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Tuesday, March 4, 2025

The Future of Federal Student Loans

The U.S. student loan system, now exceeding $1.7 trillion in debt and affecting over 40 million borrowers, is facing significant challenges. As political pressures rise, the management of student loans could be significantly altered. A combination of potential privatization, the elimination of the U.S. Department of Education (ED), and a new role for the Department of the Treasury raises critical questions about the future of the system.

U.S. Department of Education: Strained Resources and Outsourcing

The U.S. Department of Education (ED) is responsible for managing federal student loan servicing, loan forgiveness programs, and borrower defense to repayment (BDR) claims. However, ED has faced ongoing issues with understaffing and inefficiency, particularly as many functions have been outsourced to contractors. Companies like Maximus (including subsidiaries like AidVantage) manage much of the administrative burden for loan servicing. This has raised concerns about accountability and the impact on borrowers, especially those seeking loan relief.

In recent years, ED has also experienced staff reductions and funding cuts, making it difficult to process claims or maintain high-quality service. The potential for further cuts or even the elimination of the department could exacerbate these problems. If ED’s role is diminished, other entities, such as the Department of the Treasury, could assume responsibility for managing the student loan portfolio, though this would present its own set of challenges.

Potential for Privatization of the Student Loan Portfolio

One of the most discussed options for addressing the student loan crisis is the privatization of the federal student loan portfolio. Under previous administration discussions, including those during President Trump’s tenure, there were talks about selling off parts of the student loan portfolio to private companies. This would be done with the aim of reducing the federal deficit.

In 2019, McKinsey & Company was hired by the Trump administration to analyze the value of the student loan portfolio, considering factors such as default rates and economic conditions. While the report's findings were never made public, the idea of transferring the loans to private companies—such as banks or investment firms—remains a possibility.

The consequences of privatizing federal student loans could be significant. Private companies would likely focus on profitability, which could result in stricter repayment terms or less flexibility for borrowers seeking loan forgiveness or other relief options. This shift may reduce borrower protections, making it harder for students to challenge repayment terms or pursue loan discharges.

The Department of the Treasury and its Potential Role

If the U.S. Department of Education is restructured or eliminated, there is a possibility that the Department of the Treasury could step in to manage some aspects of the student loan portfolio. The Treasury is responsible for the country’s financial systems and debt management, so it could, in theory, handle the federal student loan portfolio from a financial oversight perspective.

However, while the Treasury has experience in financial management, it lacks the specialized knowledge of student loans and borrower protections that the Department of Education currently provides. For example, the Treasury would need to find ways to process complex Borrower Defense to Repayment claims, a responsibility ED currently manages. In 2023, over 750,000 Borrower Defense claims were pending, with thousands of claims related to predatory practices at for-profit colleges such as University of Phoenix, ITT Tech, and Kaplan University (now known as Purdue Global). Additionally, some of these for-profit schools were able to reorganize and continue operating under different names, further complicating the situation.

The Treasury could also contract out loan servicing, but this could increase reliance on profit-driven companies, possibly compromising the interests of borrowers in favor of financial performance.

Borrower Defense Claims and the Impact of For-Profit Schools

A large portion of the Borrower Defense to Repayment claims comes from students who attended for-profit colleges with a history of deceptive practices. These institutions, often referred to as subprime colleges, misled students about job prospects, program outcomes, and accreditation, leaving many with significant student debt but poor employment outcomes.

Data from 2023 revealed that over 750,000 Borrower Defense claims were filed with the Department of Education, many of them against for-profit institutions. The Sweet v. Cardona case showed that more than 200,000 borrowers were expected to receive debt relief after years of waiting. However, the process was slow, with an estimated 16,000 new claims being filed each month, and only 35 ED workers handling these claims. These delays, combined with the uncertainty around the future of ED, leave borrowers vulnerable to prolonged financial hardship. 

Lack of Transparency and Accountability in the System

While the U.S. Department of Education tracks Borrower Defense claims, it does not publish institutional-level data, making it difficult to identify which schools are responsible for the most fraudulent activity. 

In response to this, FOIA requests have been filed by organizations like the National Student Legal Defense Network and the Higher Education Inquirer to obtain detailed information about which institutions are disproportionately affecting borrowers. 

In one such request, the Higher Education Inquirer asked for information regarding claims filed against the University of Phoenix, a school with a significant number of Borrower Defense claims.

The lack of transparency in the system makes it harder for borrowers to make informed decisions about which institutions to attend and limits accountability for schools that have harmed students. If the Treasury or private companies take over management of the loan portfolio, these transparency issues could worsen, as private entities are less likely to prioritize public accountability.

A Future of Uncertainty

The future of the U.S. student loan system is uncertain, particularly as the Department of Education faces the potential of funding cuts, staff reductions, or even complete dissolution. If ED’s role diminishes or disappears, the Department of the Treasury could take over some functions, but this would raise questions about the fairness and transparency of the system.

The possibility of privatizing the student loan portfolio also looms large, which could shift the focus away from borrower protections and toward financial gain for private companies. For-profit schools, many of which have a history of predatory practices, are responsible for a disproportionate number of Borrower Defense claims, and any move to privatize the loan portfolio could exacerbate the challenges faced by borrowers seeking relief from these institutions.

Ultimately, there is a need for greater transparency and accountability in how the student loan system operates. Whether managed by the Department of Education, the Treasury, or private companies, protecting borrowers and ensuring fairness should remain central to any future reforms. If these issues are not addressed, millions of borrowers will continue to face significant financial hardship.

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"


Wednesday, July 12, 2023

University of Phoenix and the Ash Heap of Higher Ed History

 (Updated September 14, 2023)

The University of Phoenix (or at least its name) may soon enter the ash heap of US higher education history--and rise again as a state-run robocollege.  But it shouldn't--at least not yet. Once hailed as the leader in affordable adult education for workers entering middle management, it is a shell of its former self--in an economy less certain for workers and consumers. 

With the school's wreckage are approximately one million people buried alive in an estimated $14B-$35B in student loan debt.  

Pattern of Fraud

As of January 2023, more than 69,000 of these student loan debtors have filed Borrower Defense to Repayment fraud claims with the US Department of Education against the University of Phoenix (UoPX). Many more could file claims when they become aware of their rights to debt relief. In the partial FOIA response below, the US Department of Education reported that 69,180 Borrower Defense claims had been made against the school.

In a recent federal case, Sweet v Cardona, most if not all of the 19,860 "denied" cases were overturned in favor of the student loan debtors.  We estimate the smaller number of fraud claims alone to amount to hundreds of millions of dollars.  

Through a FOIA request, we also discovered 6,265 consumer complaints in the FTC database. In 2019, the FTC and the University of Phoenix settled a claim for $191M for deceptive employment claims.  Based on the consumer complaints, we have no reason to believe that Phoenix has changed its behavior as a bad actor. 

On May 3, 2023, six US Senators (Warren, Brown, Blumenthal, Durbin, Merkley, Hassan) called for the US Department of Education, Department of Veterans Affairs, and Department of Defense to investigate the University of Phoenix for launching a new program suggesting that it was a public university.  The letter stated that the school "has long preyed on veterans, low-income students, and students of color."

Wolves in Sheep's Clothing

University of Phoenix's owners could potentially be liable for refunding the US government for the fraud. But as a state-related organization, it may be more politically difficult to claw back funds, no matter how predatory the school is.  

Purdue University Global and University of Arizona Global set a precedence in state-related organizations acquiring subprime schools (Kaplan University and Ashford University) and rebranding them as something better. Whether they are better for consumers is questionable. Phoenix will have to cut costs, largely by reducing labor. Using Indian labor (like Purdue Global) and AI could be profitable strategies.  It's likely that this deal, even if profitable, will add fuel to the growing skepticism of higher education in the US. 

University of Phoenix's Finances

Apollo Global Management and Vistria Group currently own University of Phoenix but have been trying (unsuccessfully) to unload the subprime college for more than two years. Little is publicly known about the school's finances. What is known is that UoPX gets about $800M every year from the federal government, through federal student loans, Pell Grants, GI Bill funds, and DOD Tuition Assistance.

Despite this government funding, US Department of Education data show the school's equity value for the Arizona segment declined significantly, from $361M in FY 2018 to $187M in FY 2021. 

$347M of the University of Phoenix's $518M in assets are intangible assets. Intangible assets typically include intellectual property and brand reputation. The school has $348M in liabilities.  

The University of Phoenix has been reducing expenses by cutting instructional costs, from $70M in FY 2020 to $60M in FY 2021. UoPX spends about 8 percent of its revenues on instruction.

Marketing and advertising expenses are not available, but Phoenix has been visible on the Discovery Channel's Shark Week, CBS' Big Brother, and other television events. ISpot.tv reports that University of Phoenix spends millions of dollars each year on television ads.  On one ad alone, the ad spend from February 2023 to July 2023 was an estimated $3.5M. 

Attempts to Sell UoPX

There have been two known potential buyers for the University of Phoenix: the University of Arkansas System and the University of Idaho. In both cases, the owners required the potential buyers to keep the deal secret until the sale was imminent.  

Fear of the impending higher education enrollment cliff appears to be an important pitch to potential buyers. 

Arkansas, the first target, was in the process of making the deal, and it might have gone through if nit for the voice of one whistleblower and one outstanding investigative reporter, Debra Hale Shelton of the Arkansas Times.

In the case of Idaho, news of the potential deal was publicly noted just one day before the preliminary agreement was made with the Idaho Board of Education. Two other secret meetings were held before that.  

A number of journalists including Kevin Richert (Idaho EdNews), Laura Guido (The Idaho Press), Troy Oppie (Boise State Public Radio), and Noble Brigham (Idaho Statesman) have exposed some of the problems and potential problems with the deal.  In June, Idaho legislators began questioning the acquisition.  

More recently, the opinion editor at the Idaho Statesman argued that the deal may actually be worthwhile

Particulars about the finances are sketchy at best and misleading at worst.  The University of Phoenix is said to include $200M in cash in the deal, but they have not said how much of that sum is required by law as "restricted cash"--money the school needs if the Department of Education needs to claw back funds.  Phoenix also claims to be highly profitable, but without showing any evidence.  

What is known about the deal is that the University of Idaho will have to borrow $685M and put its (bond) credit rating at risk. The school has not identified important information how the bonds would be sold (underwriters, bond raters, date to maturity, interest rate). 

The University of Idaho has created an FAQ to answer questions about the sale, but HEI has identified a number of misleading statements about University of Phoenix's present finances (failure to report the school's equity), potential liability (cost of tens of thousands of Borrower Defense claims), and leadership (lack of background information about Chris Lynne, the President of the University of Phoenix).  These deficiencies have been reported to the University of Idaho and to the Representative Horman. 

On June 20, Idaho Attorney General Raul Labrador filed a lawsuit to halt, or at least slow down the deal. 

The University of Idaho submitted a Pre-Acquisition Review from the US Department of Education, and it may take up to three months before the application is completed. 

As of September 2023, the deal is far from done.  Since this article was first published there have been a number of developments:

On September 11,  US Senators Elizabeth Warren, Dick Durbin, and Richard Blumenthal called on University of Idaho President Green to abandon the sale.  The Senators also asked Green if he had a plan to pay for the Borrower Defense claims, noting that University of Arizona may be on the hook for thousands of claims against Ashford University (aka University of Arizona Global campus).

In November, the Joint Finance-Appropriations Committee of the Idaho Legislature is expected to discuss the issue again.

*The Higher Education Inquirer has made a FOIA request for more up-to-date numbers from the US Department of Education. We have also filed FOIA requests with the FTC. 


Related link: 

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

The Growth of "RoboColleges" and "Robostudents"

More Transparency About the Student Debt Portfolio Is Needed: Student Debt By Institution

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

Tuesday, January 28, 2025

The future of the US Department of Education: 8 tips for journalists covering the agency under Trump’s second term

The U.S. Department of Education, one of the federal government’s smallest Cabinet-level agencies, operates programs across every level of education. With an annual budget of about $242 billion, it helps fund approximately 98,000 public schools and 32,000 private schools serving kindergarten through grade 12 as well as thousands of colleges, universities, vocational schools and other higher education institutions.

During his reelection campaign, President Donald Trump pledged to close the U.S. Department of Education if he returned to the White House. In the months leading to his inauguration on Monday, some Republican state leaders and members of Congress expressed support for his proposal, although it is still unclear how he would implement it.

In Oklahoma, for example, Ryan Walters, the state superintendent of public instruction, has formed a committee to oversee the changes in federal education policy he expects the Trump administration to make.

“The education system has needed these reforms for decades,” Walters told FOX23 News Tulsa in November. “We’re going to be the first state ready to go to enact them.”

Even if the federal Education Department remains intact, which academic researchers and other experts assert is most likely, there probably will be changes. Trump has said he plans to use federal funding as leverage to limit what he considers “left-wing indoctrination” in K-12 schools and higher education institutions.

He has made it clear that he opposes so called “diversity programs” as well as school vaccine requirements, teaching critical race theory in K-12 classrooms and allowing transgender students to participate in sports that align with their gender identity.

“The big question isn’t whether the Department of Education is going to go away -- I think the big question is what it’s going to do,” says education historian Jonathan Zimmerman, a professor at the University of Pennsylvania who wrote the books Whose America? Culture Wars in the Public Schools and The Amateur Hour: A History of College Teaching in America.

We created this tip sheet to help journalists tackle this very complicated issue. Below, we spotlight eight tips to help you better understand the Education Department’s role, put Trump’s plan into historical context, and examine possible consequences for students, families, educators and their communities.

1. Make clear what the U.S. Department of Education does and that most of its funding is spent on programs for adults.

Many people don’t realize the U.S. Department of Education spends most of its budget on education and training for adults, namely college students, students enrolled in career and technical programs, and people with disabilities who need help finding jobs. In fiscal year 2024, the Education Department spent about $161 billion -- 60% of its $268 billion budget -- to fund its office of Federal Student Aid, the country’s largest provider of student financial aid.

Another $2 billion went to the Office of Career, Technical, and Adult Education, which administers a variety of education and training programs for adults, including adults with disabilities and incarcerated individuals. About $4 billion went to the Office of Postsecondary Education, which, among other things, provides grants for colleges controlled by tribal governments and for other minority serving institutions. The Rutgers Center for Minority Serving Institutions maintains a list of MSIs, which are public and private colleges and universities that serve a large percentage of Black, Hispanic, Asian or Indigenous students.

K-12 public schools receive relatively little money from the U.S. Department of Education. In fact, less than 8% of public school revenue came from federal agencies, including the Education Department, before COVID-19 reached the U.S. in 2020. Since then, the federal government has sent schools a combined $189.5 billion in emergency aid to help them deal with the wide-ranging impacts of the pandemic.

This temporary infusion of money bumped the federal government's share of public school funding to 13.7% during the 2021-22 academic year, the most recent year for which data is available.

The U.S. Department of Education’s largest K-12 programs are grant programs, designed to help public schools afford the higher cost of educating certain groups of students. For example, special education grants help schools pay for education and services for students with disabilities until they turn 21 years old. The Title I program, which gets its name from Title I of the federal law known as the Elementary and Secondary Education Act, provides financial assistance to schools where at least 40% students come from lower-income families.

A key function of the U.S. Department of Education is investigating civil rights complaints at K-12 schools, colleges, universities, trade schools and the other institutions it funds. Meanwhile, the agency’s research arm, the Institute of Education Sciences, collects a variety of education data and publishes regular reports on topics such as K-12 student demographics, high school graduation rates, college costs and college enrollment trends.

2. Note that some federal education programs are funded by other government agencies.

Much of the public probably does not realize that several major education programs are not run by the U.S. Department of Education. For example:

  • Head Start, which provides education-related services to preschool children from low-income families, is funded by the U.S. Department of Health and Human Services.
  • The National School Lunch Program and the School Breakfast Program are funded by the U.S. Department of Agriculture.
  • While the Education Department provides some funding for K-12 schools controlled by tribal governments, most comes from the Bureau of Indian Education, part of the U.S. Department of the Interior. Some K-12 schools located on tribal land are operated and funded by the Bureau of Indian Education, which also funds and operates two tribal higher education institutions: the Haskell Indian Nations University in Kansas and the Southwestern Indian Polytechnic Institute in New Mexico.
  • The GI Bill, which helps military veterans and their family members pay for college and other types of education, is funded by the U.S. Department of Veterans Affairs.
  • The primary federal agencies that provide research funding to colleges and universities are the National Science Foundation, Department of Defense, Department of Health and Human Services, Department of Energy, National Aeronautics and Space Administration and Department of Agriculture.

3. Emphasize that closing the U.S. Department of Education has been a goal of conservative politicians for decades.

Several high-ranking Republicans have sought to eliminate the Education Department since it opened in 1980 under Democratic President Jimmy Carter. Ronald Reagan, who won the presidential election that year, announced his plan to shutter it during his first State of the Union address.

“In campaigning for the presidency, Mr. Reagan called for the total elimination of the U.S. Department of Education, severe curtailment of bilingual education, and massive cutbacks in the federal role in education,” education historian Gary K. Clabaugh writes in “The Educational Legacy of Ronald Reagan,” published in the academic journal Educational Horizons in 2004.

Bob Dole, the Republican presidential nominee in 1996, also advocated for closure, as did Trump and several other Republicans competing for the U.S. presidency in 2024. Former Vice President Mike Pence, Florida Gov. Ron DeSantis, North Dakota Gov. Doug Burgum and biotech entrepreneur Vivek Ramaswamy have all said they would eliminate the Education Department.

Shortly after Trump’s reelection in November, U.S. Sen. Mike Rounds, a Republican from South Dakota, introduced the “Returning Education to Our States Act.” The bill seeks to abolish the Department of Education and transfer its programs and responsibilities to other federal agencies. For example, the Department of the Treasury would take over federal financial aid programs and the Department of Health and Human Services would administer the special education program.

U.S. Rep. Thomas Massie, a Republican from Kentucky, introduced bills in 2017, 2019, 2021 and 2023 to either terminate or reduce the size of the Education Department.

4. Explain what it would take to close the U.S. Department of Education. 

Closing the Education Department would require federal legislation and, likely, a supermajority vote in the U.S. Senate. Although senators can pass bills with a simple majority vote, it takes a supermajority vote to halt discussion on a bill so a vote can take place.

That means that unless the Senate eliminates its filibuster rule, which often has been used to block controversial legislation, three-fifths of senators would have to vote in favor of closing the debate on such a bill to allow a vote. Political observers have said they doubt 60 of the 100 senators would vote in favor of that. Only 53 are Republicans.

Less than two years ago, the U.S. House of Representatives considered a legislative amendment that endorsed moving K-12 education programs out of the Department of Education. It failed, with 60 Republicans and 205 Democrats voting against it.

The Education Department generally enjoys bipartisan support, Pedro Noguera, dean of the Rossier School of Education at the University of Southern California, explained recently on a podcast he co-hosts and in an essay he co-wrote for The Hill.

“There are a lot of red states, red communities across the country that benefit from the policies and the programs,” Noguera said on the “Sparking Equity” podcast.

Education scholar Frederick Hess supports closing the department but says it will not happen. Not only do Republicans lack the votes to make the change, they have shown little interest in cutting programs that serve lower-income kids and kids with disabilities, says Hess, an executive editor of the Education Next journal, which, like The Journalist's Resource, is housed at Harvard Kennedy School.

Hess is also director of education policy studies at the American Enterprise Institute, a conservative-leaning think tank, and the author of several books on education policy, including "Getting Education Right: A Conservative Vision for Improving Early Childhood, K–12, and College" and "The Great School Rethink."

"What really matters for people who want to shrink the federal role or change it is: What are we changing about spending and rules and regulations?" he says, adding that journalists need to examine how the current rules for spending federal education dollars harm K-12 students. For one, he notes, they create a lot of paperwork for teachers at a time when public schools are struggling to hire and retain teachers, particularly special education teachers.

Says Hess: "There's a real opportunity here to look at the role of federal aid and the use of federal funds -- how are they used and are they actually creating budgetary problems rather than solving them?"

5. Provide your audiences with a realistic sense of how K-12 and higher education could be affected by an Education Department closure.

Educators, school administrators, policymakers and academic researchers have all speculated on how an Education Department closure could impact federal education funding and programs. Ten journalists from the Hechinger Report, a nonprofit news outlet that focuses on education issues, teamed up recently to examine that question. The resulting article is a must-read for journalists covering this topic.

Among its main takeaways: Abolishing the agency would not undo federal laws that established federal funding for K-12 programs that serve some of the nation’s most marginalized students, including students with disabilities and those from lower-income families. “But doling out that money and overseeing it could get messy,” the outlet reports.

Marguerite Roza, a research professor who studies education finances at Georgetown University, has said funding for K-12 schools probably would not change much.

“We've been telling school districts, ‘Don't expect massive changes in your federal dollars,’” Roza, who directs Georgetown’s Edunomics Lab, said in a Dec. 12 interview on a podcast produced by the right-leaning Defense of Freedom Institute for Policy Studies.

Meanwhile, higher education scholars like Marybeth Gasman, the Samuel DeWitt Proctor Endowed Chair in Education at Rutgers University, are concerned about college funding. She’s especially worried about funding aimed at helping marginalized youth get to and through college. Trump and some other conservative lawmakers have expressed disdain for so-called “diversity programs.”

A drop in funding could be devastating for minority serving institutions, which serve close to half of all U.S. college students who are racial or ethnic minorities, says Gasman, who is also executive director of both the Rutgers Center for Minority Serving Institutions and the Samuel DeWitt Proctor Institute for Leadership, Equity & Justice

For example, 25% of Historically Black Colleges and Universities’ revenue came from the federal Education Department in fiscal year 2022, according to a report released last month by the State Higher Education Executive Officers Association. At the same time, most students enrolled at HBCUs qualify for Pell grants, a type of financial aid the Education Department offers lower-income students that they do not pay back.

Most minority serving institutions, commonly referred to as MSIs, are designated as Hispanic serving institutions because a large percentage of their students are Hispanic. They get 18% of their revenue directly from the Education Department grants. Many of their students also qualify for Pell grants.

“There needs to be more exploration into the ramifications of Trump’s presidency on MSIs,” Gasman says. “If they change loan forgiveness [policies], if they change Pell [grants], if they change aid to MSIs, it will have profound impacts.”

6. Evaluate how well the U.S. Department of Education runs its programs.

When President Jimmy Carter signed the Department of Education Organization Act, which created the Education Department, he said he wanted to ensure Americans got a better return on their investment in education. He said the new department would, among other things, save tax dollars and make federal education programs more accountable and responsive.

Has the department accomplished those goals? That’s a question journalists should try to answer for their audiences. Here are resources to get you started:

  • Investigative reports from the U.S. Government Accountability Office, often referred to as Congress’ watchdog. The office examines the use of public funds and makes recommendations for improvement.
  • Performance Results Reports and Congressional Reports compiled by the U.S. Department of Education’s Office of Inspector General. The purpose of that office is to “promote the efficiency, effectiveness, and integrity of the Department’s programs and operations through independent and objective audits, investigations, inspections, and other activities.”
  • The National Center for Education Statistics provides an assortment of data on various K-12 student groups, including students who participate in Title I, special education and English language acquisition programs. It also provides data on students who participate in federal higher education programs, including the graduation rates of lower-income college students who receive Pell grants, one type of federal financial aid.
  • The Congressional Research Service, which assists Congress in researching issues and creating laws and policies, regularly releases reports focusing on Education Department programs.
  • Researchers have studied the effectiveness of the Title I program specifically, although no academic articles have been published in recent years. An analysis from George Mason University’s School of Policy, Government and International Affairs, updated in 2015, looks at the results of national assessments of the Title I program conducted from 1966 to 2013. It finds “little evidence that Title I has contributed significantly to closing achievement gaps nationwide.” A 2015 analysis by the Brookings Institution, a centrist think tank, asserts that the Title I program “doesn’t work,” in part because Title 1 “is spread so thin that its budget of $14 billion a year turns out not to be much money.”
  • Some school districts have hired the American Institutes for Research to review their special education programs. A handful of recent reviews are posted on the organization’s website, and others could be obtained directly from school districts through public records requests.
  • Several academic journal articles examine the burden of paperwork associated with federal K-12 education programs. In a paper published in 2023, for example, researchers write that “excessive paperwork” is a main reason special education teachers leave the field.
  • A June 2024 analysis from EdSource, a nonprofit news outlet in California, finds that students who are learning to speak English do worse on California’s state exam the longer they are enrolled in the federal English language acquisition program.
  • Many news outlets have reported on the Education Department’s botched rollout of the new FAFSA -- the Free Application for Federal Student Aid -- that students must submit to determine their eligibility for college grants and loans.

7. Find out whether state Education Departments are prepared to take on additional duties if the U.S. Department of Education closes.

Trump and many other influential Republicans want states to oversee their own education programs. But it is unclear which responsibilities would be transferred from the federal Education Department and how changes would be rolled out. What also is unclear is whether individual states are ready and able to take on these new duties.

It’s well known that state and local governments struggled with staffing during the COVID-19 pandemic, particularly in law enforcement, public health and education. Hiring has picked up recently, but some human resource managers have reported an uptick in resignations and retirements, according to a 2024 analysis conducted on behalf of the National Association of State Personnel Executives and the Public Sector HR Association. Some of the hiring officials surveyed for that report also said they expect a major wave of retirements during the next few years.

Veteran education journalist Daarel Burnette recommends journalists visit state Education Departments and look into how well they are handling their current workloads.

“You can just walk into those buildings and see rows and rows of empty desks -- they look like newsrooms,” says Burnette, a senior editor at The Chronicle of Higher Education and a former assistant managing editor and reporter for Education Week.

He notes that state education officials have been widely criticized for their response to the pandemic and the decline of K-12 students’ test scores in the wake of it. Individual legislators and the American Civil Liberties Union have requested investigations into the alleged misuse of schools’ COVID-19 relief funds.

The federal Education Department’s Office of the Inspector General has released several reports investigating individual state’s use of those funds. In December 2024, a subcommittee of the U.S. House of Representatives released a 557-page report examining the nation’s response to the pandemic, indicating that “[t]he unprecedented scale and lack of transparency in COVID-19 pandemic relief programs exposed vulnerabilities for waste, fraud, and abuse.”

8. Ask education experts about angles and issues you have not yet considered.

Even if the Education Department is not dismantled, close federal scrutiny could easily open the door for other conversations about funding cuts and changes to the agency’s programs and procedures. Journalists should ask education researchers and other experts for help identifying issues the public needs to know about.

Laura Enriquez, director of the University of California Collaborative to Promote Immigrant and Student Equity, urges journalists to look beyond their regular sources and ask about students the news media tend to overlook. For example, while journalists frequently report on how public policies affect unauthorized immigrants, their coverage does not often include children born in the U.S. to parents who are unauthorized immigrants, she says.

These individuals can face challenges accessing programs and services that government agencies provide to U.S. citizens. Last year, these students had trouble submitting their FAFSA forms to obtain financial aid for college if their parents did not have social security numbers, says Enriquez, who is also an associate professor of Chicano/Latino studies and director of the Center for Liberation, Anti-racism, and Belonging at the University of California, Irvine. 

“There are so many ways to tinker with aid award formulas and make the process more complicated than it already is for first-generation college students, racial minorities and citizens with undocumented parents,” she says.

She urges journalists to routinely ask themselves who is missing from their coverage. She adds: “The question you need to ask of yourself as a reporter is ‘Who else could be impacted through social ties?’ That’s a guiding question I wish more reporters asked of themselves.”

This article first appeared on The Journalist's Resource and is republished here under a Creative Commons license.

Sunday, September 7, 2025

Trump's War on Reality

The second Trump administration has unleashed a coordinated assault on reality itself—an effort that extends far beyond policy disagreements into the realm of deliberate gaslighting. Agency by agency, Trump’s lieutenants are reshaping facts, science, and language to consolidate power. Many of these figures, despite their populist rhetoric, come from elite universities, corporate boardrooms, or dynastic wealth. Their campaign is not just about dismantling government—it’s about erasing the ground truth that ordinary people rely on.

Department of Defense → Department of War

One of the starkest shifts has been renaming the Department of Defense the “Department of War.” This rhetorical change signals the administration’s embrace of permanent conflict as strategy. Secretary Pete Hegseth, a Princeton graduate and former hedge fund executive, embodies the contradiction: Ivy League polish combined with cable-news bravado. Under his watch, diplomacy is downgraded, alliances undermined, and propaganda elevated to policy.

The Pentagon has been retooled into a megaphone for Trump’s narrative that America is perpetually under siege. Despite the promise of “America First,” decisions consistently empower China and Russia by destabilizing traditional alliances. The irony: many of the architects of this policy cut their teeth at elite think tanks funded by the same defense contractors now profiting from chaos.

Department of Education

Trump’s appointees have doubled down on dismantling federal oversight, echoing the administration’s hostility to “woke indoctrination.” Yet the leaders spearheading this push often come from private prep schools and elite universities themselves. They know the value of credentialism for their own children, while stripping protections and opportunities from working families.

Department of Justice

Justice has been weaponized into a tool of disinformation. Elite law school alumni now run campaigns against “deep state” prosecutors, while simultaneously eroding safeguards against corruption. The result is a justice system where truth is malleable, determined not by evidence but by loyalty.

Department of Health and Human Services

Public health has been subsumed into culture war theatrics. Scientific consensus on climate, vaccines, and long-term health research is dismissed as partisan propaganda. Yet many of the leaders driving this narrative hail from institutions like Harvard and Stanford, where they once benefited from cutting-edge science, they now ridicule.

Environmental Protection Agency

The EPA has become the Environmental Pollution Agency, rolling back rules while gaslighting the public with claims of “cleaner air than ever.” Appointees often come directly from corporate law firms representing Big Oil and Big Coal, cloaking extractive capitalism in the language of freedom.

Department of Labor

Workers are told they are winning even as wages stagnate and union protections collapse. The elites orchestrating this rollback frequently hold MBAs from Wharton or Harvard Business School. They speak the language of “opportunity” while overseeing the erosion of worker rights and benefits.

Department of Homeland Security

Reality itself is policed here, where dissent is rebranded as domestic extremism. Elite operatives with ties to intelligence contractors enforce surveillance on ordinary Americans, while elite families enjoy immunity from scrutiny.


The Elite Architecture of Gaslighting

What unites these agencies is not just Trump’s directives, but the pedigree of the people carrying them out. Far from being the populist outsiders they claim to be, many hail from Ivy League schools, white-shoe law firms, or Fortune 500 boardrooms. They weaponize their privilege to convince the public that up is down, war is peace and lies are truth.

The war on reality is not a sideshow—it is the central project of this administration. For elites, it is a way to entrench their power. For the rest of us, it means living in a hall of mirrors where truth is constantly rewritten, and democracy itself hangs in the balance.


Sources

  • New York Times, Trump’s Cabinet and Their Elite Connections

  • Washington Post, How Trump Loyalists Are Reshaping Federal Agencies

  • Politico, The Ivy League Populists of Trump’s Inner Circle

  • ProPublica, Trump Administration’s Conflicts of Interest

  • Brookings Institution, Trump’s Assault on the Administrative State

  • Center for American Progress, Gaslighting the Public: Trump’s War on Facts

Saturday, September 6, 2025

FDT: Higher Education on the Frontlines of a Failing State

Universities have long been bastions of freedom, democracy, and truth. Today, they find themselves operating in a nation where these ideals are increasingly under siege—not by foreign adversaries, but by policies emanating from the highest levels of government.

The Department of War: A Symbolic Shift with Real Consequences

On September 5, 2025, President Donald Trump signed an executive order rebranding the U.S. Department of Defense as the "Department of War," aiming to restore the title used prior to 1949. This move, while symbolic, reflects a broader ideological shift towards an aggressive, militaristic stance. Defense Secretary Pete Hegseth, appointed in January 2025, has been a vocal proponent of this change, asserting that the new name conveys a stronger message of readiness and resolve. 

Critics argue that this rebranding prioritizes optics over substance, with concerns over potential high costs and effectiveness. Pentagon officials acknowledged the financial burden but have yet to release precise cost estimates. 

Economic Instability and Global Alienation

Domestically, the administration's economic policies have led to rising unemployment, inflation, and slowing job growth. A recent weak jobs report showing a gain of only 22,000 jobs prompted Democrats to criticize President Trump's handling of the economy, linking these issues to his tariffs and other controversial actions. 

Internationally, Trump's policies have strained relationships with key allies. Countries like Japan, South Korea, and several European nations have expressed concerns over U.S. trade practices and foreign policy decisions, leading to a reevaluation of longstanding alliances. 

Authoritarian Alliances and Human Rights Concerns

The administration's foreign policy has also seen a shift towards aligning with authoritarian leaders. Leaked draft reports indicate plans to eliminate or downplay accounts of prisoner abuse, corruption, and LGBTQ+ discrimination in countries like El Salvador, Israel, and Russia, raising concerns about the U.S.'s commitment to human rights. 

Immigration Policies and Humanitarian Impact

On the domestic front, the administration's immigration policies have led to the deportation of hundreds of thousands of individuals, including those with Temporary Protected Status. Critics argue that these actions undermine the nation's moral authority and have a devastating impact on affected families. 

The Role of Higher Education

In this turbulent landscape, higher education institutions find themselves at a crossroads. Universities are traditionally places where freedom, democracy, and truth are upheld and taught. However, as the nation drifts away from these principles, universities are increasingly tasked with defending them.

Faculty and students are stepping into roles as defenders of civic values, ethical scholarship, and truth-telling. But without robust support from government and society, universities alone cannot sustain the principles of freedom and democracy that once underpinned the nation.

The current moment is a test: Can American higher education continue to serve as a bastion of truth and civic responsibility in an era where the country’s own policies increasingly contradict those ideals? Or will universities be compelled to adapt to a world where freedom, democracy, and truth are optional, not foundational?

The stakes could not be higher.


Sources:

Saturday, May 17, 2025

Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Borrower Defense to Loan Repayment Universal Forms



A Notice by the Education Department on 05/19/2025

Department of Education[Docket No.: ED-2025-SCC-0002]

AGENCY:

Federal Student Aid (FSA), Department of Education (ED).

ACTION:

Notice.

SUMMARY:

In accordance with the Paperwork Reduction Act (PRA) of 1995, the Department is proposing a revision of a currently approved information collection request (ICR).

DATES:

Interested persons are invited to submit comments on or before June 18, 2025.

ADDRESSES:

Written comments and recommendations for proposed information collection requests should be submitted within 30 days of publication of this notice. Click on this link www.reginfo.gov/​public/​do/​PRAMain to access the site. Find this information collection request (ICR) by selecting “Department of Education” under “Currently Under Review,” then check the “Only Show ICR for Public Comment” checkbox. Reginfo.gov provides two links to view documents related to this information collection request. Information collection forms and instructions may be found by clicking on the “View Information Collection (IC) List” link. Supporting statements and other supporting documentation may be found by clicking on the “View Supporting Statement and Other Documents” link.

FOR FURTHER INFORMATION CONTACT:

For specific questions related to collection activities, please contact Carolyn Rose, 202-453-5967.

SUPPLEMENTARY INFORMATION:

The Department is especially interested in public comment addressing the following issues: (1) is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records.

Title of Collection: Borrower Defense to Loan Repayment Universal Forms.

OMB Control Number: 1845-0163.

Type of Review: A revision of a currently approved ICR.

Respondents/Affected Public: Individuals and Households.

Total Estimated Number of Annual Responses: 83,750.

Total Estimated Number of Annual Burden Hours: 217,750.

Abstract: On April 4, 2024 the U.S. Court of Appeals of the Fifth Circuit granted a preliminary injunction against 34 CFR 685.400 et seq. (“2023 Regulation”) enjoining the rule and postponing the effective date of the regular pending final judgment in the case. The current Borrower Defense to Repayment application and related Request for Reconsideration are drafted to conform to the enjoined provisions of the 2023 Regulation. This request is to revise the currently approved information collection 1845-0163 to comply with the regulatory requirements of the borrower defense regulations that are still in effect, 34 CFR 685.206(e) (“2020 Regulation”), 34 CFR 685.222 (“2016 Regulation”), and 34 CFR 685.206(c) (“1995 Regulation”) (together, the “current regulations”). These regulatory requirements are distinct from the 2023 Regulation's provisions. The revision is part of contingency planning in case the 2023 Regulation is permanently struck down. The Department of Education (“the Department”) is attaching an updated Borrower Defense Application and application for Request for Reconsideration. The forms will be available in paper and electronic forms on studentaid.gov and will provide borrowers with an easily accessible and clear method to provide the information necessary for the Department to review and process claim applications. Also, under the current regulations, the Department will no longer require a group application nor group reconsideration application.


Dated: May 13, 2025.

Brian Fu,

Program and Management Analyst, Office of Planning, Evaluation and Policy Development.


[FR Doc. 2025-08857 Filed 5-16-25; 8:45 am]

BILLING CODE 4000-01-P
Published Document: 2025-08857 (90 FR 21296)