handsomely to dress up this distressed asset as a growth opportunity.

But here’s what those colorful floats hide:

• Collapse, not comeback. Enrollment and campus infrastructure have withered.

• Debt, not opportunity. Nearly a million debt-laden alumni owe $21.6 billion.

• Liability, not credibility. Borrower defense claims and state investigations continue to mount.

• Profit, not public good. Ownership is consolidated in private equity with political access, not academic mission.

This is a pig in parade attire. Investors are being asked to cheer for ribbon-cutting and banners, while the mud-stained hooves of exploitative business models trudge behind.

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The HEI Verdict

This PXED IPO isn’t a pivot toward better education—it’s a rebrand of an exploitative legacy. From aggressive recruitment of vulnerable populations (“sandwich moms,” military servicemembers) to mounting legal liabilities, the University of Phoenix remains the same broken system.

Investors, regulators, and the public must not be dazzled by slick packaging. The real story is one of failed promises, students carrying lifelong debt, and private equity cashing out. In education, as in livestock, parades are meant to show off—just make sure you're not cheering at the wrong spectacle.

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Sources

• Higher Education Inquirer. Search: University of Phoenix

• Higher Education Inquirer. “The Slow-Motion Collapse of America’s Largest University” (2018)

• Higher Education Inquirer. “University of Phoenix Collapse Kept Quiet” (2019)

• Higher Education Inquirer. “Fraud Claims Against University of Phoenix” (2023)

• Higher Education Inquirer. “University of Phoenix Uses ‘Sandwich Moms’ in Recruiting” (2025)

• Higher Education Inquirer. “What Do the University of Phoenix and Risepoint Have in Common?” (2025)

• Federal Trade Commission. “FTC Obtains $191 Million Settlement from University of Phoenix” (2019)

• Sweet v. Cardona Settlement Documents (2022–2023)

• California Attorney General. “University of Phoenix to Pay $4.5 Million Over Deceptive Military Recruiting” (2024)

The Right-Wing Roots of EdTech

The modern EdTech industry is often portrayed as a neutral, innovative force, but its origins are deeply political. Its growth has been fueled by a fusion of neoliberal economics, right-wing techno-utopianism, patriarchy, and classism, reinforced by racialized inequality. One of the key intellectual architects of this vision was George Gilder, a conservative supply-side evangelist whose work glorified technology and markets as liberating forces. His influence helped pave the way for the “Gilder Effect”: a reshaping of education into a market where technology, finance, and ideology collide, often at the expense of marginalized students and workers.

The for-profit college boom provides the clearest demonstration of how the Gilder Effect operates. John Sperling’s University of Phoenix, later run by executives like Todd Nelson, was engineered as a credential factory, funded by federal student aid and Wall Street. Its model was then exported across the sector, including Risepoint (formerly Academic Partnerships), a company that sold universities on revenue-sharing deals for online programs. These ventures disproportionately targeted working-class women, single mothers, military veterans, and Black and Latino students. The model was not accidental—it was designed to exploit populations with the least generational wealth and the most limited alternatives. Here, patriarchy, classism, and racism intersected: students from marginalized backgrounds were marketed promises of upward mobility but instead left with debt, unstable credentials, and limited job prospects.

Clayton Christensen and Michael Horn of Harvard Business School popularized the concept of “disruption,” providing a respectable academic justification for dismantling public higher education. Their theory of disruptive innovation framed traditional universities as outdated and made way for venture-capital-backed intermediaries. Yet this rhetoric concealed a brutal truth: disruption worked not by empowering the disadvantaged but by extracting value from them, often reinforcing existing inequalities of race, gender, and class.

The rise and collapse of 2U shows how this ideology plays out. Founded in 2008, 2U promised to bring elite universities online, selling the dream of access to graduate degrees for working professionals. Its “flywheel effect” growth strategy relied on massive enrollment expansion and unsustainable spending. Despite raising billions, the company never turned a profit. Its high-profile acquisition of edX from Harvard and MIT only deepened its financial instability. When 2U filed for bankruptcy, it was not simply a corporate failure—it was a symptom of an entire system built on hype and dispossession.

2U also became notorious for its workplace practices. In 2015, it faced a pregnancy discrimination lawsuit after firing an enrollment director who disclosed her pregnancy. Women workers, especially mothers, were treated as expendable, a reflection of patriarchal corporate norms. Meanwhile, many front-line employees—disproportionately women and people of color—faced surveillance, low wages, and impossible sales quotas. Here the intersections of race, gender, and class were not incidental but central to the business model. The company extracted labor from marginalized workers while selling an educational dream to marginalized students, creating a cycle of exploitation at both ends of the pipeline.

Financialization extended these dynamics. Lenders like Sallie Mae and Navient, and servicers like Maximus, turned students into streams of revenue, with Student Loan Asset-Backed Securities (SLABS) trading debt obligations on Wall Street. Universities, including Purdue Global and University of Arizona Global, rebranded failing for-profits as “public” ventures, but their revenue-driven practices remained intact. These arrangements consistently offloaded risk onto working-class students, especially women and students of color, while enriching executives and investors.

The Gilder Effect, then, is not just about technology or efficiency. It is about reshaping higher education into a site of extraction, where the burdens of debt and labor fall hardest on those already disadvantaged by patriarchy, classism, and racism. Intersectionality reveals what the industry’s boosters obscure: EdTech has not democratized education but has deepened inequality. The failure of 2U and the persistence of predatory for-profit models are not accidents—they are the logical outcome of an ideological project rooted in conservative economics and systemic oppression.

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Sources

• EdSurge. “What a New Strategy at 2U Means for the Future of Online Higher Education.” August 5, 2022. https://www.edsurge.com/news/2022-08-05-what-a-new-strategy-at-2u-means-for-the-future-of-online-higher-education

• Newswire. “2U Faces Lawsuit for Pregnancy Discrimination.” June 2015. https://www.newswire.com/news/2u-faces-lawsuit-for-pregnancy-discrimination

• Christensen, Clayton M. and Michael B. Horn. Disrupting Class. McGraw-Hill, 2008.

• McMillan Cottom, Tressie. Lower Ed: The Troubling Rise of For-Profit Colleges in the New Economy. The New Press, 2017.

• Cellini, Stephanie Riegg. “For-Profit Higher Education: An Assessment of Costs and Benefits.” National Bureau of Economic Research, 2012.

• Rosenthal, Elisabeth. An American Sickness. Penguin, 2017.

From Philosophy to Sophistry: Why Critical Thinking Matters More Than Ever

Today, we are witnessing a troubling inversion in thought: philosophy—the love of wisdom—is increasingly being displaced by sophistry, rhetoric, and propaganda. What once served as tools for deeper understanding are now too often harnessed to manipulate opinion, defend entrenched power, and obscure reality.

The ancients recognized this danger. Socrates warned against the sophists who sold clever arguments as if they were wisdom itself, teaching young men how to win debates regardless of truth. Plato cautioned that rhetoric untethered from philosophy could become nothing more than flattery and deception. Aristotle, while systematizing rhetoric, insisted it must remain tied to logic and ethics if it was to serve the public good.

But today, these warnings are largely ignored. Rhetoric, unmoored from philosophical foundations, has become a weapon of politics, commerce, and even academia. Universities that once defended philosophy departments as central to a liberal education now shrink or eliminate them, replacing courses in logic and ethics with training in “communications,” “branding,” or “leadership.” The point is no longer truth, but persuasion—often persuasion in service of profit or political expediency.

Propaganda in Higher Education: Then and Now

The problem is not new. During the Cold War, elite universities like Harvard and Stanford became entangled in government propaganda and intelligence work. Research contracts from the Department of Defense and the CIA shaped entire fields, from area studies to behavioral psychology, with the aim of waging ideological war against communism. At Stanford, the Hoover Institution served as a pipeline between academia and Washington, producing research tailored to reinforce Cold War orthodoxy. Students were often unaware that their “objective” curricula were saturated with political agendas.

Corporate influence has also long steered academic knowledge. At the University of Chicago and Harvard Business School, neoliberal economics became dominant not because it was the most rigorous or humane, but because it was well-funded and aligned with Wall Street interests. Entire generations of business leaders were trained to see deregulation, privatization, and financialization as common sense. Meanwhile, corporations like ExxonMobil and Philip Morris poured millions into universities to shape research downplaying the harms of fossil fuels and tobacco—turning respected labs into propaganda mills under the guise of scientific inquiry.

In the for-profit sector, the University of Phoenix and Kaplan University demonstrated how higher education could be weaponized into pure marketing. Phoenix perfected the art of recruiting vulnerable students with glossy advertising campaigns while leaving many graduates with crushing debt and worthless credentials. Sophistry was not the byproduct of the system; it was the business model.

The Debt Machine as Propaganda

The rise of mass student debt in the U.S. is perhaps the clearest example of sophistry in action. For decades, policymakers, banks, and university leaders insisted that loans were an “investment” in the future. Billions of dollars in advertising, recruitment pitches, and presidential speeches told working-class families that debt was the price of opportunity, mobility, and the American Dream.

The rhetoric was powerful—but it was also false. Instead of producing universal prosperity, student loans created a new form of indenture, locking tens of millions of Americans into decades of repayment. Behind every slogan of “access” and “opportunity” was a reality of wage garnishment, ruined credit, and even Social Security checks seized from retirees.

Universities—public, private, and for-profit alike—benefited from this propaganda system. Administrators justified tuition hikes by pointing to the availability of federal loans, while politicians masked austerity and disinvestment by praising the “resilience” of students who borrowed. Sophistry covered over what philosophy might have revealed: that a system built on lifelong debt was neither just nor sustainable.

Contemporary Battles

Today, propaganda saturates every corner of higher education. Corporate partnerships with edtech firms like 2U, Coursera, and Pearson promise “innovation” while shifting costs and risks onto students and contingent faculty. DEI initiatives, while sometimes earnest, are often reduced to branding campaigns that distract from rising tuition, underfunded support services, and administrative bloat. On the other side, anti-DEI crusades, most visibly in Florida under Governor Ron DeSantis, have transformed universities like the University of Florida and New College into battlegrounds where rhetoric substitutes for governance.

Even the managerial language of “student success,” “excellence,” and “resilience” functions as propaganda. At Arizona State University, marketed as the “New American University,” branding and performance metrics often obscure deep reliance on adjunct labor and the struggles of students who leave with debt but no degree.

Why Critical Thinking Matters

In this environment, the ability to distinguish reason from sophistry is not just an academic exercise—it is essential for democratic survival. Critical thinking, logical reasoning, and ethical reflection must not be treated as luxuries reserved for philosophy majors. They are skills every student—and every citizen—requires to navigate a world saturated with propaganda.

If education has any remaining claim to a higher purpose, it is this: to cultivate minds capable of questioning, analyzing, and resisting manipulation. A society that abandons philosophy leaves itself at the mercy of those who wield rhetoric without conscience. But one that revives philosophy as a living practice of inquiry and critique can resist the slide into sophistry and reclaim some measure of truth, justice, and freedom.

The future of higher education, and perhaps democracy itself, depends on whether we choose philosophy or propaganda. The stakes could not be clearer.

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Sources

– Christopher Simpson, Universities and Empire: Money and Politics in the Social Sciences during the Cold War (1999)
– Noam Chomsky & Edward Herman, Manufacturing Consent: The Political Economy of the Mass Media (1988)
– Derek Bok, Universities in the Marketplace: The Commercialization of Higher Education (2003)
– David Graeber, Bullshit Jobs: A Theory (2018)
– Michael Hudson, The Destiny of Civilization (2022)
– Maurizio Lazzarato, The Making of the Indebted Man (2012)
– William Deresiewicz, Excellent Sheep: The Miseducation of the American Elite (2014)
– Tressie McMillan Cottom, Lower Ed: The Troubling Rise of For-Profit Colleges in the New Economy (2017)

The Dirty World of Billionaire Leon Black and Jeffrey Epstein: Profits Over People

Leon Black, the billionaire co-founder and former chief executive officer of Apollo Global Management, maintained a financial relationship with convicted sex offender Jeffrey Epstein that lasted for years and ultimately contributed to Black’s resignation from the firm. Why should HEI be covering this old story?  Because the theme, of profits over people, is a major theme in the dirty world of business that permeates US higher education. 

Profits Over People

Apollo Global Management, the firm Black co-founded, is one of the world’s largest alternative asset managers, with hundreds of billions of dollars in assets under management across private equity, credit, and real estate. In 2016, Apollo, along with the Vistria Group and Najafi Companies, acquired Apollo Education Group, the parent company of the University of Phoenix, for over $1.1 billion. The University of Phoenix remains under the control of these owners and continues to operate as a for-profit institution.

Critics of private equity and venture capital in education argue that such firms are driven by short-term profitability rather than long-term institutional quality. This can lead to aggressive marketing, high tuition, cuts to faculty and staff, and diminished student outcomes. In the case of Apollo Global Management’s ownership of the University of Phoenix, concerns have persisted about the potential for cost-cutting and profit-maximizing strategies to undermine the educational mission. For-profit colleges owned by large investment firms have been accused in the past of prioritizing shareholder returns over student success, adding another layer to the public scrutiny of both Apollo and the institutions it controls.

Ties Between Leon Black and Jeffrey Epstein

Between 2012 and 2017, Black paid Jeffrey Epstein approximately $158 million for what he described as financial advice, including tax and estate planning services. A March 2025 report from the Senate Finance Committee revealed that the total amount transferred to Epstein was closer to $170 million, about $12 million more than previously disclosed. In 2023, Black agreed to pay $62.5 million to the U.S. Virgin Islands to settle claims that some of his payments to Epstein were used to support Epstein’s illicit operations. Black has said publicly that his association with Epstein was a “horrible mistake” and has emphasized that had he known more about Epstein’s criminal activities, he would have cut ties sooner.

Although Black has described his relationship with Jeffrey Epstein as limited, records show that Epstein became one of the original trustees of the Leon Black Family Foundation in 1997. Black also contributed a handwritten poem to a 2003 “50th birthday book” for Epstein, an item that included greetings from other prominent figures. In January 2021, following an independent review by the law firm Dechert LLP that detailed the payments to Epstein, Black announced that he would step down as CEO of Apollo Global Management.

Black has faced several legal challenges connected to allegations of sexual misconduct, many of which reference Epstein. In 2023, “Jane Doe” filed a lawsuit claiming she was assaulted by Black at Epstein’s Manhattan townhouse; in April 2025, her lawyers sought to withdraw from the case. In another case, accuser Cheri Pierson alleged rape but withdrew her lawsuit in early 2024. A separate suit filed by Guzel Ganieva, which accused Black of abuse and coercion involving Epstein, was dismissed in 2023. Black has consistently denied any wrongdoing.

Sources
Business Insider
The Daily Beast
ABC News
Wikipedia – Leon Black
Wikipedia – Apollo Global Management
EdSurge
Republic Report

EANGUS: Nonprofit Shill for University of Phoenix

The Enlisted Association of the National Guard of the United States (EANGUS), which claims to advocate for enlisted National Guard members, has long presented itself as a supporter of military families and career advancement. However, its ongoing partnership with for-profit institutions like the University of Phoenix raises serious questions about whose interests the organization truly serves.

On August 13, the University of Phoenix announced the winners of the 2025 EANGUS Future Phoenix Scholarship, which awards full tuition for bachelor’s or master’s programs to current enlisted National Guard servicemembers and their immediate family members. The winners—Nitasa Freund, Isabella Hunsicker, and John Wellington—were celebrated in press materials that emphasized the school’s commitment to veteran students.

University of Phoenix framed the scholarships as a way to “empower our members to turn their service-driven experience into academic achievement,” while EANGUS Executive Director John Gipe described the partnership as helping military members “step forward not just for the individual, but for the communities they continue to serve.”

But the reality behind these programs is far less altruistic. University of Phoenix, owned by the for-profit Apollo Global Management, has a long history of predatory recruitment practices targeting military and veteran populations. The school has faced multiple federal investigations and lawsuits over deceptive marketing, inflated job placement claims, and aggressive enrollment tactics that funnel servicemembers into costly, high-debt programs.

EANGUS’s role in promoting scholarships to the University of Phoenix illustrates how military associations can be co-opted by for-profit educational interests. By lending credibility and direct access to servicemembers, EANGUS effectively functions as a shill, steering military personnel and their families toward programs that often prioritize corporate profit over educational quality or genuine career outcomes.

Scholarship recipients’ stories, highlighted in University of Phoenix press materials, are framed as evidence of success. Nitasa Freund, a National Guard Staff Sergeant, is pursuing a master’s in criminal justice; John Wellington, a 101st Signal Battalion Company First Sergeant, is returning to higher education after decades of service; and Isabella Hunsicker is studying psychology. These narratives, while compelling, mask the broader systemic risks associated with enrolling in high-cost for-profit programs that may saddle veterans with unmanageable debt.

For an organization that claims to represent the interests of enlisted service members, EANGUS’s alignment with a for-profit education juggernaut raises ethical concerns. Military families seeking higher education deserve advocacy that prioritizes transparency, quality, and long-term outcomes—not promotion of institutions with a documented history of exploiting the very population they claim to serve.

As for-profit colleges continue to target veterans and military families, it is incumbent on military associations, watchdogs, and policymakers to scrutinize partnerships that appear charitable on the surface but may perpetuate financial harm behind the scenes. EANGUS’s ongoing collaboration with University of Phoenix is a stark reminder that even well-intentioned organizations can become complicit in corporate profiteering when oversight and accountability are lacking.

Sources:

• University of Phoenix Press Release, August 13, 2025

• EANGUS Official Website

• Apollo Global Management, University of Phoenix corporate information

• Government Accountability Office and Department of Education reports on for-profit colleges

The Serenity Prayer, Climate Collapse, and Genocide: A Deal with the Devil

"God, grant me the serenity to accept the things I cannot change,
Courage to change the things I can,
And wisdom to know the difference."

The Serenity Prayer has comforted millions. In times of personal struggle, it can be a powerful call to surrender what lies beyond one’s control. But in moments of global crisis, when powerful institutions profit from destruction, the prayer can function less as a path to peace and more as a pact of passivity—a deal with the devil.

This danger becomes stark in the face of two intertwined realities: planetary climate collapse and the mass suffering of human populations through war and genocide. While glaciers melt and firestorms raze entire regions, and while families in Gaza are buried beneath rubble from precision airstrikes, too many well-meaning individuals offer only whispered prayers for acceptance. The language of “serenity” has become a spiritual sedative, numbing people to action in the face of unprecedented violence.

The horror in Gaza is not isolated. It is the latest chapter in a long history of calculated brutality. For more than nine months, Israeli forces have carried out one of the most intensive bombing campaigns of the century, reducing schools, hospitals, and apartment blocks to ash. Palestinians—already confined, stateless, and starving—are told to disappear quietly. And in the United States, many of the most powerful evangelical Christian institutions offer not protest, but prayer. They do not condemn the bombs. They bless them.

This theology of inaction extends to the climate crisis as well. Fires in Canada have darkened skies from New York to Kentucky. Rising seas threaten to erase Pacific island nations and entire Gulf communities. Extreme heat has shattered records from Delhi to Phoenix. The science is clear, and has been for decades. The cause is clear: the burning of fossil fuels for profit. And yet, rather than confront the systems responsible, many Americans—especially in religious communities—retreat into familiar verses, trusting in divine will while oil executives thank them for their silence.

This pattern is old. During the genocide of Native Americans, Christian settlers invoked scripture to justify massacres. Indigenous nations were labeled “heathens” standing in the way of Manifest Destiny. Boarding schools were built to “kill the Indian, save the man.” Entire civilizations were wiped out in the name of order, law, and even God. Churches, rather than stand with the oppressed, often operated hand-in-hand with empire. They prayed not for justice, but for tranquility—after the land had been stolen and the people erased.

In the twentieth century, many Christian leaders remained silent during the Holocaust. In the Rwandan genocide, clergy sometimes aided the killers. Again and again, the lesson is clear: serenity without resistance is complicity.

And today, we see this same quiet complicity in American Christian higher education. At Liberty University—a billion-dollar religious empire—the Serenity Prayer might just as well hang above the boardroom. The institution thrives on a mixture of fundamentalist certainty, political power, and economic ambition. Its law school has become a breeding ground for conservative legal warriors who reinterpret justice through dominionist theology. Its Jesse Helms School of Government honors a segregationist legacy while preparing students for ideological battle. Climate science is downplayed. Militarism is sanctified. And genocide—whether in the name of security or salvation—is never named.

In such an environment, prayer becomes performance. It soothes the conscience while injustice metastasizes. It gives believers a moral loophole: if change is deemed impossible, no action is required. But change is not impossible. Resistance is not futile. And silence is not neutral.

We must reclaim the Serenity Prayer from the institutions that have weaponized it. Serenity cannot be the first response to atrocity. Courage must lead, especially when the victims are silenced. Wisdom must include historical memory—of the land theft that built America, of the smoke rising from Gaza, of the forests burning in Siberia and the Sahel. And acceptance must come only after struggle, not before it.

The future will not judge us for how often we prayed, but for what we did while praying. In an age of climate catastrophe and global injustice, serenity without struggle is not peace—it is surrender.

Sources:
Reinhold Niebuhr, The Serenity Prayer and its Contexts, Library of Congress
Roxanne Dunbar-Ortiz, An Indigenous Peoples' History of the United States
United Nations Office for the Coordination of Humanitarian Affairs (OCHA), “Gaza Emergency Reports” (2023–2025)
UN Intergovernmental Panel on Climate Change, Sixth Assessment Report (2023)
Human Rights Watch, “Israel: Apparent War Crimes in Gaza” (2024)
Samantha Power, "A Problem from Hell": America and the Age of Genocide
Naomi Klein, This Changes Everything
Naomi Oreskes & Erik Conway, Merchants of Doubt
Democracy Now!, “Witnessing the Gaza Bombardment”
Center for Environmental Justice, “Climate Apartheid” Report
Higher Education Inquirer, “Liberty University: A Billion-Dollar Edu-Religious Powerhouse Under the Lens” (2025)

"Crooks, Pigs, and Cockroaches": A Raw Exchange on the Resurgence of the For-Profit Grift

It started with a grim but familiar warning from a longtime borrower—someone who’s watched the student loan system implode in slow motion and seen the worst actors escape accountability:

“Well this isn't good.
New accrediting agency for colleges run and operated by for-profit college goons....
I’m sure we will see scammy colleges take off again!”

The warning was in response to recent developments in higher ed accreditation: the rise of a new accreditor with leadership tied to the same for-profit institutions that helped build a trillion-dollar debt crisis. The borrower’s tone was weary, but not surprised.

I responded, because this wasn’t news to me either:

“Thanks. That’s how neoliberalism works. It never ends. So we have to continue fighting until we can’t fight anymore.”

But I didn’t stop there. I wrote what I’ve long felt—what I’ve heard from whistleblowers, from insiders, and from people still bound by NDAs that keep the truth buried:

“Yes, crooks and pigs and cockroaches have been around forever, and they all smell money.
Even people who claim to be on our side are not really on our side. That’s why so little good happens.
I have an NDA so I can't tell you everything.

Like so many others who’ve tried to expose the rot, I’ve spoken with whistleblowers across multiple campuses. I’ve seen clear cases of fraud swept under the rug.

“Should have buried the University of Phoenix with this one,” I wrote, referencing an investigation into schools using fake enrollment paperwork to defraud taxpayers.
“And someone should have taken this story,” I added, pointing to our own work at The Higher Education Inquirer:
What the Pentagon Doesn’t Want You to See: For-Profit Colleges in the Military-Industrial-Education Complex.
“More than 30 years of grift and eight years of coverups.”

That article, like so many others exposing corruption in higher ed, was met mostly with silence. Whistleblowers risk everything, and still the stories too often disappear into the noise.

I used to have a trusted contact inside the U.S. Department of Education. But that channel dried up when the Trump administration came in and the revolving door between industry and government started spinning even faster.

So where does that leave us?

“What I’d like to see,” I wrote, “is for us to send a mole to work at AidVantage or one of the other student loan servicers.”

It’s not fantasy—it’s necessity. When the system protects grifters, when accreditors are captured, and when servicers lose records, miscalculate forgiveness, and dodge accountability, we need more than hope. We need infiltration. We need whistleblowers. We need truth.

The scam isn’t over. It’s reloading.

And we at The Higher Education Inquirer will keep exposing the crooks, pigs, and cockroaches—until we can’t fight anymore.

Sources:

• The Daily Caller: “Massive College Scams Taxpayers Out Of Student Loans With Fake Enrollment Paperwork, Whistleblowers Say”

• The Higher Education Inquirer: “What the Pentagon Doesn’t Want You to See: For-Profit Colleges in the Military-Industrial-Education Complex”

• Private correspondence with a longtime borrower, July 2025