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Monday, January 5, 2026

The Educated Underclass Without Borders

Gary Roth’s The Educated Underclass describes a growing population of college-educated people who, despite credentials and effort, are increasingly locked out of stable, dignified work. While Roth’s analysis focuses primarily on the United States, the framework extends naturally—and urgently—to international students educated in the U.S. and to the global labor markets they enter after graduation. When immigration regimes, artificial intelligence, and comparative higher education systems are considered together, the educated underclass emerges not as a national failure, but as a transnational condition produced by modern higher education itself.

U.S. colleges and universities aggressively recruit international students, presenting the American degree as a global passport to opportunity. These students pay higher tuition, subsidize institutional budgets, and enhance global prestige. What is far less visible is that access to the U.S. labor market after graduation is narrow, temporary, and increasingly unstable. Programs such as Optional Practical Training and the H-1B visa tie legal status to continuous employment, transforming graduates into a compliant workforce with little leverage. Job loss does not merely mean unemployment; it can mean removal from the country.

Indian students in STEM fields illustrate this dynamic clearly. Drawn by promises of innovation and demand, they enter graduate programs in computer science, engineering, and data analytics, only to find themselves funneled into a lottery-based visa system dominated by outsourcing firms and consulting intermediaries. Visa dependency suppresses wages, discourages job mobility, and creates a workforce that is educated but structurally insecure. Roth’s educated underclass is visible here, but intensified by deportability.

Artificial intelligence compounds this precarity. Entry-level technical and analytical roles—software testing, junior programming, data cleaning, research assistance—are increasingly automated or augmented. These were precisely the jobs that once absorbed international graduates. AI-driven labor contraction now collides with rigid visa timelines, turning technological displacement into enforced exit. Immigration policy quietly performs the work of labor market triage.

Chinese students in business, economics, and the social sciences encounter a different version of the same trap. U.S. employers are often reluctant to sponsor visas outside STEM, while Chinese labor markets are saturated with domestically educated elites. Meanwhile, geopolitical tensions—intensified during the Trump administration—have normalized suspicion toward Chinese students and scholars, particularly in research-adjacent fields. The American degree, once a clear marker of distinction, increasingly yields managerial precarity, contract work, or prolonged dependence on family support.

China’s own higher education system complicates this picture. Massive state investment has expanded elite universities and research capacity, producing millions of highly credentialed graduates each year. Yet employment growth has not kept pace. Underemployment among Chinese graduates has become routine, and returnees from U.S. programs often find that their foreign credentials no longer guarantee elite status. In both systems, education expands faster than secure work, producing surplus aspiration and managed disappointment.

Canada is often presented as a counterexample to U.S. hostility toward international students, but its outcomes reveal similar structural dynamics. Canadian universities rely heavily on international tuition, while immigration pathways—though more predictable—still channel graduates into precarious labor markets. Many international students end up in low-wage service or contract work unrelated to their degrees while awaiting permanent residency. At the same time, domestic Canadian graduates face rising competition for limited professional roles, particularly in urban centers. The result is not inclusion, but stratified precarity distributed across citizenship lines.

These global dynamics have domestic consequences that are rarely acknowledged honestly. International students and foreign graduates are increasingly perceived as occupying educational and professional positions that might otherwise go to people whose families have lived in the United States for generations. In elite universities, graduate programs, and competitive labor pipelines, institutions often prefer international applicants who pay full tuition, arrive pre-trained by global inequality, and are more willing to accept insecure work.

For historically rooted communities—Black Americans, Indigenous peoples, and long-established working-class families—the resentment is especially acute. After centuries of exclusion from education and professional employment, they are told that opportunity is scarce and must now be globally competitive. The contradiction is profound: a nation that never fully delivered educational justice at home markets opportunity abroad while declaring it unattainable domestically.

Trump-era immigration policies exploited this tension by framing foreign students and workers as threats rather than as participants in a system designed by elites. Travel bans, visa restrictions, attacks on OPT, and open hostility toward immigrants transformed structural failure into cultural conflict. Yet the animosity did not originate with Trump. It reflects decades of policy choices that expanded higher education without expanding secure employment, substituted global labor arbitrage for domestic investment, and left working- and middle-class Americans to absorb the losses.

Universities play a central role in sustaining this arrangement. They function as global sorting machines, extracting tuition from abroad, conferring credentials with declining labor-market value, and disclaiming responsibility for outcomes shaped by immigration law and AI-driven contraction. Career services rarely confront these realities directly. Transparency would threaten enrollment pipelines, so silence prevails.

In Roth’s terms, this enlarges the educated underclass while fracturing it internally. Domestic and foreign graduates are pitted against one another for shrinking footholds, even as both experience debt, insecurity, and diminishing returns on education. The conflict is horizontal, while power remains vertical.

The educated underclass is no longer emerging. It is already global, credentialed, indebted, and increasingly unnecessary to the systems that trained it. Until institutions, employers, and governments in the U.S., Canada, China, and beyond are held accountable for the scarcity they engineer, higher education will continue to function not as a ladder to mobility, but as a mechanism for managing inequality across borders.


Sources

Gary Roth, The Educated Underclass
Harriet A. Washington, Medical Apartheid
Elisabeth Rosenthal, An American Sickness
OECD, Education at a Glance
U.S. Citizenship and Immigration Services, OPT and H-1B program materials
National Foundation for American Policy, reports on H-1B labor markets
Georgetown University Center on Education and the Workforce, credential inflation studies
International Labour Organization, global youth and graduate employment reports
China Ministry of Education, graduate employment statistics
Statistics Canada, international students and labor market outcomes
David Graeber, Bullshit Jobs
Richard Wolff, writings on global labor surplus and credentialism

Sunday, January 4, 2026

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

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

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

Permanent War and the Moral Abdication of Leadership

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

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

Climate Collapse and the Silence of Those Who Know Better

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

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

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

The Suppression of Student Protest and the Fear of Moral Clarity

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

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

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

Mass Surveillance and the Bureaucratization of Fear

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

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

Inequality and the Insulation of Elites from Consequence

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

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

Social Media, AI, and the Automation of Moral Evasion

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

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

The Crisis Beneath the Crisis

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

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

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

Toward Moral Courage and Rehumanization

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

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

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

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

$8 Billion in Liberty University Debt: Engaging a Faith-Driven Constituency

More than 290,000 Liberty University borrowers owe over $8 billion in federal student loans, yet most remain politically disengaged. Many are veterans or enrolled in accelerated master’s programs often criticized as “robocolleges.” What sets this population apart is not just the size of their debt, but their faith and social conservatism—a demographic frequently overlooked by traditional student debt advocacy.


For unions and nonprofit organizations committed to civic engagement and economic justice, this represents a unique opportunity: mobilize borrowers in ways that align with their values, rather than against them. Messaging that highlights fairness, personal responsibility, and stewardship—core Christian principles—can resonate deeply while framing student debt as a challenge to both economic and moral accountability.

These borrowers are approaching peak voting age, meaning that engagement now could influence local and national politics in the coming election cycles. Institutions like the University of Phoenix show the scale of the opportunity: over one million borrowers owe more than $21 billion nationwide, suggesting that faith-aligned organizing strategies could have broad impact.

The strategy is clear: educate borrowers about their rights, expose predatory practices, and organize them into civic action, all while respecting their values and beliefs. Done thoughtfully, this approach can build trust and spur meaningful participation in democracy, turning a population long overlooked into an informed, motivated constituency.

The coming years will test whether unions and nonprofits seize this moment. Hundreds of thousands of conservative, Christian borrowers could become a powerful force for accountability and change—but only if engagement is value-driven, strategic, and timely.


Sources:

Higher Education Inquirer Resources, Spring 2026

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

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











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

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Thursday, January 1, 2026

College Meltdown 2026 (Glen McGhee)

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

The Waning of College Mania

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

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

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

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

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

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


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

White-Collar Unemployment and the Broken Value Proposition

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

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

Demographic Collapse and Institutional Failures

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

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

Student Debt, Inequality, and Loss of Legitimacy

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

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

The Road Ahead: Contraction, Consolidation, and Possibility

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

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

  • substantial public reinvestment,

  • free or low-cost pathways for essential programs,

  • accountability for predatory institutions,

  • democratized governance, and

  • a commitment to racial and economic justice.

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

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

Saturday, December 27, 2025

Bari Weiss, UATX, and the Corporate Rewriting of “Free Speech”

Bari Weiss has built a powerful public identity as a defender of free speech against institutional conformity. From elite universities to legacy newsrooms, she presents herself as a principled dissenter confronting ideological capture. Yet her expanding influence across higher education and corporate media suggests something deeper than individual controversy. It reveals how elite institutions are increasingly repackaging control, consolidation, and risk management as rebellion.

Weiss’s involvement in the University of Austin and her editorial authority at CBS News illustrate how the language of free inquiry has been absorbed into a broader project of institutional realignment rather than democratization.

The University of Austin was launched in 2021 as a highly publicized response to what its founders described as illiberal conditions in American higher education. Weiss, as a co-founder and public face of the project, helped frame UATX as a refuge for intellectual risk-taking and heterodox thought. Yet the institution was not built from the margins of academia. It emerged through the backing of wealthy donors, venture capitalists, tech executives, and high-profile media figures who already occupy powerful positions within American public life.

UATX’s critique of higher education centers almost entirely on cultural politics, presenting universities as hostile to dissent while leaving largely untouched the material structures that govern academic freedom. The casualization of academic labor, the erosion of tenure, donor influence over research agendas, student debt as a disciplinary force, and retaliation against labor organizers and whistleblowers rarely figure into the narrative. In this way, UATX offers not a systemic challenge to elite education but an exit strategy for those with the resources to opt out of public accountability.

The same logic appears in Weiss’s role within legacy media. In late 2025, CBS News pulled a completed investigative segment from 60 Minutes examining the Trump administration’s deportation of Venezuelan migrants to a notoriously brutal prison in El Salvador. The segment had reportedly passed legal and editorial review. The decision to shelve it, attributed to a demand for additional on-the-record administration comment, sparked internal outrage. Veteran journalists described the move as political interference rather than standard editorial caution, with some staff reportedly threatening to resign.

The episode carried a deep irony. One of the most prominent self-described defenders of free speech now presided over the suppression of investigative journalism within one of the country’s most storied news programs. Whether temporary or permanent, the delay signaled a shift in institutional priorities, where political sensitivity and corporate risk appeared to outweigh journalistic autonomy.

This controversy unfolded amid broader upheaval at CBS News. Longtime anchors departed the CBS Evening News in emotional farewells as management reshuffled talent and redefined the network’s public posture. Inside the newsroom, morale reportedly declined as staff faced uncertainty about editorial direction, layoffs, and ideological repositioning. Weiss reportedly questioned journalists about public perceptions of bias, reinforcing a top-down effort to rebrand the organization rather than engage in collective editorial deliberation.

These developments cannot be separated from the corporate transformation of CBS’s parent company. Paramount Global has undergone a sweeping restructuring shaped by its merger with Skydance Media, led by David Ellison, the son of Oracle founder Larry Ellison. Under this new ownership structure, CBS News has been encouraged to restore “balance” and credibility, language that often accompanies efforts to reduce investigative risk and align journalism more closely with corporate and political interests.

At the same time, Paramount’s deal-making has intersected with elite political networks. Jared Kushner’s private equity firm was involved in related media acquisition efforts before withdrawing, highlighting the increasingly blurred lines between media ownership, political influence, and capital consolidation. In this environment, editorial independence is not abolished outright but carefully managed, constrained by the priorities of ownership and the sensitivities of power.

What connects UATX and CBS News under Weiss’s influence is not ideology so much as structure. In both cases, authority flows upward while dissent is curated. Free inquiry is framed as a moral value but detached from democratic governance, labor protections, or accountability to those most vulnerable to institutional retaliation. Meanwhile, individuals and groups who experience genuine silencing in academia and media—adjunct faculty, student activists, labor organizers, whistleblowers, and critics of militarism or donor power—remain largely absent from this version of the free speech debate.

This pattern is familiar within higher education. When institutions face crises of legitimacy, elites rarely pursue democratization. Instead, they create alternatives that preserve control under new branding: private institutes, donor-led centers, honors colleges, and parallel universities. Legacy media has followed a similar path, repackaging dissent while narrowing the scope of accountability.

Bari Weiss is not an anomaly within this landscape. She is emblematic of it. Her influence reflects how “free speech” has become an aesthetic rather than a structural commitment, invoked loudly while practiced selectively.

The danger is not that Weiss holds strong opinions. It is that her framework for free speech travels so easily across institutions precisely because it leaves their economic and power relations intact. The University of Austin does not confront the forces hollowing out higher education. CBS News, under corporate consolidation, risks muting the investigative journalism that once defined it. In both cases, freedom becomes a branding strategy rather than a democratic practice.

For those concerned with truly independent journalism and genuinely democratic education, the lesson is clear. Speech is never just about speech. It is about ownership, power, and who bears the consequences when truth becomes inconvenient.

Wednesday, December 24, 2025

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

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


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


The OPM Machine and Private Equity Consolidation

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

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

Hyper-Deregulation and the Dismantling of ED

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

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

Servicers, Contractors, and Tech Platforms Feeding on Borrowers

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

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

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

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

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

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

Robocolleges, Robostudents, Roboworkers: The AI Cascade

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

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

FAFSA Meltdowns, Fraud, and Academic Cheating

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

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

Advertising and the Manufacture of “College Mania”

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

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

A Media Coverage Vacuum

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

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

The Emerging Picture

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

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

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


Sources (Selection)

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

Tuesday, December 23, 2025

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

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

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

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

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

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

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

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

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


Sources