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Showing posts sorted by relevance for query David Halperin. Sort by date Show all posts

Tuesday, July 8, 2025

“Drowning It in the Bathtub”: How the 2025 U.S. Department of Education Reorganization Fulfills Grover Norquist’s Dream (Glen McGhee)

In 2001, conservative activist Grover Norquist declared that his goal was to shrink government “to the size where I can drag it into the bathroom and drown it in the bathtub.” More than two decades later, under the leadership of Secretary Linda McMahon, the U.S. Department of Education’s March 2025 reorganization delivers on that radical vision—not with fire and fury, but with vacancies, ambiguity, and quiet institutional collapse.

Vacant Seats, Hollow Power

With dozens of senior leadership roles left vacant, enforcement functions gutted, and policymaking handed over to political allies and industry insiders, the Department no longer resembles a federal agency tasked with protecting students and public investment. Instead, it has become a hollowed-out vessel primed for deregulation, privatization, and corporate exploitation.

The new organizational chart is littered with the word “VACANT.” From Chiefs of Staff and Deputy Assistant Secretaries to senior advisors in enforcement, civil rights, and postsecondary education, entire divisions have been effectively immobilized. The Office of Civil Rights is barely staffed at the top. The Rehabilitation Services Administration is leaderless. The General Counsel’s office lacks oversight in key regulatory areas. This is not streamlining—it is strategic self-sabotage.

Federal Student Aid (FSA), overseeing over $1.5 trillion in loans, is run by an acting chief. Critical offices such as the Office of Postsecondary Education (OPE) are fragmented, missing key leadership across multiple branches—especially those charged with accreditation, innovation, and borrower protections.

The Kent Controversy: A Symptom of Systemic Rot

The collapse of federal oversight is not only evident in the vacancies—it is also embodied in controversial political appointments. As education policy watchdog David Halperin has reported, the Trump administration’s nominee for Under Secretary of Education, Nicholas Kent, epitomizes the revolving door between the Department of Education and the for-profit college industry.

Kent’s career includes roles at Education Affiliates, which in 2015 paid $13 million to settle a Department of Justice case involving false claims for federal student aid, and later at Career Education Colleges and Universities (CECU), the lobbying group for the for-profit college sector. Under Kent’s policy leadership at CECU, the organization actively fought against borrower defense rules, gainful employment regulations, and other safeguards meant to protect students from exploitative educational institutions.

Despite this record, the Senate Health, Education, Labor and Pensions (HELP) Committee advanced Kent’s nomination on May 22, 2025, in a party-line 12–11 vote—without a hearing. HELP Ranking Member Bernie Sanders objected, saying, “In my view, we should not be confirming the former lobbyist that represented for-profit colleges.” Advocates, including Halperin and six education justice organizations, sent a letter to Chairman Bill Cassidy calling for public scrutiny of Kent’s background and the Trump administration’s destructive higher education agenda.

Among their concerns are the elimination of key enforcement staff and research arms at the Department, the cancellation of ongoing research contracts, the rollback of borrower defense and gainful employment protections, the $37 million fine reversal against Grand Canyon University for deceptive practices, and the Department’s silence on accreditation reform and oversight of predatory schools. These developments, the letter argued, mark a decisive return to the era of unchecked corporate education—where taxpayer dollars are funneled to dubious institutions and students are left with mountains of debt and worthless credentials.

“Mission Accomplished” for the Privatization Movement

This version of the Department of Education, stripped of its regulatory muscle and stocked with industry sympathizers, is not an accident. It’s the culmination of decades of libertarian, neoliberal, and religious-right agitation to disempower public education. The policy pipeline now flows directly from organizations like the Heritage Foundation and ALEC to appointed officials with deep ties to the industries they were once charged with policing.

Rather than serving the public, the department’s primary role now appears to be facilitating the private sector’s conquest of higher education—through deregulation, outsourcing, and the erosion of civil rights protections.

A Shrinking Federal Presence, an Expanding Crisis

The consequences are far-reaching. Marginalized students—Black, brown, low-income, first-generation, disabled—depend disproportionately on federal guarantees, oversight, and funding. As these protections recede, so too does their access to meaningful educational opportunity. Instead, they are increasingly funneled into high-debt, low-return programs or shut out entirely.

Meanwhile, the political vacuum left by this strategic dismantling is being filled by corporate actors, right-wing religious institutions, and profit-seeking "ed-tech" startups. The dream of public education as a democratic equalizer is being replaced by a market of extraction and exploitation.

The Dream Realized

Grover Norquist’s fantasy of drowning the government has now been partially fulfilled in the U.S. Department of Education. What remains is an agency in name only—a shell that no longer enforces its core mission. In the name of efficiency and deregulation, the department has abandoned millions of students and ceded its authority to those who view education as a commodity rather than a public right.

The danger now is not only what’s been lost, but what is being built in its place. The Higher Education Inquirer will continue to monitor the ongoing capture of education policy and fight for a system that serves students, not shareholders.

Sources:

U.S. Department of Education, Organizational Chart, March 17, 2025
David Halperin, Republic Report, “The Senate Shouldn’t Vote on Trump Higher Education Pick without a Hearing”
U.S. Department of Justice press releases on Education Affiliates
Politico Pro Education updates, May 2025
Senate HELP Committee voting record, May 22, 2025
Heritage Foundation and CECU policy recommendations

Wednesday, December 4, 2024

More Layoffs at 2U, the Online Program Manager for Elite Universities

2U, the parent company of edX, has announced more layoffs today. The layoffs were announced to staff and it's not known yet whether they will be publicly reported. It appears that many of the cuts will come from edX bootcamps which may be closing by June 2025. 

2U filed for bankruptcy earlier this year and the bankruptcy was approved by the U.S. Bankruptcy Court for the Southern District of New York on September 9th. Mudrick Capital Management is currently involved in the turnaround plan. 

According to David Halperin, the edtech company may also be the subject of investigations by the Federal Trade Commission and California Attorney General.

2U is the online program manager for a number of elite universities, including Harvard, Yale, MIT, and the University of California. Some of the programs have been the subject of public scorn by consumers who claim they were defrauded. HEI has been investigating 2U since 2019. The Wall Street Journal has also investigated 2U and written several critical stories

edX promises career support to people who sign up for bootcamps. But what happens when the bootcamps close?    

Related links:

FTC and California AG Have Been Investigating Online College Provider 2U (David Halperin) 

Workers at 2U expect more layoffs in 2024 

2U Collapse Puts Sallie Mae and SLABS Back on the Radar (Glen McGhee)

2U Suspended from NASDAQ. Help for USC and UNC Student Loan Debtors.

2U Declares Chapter 11 Bankruptcy. Will Anyone Else Name All The Elite Universities That Were Complicit?

HurricaneTWOU.com: Digital Protest Exposes Syracuse, USC, Pepperdine, and University of North Carolina in 2U edX Edugrift

2U-edX crash exposes the latest wave of edugrift

2U Virus Expands College Meltdown to Elite Universities

Buyer Beware: Servicemembers, Veterans, and Families Need to Be On Guard with College and Career Choices

EdTech Meltdown

Erica Gallagher Speaks Out About 2U's Shady Practices at Department of Education Virtual Listening Meeting

Tuesday, September 2, 2025

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


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

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

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

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

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

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

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

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

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

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

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


David Halperin
Attorney and Counselor
Washington, DC  

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

Saturday, November 9, 2019

Unnamed Ashford University Suitor Joining Purdue University Global in "Race to the Bottom"

Who would buy Ashford University, an online school that has lost more than 50 percent of its students and is downsizing key faculty and academic administrators?



[Video above:  Dr. Stephen Brewer has reported on the downsizing of key faculty at Ashford and the suspension of the University Senate.]

Having seen so many crazy deals in subprime higher ed, from the ECMC shotgun marriage with Corinthian Colleges to the Kaplan-Purdue deal, anything seems possible.

"A bunch of state schools want online at scale at any cost."...(It's a) race to the bottom. They see their students heading to ASU, SNHU, or the for-profits, and figure if they can get to scale, they will have the time and resources to fix the programs."--anonymous online college expert
Tyton Partners managing director Trace Urdan has suggested that UMass or George Mason might buy Ashford from its parent company, Zovio, but I'm not sure either of those schools would take the risk. In my estimation, Zovio does not have the assets, such as cash on hand, for a safe conversion over the long run. And this lack of assets would make the buyer school more responsible for finances during the conversion.

In my opinion, the most logical buyer would be a school that is WASC accredited (Ashford's current accreditor), large enough to handle the risk, and either does not have a strong online presence or wants to expand its presence. It would also need a president/CEO strong enough and a board and faculty compliant or weak enough to take the bait.

It's possible that a hedge fund or other for-profit firm could create a non-profit specifically for the new school.

In the meantime, Dr. Brewer, is asking for accountability and justice for Ashford University students and professors.  After working at the school for a decade, he said that the situation had changed for the worse, "restricting creativity, inhibiting instruction, and demoralizing otherwise talented, motivated, and forward-thinking educators."

For any state university willing to scale up their online presence, be warned. The Kaplan-Purdue University Global deal is not working out, and Purdue bought Purdue Global for $1 and $50 million in free advertising.

Other subprime deals, such as the EDMC-Dream Center deal (Art Institutes, Argosy, South University), Adtalem-Cogswell (DeVry University), and Apollo Group-Apollo Global Management (University of Phoenix) appear to have panned out poorly. But that may not stop someone in the big business of higher ed from taking the risk.

Related article: There’s a Right Way to Convert to a Nonprofit. Ashford University Isn’t Following It (Bob Shireman, The Century Foundation)

Related article: Restructuring and Layoffs at Ashford (Lindsay McKenzie, Inside Higher Education)

Related article: The Next Purdue-Kaplan Deal? (Lindsay McKenzie, Inside Higher Education)

Related article: Early Troubles In The Purdue, Kaplan Marriage (Derek Newton, Forbes)

Related article: For-Profit Bridgepoint Says Its Colleges Will Become Non-Profit, But It Won’t (David Halperin, Republic Report)

State Colleges Seduced By For-Profit, Online Education (David Halperin, Republic Report)



Friday, July 11, 2025

The Accreditation Curtain: A 20-Year Reflection on Transparency and the Illusion of Access (Glen McGhee)

The cancellation of the latest NACIQI (National Advisory Committee on Institutional Quality and Integrity) meeting brought back bitter memories that refuse to fade. 


It’s been twenty years since I traveled to Washington, DC—dressed in my best lobbying attire and carrying a meticulous roster of Department of Education staff—to visit the Office of Postsecondary Education (OPE) on K Street. My goal was simple, even noble: to seek answers about the opaque workings of accreditation in American higher education. What I encountered instead was a wall of silence, surveillance, and authoritarianism.


I stepped off the elevator on the seventh floor of the Department building and signed in. Under "Purpose of Visit," I wrote: Reform. I was calm, professional, and respectful. I asked to see the NACIQI Chair, Bonnie, hoping that she would be willing to speak with me about a system that, even then, was falling into disrepair. But what happened next still infuriates me.


Within seconds, two armed, uniformed guards approached me. They didn’t ask questions. They gave an ultimatum: leave or be arrested.


I eventually complied, descending into the lobby, still stunned. From there I began dialing—one by one—through the directory of names I had so carefully assembled. I called staffers, analysts, assistants, anyone who might answer. Not a single person picked up. I could feel the eyes of the guards watching me, one of them posted on the mezzanine like a sniper keeping watch over a public enemy. I was not dangerous. I was not disruptive. I was, however, unwanted.


The next day, I turned to my Congressman, Allen Boyd, whose LA generously tried to intervene. His office contacted OPE, attempting to broker a meeting on my behalf. The Department didn’t even return his call. Apparently, a sitting member of Congress—who didn’t sit on a high-ranking committee—carried no weight at the fortress of federal education oversight.


This most recent overstepping by US ED—unilaterally postponing NACIQI’s Summer 2025 meeting—reminds observers of how limited the oversight provided by NACIQI really is. It is, apparently, nothing more than a performative shell that fulfills ceremonial functions, and not much more.

I would argue that this latest episode reveals that NACIQI is less an independent watchdog and more a ceremonial body with limited real power, and so my view differs somewhat from David Halperin, because he sees more substantive activity than I do.


The history of ACICS (Accrediting Council for Independent Colleges and Schools) and SACS (Southern Association of Colleges) appearing before NACIQI illustrates how regulatory capture can manifest not only through industry influence, but also through bureaucratic design and process control. The OPE’s central role, combined with NACIQI’s limited enforcement power, has allowed failing accreditors to retain recognition for years, even in the face of overwhelming evidence of noncompliance and harm to students.


The illusion of accountability has long been a feature of the accreditation system, not a flaw. NACIQI meetings, when they occur, are tightly scripted, with carefully managed testimony and limited public engagement. The real decisions are made elsewhere, behind closed doors, often under the influence of powerful lobbying groups and entrenched bureaucracies that resist transparency and reform at every turn.


Despite the increasing scrutiny on higher education and growing public awareness of student debt, poor educational outcomes, and sham institutions, the federal recognition of accreditors remains an elite-controlled process. It is a closed loop. Institutions, accreditors, and government officials all play their roles in a carefully choreographed performance that rarely leads to systemic change. The result is a system that protects institutions at the expense of students, particularly the most vulnerable—low-income, first-generation, and minority students who are often targeted by predatory schools hiding behind federal accreditation.


This is the reality of the U.S. Department of Education’s accreditation apparatus: inaccessible, unaccountable, and increasingly symbolic. NACIQI, far from being an independent advisory body, has always functioned as a ceremonial front for political appointees and entrenched interests. It is, as I see it, just another arm of Vishnu—multiplicitous, all-seeing, but ultimately indifferent to critique or reform. Whether it’s chaired by a bureaucrat or a former wrestling executive like Linda McMahon, the outcome is the same: the process is rigged to exclude dissent and suppress scrutiny.

And yet, pundits today still fail to grasp the implications. They speak of accreditation as if it were a technocratic process guided by evidence and integrity. They act as if NACIQI were a neutral arbiter. But I know otherwise, because I was there—thrown out, silenced, and treated like a trespasser in the very institution that claims to protect educational quality and student interest.


This is more than personal bitterness. It’s about structural rot. When critics are expelled, when staff are muzzled, and when public servants ignore elected representatives, we are not dealing with oversight—we are witnessing capture. Accreditation in this country serves the accreditors and the institutions, not students, not taxpayers, and certainly not reformers.

Two decades later, the anger remains. So does the silence.


Sources:
Department of Education building directory and procedures (2005)
Congressional Office of Rep. Allen Boyd (archival record, 2005)
Public notices regarding NACIQI meeting cancellations (2024–2025)
David Halperin, Republic Report

Sunday, January 30, 2022

How University of Phoenix Failed. It's a Long Story. But It's Important for the Future of Higher Education.

The failure of University of Phoenix (UoPX) is more than a dark moment in higher education history.  It should act as a lesson learned in the higher ed business. Executives at 2U, Guild Education, Coursera, Liberty University, Purdue University Global, University of Arizona Global, Chegg, Academic Partnerships, Pearson PLCNavientMaximus and other for-profit and non-profit entities must take heed of the mistakes and the hubris of Phoenix, the wisdom of its cofounder John D. Murphy, and the silencing of important worker voices.  

For several decades of the 20th century, hundreds of University of Phoenix campuses dotted the American landscape, conveniently located in cities and growing suburbs, off major highways. Founded in 1973, America's largest university became a for-profit darling of Wall Street in the 1980s and 1990s, and the provider of career education for mid-level managers in corporate America and public service. A Phoenix degree was the ticket to promotions and salary increases.  

During its zenith, the school was backed by dozens of lawyers and DC lobbyists and a number of politicians and celebrities--including Nancy Pelosi, John McCain, Shaquille O'Neil, Al Sharpton, and Suze Orman. UoPX bought the naming rights to the Arizona Cardinals' pro football stadium in 2006. And in 2010, enrollment at the University of Phoenix stood at nearly a half million students.  The school even had an enormous presence at US military installations across the globe. University of Phoenix's presence was everywhere.* 

Phoenix's stock rose for many reasons. It was a leader in educational innovation. It was convenient and affordable for upwardly social mobile workers.  Its profits were large, and its labor costs were relatively low because UoPX hired business leaders and experts in the field, not tenured scholars, to teach part-time.  

But something went horribly wrong along the way.

In the 2010s, University faced government and media scrutiny for its questionable business practices, its declining graduation rates, and its part in creating billions in student loan debt. And when workers voiced their concerns, they were silenced in a variety of ways, from threats and intimidation to firings. 

This enrollment collapse has now lasted a dozen years and counting.  

Today, as a miniscule portion of Apollo Global Management's portfolio, UoPX's enrollment numbers are less than 100,000--and few of its physical campuses remain open during the Covid pandemic. It's not known how many campuses, if any, are financially viable.  

University of Phoenix enrollment, 2009-2016 (Source: US Department of Education) 

There are a several reasons why University of Phoenix is just a shadow of what it was. Businesspeople and lobbyists blame government regulation and oversight; others blame the relentless pursuit of quarterly profits and corrupt Apollo Group CEOs, including Todd Nelson.

Having talked to co-founder John D. Murphy and read his book Mission Forsaken, what I found out was that University of Phoenix began failing three decades earlier, during the Ronald Reagan era, when US companies chose to invest less in their workforces.  When this post-Fordist shift happened, US companies reduced benefits for workers, and divested in the education and training of mid-level executives.

In order to keep the company growing in the face of this retrenchment, UoPX shifted its mission, from educating America's upwardly mobile workers to enrolling anyone--at any cost. The company could only decline as it preyed upon consumers and silenced its workers.   After 2010, enrollment counselors were signing up people who were woefully unprepared academically and financially for college work.  

By 2014, about 1 million University of Phoenix's alumni were saddled with more than $35 billion in student loan debt    

US Student Loan Debt by Institution (Source: Brookings, Looney and Yannelis, 2015)

In 2017, Apollo Group sold the company to Apollo Global Management, an investment behemoth, along with Vistria Group and the Najafi Companies.   As part of its holdings, the school was a tiny portion of its portfolio. Barak Obama's close friend, Anthony Miller, was paid to be Board president.  

Among national universities, UoPX is now ranked near the bottom in social mobility according to the Washington Monthly.

In January 2022, as a sign of its continued unraveling, Apollo Education appointed George Burnett, a former executive of three failed or predatory companies, including Alta College and Academic Partnerships, to be Phoenix's newest President. 

UoPX's problems are a symptom of an economic system that despite the hype cares little about workers: a system that today looks at labor costs as something to be reduced--rather than an investment. With few exceptions, America's most powerful corporations: Amazon, Walmart, Target, Yum Brands, McDonalds--rely on low-wage labor and automation to make a huge profit. Companies in medicine, finance, and tech have smaller labor numbers--and while work may be lucrative at the moment, it's becoming more precarious.

*In the early 2010s, Apollo Group, Phoenix's former parent company, spent between $376 million and $655 million a year on ads and marketing.  









Related link: Guild Education 

Tuesday, July 30, 2019

HEI Resources

[Updated January 8, 2023)

 


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Thursday, October 31, 2024

Carl Barney, Ex-Owner of Deceptive For-Profit Colleges, Donates Big to Trump (David Halperin)

Carl Barney, the ultra-wealthy former owner of a chain of collapsed for-profit colleges, is the third biggest California-based donor to efforts to elect Donald Trump in 2024, the Los Angeles Times reports today.


Barney has donated $924,600 to the Trump 47 Committee, according to federal records.

Like Donald Trump, who in 2016 paid $25 million to settle civil charges by New York’s attorney general that his unaccredited real estate school, Trump University, defrauded its students, Barney saw his schools shut down after law enforcement agencies and former students went to court over claims of deceptive practices.

Barney explained his reasons for supporting Trump in a fascinating post last month on his personal website.

According to Barney, Trump “approaches the job of President as a businessman, not a politician,” which Barney sees as “mostly a major strength.”

“I’m aware of President Trump’s shortcomings,” Barney acknowledges, “but I won’t criticize him here. (If you want criticism, you’ll find all you need in the popular ‘news’ media.)”

Barney evaluates Trump’s term in office and concludes that the ex-president “significantly improved the individual freedom of Americans to pursue their goals with less government hindrance.”

While Barney concedes that he does not like Trump’s “proposed tariffs and some of his economics,” he likes that Trump “wants to work with Elon Musk to reduce spending, regulations, waste, and fraud in the federal government.

What doesn’t Barney like about Kamala Harris? A number of things, but he zeroes in on this: “Kamala Harris is an avowed enemy of private career colleges and boasts about closing them. Her boasts reveal her disregard for the schools’ students and teachers, as well as the entrepreneurs and investors who created the schools.” Harris, Barney concludes, “holds the anti-freedom values common to radical leftists.” He warns, “These people hate profit, business, and businessmen.”

Barney prepares his audience for the attacks he will face for his endorsement. “Since my contribution to President Trump will be public,” he writes, “I know that I will become more of a political target than I’ve been over the last 10 years. I’ve been a target of trolls, lawfare, and political operatives who finally destroyed my beautiful colleges. I know they will now target me with renewed force and energy. That’s something I will have to confront.”

Barney concludes his post with this unifying message, “If anyone sees something wrong with Making America Great Again (MAGA), then they’re not friends of mine, nor of yours.”

While Barney’s focus on Harris’s role in taking on abusive for-profit colleges is no surprise, his identification of fighting government waste, fraud, and abuse as a key policy priority for him is particularly rich, given his role in running a college operation, the Center for Excellence in Higher Education (CEHE), that received billions in federal taxpayer dollars and ultimately was found liable for deceiving students — and given his schools’ troubling conversion to tax-free non-profit status in a deal that increased his staggering wealth.

In August 2020, following an extensive trial, a Colorado state court sided with that state’s attorney general and found CEHE, its CollegeAmerica school, Carl Barney, and CEHE CEO Eric Juhlin liable for deceptive practices and awarded a $3 million judgment.

The Colorado court found that Barney’s schools used a detailed playbook to manipulate vulnerable students into enrolling in high-priced, low-quality programs; that the schools directed admissions representatives to “enroll every student,” regardless of whether the student would likely graduate; that the schools’ recruiters and advertisements greatly overstated starting salaries that graduates could earn; and that the schools falsely inflated graduation rates.

In April 2021, Independence’s accreditor, ACCSC, ended its approval of Independence University, which by then was CEHE’s main school, effectively repealing its eligibility for federal student grants and loans. Soon after, the U.S. Department of Education restricted the flow of such aid. In the wake of those developments, CEHE shut down classes and laid off most staff.

CEHE and the Colorado attorney general’s office were back in the state trial court in Denver this week, after high-priced lawyers for Barney pursued an appeal to the Colorado Supreme Court that resulted in an order requiring the trial judge to make some additional findings.

Barney also used clever lawyers and accountants to keep making big money off the CEHE schools even after he converted them to non-profit status. When for-profit operations are converted to non-profit in such a manner, U.S. taxpayers can pay a big price.

Although its schools are shuttered, CEHE still faces additional legal challenges. The U.S. Justice Department is moving ahead with a long-pending lawsuit in which it has joined whistleblowers in pursuing False Claims Act fraud charges against the schools. The federal Consumer Financial Protection Bureau has pursued a separate investigation into CEHE’s private loan practices.

CEHE, despite the probes, bad publicity, and collapse of its schools, has continued trying to collect the high-interest private loan debt it created for its broke former students.

And CEHE has portrayed itself as a victim of a political conspiracy against it, with ongoing vitriol on Twitter from former CEO Eric Juhlin, whom the Department of Education took the rare step of suspending from federal contracting. More attacks on CEHE critics, and the Colorado attorney general office and court, have come from Barney.

Barney has charged on his grievance-heavy blog that the case brought by the Colorado AG against his schools is a “horror story of government corruption,” and “a multi-agency collusion to put schools out of business” — a supposed plot that involved not only a senior assistant Colorado attorney general, but also the executive director of accreditor ACCSC, officials of the U.S. Department of Eduction, and “the cabal of progressive haters of private colleges (David Halperin, Robert Shireman, entities funded by Arnold Ventures, Sen. Elizabeth Warren, and Sen. Richard Durbin).”

In December 2022, CEHE took its grievance campaign to a new low by suing the United States government for $500 million in the U.S. Court of Claims, asserting, as a press release statement by Juhlin contended, that the Department of Education “in coordination with ideological confederates… has been on a campaign to cripple and close as many private career colleges as possible” and that CEHE’s schools were “a victim of this campaign.”

As we reported yesterday, billionaire Betsy DeVos, who helped Barney and other predatory college operators as Donald Trump’s secretary of education but resigned over Trump’s incitement of the deadly January 6 assault on the U.S. Capitol, recently donated $250,000 to America PAC, the pro-Trump super PAC created by Musk.

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