End of an Era

For now, we have suspended our three decade long run of citizen journalism and will let you know where we go from here.  Two of our other publications, American Injustice and street sociologist are also closed, but remain online for now on Blogger. 

Our Anti-SLAPP lawsuit (Chip Paucek and Pro Athlete Community v Dahn Shaulis) is pending. While the legal bill is enormous, we expect to win. In the meantime, please support independent voices like Richard Wolff, Julie K. Brown, Roger Sollenberger, and Troy Barile. 

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Use the search tools and click on these hashtags for more information from our archives.  

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   Higher Education and Class Sorting. Image by Glen McGhee

On our last full day of operation, we extend our deepest gratitude to the many courageous voices who have contributed to the Higher Education Inquirer over the years. Through research, reporting, whistleblowing, analysis, and public service, you have exposed inequities, challenged powerful interests, and helped the public understand the realities of higher education. Together, you form a resilient network of knowledge, courage, and public service, showing that collective insight can illuminate even the most entrenched systems. Your dedication has been, and continues to be, invaluable.

Special thanks to:
Bryan Alexander (Future Trends Forum), J. J. Anselmi (author), Devarian Baldwin (Trinity College),  Lisa Bannon (Wall Street Journal), Joe Berry (Higher Education Labor United), Kate Bronfenbrenner (Cornell), Stephen Burd (New America), Ann Bowers (Debt Collective), James Michael Brodie (Black and Gold Project Foundation), Patrick Campbell (Vets Ed Brief), Richard Cannon (activist), Kirk Carapezza (WGBH), Kevin L. Clay (Rutgers), Randall Collins (UPenn), Marianne Dissard (activist), Cory Doctorow, William Domhoff (UC Santa Cruz), Ruxandra Dumitriu, Keil Dumsch, Garrett Fitzgerald (College Recon), Glen Ford (with the ancestors), Richard Fossey (Condemned to Debt), Erica Gallagher (2U Whistleblower), Cliff Gibson III (Gibson & Keith), Henry Giroux (McMaster University), Terri Givens (University of British Columbia), Aaron Glantz, Luke Goldstein (The Lever),  Nathan Grawe (Carleton College), Michael Green (UNLV), Michael Hainline (Restore the GI Bill for Veterans), Debra Hale Shelton (Arkansas Times), Stephanie M. Hall (Protect Borrowers),  David Halperin (Republic Report), Bill Harrington (Croatan Institute), Phil Hill (On EdTech), Investor X (business insider), Robert Jensen (UT Austin), Seth Kahn (WCUP), Hank Kalet (Rutgers), Ben Kaufman (Protect Borrowers), Robert Kelchen (University of Tennessee), Karen Kelsky (The Professor Is In), Neil Kraus (UWRF), LACCD Whistleblower, Michelle Lee (whistleblower), Wendy Lynne Lee (Bloomsburg University of PA), Emmanuel Legeard (whistleblower), Adam Looney (University of Utah), Alec MacGillis (ProPublica), Jon Marcus (Hechinger Report), Steven Mintz (University of Texas), John D. Murphy (Mission Forsaken), Annelise Orleck (Dartmouth), Margaret Kimberly (Black Agenda Report), Austin Longhorn (UT student loan debt whistleblower), Richard Pollock (journalist), Debbi Potts (whistleblower), Jack Metzger (Roosevelt University), Derek Newton (The Cheat Sheet), Jeff Pooley (Annenberg Center), Fahmi Quadir (Safkhet Capital), Chris Quintana (USA Today), Jennifer Reed (University of Akron), Kevin Richert (Idaho Education News), Gary Roth (Rutgers-Newark), Mark Salisbury (TuitionFit), Stephanie Saul (NY Times), Christopher Serbagi (Serbagi Law), Alex Shebanow  (Fail State), Bob Shireman (TCF), Bill Skimmyhorn (William & Mary), Peter Simi (Chapman University), Jeffrey Sonnenfeld (Yale), Gary Stocker (College Viability), Strelnikov (Wikipedia Sucks), Taylor Swaak (Chronicle of Higher Education), Theresa Sweet (Sweet v Cardona), Harry Targ (Purdue University), Moe Tkacik (American Prospect),  Kim Tran (activist), Mark Twain Jr. (business insider), Michael Vasquez (The Tributary), Marina Vujnovic (Monmouth), Richard Wolff (Economic Update), David Whitman, Todd Wolfson (Rutgers, AFT), Helena Worthen (Higher Ed Labor United), DW (South American Correspondent), Heidi Weber (Whistleblower Revolution), Michael Yates (Monthly Review), government officials who have supported transparency and accountability, and the countless other educators, researchers, whistleblowers, advocates, and public servants whose work strengthens our understanding of higher education.

Dahn Shaulis and Glen McGhee

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.

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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

Rahm Emanuel at ASU+GSV Summit: Reform Rhetoric and Elite Power Dynamics

The 2026 ASU+GSV Summit’s announcement of Rahm Emanuel as a featured speaker paints a portrait of a seasoned education leader: expanding Pre‑K, lengthening school days, and championing accountability in public schooling. It positions him as a “national voice for bold, outcomes‑driven education reform” with the promise that “ALL students can succeed.” But a closer look at Emanuel’s record and the broader political and economic networks he’s part of reveals a gap between reform rhetoric and the structural realities facing American education.

The summit blurb highlights aspects of Emanuel’s mayoral record—like longer school days and universal Pre‑K—as unequivocal successes. Yet critics note that these reforms came alongside aggressive school closures and policies that often prioritized test scores over community stability and equitable resources for historically underserved neighborhoods. The celebration of “outcomes‑driven” approaches overlooks the real impacts of top‑down accountability regimes on students and educators.

A deeper problem in education policy today isn’t just about individual initiatives, it’s about who shapes the agenda and why. Investigations into elite influence, such as The Pritzker Family Paradox, show how wealthy political families and private capital can steer education systems in ways that benefit investors as much as—if not more than—students. Members of that same elite class move fluidly between public office, philanthropic boards, and private education ventures, blurring lines between public good and private gain.

The concerns about elite influence extend beyond k‑12 reform into higher education. The University of Phoenix—the nation’s largest for-profit university—has faced long-running federal scrutiny that has only intensified questions about the role of private equity and political connections in education. In 2018, the Federal Trade Commission was reported to be investigating the University of Phoenix’s practices more than two years after the institution was taken private (in part) by the Vistria Group, a firm led by a longtime Obama associate. The deal pushed the university out of public markets, reducing transparency even as the FTC pursued inquiries into marketing, recruitment, financial aid, billing practices, and more. This story is more than an isolated headline. It links education policy, political networks, and private equity in ways that should make anyone skeptical of sanitized reform narratives. The University of Phoenix’s federal investigation—set against its massive enrollment and heavy reliance on federal student aid—raises serious questions about how for-profit models and political influence intersect to shape student outcomes and taxpayer exposure to risk.

With Emanuel positioned at the ASU+GSV Summit as a visionary reformer, it’s worth asking what kind of reform is being championed—and for whom. Emanuel’s career path mirrors that of many elite education influencers: from municipal leadership to Washington corridors to national stages, often amplifying narratives that celebrate managerial efficiency and data-driven accountability while underemphasizing power imbalances, market incentives, and community impacts. Putting Emanuel on a summit stage alongside investors and administrators reinforces a reform ecosystem driven by elite networks, where visibility and messaging often outpace substantive change in classrooms or communities that have long been underserved.

Attendees of the summit and observers of national education policy deserve more than polished bios and upbeat messaging. They deserve transparent discussions about who benefits from current education reforms and who loses, critical engagement with the role of private capital and political influence in shaping everything from early education to college financing, and honest reflection on how policy levers affect students, especially those from historically marginalized communities. Platforms like ASU+GSV should widen the lens beyond elite testimonials and market-friendly case studies to include voices that challenge entrenched interests and demand accountability not just in language, but in structural outcomes. Real transformation will not come from repackaging reform as spectacle; it will come from confronting the systems that continue to produce inequity in American education.

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Sources

1. The Pritzker Family Paradox: Elite Power, Philanthropy, and Education Policy. Higher Education Inquirer. July 2025. https://www.highereducationinquirer.org/2025/07/the-pritzker-family-paradox-elite-power.html

2. FTC Investigates University of Phoenix After Sale to Obama-Linked Firm. Daily Caller. July 22, 2018. https://dailycaller.com/2018/07/22/obama-university-phoenix-probe/

3. ASU+GSV Summit 2026: Rahm Emanuel Speaker Announcement. https://www.asugsvsummit.com

The Pritzker Paradox: Elite Influence and For‑Profit Exploitation in Higher Education

As the 2028 presidential race accelerates, J.B. Pritzker has emerged as a favored candidate among Democratic power brokers. His public image—competent, pragmatic, socially liberal, and reliably anti-Trump—has been carefully shaped to appeal to voters exhausted by polarization and chaos. But beneath this polished surface lies a deep and troubling contradiction that the public, and especially those affected by the student-debt crisis, cannot afford to ignore. This contradiction, the Pritzker Paradox, stems from the profound dissonance between Pritzker’s public rhetoric about educational opportunity and the private capital networks that have fueled both his family’s wealth and his political ascent.

The Pritzker family has long been intertwined with for-profit higher education and its surrounding ecosystem of lenders, service providers, and private-equity investors. These sectors have collectively played a major role in producing the contemporary student-debt crisis. While J.B. Pritzker often presents himself as a champion of equity, public investment, and educational access, his family’s financial history reveals an alignment with institutions that have extracted billions from low-income students, veterans, and Black and Latino communities through high-cost, low-value educational programs.

This is not simply a matter of past investments. It is part of an ongoing and highly influential political economy in which wealthy Democratic donors, private-equity executives, and education “reformers” operate as a unified class. Central to that class formation is The Vistria Group, a Chicago-based private-equity firm founded by Marty Nesbitt, a close friend of Barack Obama. Vistria stands at the intersection of Democratic power and education profiteering. After the collapse of scandal-ridden chains like Corinthian Colleges and ITT Tech, Vistria did not step in to dismantle the exploitative for-profit model. Instead, it strategically acquired distressed educational assets and reconstructed them into a new generation of institutions that presented themselves as “nonprofits” while maintaining tuition-driven, debt-laden business models. Former Obama administration officials moved seamlessly into Vistria and related firms, raising serious questions about regulatory capture and revolving-door governance.

Pritzker moves within this same Chicago-centered network. His political donors, associates, and advisers overlap significantly with the circles that built Vistria’s ascent. The structural relationships matter more than any single investment. A Pritzker administration would not exist outside this ecosystem; it would be shaped by it. The question, therefore, is not whether Pritzker personally signed a for-profit acquisition deal but whether the political world that produced him can be trusted to regulate higher education fairly and aggressively. The answer, based on the last twenty years of policy and practice, is no.

This is especially troubling because presidents play a decisive role in higher-education oversight. Through the Department of Education, a president can strengthen or weaken borrower protections, set standards for nonprofit conversions, determine enforcement priorities, and decide whether private-equity extraction will be challenged or quietly accommodated. Millions of borrowers harmed by predatory institutions are currently awaiting relief through borrower defense, income-driven repayment audits, and Gainful Employment rules. The integrity of these processes depends on political leadership that is independent from the private-equity interests that helped create the crisis.

Pritzker’s political style—managerial, technocratic, deeply rooted in elite networks—suggests continuity rather than challenge. The neoliberal framework he embodies does not confront structural inequalities; it manages them. It does not dismantle extractive systems; it attempts to regulate their excesses while leaving their core intact. In higher education, this approach has already failed. It is the reason the for-profit sector was allowed to expand dramatically under both Republican and Democratic administrations. It is why private-equity firms continue to control large segments of the educational marketplace through complex ownership structures and shadow nonprofits. And it is why millions of borrowers remain trapped in debts for degrees that offered little or no economic return.

The Pritzker Paradox is therefore not a story about one wealthy governor. It is a story about the consolidation of political and economic power within a narrow elite that has profited handsomely from the financialization of education while promising, cycle after cycle, to reform the very problems it helped create. Vistria exemplifies this dynamic. The Pritzker family’s history echoes it. And a Pritzker presidency would likely entrench it further.

America needs leadership willing to challenge private-equity influence in higher education, not leadership bound to it. The country needs a president who understands education as a public good, not a marketplace. For borrowers, students, and communities harmed by decades of predatory practices, the stakes could not be higher. The choice before the nation is not simply whether Pritzker is preferable to Trump. It is whether the country will continue to entrust its public institutions to elites who speak the language of equity while advancing the interests of the very networks that undermined educational opportunity in the first place.

Sources
Public reporting on Pritzker family investments in for-profit and education-related sectors; investigations by the Senate HELP Committee, GAO, and CFPB; reporting on The Vistria Group’s acquisitions and nonprofit conversions; analyses of private-equity influence in U.S. higher education; academic literature on neoliberalism and elite capture.

University of Phoenix, Oracle, and the Russian Cybercrime Crisis That Should Never Have Been Allowed to Happen

The University of Phoenix breach is more than another entry in the long list of attacks on higher education. It is the clearest evidence yet of how private equity, aging enterprise software, and institutional neglect have converged to create a catastrophic cybersecurity landscape across American colleges and universities. What happened in the summer of 2025 was not an unavoidable act of foreign aggression. It was the culmination of years of cost-cutting, inadequate oversight, and a misplaced faith in legacy vendors that no longer control their own risks.

The story begins with the Russian-speaking Clop cyber-extortion group, one of the most sophisticated data-theft organizations operating today. In early August, Clop quietly began exploiting a previously unknown vulnerability in Oracle’s E-Business Suite, a platform widely used for payroll, procurement, student employment, vendor relations, and financial aid administration. Oracle’s EBS system, decades old and deeply embedded across higher education, was never designed for modern threat environments. As soon as Clop identified the flaw—later assigned CVE-2025-61882—the group launched a coordinated campaign that compromised dozens of major institutions before Oracle even acknowledged the problem.

Among the most heavily affected institutions was the University of Phoenix. Attackers gained access to administrative systems and exfiltrated highly sensitive data: names, Social Security numbers, bank accounts, routing numbers, vendor records, and financial-aid related information belonging to students, faculty, staff, and contractors. The breach took place in August, but Phoenix did not disclose the incident until November 21, and only after Clop publicly listed the university on its extortion site. Even after forced disclosure, Phoenix offered only vague assurances about “unauthorized access” and refused to provide concrete numbers or a full accounting of what had been stolen.

Phoenix was not alone. Harvard University confirmed that Clop had stolen more than a terabyte of data from its Oracle systems. Dartmouth College acknowledged that personal and financial information for more than a thousand individuals had been accessed, though the total is almost certainly much higher. At the University of Pennsylvania, administrators said only that unauthorized access had occurred, declining to detail the scale. What links these incidents is not prestige, geography, or mission. It is dependency on Oracle’s aging administrative software and a sector-wide failure to adapt to a threat environment dominated by globally coordinated cybercrime operations.

But Phoenix stands apart from its peers because Phoenix, Apollo Global Management, and The Vistria Group should have known better. This institution has long operated at a scale more comparable to a financial-services company than a school. It handles vast volumes of sensitive data connected to federal student aid, identity verification, private loans, tuition reimbursement programs, and employer partnerships. A university with this profile should have been treating cybersecurity as a core institutional function, not an afterthought.

Apollo Global Management, which owned Phoenix during a period of enrollment decline and regulatory exposure, was fully aware of the vulnerabilities associated with online enrollment, financial-aid processing, and aging ERP infrastructure. Apollo’s business model is built on risk analysis and mitigation, yet it consistently underinvested in sustainable IT modernization while focusing on financial engineering and cost extraction. Phoenix emerged from Apollo’s ownership with significant technical debt and a compliance culture centered on limiting institutional liability rather than strengthening institutional defenses.

When The Vistria Group, through Phoenix Education Partners, acquired the university, it promised a new era of stability and digital transformation. Instead, it delivered a familiar private-equity formula: leaner operations, staff reductions, increased reliance on contractors, and deferred infrastructure investment. All of this occurred as ransomware groups such as Clop, LockBit, BlackCat, and Vice Society were escalating attacks on universities. The MOVEit crisis, the Accellion breach, and dozens of ransomware incidents had already demonstrated that higher education was an increasingly profitable target. Vistria had every signal necessary to understand the stakes, yet Phoenix entered the summer of 2025 with outdated Oracle systems, slow patch deployment, inadequate monitoring, and minimal segmentation between financial-aid and general administrative systems.

The breach was not a surprise. It was an inevitability. A university holding the sensitive financial and identity data of hundreds of thousands of current and former students, staff, and vendors cannot protect itself with minimal investment and outdated architecture. When Clop exploited Oracle’s flaw, Phoenix lacked the tools to detect lateral movement early, the expertise to identify unusual activity quickly, and the governance structure to respond decisively. The institution did not discover the breach on its own; it reacted only when a criminal syndicate announced its presence to the world.

This incident exposes a broader truth about higher education infrastructure in the United States. Universities have grown dependent on enterprise vendors whose systems are increasingly brittle and whose security models no longer meet contemporary requirements. Meanwhile, private-equity owners emphasize cost containment and short-term returns over long-term stability. The University of Phoenix breach is the result of those conditions converging with a global cybercrime ecosystem that is more organized, better funded, and more technically agile than the institutions it targets.

Students, faculty, staff, and vendors will bear the consequences for years. Many will face identity theft, fraudulent activity, and the lingering fear that their most sensitive information is circulating indefinitely on criminal marketplaces. Phoenix, like other affected institutions, will offer credit monitoring and generic assurances. But the public disclosures arrived too late, and the underlying failures were years in the making.

Phoenix should have known better.
Apollo Global Management should have known better.
The Vistria Group should have known better.
And American higher education should finally recognize that it can no longer treat cybersecurity as a line-item expense. It is now one of the central pillars of institutional survival.

Sources
Bleeping Computer
Security Affairs
The Register
CPO Magazine
The Record
University of Phoenix breach notifications
Clop leak site monitoring data

Same Predators, New Logo: PXED — A $22 Billion Student‑Debt Gamble Investors Should Beware

Warning to Investors: Phoenix Education Partners (PXED) may present itself as a cutting‑edge solution in career-focused higher education, but it’s built on the same extractive infrastructure that powered the University of Phoenix. With nearly a million students still owing an estimated $22 billion in federal loans, backing PXED isn’t just a financial bet — it’s a moral and reputational risk.

PXED’s leadership includes powerful private-equity players: Martin H. Nesbitt (Co‑CEO of Vistria, PXED trustee, and friend of Barak Obama), Adnan Nisar (Vistria), and Theodore Kwon and Itai Wallach (Apollo Global Management). Also in the mix is Chris Lynne, PXED’s president and a former Phoenix CFO intimately familiar with UOP’s controversial enrollment and marketing strategies. These are not educational reformers — they are dealmakers aiming to extract value from a student-debt pipeline.

[Image: Power Player Marty Nesbitt]

Higher Education Inquirer’s College Meltdown Index highlights how PXED fits into a broader financialization of higher education. Rather than reforming the University of Phoenix, its backers have resurrected it under a new brand — one that continues to enroll vulnerable adult learners, harvest federal aid, and operate with considerably less public oversight. 

Whistleblowers previously documented that Phoenix pressured recruitment staff to falsify student credentials, enrolling people who wouldn’t otherwise qualify for federal aid. Courses were allegedly kept deliberately easy — not to teach, but to keep students “active” enough to trigger aid disbursements. Internal marketing also exaggerated job prospects and corporate partnerships (e.g., with Microsoft and AT&T) to entice students. 

PXED may lean on a three‑year default rate (often cited around 12–13%), but that number is deeply misleading. Many UOP students stay stuck in deferment, forbearance, or income-driven repayment, masking the real long-term risk of non-payment. This is not just a short-term liability — it’s a potentially massive, multiyear financial exposure for PXED’s backers.

There was a significant FTC settlement that canceled $141 million in student debt and refunded $50 million to some students. But the scale of harm far exceeds that payout. Untold numbers of borrowers still have unresolved Borrower Defense claims, and the reputational risk remains profound.

Beyond financial concerns, there’s a major ethical dimension. HEI’s Divestment from Predatory Education argument makes a compelling case that investing in companies like PXED — or in loan servicers that profit from student debt — is not just risky, but morally indefensible. According to HEI, institutional investors (including university endowments, pension funds, and foundations) are complicit in a system that monetizes students’ aspirations and perpetuates financial harm. 

For investors, the message is clear: Phoenix is not merely an education play — it’s a high-stakes, ethically fraught extraction machine built on a legacy of indebtedness and regulatory vulnerability.

Unless PXED commits to real transparency, independent reporting on student outcomes, and accountability mechanisms — including reparations or debt relief — it should be approached not as a social-growth story, but as a dangerous gamble.

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Sources

• HEI. “Divestment from Predatory Education Stocks: A Moral Imperative.” Higher Education Inquirer

• HEI. “The College Meltdown Index: Profiting from the Wreckage of American Higher Education.” Higher Education Inquirer

• HEI. “What Do the University of Phoenix and Risepoint Have in Common? The Answer Is a Compelling Story of Greed and Politics.” Higher Education Inquirer

• HEI. “University of Phoenix Uses ‘Sandwich Moms’ to Sell a Debt Trap.” Higher Education Inquirer

• HEI. “New Data Show Nearly a Million University of Phoenix Debtors Owe $21.6 Billion.” Higher Education

The College Meltdown Index: Profiting from the Wreckage of American Higher Education

“Education, once defended as a public good, now functions as a vehicle for private gain.”

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From Collapse to Contagion

The College Meltdown never truly ended—it evolved.

After a decade of spectacular for-profit implosions, the higher education sector has reconstituted itself around new instruments of profit: debt servicing, edtech speculation, and corporate “partnerships” that disguise privatization as innovation.

The College Meltdown Index—tracking a mix of education providers, servicers, and learning platforms—reveals a sector in quiet decay.

Legacy for-profits like National American University (NAUH) and Aspen Group (ASPU) trade at penny-stock levels, while Lincoln Educational (LINC) and Perdoceo (PRDO) stumble through cost-cutting cycles.

Even the supposed disruptors—Chegg (CHGG), Udemy (UDMY), and Coursera (COUR)—are faltering as user growth plateaus and AI reshapes their value proposition.

Meanwhile, SoFi (SOFI), Sallie Mae (SLM), and Maximus (MMS) thrive—not through learning, but through the management of debt.

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The Meltdown Graveyard

Below lies a sampling of the education sector’s ghost tickers—the silent casualties of a system that turned public trust into private loss.

Symbol	Institution	Status	Approx. Closure/Delisting
CLAS.U	Class Technologies	Defunct	2024
INST	Instructure (pre-acquisition)	Acquired by Thoma Bravo	2020
TWOUQ	2U, Inc.	Bankrupt	2025
CPLA	Capella University	Merged with Strayer (Strategic Ed.)	2018
ESI-OLD	ITT Technical Institute	Defunct	2016
EDMC	Education Management Corporation	Defunct	2018
COCO-OLD	Corinthian Colleges	Defunct	2015
APOL	Apollo Education Group (U. of Phoenix)	Taken Private	2017

Each ticker represents not only a failed business model—but a generation of indebted students.

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The Phoenix That Shouldn’t Have Risen

No institution better symbolizes this moral decay than the University of Phoenix and Phoenix Education Partners (PXED).

At its height, Phoenix enrolled nearly half a million students. By 2017, following federal investigations and mass defaults, Apollo Education Group—its parent company—collapsed under scrutiny.

But rather than disappearing, Phoenix was quietly resurrected through a private equity buyout led by Apollo Global Management, Vistria Group, and Najafi Companies.

Freed from public oversight, the university continued to enroll vulnerable adult learners, harvesting federal aid while shedding accountability.

In 2023, the University of Idaho’s proposed acquisition of Phoenix provoked national outrage, forcing state officials to confront a basic question: Should a public university absorb a for-profit brand built on exploitation?

The deal collapsed—but the temptation to monetize Phoenix’s infrastructure remains. In 2025, a small portion became publicly traded.  Its call centers and online systems remain models of enrollment efficiency, designed to extract just enough engagement to secure tuition payments.

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From Education to Extraction

The sector’s transformation reveals a deeper moral hazard.

If students succeed, investors profit.
If students fail, federal subsidies and servicer contracts ensure the money keeps flowing.

Executives face no downside. Shareholders are protected. The losses fall on students and taxpayers.

In this sense, the “meltdown” is not a market failure—it’s a market design.

“The winners are those who most efficiently extract value from hope.”

Public universities increasingly partner with private Online Program Managers (OPMs), leasing their brands to companies that control marketing, pricing, and student data. The once-clear line between public and for-profit education has blurred beyond recognition.

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The Quiet Winners of Collapse

A few companies continue to prosper by aligning with “practical” or “mission-safe” sectors:

• Adtalem (ATGE) in nursing and health education,

• Grand Canyon Education (LOPE) in faith-branded online degrees,

• Bright Horizons (BFAM) in corporate childcare and workforce training.

Yet all remain heavily dependent on public dollars and tax incentives. The state subsidizes their existence; the market collects the rewards.

Meanwhile, 2U’s bankruptcy leaves elite universities scrambling to explain how a publicly traded OPM, once championed as the future of online learning, could disintegrate overnight—taking with it a network of high-priced “nonprofit” certificate programs.

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A Reckoning Deferred

The College Meltdown Index exposes a system that has internalized its own failures.
Fraud has been replaced by financial engineering, transparency by outsourcing, and accountability by spin.

The real collapse is not in the market—but in moral logic. Education, once the cornerstone of social mobility, has become a speculative instrument traded between hedge funds and holding companies.

Until policymakers—and universities themselves—confront the ethics of profit in higher education, the meltdown will persist, slowly consuming what remains of the public good.

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“The real question is not whether the system will collapse, but who will rebuild it—and for whom.”

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Sources:

• Higher Education Inquirer, College Meltdown 2.0 Index (Nov. 2025)

• SEC Filings (2010–2025)

• U.S. Department of Education, Heightened Cash Monitoring Reports

• An American Sickness – Elisabeth Rosenthal

• The Goosestep – Upton Sinclair

• Medical Apartheid – Harriet A. Washington

• Body and Soul – Alondra Nelson

• The Immortal Life of Henrietta Lacks – Rebecca Skloot

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 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

The Pritzker Family Paradox: Elite Power, Higher Education, and Political Ambition

          [JB and Penny Pritzker] 

The Pritzker family stands as a symbol of wealth, influence, and access in American public life. From the luxury of Hyatt Hotels to the boardrooms of private equity and the highest ranks of government, their reach extends across economic sectors and institutional spheres. But beneath the carefully managed public image lies a troubling contradiction—one that implicates higher education, for-profit exploitation, and national politics.

Penny Pritzger

Penny Pritzker, a former U.S. Secretary of Commerce and current trustee of Harvard University, has been a key figure in shaping education policy from elite perches. She also had a working relationship with Vistria Group, a private equity firm that now owns the University of Phoenix and Risepoint. These two entities have been central to the subprime college industry—profiting from the hopes of working-class students while delivering poor outcomes and burdensome debt.

Pritzker’s relationship with Vistria runs deeper than simple association. In the late 1990s, she partnered with Vistria co-founder Marty Nesbitt to launch The Parking Spot, a national airport parking venture that brought them both business success and public recognition. When Nesbitt founded Vistria in 2013, he brought with him the experience and elite networks formed during that earlier partnership. Penny Pritzker’s family foundation—Pritzker Traubert—was among the early funders of Vistria, helping to establish its brand as a more “socially conscious” private equity firm. Although she stepped away from any formal role when she joined the Obama administration, her involvement in Vistria’s formation and funding set the stage for the firm’s expansion into sectors like for-profit education and healthcare.

Vistria’s acquisition of the University of Phoenix, and later Risepoint, positioned it as a major player in the privatization of American higher education. The firm continues to profit from schools that promise economic mobility but often deliver student debt and limited job prospects. This is not just a critique of business practices, but a systemic indictment of how elite networks shape education policy, finance, and outcomes.

Penny’s role as a trustee on the Harvard Corporation only sharpens this contradiction. Harvard, a university that markets itself as a global champion of meritocracy and inclusion, remains silent about one of its trustees helping to finance and support a firm that monetizes educational inequality. The governing body has not publicly addressed any potential conflict of interest between her Harvard role and her involvement with Vistria.

JB Pritzger

These contradictions are not limited to Penny. Her brother, J.B. Pritzker, is currently the governor of Illinois and one of the wealthiest elected officials in the country. Though he has no documented personal financial stake in Vistria, his administration has significant ties to the firm. Jesse Ruiz, J.B. Pritzker’s Deputy Governor for Education during his first term, left state government in 2022 to take a top leadership position at Vistria as General Counsel and Chief Compliance Officer.

This revolving-door dynamic—where a senior education policymaker transitions directly from a progressive administration to a private equity firm profiting from for-profit colleges—underscores the ideological alignment and operational synergy between the Pritzker political machine and firms like Vistria. While the governor publicly champions equity and expanded public education access, his administration’s former top education official is now helping manage legal and compliance operations for a firm that extracts value from struggling students and public loan programs.

J.B. Pritzker has announced plans to run for a third term as governor in 2026, but many observers believe he is positioning himself for a 2028 presidential campaign. His high-profile public appearances, pointed critiques of Donald Trump, and increased visibility in early primary states all suggest a national campaign is being tested. With his vast personal wealth, Pritzker could self-fund a serious run while drawing on elite networks built over decades—networks that include both his sister’s role at Harvard and their shared business and political allies.

Elites in US Higher Education, A Familiar Theme 

What emerges is a deeply American story—one in which the same elite networks shape both the problems and the proposed solutions. The Pritzkers are not alone in this dynamic, but their dual influence in higher education and politics makes them a case study in elite capture. They are architects and beneficiaries of a system in which public office, private equity, and nonprofit institutions converge to consolidate power.

The for-profit education sector continues to exploit regulatory gaps, marketing expensive credentials to desperate individuals while avoiding the scrutiny that traditional nonprofit colleges face. When private equity firms like Vistria acquire troubled institutions, they repackage them, restructure their branding, and keep extracting value from public loan dollars. The government lends, students borrow, and investors profit. The people left behind are those without political clout—low-income students, veterans, working parents—who believed the marketing and now face debt with little return.

Harvard’s silence, University of Phoenix’s reinvention, the rebranding of Academic Partnerships/Risepoint, and J.B. Pritzker’s ambitions all signal a troubling direction for American democracy. As more billionaires enter politics and public institutions become more dependent on private capital, the line between public service and private gain continues to erode.

The Higher Education Inquirer believes this moment demands not only scrutiny, but structural change. Until elite universities hold their trustees accountable, until political candidates reject the influence of exploitative industries, and until the public reclaims its voice in higher education policy, the Pritzker paradox will continue to define the American experience—where access to opportunity is sold to the highest bidder, and democracy is reshaped by those who can afford to buy it.

Sources
– U.S. Department of Education College Scorecard
– University of Phoenix outcome data (IPEDS, 2024)
– Harvard University governance and trustee records
– Vistria Group investor reports and public filings
– Wall Street Journal, “America’s Second-Richest Elected Official Is Acting Like He Wants to Be President” (2025)
– Associated Press, “Governor J.B. Pritzker positions himself as national Democratic leader” (2025)
– Vistria.com, “Marty Nesbitt on his friendship with Obama and what he learned from the Pritzkers”
– Politico, “Former Obama Insiders Seek Administration’s Blessing of For-Profit College Takeover” (2016)
– Vistria Group announcement, “Jesse Ruiz Joins Vistria as General Counsel and CCO” (2022)