Search This Blog

Showing posts sorted by relevance for query 2U. Sort by date Show all posts
Showing posts sorted by relevance for query 2U. Sort by date Show all posts

Saturday, June 25, 2022

HEI Investigation: Academic Partnerships

In 2022, Online Program Managers (OPMs) are being scrutinized like their predecessors, for-profit colleges, in the early 2000s.  2U, one of the leaders in the industry, has been particularly singled out as a predatory company, working with elite schools like the University of Southern California, and selling their overpriced master's degrees.  

Before that, Kaplan Higher Education and Kaplan Higher Education gained attention for selling off their for-profit schools but maintaining the management services for Purdue University Global and University of Arizona Global.  

In this media attention on OPMs, a few companies have been able to avoid much scrutiny, with Academic Partnerships flying below the national media radar for years.  

Academic Partnerships (AP) is a mature online program manager that claims to serve more than 50 universities, most regional state universities.  The Higher Education Inquirer could only find about half that number. AP also claims to "help universities grow"--without providing much evidence.  In some cases, these lesser brand schools have been facing decreasing enrollment and revenues-- and it's not apparent how much AP can help them in the long run.  

What we do know is that the OPM receives about half of all the revenues for their work, which includes cheaper privatized marketing, advertising--and recruitment services from enrollment specialists spread across the US. 

AP's sales pitch is that they can transform their partner universities and help provide reasonably priced degrees in lucrative career fields (such as RN to BSN programs), but is this happening with all the online degree programs offered? And would some consumers be better off choosing a local community college? 


AP's partner universities include: 

Arkansas State University
Avila University
Boise State University
Carleton University
Eastern Michigan University
Eastern Washington University
Emporia State University
Florida International University
Louisiana State University Shreveport
Norfolk State University
Northern Kentucky University
Pittsburg State University
Radford University
St. Cloud State University
Southern Illinois University
Southern Oregon University
Southeastern Oklahoma State University
Texas A&M (International University)
University of Illinois Springfield
University of Maine at Presque Isle
University of North Carolina Pembroke
University of Texas at Arlington
University of West Florida
William Paterson University
Youngstown State University

If you teach or study online at one of these AP university partners, what have you observed?  

  • Do instructors maintain the rights to the content they have created?  
  • What are the online classes like compared to face-to-face courses?  
  • What are graduation rates for these online students compared to on campus students?
  • How much debt do former online students have compared to on campus students?  
  • What kind of jobs are former online students getting compared to on campus students? 
  • Are former online students able to pay off these debts?  

 

Related link: "The Private Side of Public Universities: Third-party providers and platform capitalism"

Related link: HEI Investigation: EducationDynamics

Related link: 2U Virus Expands College Meltdown to Elite Universities

Related link: Purdue University and Its Subprime College Cousin Committing Fraud 

Related link: Online Program Manager for University of Arizona Global Campus Facing Financial Collapse 

 

 

Thursday, March 16, 2023

Borrower Defense Claims Surpass 750,000. Consumers Empowered. Subprime Colleges and Programs Threatened.

The Higher Education Inquirer has posted a number of articles about student loan debt. In 2023, the student loan mess has reached epic proportions. Not only has the US Federal Student Aid debt portfolio reached more than $1.6 Trillion, we learned that $674 Billion was estimated to be unrecoverable. 

In California, the US District Court in Sweet v Cardona agreed to a $6 Billion settlement between student debtors and the US Department of Education. 

In Texas, a group representing for-profit colleges has sued the US Department of Education for their actions in settling Borrower Defense claims. 

And across the US, about 40 million student debtors and their families are awaiting a decision from the US Supreme Court—a decision that will not likely favor the debtors.

Borrower Defense, Subprime Colleges, Subprime Programs

Borrower Defense to Repayment claims are claims by student loan debtors that their school misled them or engaged in other misconduct in violation of certain state laws. The Department of Education may discharge all or some of the student loan debt and hold the school and its owners responsible. 

As of January 2023, there are more than three quarters of a million Borrower Defense claims against schools. And each month, about 16,000 new claims are added.  Evidence from the Sweet v Cardona case revealed that only about 35 workers were responsible for processing hundreds of thousands of claims. Those claims have been disproportionately made against a number of for-profit colleges and formerly for-profit colleges, what we call “subprime colleges.”   

Some of these subprime schools have closed (Everest College, ITT Tech, and Westwood College for example), some remain in business as for-profit colleges (like University of Phoenix and Colorado Tech), some have changed names and become covert for-profit colleges or robocolleges (like Purdue University Global, University of Arizona Global Campus, and the Art Institutes), and some schools act act like subprime colleges regardless of tax status. This includes low-return on investment programs at several US robocolleges and overly expensive graduate programs offered by 2U, an online program manager for elite colleges.  

In the Sweet v Cardona case, more than 200,000 student borrowers are expecting to receive full debt relief after years of struggling.  A Facebook group Borrower Defense-Sweet vs. Cardona currently has more than 14,000 members. 


Named plaintiffs Theresa Sweet (L) and Alicia Davis (R) outside the federal district court in San Francisco on November 6, 2022, three days before the final approval hearing in Sweet v Cardona (Image credit: Ashley Pizzuti)

Transparency and Accountability 

The US Department of Education keeps an accounting of Borrower Defense claims, but only publishes the aggregate numbers, not institutional numbers. Those institutional numbers do make a difference in promoting transparency and accountability for the largest bad actors. So why does the Department of Education not publish those institutional numbers?
 
The National Student Legal Defense Network submitted a FOIA (22-01683F) to the US Department of Education (ED) in January 2022 asking just for that information. And what HEI has discovered is that just a small number of schools garnered the lion's share of the Borrower Defense claims. To get a digital copy of that information, please email us for a free download.

Related links:

Borrower Defense-Sweet vs Cardona (Facebook private group)  

Project on Predatory Student Lending

Sweet v. Cardona Victory (Matter of Life and Debt podcast)

I Went on Strike to Cancel My Student Debt and Won. Every Debtor Deserves the Same. (Ann Bowers)

An Email of Concern to the People of Arkansas about the University of Phoenix (Tarah Gramza)


The Growth of "RoboColleges" and "Robostudents"


Tuesday, February 26, 2019

The Layoff.com: Observations of College Meltdown in Real Time (Updated September 29, 2024)

The Layoff.com is a "simple discussion board" for workers who would like to learn more about the rumors or possibility of job cuts in their organization. It's also been helpful for us to understand what has been happening behind the scenes in the US Higher Education business. 
 
We have been observing and participating on this website for more than a dozen years, watching the fall of Corinthian Colleges (Everest College, Wyotech, and Heald), ITT Tech, Education Management Corporation (the Art Institutes and South University), the partial collapse of Apollo Group (University of Phoenix), Perdoceo (formerly Career Education Corporation), and Laureate International, and the transformation of Kaplan University to Purdue University Global and Bridgepoint Education (Ashford University) to University of Arizona Global.   

As the College Meltdown has advanced, we have also observed a number of private schools collapse and public colleges and universities struggle. As enrollments continue to drop, we can expect more layoffs to occur and for education related businesses to struggle more.  
 
The contents of this article are updated periodically, to illustrate trends in the College Meltdown.  The most recent update was published September 29, 2024.  2U, the online program manager for elite university certificates has been the poster child in 2024, but there are many other companies and institutions in peril.  

 
 
 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 

 

Tuesday, November 11, 2025

Divestment from Predatory Education Stocks: A Moral Imperative

Calls for divestment from exploitative industries have long been part of movements for social and economic justice—whether opposing apartheid, fossil fuels, or private prisons. Today, another sector demands moral scrutiny: the network of for-profit education corporations and student loan servicers that have turned higher learning into a site of mass indebtedness and despair. From predatory colleges to the companies that profit from collecting on student debt, the system functions as a pipeline of extraction. For those who believe education should serve the public good, the issue is not merely financial—it is moral.

The Human Cost of Predatory Education

For decades, for-profit college chains such as Corinthian Colleges, ITT Tech, the University of Phoenix, DeVry, and Capella targeted low-income students, veterans, single parents, and people of color with high-pressure marketing and promises of career advancement. These institutions, funded primarily through federal student aid, often charged premium tuition for substandard programs that left graduates worse off than when they began.

When Corinthian and ITT Tech collapsed, they left hundreds of thousands of students with worthless credits and mountains of debt. But the collapse did not end the exploitation—it simply shifted it. The business model has re-emerged in online form through education technology and “online program management” (OPM) firms such as 2U, Coursera, and Academic Partnerships. These firms, in partnership with elite universities like Harvard, Yale, and USC, replicate the same dynamics of inflated costs, opaque contracts, and limited accountability.

The Servicing of Debt as a Business Model

Beyond the schools themselves, student loan servicers and collectors—Maximus, Sallie Mae, and Navient among them—have built immense profits from managing and pursuing student debt. Sallie Mae, once a government-sponsored enterprise, was privatized in the 2000s and evolved into a powerful lender and loan securitizer. Navient, its spinoff, became notorious for deceptive practices and aggressive collections that trapped borrowers in cycles of delinquency.

Maximus, a major federal contractor, now services defaulted student loans on behalf of the U.S. Department of Education. These companies profit directly from the misery of borrowers—many of whom are victims of predatory schools or structural inequality. Their incentive is not to liberate students from debt, but to sustain and expand it.

The Role of Institutional Investors

The complicity of institutional investors cannot be ignored. Pension funds, endowments, and major asset managers have consistently financed both for-profit colleges and loan servicers, even after repeated scandals and lawsuits. Public sector pension funds—ironically funded by educators—have held stock in Navient, Maximus, and large for-profit college operators. Endowments that pride themselves on ethical or ESG investing have too often overlooked education profiteering.

Investment firms like BlackRock, Vanguard, and State Street collectively hold billions of dollars in these companies, stabilizing an industry that thrives on the financial vulnerability of students. To profit from predatory education is to participate, however indirectly, in the commodification of aspiration.

Divestment as a Moral and Educational Act

Divesting from predatory education companies and loan servicers is not just an act of conscience—it is an educational statement in itself. It affirms that learning should be a vehicle for liberation, not a mechanism of debt servitude. When universities, pension boards, and faith-based investors divest from corporations like Maximus, Navient, and 2U, they are reclaiming education’s moral purpose.

The divestment movement offers a broader civic lesson: that profit and progress are not synonymous, and that investment must align with justice. Faith communities, student debt activists, and labor unions have made similar stands before—against apartheid, tobacco, and fossil fuels. The same principle applies here. An enterprise that depends on deception, coercion, and financial harm has no place in a socially responsible portfolio.

A Call to Action

Transparency is essential. Pension boards, university endowments, and foundations must disclose their holdings in for-profit education and student loan servicing companies. Independent investigations should assess the human consequences of these investments, particularly their disproportionate impact on women, veterans, and people of color.

The next step is moral divestment. Educational institutions, public pension systems, and religious organizations should commit to withdrawing investments from predatory education stocks and debt servicers. Funds should be redirected to debt relief, community college programs, and initiatives that restore trust in education as a public good.

The corporate education complex—spanning recruitment, instruction, lending, and collection—has monetized both hope and hardship. The time has come to sever public and institutional complicity in this cycle. Education should empower, not impoverish. Divestment is not merely symbolic—it is a declaration of values, a demand for accountability, and a reaffirmation of education’s original promise: to serve humanity rather than exploit it.


Sources:

  • U.S. Department of Education, Borrower Defense to Repayment Reports

  • Senate HELP Committee, For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success (2012)

  • Consumer Financial Protection Bureau (CFPB) enforcement actions against Navient and Sallie Mae

  • The Century Foundation, Online Program Managers and the Public Interest

  • Student Borrower Protection Center, Profiting from Pain: The Financialization of the Student Debt Crisis

  • Higher Education Inquirer archives

Sunday, September 29, 2024

Layoffs in Higher Education

The Layoff.com is a "simple discussion board" for workers who would like to learn more about the rumors or possibility of job cuts in their organization. It's also been helpful for us to understand what has been happening behind the scenes in the US Higher Education business. 

We have been observing and participating on this website for more than a dozen years, watching the fall of Corinthian Colleges (Everest College, Wyotech, and Heald), ITT Tech, Education Management Corporation (the Art Institutes and South University), the partial collapse of Apollo Group (University of Phoenix), Perdoceo (formerly Career Education Corporation), and Laureate International, and the transformation of Kaplan University to Purdue University Global and Bridgepoint Education (Ashford University) to University of Arizona Global.   
 
 
 
As the College Meltdown has advanced, we have also observed a number of private schools collapse and public colleges and universities struggle. As enrollments continue to drop, we can expect more layoffs to occur and for education related businesses to struggle more.  
 
The contents of this article are updated periodically, to illustrate trends in the College Meltdown.  The most recent update was published October 29, 2024.  2U, the online program manager for elite university certificates has been the poster child in 2024, but there are many other companies and institutions in peril.  

 
 
 
 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 

 
Wittenberg University 

Thursday, December 4, 2025

Hyper-Deregulation and the College Meltdown

In March 2025, Studio Enterprise—the online program manager behind South University—published an article titled “A New Era for Higher Education: Embracing Deregulation Amid the DOE’s Transformation.” Written in anticipation of a shifting political landscape, the article framed coming deregulation as an “opportunity” for flexibility and innovation. Studio Enterprise CEO Bryan Newman presented the moment as a chance for institutions and their contractors to do more with fewer federal constraints, implying that regulatory retreat would improve student choice and institutional agility.

What was framed as a strategic easing of oversight has instead arrived as a form of collapse. By late 2025, the U.S. Department of Education has become, in functional terms, a zombie agency—still existing on paper, but stripped of its capacity to regulate, enforce, or even communicate. Consumer protection, accreditation monitoring, program review, financial oversight, and FOIA responses have slowed or stopped entirely. The agency is walking, but no longer awake.

This vacuum has emboldened not only online program managers like Studio Enterprise and giants like 2U, but also a wide array of entities that rely on federal inaction to profit from students. The University of Phoenix—long emblematic of regulatory cat-and-mouse games in the for-profit sector—now faces minimal scrutiny, continuing to recruit aggressively while the federal watchdog sleeps. Elite universities contracting with 2U continue to launch expensive online degrees and certificates whose marketing and outcomes would once have been examined more closely.

Student loan servicers and private lenders have also moved quickly to capitalize on the chaos. Companies like Aidvantage (Maximus), Nelnet, and MOHELA now operate in an environment where enforcement actions, compliance reviews, and borrower complaint investigations have slowed to a near standstill. Servicers once accused of steering borrowers into costly forbearances or mishandling IDR accounts now face fewer barriers and far less public oversight. The dismantling of the Department has also disrupted the small channels borrowers once had for correcting servicing errors or disputing inaccurate records.

Private lenders—including Sallie Mae, Navient, and a growing constellation of fintech-style student loan companies—have seized the opportunity to expand high-interest refinance and private loan products. Without active federal oversight, marketing claims, credit evaluation practices, and default-related consequences have become increasingly opaque. Borrowers with limited financial literacy or unstable incomes are again being targeted with products that resemble the subprime boom of the early 2010s, but with even fewer regulatory guardrails.

Hyper-deregulation has also destabilized the federal loan system itself. Processing backlogs have grown. Borrower defense and closed-school discharge petitions sit in limbo. Decisions are delayed, reversed, or ignored. Automated notices go out while human review has hollowed out entirely. Students struggling with servicer errors find there is no functioning authority to appeal to—not even the already stretched ombudsman’s office, which is now overwhelmed and under-directed.

Across the sector, the same pattern is visible: institutions and corporations functioning without meaningful oversight. OPMs determine academic structures that universities should control. Lead generators push deceptive marketing campaigns with impunity. Universities desperate for enrollment sign long-term revenue-sharing deals without public transparency. Servicers mismanage accounts and communications while borrowers bear the consequences. Private lenders accelerate their expansion into communities least able to withstand financial harm.

Students feel the effect first and most painfully. They face rising costs, misleading claims, aggressive recruitment, and a federal loan system that can no longer assure accuracy or fairness. The collapse of oversight is not theoretical. It manifests in missed payments, lost paperwork, incorrect balances, unresolved appeals, and ballooning debt. For many, there is now no reliable path to recourse.

Studio Enterprise saw deregulation coming. What it left unsaid is that removing federal guardrails does not produce innovation. It produces confusion, predation, and unequal power. Hyper-deregulation rewards those who operate in the shadows—OPMs, for-profit chains, high-fee servicers, and private lenders—while those seeking education and mobility carry the burden.

This moment is not an evolution. It is an abandonment. Higher education is drifting into an environment where profit extraction flourishes while public protection evaporates. Unless new sources of oversight emerge—federal, state, journalistic, or civic—the most vulnerable students will continue to pay the highest price for the disappearance of the referee.


Sources

Studio Enterprise, A New Era for Higher Education: Embracing Deregulation Amid the DOE’s Transformation (March 2025).
HEI archives on OPMs, for-profit colleges, and regulatory capture (2010–2025).
Public reporting and advocacy analyses on student loan servicers, including Navient, MOHELA, Nelnet, Aidvantage/Maximus, and Sallie Mae (2015–2025).
FOIA request logs, non-responses, and stalled borrower relief cases documented by HEI and partner organizations (2024–2025).
Federal higher education enforcement trends, 2023–2025.

Sunday, February 20, 2022

College Meltdown 2.0

College Meltdown 2.0 is distinctly different than the College Meltdown that started in 2010. 

The first wave of the College Meltdown (2010-2021) resulted in a slow and steady drop in overall US college enrollment, with dramatic losses among for-profit colleges and community colleges. Corinthian Colleges, ITT Educational Services, and Education Management Corporation were three large for-profit chains to close. Small private liberal arts schools and regional universities also experienced losses.  More folks were moving into the growing educated underclass.  


Elements of College Meltdown 2.0 include publicly held corporations.  Click on the image to see the chart (Source: Seeking Alpha) 

College Meltdown 2.0 comes as the Coronavirus becomes more manageable.  However US fascism continues to advance, student loan debt is slowly approaching $2 trillion, and the 2026 enrollment cliff is just a few years away.  This new wave includes remnants of for-profit colleges like National American University, Stratford University, South University, the Art InstitutesUniversity of Phoenix (owned by Apollo Global Management), Career Education Corporation (aka Perdoceo), and DeVry University (owned by Cogswell Education) as well as national accreditor ACICS. 

The largest element of College Meltdown 2.0 is federal student loan debt, which appears to be rising to an unsustainable level--as it hamstrings the lives of millions of families.  When mandatory student loan payments resume (scheduled for May 1), long-term default rates may range from 30 and 50 percent.  It also appears that at least $500 billion of the Federal Student Aid (FSA) student loan portfolio will be unrecoverable.  

College Meltdown 2.0 also involves online program managers (OPMs) that service elite schools (2U), regional universities (Academic Partnerships), and subprime robocolleges (Zovio-University of Arizona Global and Graham Holdings-Kaplan-Purdue University Global). 

Student loan servicers and private student loan companies (MaximusNavient, Sallie Mae, Nelnet), publishers and other edtech enterprises (EducationDynamics, Chegg, Barnes & Noble Education, Coursera, and Guild Education) are implicated or at least entangled in the mess.  Higher education accreditors and student loan asset-backed securities (SLABS) are also worth monitoring.  

Related link: 2U Virus Expands College Meltdown to Elite Universities






Thursday, November 13, 2025

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.”


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.


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.

SymbolInstitutionStatusApprox. Closure/Delisting
CLAS.UClass TechnologiesDefunct2024
INSTInstructure (pre-acquisition)Acquired by Thoma Bravo2020
TWOUQ2U, Inc.Bankrupt2025
CPLACapella UniversityMerged with Strayer (Strategic Ed.)2018
ESI-OLDITT Technical InstituteDefunct2016
EDMCEducation Management CorporationDefunct2018
COCO-OLDCorinthian CollegesDefunct2015
APOLApollo Education Group (U. of Phoenix)Taken Private2017

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


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.


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.


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.


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.


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


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

Thursday, July 1, 2021

The Growth of "RoboColleges" and "Robostudents"


In a previous Higher Education Inquirer article, I presented frightening full-time faculty numbers at some large online universities which I call "robocolleges."  Full-time faculty at these robocolleges, in fact, are nearly nonexistent. Bear in mind that all of them are regionally accredited, the highest level of institutional accreditation, and the list includes well-known public university systems as well as for-profit ones.  

Robocolleges have de-skilled instruction by paying teams of workers, some qualified and some not, to write content, while computer programs perform instructional and management tasks. Learning management systems with automated instruction programs are known by different names and their mechanisms are proprietary.  As professor jobs are deskilled, tasks can be farmed out at reduced costs.  

Besides the human content creators who may be given instructional titles, other staff members at robocolleges are paid to communicate with students regarding their progress. The assumption is that managing work this way significantly reduces costs, and it does, at least in the short and medium terms.  However, instructional costs are frequently replaced by marketing and advertising expenses to pitch the schools to prospective students and their families.  Companies like EducationDynamics and Guild Education have filled the niche of promoting robocolleges to workers at a reduced cost but their overall impact is minimal.  

Meanwhile,  companies like Chegg profit from this form of learning, helping students game the system in greater numbers, in essence creating robostudents.  

The business model in higher education for reducing labor power and faculty costs is not reserved to for-profit colleges.  Community colleges also rely on a small number of full-time faculty and armies of low-wage contingent labor.  

In some cases, colleges and universities, including many brand name schools, utilize outside companies, online program managers (OPMs), to run their online programs, with OPMs like 2U taking up as much as 60 percent of the revenues.  OPMs can perform a variety of jobs, but are best known for their work in enrollment and retention.  Prospective students may believe they are talking to representatives of a particular university when in fact they are talking to someone from an outside source.  Noodle has disrupted the OPM model by selling their services ala carte, but only time will tell whether it has an impact, or whether schools will merely find less costly outsourced servicers.  

Outsourcing higher education has been a reality in US higher education for decades. And automation is also part of education, as it should, when it performs menial tasks, such as taking roll and doing preliminary work to determine student cheating.  It's likely that more schools will become more robotic in nature to reduce organizational expenses.  But what are the long-term consequences with long-term student outcomes, when automation is used to perform higher level tasks, and when outsourced individuals act in the name of brand name colleges?  

To get a small glimpse of this robocollege phenomenon, these schools cumulatively have about 3000 full-time instructors for more than a half-million students.  

American Intercontinental University: 51 full-time instructors for about 8,700 students.
American Public University System has 345 F/T instructors for more than 50,000 students. 
Aspen University has 34 F/T instructors for about 9,500 students.  
Capella University: 216 F/T for about 38,000 students.
Colorado State University Global: 34 F/T instructors for 12,000 students.
Colorado Technical University: 59 F/T instructors for 26,000 students.
Devry University online: 53 F/T instructors for about 17,000 students.
Grand Canyon University has 461 F/T instructors for 103,000 students.*  
Liberty University: 1072 F/T for more than 85,000 students.*
Purdue University Global: 346 F/T instructors for 38,000 students.
South University: 0 F/T instructors for more than 6000 students.
Southern New Hampshire University: 164 F/T for 104,000 students.
University of Arizona Global Campus: 194 F/T instructors for about 35,000 students.
University of Maryland Global: 193 F/T instructors for 60,000 students.
University of Phoenix: 127 F/T instructors for 96,000 students.
Walden University: 206 F/T for more than 50,000 students.

*Most of these full-time instructors are faculty at the physical campuses.  

Monday, August 25, 2025

Can College Presidents Tell Us the Truth?

“Truth? You can’t handle the truth!” Jack Nicholson’s Colonel Jessup in A Few Good Men captures the tension at the heart of American higher education: can college presidents confront veritas—the deep, sometimes uncomfortable truths about their institutions—or will they hide behind prestige, endowments, and comforting illusions?

At the foundation of academia lies veritas, Latin for truth or truthfulness, derived from verus, “true” or “trustworthy.” Veritas is not optional decoration on a university crest; it is a moral and intellectual obligation. Yet 2025 reveals a system where veritas is too often sidelined: institutions obscure financial mismanagement, exploit adjunct faculty, overburden students with debt, and misrepresent outcomes to the public.

The Higher Education Inquirer (HEI) embodies veritas in action. In “Ahead of the Learned Herd: Why the Higher Education Inquirer Grows During the Endless College Meltdown,” HEI demonstrates that truth-telling can thrive outside corporate funding or advertising. By reporting enrollment collapses, adjunct exploitation, and predatory for-profit practices, HEI holds institutions accountable to veritas, exposing what many university leaders hope will remain invisible.

Leadership failures are a direct affront to veritas. Scam Artist or Just Failed CEO? scrutinizes former 2U CEO Christopher “Chip” Paucek, revealing misleading enrollment tactics and financial mismanagement that serve elite universities more than consumers. These corporate-style decisions in a higher education setting betray the very principle of veritas, prioritizing appearance and profit over educational integrity and human outcomes.

Student journalism amplifies veritas further. Through Campus Beat, student reporters uncover tuition hikes, censorship, and labor abuses, demonstrating that veritas does not belong only to administrators—it belongs to those who seek to document reality, often at personal and professional risk.

Economic and political realities also test veritas. In “Trumpenomics: The Emperor Has No Clothes,” HEI exposes how hollow economic reforms enrich a few while leaving the majority behind. Academia mirrors this pattern: when prestige is elevated over substance, veritas is discarded in favor of illusion, leaving students and faculty to bear the consequences.

Structural crisis continues. In “College Meltdown Fall 2025,” HEI documents federal oversight erosion, AI-saturated classrooms with rampant academic misconduct, rising student debt, and mass layoffs. To honor veritas, leaders would confront these crises transparently, but too often they choose comforting narratives instead.

Debt remains one of the clearest tests of institutional veritas. HEI’s The Student Loan Mess: Next Chapters shows how trillions in student loans have become instruments of social control. The Sweet v. McMahon borrower defense cases illustrate bureaucratic inertia and opacity, directly challenging the principles of veritas as thousands of debtors await relief that is slow, incomplete, and inconsistently applied.

Predatory enrollment practices further undermine veritas. Lead generators, documented by HEI, exploit student information to drive enrollment into high-cost, low-value programs, prioritizing revenue over truth, clarity, and student welfare. “College Prospects, College Targets” exposes how prospective students are commodified, turning veritas into a casualty of marketing algorithms.

Through all of this, HEI itself stands as a living testament to veritas. Surpassing one million views in July 2025, it proves that the public demands accountability, clarity, and honesty in higher education. Veritas resonates—when pursued rigorously, it illuminates failures, inspires reform, and empowers communities.

The question remains: can college presidents handle veritas—the unflinching truth about student debt, labor exploitation, mismanagement, and declining institutional legitimacy? If they cannot, they forfeit moral and public authority. Veritas is not optional; it is the standard by which institutions must be measured, defended, and lived.


Sources

Sunday, July 6, 2025

Robocolleges vs. Public Universities: Debt, Dropouts, and a Fraying Future

As the landscape of American higher education continues to shift, the divide between public universities and tech-heavy “robocolleges” has grown increasingly apparent. Once promoted as affordable and innovative, robocolleges are now under scrutiny for fostering high student debt and low graduation rates.

These institutions prioritize automation, outsourcing, and marketing over traditional teaching models, often sidelining academic integrity in favor of scalability.

Comparing Outcomes: Public Universities vs. Robocolleges

FeaturePublic UniversitiesRobocolleges (e.g., for-profit/online-heavy)
Average Student Debt~$18,350 at graduation~$29,000 or higher
Graduation Rates~60% for full-time studentsOften below 30%
Support ServicesAcademic advising, tutoring, career centersOften outsourced or minimal
Faculty InteractionIn-person, tenured professorsAutomated systems or adjuncts
Cost EfficiencyLower tuition, especially in-stateHigher cost per credit hour
OutcomesBetter job placement and earnings potentialMixed results, often lower ROI

Sources: National Center for Education Statistics; Higher Education Inquirer research

Who Are the Robocolleges?

The following institutions have been identified by the Higher Education Inquirer as leading examples of the robocollege model:

  • Liberty University Online: A nonprofit institution with massive online enrollment and over $8 billion in federal student loan debt, especially at the graduate level.

  • Southern New Hampshire University (SNHU): With more than 160,000 online students, SNHU has become a leader in automation and AI-driven instruction.

  • University of Phoenix: Once the largest for-profit college, now operating as a nonprofit affiliate of the University of Idaho. It has reduced instruction and services by $100 million annually while maintaining high profits.

  • Colorado Technical University (CTU): Known for its use of machine learning and data analytics to manage student advising and engagement.

  • Purdue University Global: A public university operating a former for-profit model, with deep ties to Kaplan Education and significant outsourcing.

  • University of Arizona Global Campus (UAGC): Formerly Ashford University, now part of the University of Arizona system. It offers accelerated online degrees with limited faculty interaction.

The Robocollege Model

These schools rely on automated learning platforms, outsourced services, and aggressive marketing to attract students—often working adults, veterans, and low-income learners. While they promise flexibility and access, critics argue they deliver shallow curricula, minimal support, and poor job placement.

The Consequences

Many students leave robocolleges with significant debt and no degree to show for it. Partnerships with Online Program Managers (OPMs) like 2U and EducationDynamics have drawn criticism for deceptive recruitment practices and inflated costs. Public confidence in higher ed is eroding, and students are increasingly seeking alternative routes to meaningful work.

What’s Next?

As tuition costs rise and outcomes falter, the Higher Education Inquirer will continue investigating whether robocolleges represent a legitimate future for learning—or a cautionary tale of commercialized education gone awry.

Wednesday, July 23, 2025

The Digital Dark Ages of Higher Education: Greed, Myth, and the Ghosts of Lost Knowledge

In a time of unprecedented data collection, artificial intelligence, and networked access to information, it seems unthinkable that we could be slipping into a new Dark Age. But that is precisely what is unfolding in American higher education—a Digital Dark Age marked not just by the disappearance of records, but by the disappearance of truth.

This is not a passive erosion of information. It is a systemic, coordinated effort to conceal institutional failure, to commodify public knowledge, and to weaponize mythology. It is a collapse not of technology, but of ethics and memory.

A Dark Age in Plain Sight

Digital decay is usually associated with vanishing files and outdated formats. In higher education, it takes the more sinister form of intentional erasure. Data that once offered accountability—graduation rates, job placement figures, loan default data, even course materials—have become reputational liabilities. When inconvenient, they vanish.

Gainful Employment data disappeared from federal websites under the Trump administration. Student outcomes from for-profit conversions are obscured through accounting tricks. Internal audits and consultant reports sit behind NDAs and paywalls. And when institutions close or rebrand, their failures are scrubbed from the record like Soviet photographs.

This is a higher education system consumed by image management, where inconvenient truths are buried under branded mythologies.

The Robocolleges and the Rise of the Algorithm

No phenomenon illustrates this transformation more starkly than the rise of robocolleges—fully online institutions like Southern New Hampshire University, University of Phoenix, and Liberty University Online. These institutions, driven more by enrollment growth than educational mission, are built to scale, surveil, and extract.

Their architecture is not intellectual but algorithmic: automated learning systems, outsourced instructors, and AI-driven behavioral analytics replace human-centered pedagogy. Data replaces dialogue. And all of it happens behind proprietary systems controlled by Online Program Managers (OPMs)—for-profit companies like 2U, Academic Partnerships, and Wiley that handle recruitment, curriculum design, and marketing for universities, often taking a majority cut of tuition revenue.

These robocolleges aren’t built to educate; they’re built to profit. They are credential vending machines with advertising budgets, protected by political lobbying and obscured by branding.

And they are perfectly suited to a Digital Dark Age, where metrics are manipulated, failures are hidden, and education is indistinguishable from a subscription service.

Myth #1: The College Degree as Guaranteed Mobility

The dominant myth still peddled by these institutions—and many traditional ones—is that a college degree is a golden ticket to upward mobility. But in an economy of stagnant wages, rising tuition, and unpayable debt, this narrative is a weapon.

Robocolleges and their OPM partners sell dreams on Instagram and YouTube—“Success stories,” “first-gen pride,” and inflated salary stats—while ignoring the mountains of debt, dropout rates, and lifelong economic precarity their students face. And when those stories come to light? They disappear behind legal threats, settlements, and strategic rebranding.

The dream has become a trap, and the myth has become a means of extraction.

Myth #2: Innovation Through EdTech

“Tech will save us” is the second great myth. EdTech companies promise to revolutionize learning through adaptive platforms, AI tutors, and automated assessments. But what they really offer is surveillance, cost-cutting, and outsourcing.

Institutions are increasingly beholden to opaque algorithms and third-party platforms that strip faculty of agency and students of privacy. Assessment becomes analytics. Learning becomes labor. And the metrics these systems produce—completion rates, engagement data—are as easily manipulated as they are misunderstood.

Far from democratizing education, EdTech has helped turn it into a digital panopticon, where every click is monetized, and every action is tracked.

Myth #3: The Digital Campus as a Public Good

Universities love to claim that their digital campuses are open and inclusive. But in truth, access is restricted, commercialized, and disappearing.

Libraries are gutted. Archives are defunded. Publicly funded research is locked behind publisher paywalls. Historical documents, administrative records, even syllabi are now ephemeral—stored on private platforms, subject to deletion at will. The digital campus is a gated community, and the public is locked out.

Third-party vendors now control what students read, how they’re taught, and who can access the past. Memory is no longer a public good—it is a leased service.

Greed, Cheating, and Digital Amnesia

This is not simply a story about decay—it is a story about cheating. Not just by students, but by institutions themselves.

Colleges cheat by manipulating data to mislead accreditors and prospective students. OPMs cheat by obscuring their contracts and revenue-sharing models. Robocolleges cheat by prioritizing growth over learning. And all of them cheat when they hide the truth, delete the data, or suppress the whistleblowers.

Faculty are silenced through non-disclosure agreements. Archivists are laid off. Historians and librarians are told to “streamline” and “rebrand” rather than preserve and inform. The keepers of memory are being dismissed, just when we need them most.

Myth as Memory Hole

The Digital Dark Ages are not merely a result of failing tech—they are the logical outcome of a system that values profit over truth, optics over integrity, and compliance over inquiry.

Greed isn’t incidental. It’s the design. And the myths propagated by robocolleges, OPMs, and traditional universities alike are the cover stories that keep the public sedated and the money flowing.

American higher education once aspired to be a sanctuary of memory, a force for social mobility, and a guardian of public knowledge. But it is now drifting toward becoming a black box—a mythologized, monetized shadow of its former self, accessible only through marketing and controlled by vendors.

Without intervention—legal, financial, and intellectual—we risk becoming a society where education is an illusion, memory is curated, and truth is whatever survives the deletion script.


Sources and References:

  • Savage Inequalities, Jonathan Kozol

  • Tressie McMillan Cottom, Lower Ed

  • Christopher Newfield, The Great Mistake

  • Nancy MacLean, Democracy in Chains

  • U.S. Department of Education archives (missing Gainful Employment data)

  • “Paywall: The Business of Scholarship” (2018)

  • SPARC (Scholarly Publishing and Academic Resources Coalition)

  • Internet Archive reports on digital preservation

  • ProPublica and The Century Foundation on OPMs and robocolleges

  • Faculty union reports on librarian and archivist layoffs

  • Inside Higher Ed and The Chronicle of Higher Education coverage of data manipulation, robocolleges, and institutional opacity