Borrower Defense Story 3: Modern Indentured Servitude (Feral Woman)

[Editor's note:  This is the third story in our series on the social and philosophical dimensions of Borrower Defense to Repayment. We hope that by sharing these stories, more people will understand why Borrower Defense is morally essential.] 

I went to school so I could lift myself out of poverty. I went and learned a trade in healthcare that I was told would have an income that would be more than enough to pay my loans. I vetted current providers in the field and learned what would be needed to be successful. 

The school made a lot of promises, but they misrepresented information and, in some cases, completely lied about our profession and our income ability. My profession at the time was averaging 25k-35k/yr in income. They told us it was 100k-125k in order to justify taking out 100k to pay for the education. 

I lived simply and thought that as long as I made 100k I could easily pay my loans back within two years. No student loan should take more than 3 years to pay back, and I had a plan to do it in two.

 
I graduated in the height of the second financial crash of my lifetime - 2007/2008. Turns out there were no jobs available prior to this crash and certainly wasn't during the crash. Opening a practice was impossible and due to illness of both myself and my partner at the time, we were in deep poverty with only a roof over our head due to family. I was able to secure a part-time job at a grocery store. During this time, I also found out that my 4 year medical degree meant nothing outside of the field I was in - also another lie from the school. I couldn't transition to any other medical profession without starting over.

I made 12- 20k a year for several years in unrelated fields, meanwhile catastrophic interest was building. Congress had also passed a law to block bankruptcy and to add capitalized interest to student loans in 2005 - which is considered predatory lending in almost all types of lending, especially for large loans. My interest rate was averaging 8%. As a former business analyst, I knew this was going to have catastrophic impacts.

Since that time, I have tried to pass a student loan bill for the last 17 years that would solve this for 95% of borrowers from the past, current and future. 

I borrowed 108k, paid 85k and I owe close to 260k for this specific degree. I have tried leaving the profession for the last 15 years but have been stuck because of the loans and no one wanting to hire me outside of my profession. I've had a few part-time jobs, but those have also dried up.

I filed for Borrowers Defense, but don't have high hopes that this will be approved under this administration, despite my school being closed down. My education has been a lifetime sentence of indentured servitude. I've been in crisis since I graduated and have never known a moment of peace. I had started to feel some hope in 2019, but lost everything and more in the pandemic and have now declared bankruptcy and will attempt an "adversarial proceeding" to get relief from my student loans as well. It will cost between 6-12k to file for adversarial proceedings with no guarantee I'll win.

I also recently found out that my IBR should have been approved in Jan 2025 for full cancellation, but instead the administration INCREASED the number of years of repayment another 12 years.

If it weren't for my son, I would have fled this country 18 years ago and started over. As it is, I'm preparing to leave because of the fear of debtors' prisons for people like me. I absolutely can not afford any additional payment to my student loans. Despite hard work to change careers and well over 3k applications in the last 4 years, not including prior to that, I keep being told my education and credentials are not enough, even in the field I'm in.

This insanity is easy to fix. Yet, neither Democrats nor Republicans have been willing to pass basic laws to restore (yes restore) sanity to education and student loans.

Biden-Harris Administration Announces Final Student Loan Forgiveness and Borrower Assistance Actions (US Department of Education)

Total Approved Student Debt Relief Reached Almost $189 Billion for 5.3 Million Borrowers

The Biden-Harris Administration today announced its final round of student loan forgiveness, approving more than $600 million for 4,550 borrowers through the Income-Based Repayment (IBR) Plan and 4,100 individual borrower defense approvals. The Administration leaves office having approved a cumulative $188.8 billion in forgiveness for 5.3 million borrowers across 33 executive actions. The U.S. Department of Education (Department) today also announced that it has completed the income-driven repayment payment count adjustment and that borrowers will now be able to see their income-driven repayment counters when they log into their accounts on StudentAid.gov. Finally, the Department took additional actions that will allow students who attended certain schools that have since closed to qualify for student loan discharges. 

“Four years ago, President Biden made a promise to fix a broken student loan system. We rolled up our sleeves and, together, we fixed existing programs that had failed to deliver the relief they promised, took bold action on behalf of borrowers who had been cheated by their institutions, and brought financial breathing room to hardworking Americans—including public servants and borrowers with disabilities. Thanks to our relentless, unapologetic efforts, millions of Americans are approved for student loan forgiveness,” said U.S. Secretary of Education Miguel Cardona. “I’m incredibly proud of the Biden-Harris Administration’s historic achievements in making the life-changing potential of higher education more affordable and accessible for more people.” 

From Day One the Biden-Harris Administration took steps to rethink, restore, and revitalize targeted relief programs that entitle borrowers to relief under the Higher Education Act but that failed to live up to their promises. Through a combination of executive actions and regulatory improvements, the Biden-Harris Administration produced the following results for borrowers: 

Fixed longstanding problems with Income-Driven Repayment (IDR). The Administration has approved 1.45 million borrowers for $57.1 billion in loan relief, including $600 million for 4,550 borrowers announced today for IBR forgiveness. 

IDR plans help keep payments manageable for borrowers and have provided a path to forgiveness after an extended period. These plans started in the early 1990s, but prior to the Biden-Harris Administration taking office, just 50 borrowers had ever had their loans forgiven. The Administration corrected longstanding failures to accurately track borrower progress toward forgiveness and addressed past instances of forbearance steering whereby servicers inappropriately advised borrowers to postpone payments for extended periods of time. These totals also include borrowers who received forgiveness under the Saving on a Valuable Education (SAVE) plan prior to court orders halting forgiveness under the SAVE plan. 

Today, the Department also announced the completion of the IDR payment count adjustment, correcting eligible payment counts. While the payment count adjustment is now complete, borrowers who were affected by certain servicer transitions in 2024 may see one or two additional months credited in the coming weeks. The Department is also launching the ability for borrowers to track their IDR progress on StudentAid.gov. Borrowers can now log in to their accounts and see their total IDR payment count and a month-by-month breakdown of progress.   

Restored the promise of Public Service Loan Forgiveness (PSLF). The Administration has approved 1,069,000 borrowers for $78.5 billion in forgiveness.  

The PSLF Program provides critical support to teachers, service members, social workers, and others engaged in public service. But prior to this Administration taking office, just 7,000 borrowers had received forgiveness and the overwhelming majority of borrowers who applied had their applications denied. The Biden-Harris Administration fixed this program by pursuing regulatory improvements, correcting long-standing issues with tracking progress toward forgiveness and misuse of forbearances, and implementing the limited PSLF waiver to avoid harm from the pandemic. 

Automated discharges and simplified eligibility criteria for borrowers with a total and permanent disability. The Administration has approved 633,000 borrowers for $18.7 billion in loan relief. 

Borrowers who are totally and permanently disabled may be eligible for a total and permanent disability (TPD) discharge. The Biden-Harris Administration changed regulations to automatically forgive loans for eligible borrowers based upon a data match with the Social Security Administration (SSA). This helped hundreds of thousands of borrowers who were eligible for relief but hadn’t managed to navigate paperwork requirements. The Department also made it easier for borrowers to qualify for relief based upon SSA determinations, made it easier to complete the TPD application, and eliminated provisions that had caused many borrowers to have their loans reinstated. 

Delivered long-awaited help to borrowers ripped off by their institutions, whose schools closed, or through related court settlements. The Administration has approved just under 2 million borrowers for $34.5 billion in loan relief.  

For years, students had sought relief from the Department through borrower defense to repayment—a provision that allows borrowers to have their loans forgiven if their college engaged in misconduct related to the borrowers’ loans. The Department delivered long-awaited relief to borrowers who attended some of the most notoriously predatory institutions to ever participate in the federal financial aid programs. This included approving for discharge all remaining outstanding loans from Corinthian Colleges, as well as group discharges for ITT Technical Institute, the Art Institutes, Westwood College, Ashford University, and others. The Department also settled a long-running class action lawsuit stemming from allegations of inaction and the issuance of form denials, allowing it to begin the first sustained denials of non-meritorious claims. 

Today, the Department also approved 4,100 additional individual borrower defense applications for borrowers who attended DeVry University, based upon findings announced in February 2022.  

“For decades, the federal government promised to help people who couldn’t afford their student loans because they were in public service, had disabilities, were cheated by their college, or who had completed decades of payments. But it rarely kept those promises until now,” said U.S. Under Secretary of Education James Kvaal. “These permanent reforms have already helped more 5 million borrowers, and many more borrowers will continue to benefit.” 

The table below compares the progress made by the Biden-Harris Administration in these key discharge areas compared to other administrations. 

	Borrowers approved for forgiveness
	Prior Administrations	Biden-Harris Administration
Borrower Defense (Since 2015)	53,500	1,767,000*
Public Service Loan Forgiveness (Since 2017)	7,000	1,069,000
Income-Driven Repayment (all-time)	50	1,454,000
Total and Permanent Disability (Since 2017)	604,000	633,000

* Includes 107,000 borrowers and $1.25 billion captured by an extension of the closed-school lookback window at ITT Technical Institute.  

Additional actions related to closed school discharges 

The Department today also announced additional actions that will make more borrowers eligible for a closed school loan discharge. Generally, a borrower qualifies for a closed school discharge if they did not complete their program and were either still enrolled when the school closed or left without graduating within 120 days before it closed. . However, the Department has determined that several schools closed under exceptional circumstances that merit allowing borrowers who did complete and were enrolled in the school more than 120 days prior to the closure to qualify for a closed school discharge. justify extending the look-back window beyond the applicable 120 or 180 days--allowing additional borrowers to qualify for a closed school discharge. Generally, eligible borrowers will have to apply for these discharges, but the Secretary has directed Federal Student Aid to make borrowers aware of their eligibility, and to pursue automatic discharges for those affected by closures that took place between 2013 and 2020 and who did not enroll elsewhere within three years of their school closing. 

These adjusted look-back windows are: 

• To May 6, 2015, for all campuses owned at the time by the Career Education Corporation (CEC), which have since closed. That is the day CEC announced it would close or sell all campuses except for two brands. This affected the Art Institutes, Le Cordon Bleu, Brooks Institute, Missouri College, Briarcliffe College, and Sanford-Brown. 
• To December 16, 2016, for campuses owned by the Education Corporation of America (ECA) on that date that closed. ECA operated Virginia College, Brightwood College, EcoTech, and Golf Academies and started on the path to closure after its accreditation agency lost federal recognition and ECA could not obtain accreditation elsewhere. 
• To October 17, 2017 for all campuses owned or sold on that date by the Education Management Corporation (EDMC) and that later closed. That is the day EDMC sold substantially all of its assets to Dream Center Educational Holdings. The decision affects borrowers who attended the Art Institutes, including the Miami International University of Art & Design and Argosy University.  
• To April 23, 2021, for Bay State College. That is the day this Massachusetts-based college began to face significant accreditation challenges, which eventually led to the school losing accreditation and closing in August 2023. 

Borrowers who want more information about closed school discharge, including how to apply, can visit StudentAid.gov/closedschool. 

A state-by-state breakdown of various forms of student debt relief approved by the Biden-Harris Administration is available here.

University of Phoenix: An Albatross for Idaho?

The University of Phoenix will be back in Idaho District Court in 2025 unless Apollo Global Management can find another buyer for the school. Apollo Group, the primary owner of the University of Phoenix, has been trying to unload the school for years.  

Although the University of Phoenix appears to be a profitable institution, it has potential liabilities, including hundreds of millions of dollars in Borrower Defense to Repayment (fraud) claims that the US Department of Education could claw back from the parent owner. While this risk may be seriously reduced over the next four years, that danger could rise again under a progressive administration. 

As of 2023, there were approximately 73,000 Borrower Defense claims against the school. More than 19,000 Borrower Defense claims were approved for student debtors who attended the University of Phoenix and were part of the Sweet v Cardona settlement. Many of the remaining claims are still awaiting a decision from the Department of Education.  

University of Phoenix debtors are saddled with an estimated $21.6 Billion in student loan debt. 

The University of Phoenix has been involved in a number of lawsuits over the last decade. In 2019, the Federal Trade Commission and the University of Phoenix settled a claim for $191M for deceptive employment claims, but the school denied any wrongdoing.

Borrower Defense Story 2: Anxiety & Interest (KH)

[Editor's note: This is the second story in a series about student loan debt and the moral necessity of Borrower Defense to Repayment. The first post is here.] 

My name is KH and I'm from Florida. My student debt crisis is very personal. I attended Kaplan University Online in 2008 while on bed rest after an accident. My family and I were extremely poor and so the idea of a college education to support my growing family was something that was appealing to me. 

My boyfriend at the time was in the agricultural field and only worked 4 or 5 months out of the year. We were so poor that even unmarried with a child he qualified to be on my SNAP and Medicaid applications. 

Once I made the call to Kaplan I was told that a degree would take us out of poverty, and we could live happily ever after. I was promised job placement and training for my future job. None of these things happened. I signed documents that indicated I was low income which allowed Kaplan to request more funding from FAFSA. 

Then the housing market crash of 2008 happened, and I switched majors to clinical psychology (I was told I would be in the therapeutic field once complete). In 2010 I had a phone call that made me look up the difference between FOR profit and nonprofit schools. Realizing I made a mistake, I switched schools to Lynn University which is a private (expensive) nonprofit. They were the only school that would take all of my credits from Kaplan. 

Fast forward to today, I am currently waiting to attend Southeastern Oklahoma State University to complete a Master's degree in School Counseling. 

I have received two different notifications from Mohela, my student loan servicer. The first indicates that I'm in-school deferment but it ends two weeks after I start class. Then my payment plans. There are two plans, one is for 700.00+ dollars and the other for 800.00+ dollars. One of my paychecks is 1700.00. There is no way I can survive with 1/2 my pay. 

I'm in the Borrower's Defense program because of the mismanagement by Kaplan. I also currently have multiple documents with multiple dates for repayment. There is no correct document that indicates what, when, or how I'm supposed to navigate this. Let me also state, the compounding interest is what makes this incredibly hard. I will be paying over 350,000 dollars from 120,000 in loans. 

This is criminal. Period.

Art Institutes Close. Students May Be Eligible for Student Loan Forgiveness.

The Art Institutes (Ai) is closing its doors this Friday, September 30. Ai has locations in Miami and Tampa (FL), Atlanta (GA), Austin and Houston (TX), and Virginia Beach (VA). About 2000 students are affected.  The Art Institutes website provides closed school information.

The Art Institutes chain had a storied history, starting in Pittsburgh, Pennsylvania in 1921 and growing to 50 locations by 2010. Its boom was the result of intensive profit-making in the higher education business in the 1990s and early 2000s. Goldman Sachs was a key contributor to its explosive growth.

Ai's decade-long decline was part of a wave of for-profit colleges that faced increased federal scrutiny for low graduation rates, high levels of student loan debt, and declining enrollment. Unlike Corinthian Colleges (2015), ITT Tech (2016), Westwood College (2016), and Virginia College (2018), the Art Institutes survived with government assistance--but with less than ten campuses. 

Art Institute Students 

Students from the Art Institutes may transfer to other schools, but many of their credits may not be accepted by other institutions. Consumers should also be extremely wary of the schools they plan transferring to.  

Students would normally be allowed to have their student loans forgiven through a process called Closed School Discharge. But that avenue for remedy has been paused. Present and former students, however, may be able to have their student loan debt relieved through Borrower Defense to Repayment if they can prove that they were defrauded. 

Borrower Defense-Sweet vs Cardona is a Facebook space for people who have already succeeded in getting their student loan money returned to them and others working on claims. Borrower Defense-Sweet vs Cardona has more than 14,000 members. 

Higher Education Inquirer Surpasses 1 Million Views, Including More Than 200,000 in July 2025

The Higher Education Inquirer has reached a major milestone: more than 1 million total views since its founding, with over 200,000 views in July 2025 alone—a record-breaking month for the independent investigative site. This surge in readership reflects growing public concern with the state of U.S. higher education, especially at a time of increasing economic precarity, political unrest, and institutional dysfunction.

As corporate media outlets continue to downsize or ignore coverage of student debt, credential inflation, predatory schools, and the exploitation of academic labor, readers are seeking more critical, independent voices. HEI, which has long focused on underreported stories within the higher education-industrial complex, is becoming a go-to resource for policymakers, whistleblowers, journalists, and everyday people trying to make sense of the education economy.

Most Viewed Stories in July 2025

A few standout articles reveal key themes that are resonating with readers:

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1. "Camp Mystic: A Century of Privilege, Exclusion, and Resilience Along the Guadalupe"
Views: 8,730
This deeply researched piece on the elite girls’ camp in Texas struck a nerve with readers interested in the intersection of inherited wealth, segregation, and performative philanthropy. Camp Mystic serves as a metaphor for the parallel institutions that shape American leadership in quiet, exclusive ways—far from public scrutiny.

Trend: Growing interest in how generational wealth and private networks perpetuate elite power and influence, especially through educational institutions.

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2. "The Big Beautiful Bill”: A Catastrophic Blow to College Affordability
Views: 1,290
This analysis of new legislation affecting federal student aid programs explores how a bill dressed in populist language has real consequences for working-class and middle-income families. Readers responded to its dissection of policy doublespeak and the structural defunding of public education.

Trend: Rising awareness of how both major political parties contribute to the erosion of affordable education—often under misleading rhetoric.

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3. "Santa Ono: Take the Money and Run"
Views: 956
A pointed critique of University of Michigan President Santa Ono’s high salary and revolving-door administrative career drew in readers frustrated by bloated leadership pay and lack of institutional accountability.

Trend: Increased public scrutiny of university presidents and boards of trustees, especially at elite institutions.

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4. "List of Schools with Strong Indicators of Misconduct, Evidence for Borrower Defense Claims"
Views: 943
This database-style article provided a valuable resource for former students, journalists, and attorneys. By documenting schools with troubling records, it supported those filing Borrower Defense to Repayment claims and highlighted the ongoing fallout from the for-profit college boom.

Trend: Continued demand for actionable consumer information amid the Biden Administration’s limited and politically fraught debt relief efforts.

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5. "Degrees of Discontent: Credentialism, Inflation, and the Global Education Crisis"
Views: 900
This global take on the failures of credential-driven economies resonated with a wide audience—from jobseekers with degrees they can’t use to educators struggling to make sense of shifting academic value.

Trend: A philosophical and economic reckoning with credentialism, especially as degrees lose value while tuition and debt skyrocket.

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6. "Layoffs at Southern New Hampshire University"
Views: 826
Coverage of SNHU, a major player in online education, shed light on the darker side of "innovation": layoffs, overwork, and instability for faculty and staff.

Trend: Growing doubts about the long-term sustainability and labor ethics of the online education model.

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7. "Universities Brace for Endowment Tax Hike, Rethink Investment Strategies"
Views: 687
A timely piece on elite university endowments caught the eye of readers interested in how wealth hoarding and financial engineering are baked into modern academia.

Trend: Rising critiques of nonprofit tax loopholes and the financialization of higher ed.

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8. "Liberty University in Black and White"
Views: 684
This critical examination of Liberty University’s public image, internal contradictions, and links to right-wing political power explored how Christian nationalist ideology operates through higher education.

Trend: High interest in the political roles of conservative religious institutions and their ties to the culture wars.

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9. "Corruption, Fraud and Scandal at Los Angeles Community College District (LACCD Whistleblower)"
Views: 615
A whistleblower-centered article on LACCD corruption revealed widespread misuse of funds and institutional cover-ups, especially in facilities projects.

Trend: Rising demand for investigative journalism focused on local corruption in publicly funded institutions.

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10. "Agency Information Collection Activities…Borrower Defense to Loan Repayment Universal Forms"
Views: Not Yet Indexed
While bureaucratic in title, this article was shared among policy experts and debt activists for its breakdown of how regulations—and public comment periods—impact real people trying to discharge fraudulent debt.

Trend: Readers are becoming more engaged in regulatory policy and more skeptical of federal agencies' ability or willingness to protect consumers.

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What Readers Want 

What these stories show is a distinct pattern: readers want more accountability, more transparency, and less propaganda from the education system that has long promised prosperity and delivered precarity. They’re fed up with bloated administrative salaries, empty credentials, elite hypocrisy, and legislative betrayal.

Thanks to grassroots support and collaborations with students, whistleblowers, and journalists, the Higher Education Inquirer continues to grow in both reach and relevance.

As we pass 1 million views, we’re not just marking clicks—we’re tracking the pulse of a system in crisis. And we’re not done yet.

Borrower Defense Story 1: I Did Everything Right. And I’m Still Paying for a Degree I Never Got (Chamberlain School of Nursing- Single Mom)

In 2010, I was a mom-to-be with one child already at home and a marriage quietly unraveling. I knew I had to secure a future for my children and myself. So, while pregnant with my second child, I made the leap and enrolled in nursing school. I borrowed around $30,000 in federal student loans to earn my associate degree in nursing, graduated, passed my boards, and began working immediately. For a while, things felt like they were on track.

By 2016, I was encouraged to advance my education and pursue my BSN. That’s when I heard about Chamberlain University. It sounded like the perfect fit — I was told I could finish in as little as six months, that I’d only pay one semester at a time, and that there would be no out-of-pocket costs. The admissions team made it sound like a streamlined path forward. It wasn’t.

Eighteen months later, I was nowhere near graduation, and my debt had ballooned by another $45,000, bringing my total student loan balance to $75,000 — and I still didn’t have a degree. Every time I asked how close I was to finishing, I was told “just another semester or two.” The promises felt endless, vague, and increasingly disheartening.

What’s worse: before I even began the program, I had emailed asking about credentialing in my state and clinical eligibility. The response I got was delayed and full of mixed messages. One advisor assured me they were “working through compliance,” but I was never given a definitive answer. That means I was never sure the clinicals I would complete — or the degree itself — would even be recognized by my state’s Board of Nursing. That ambiguity is one of many red flags I flagged in my Borrower Defense application.

By 2018, I had enough. I was exhausted by the emotional and financial toll and withdrew from the program just a few classes short of completing my BSN.

Since then, I’ve been steadily working as a nurse, raising my kids, and doing what so many borrowers do — making monthly payments while watching the interest grow faster than I could keep up. I never missed payments. I never defaulted. But it still didn’t feel like progress.

Then this year, I finally decided to buy a home — something I never thought possible as a single mom buried in debt. I was approved and in the final stages of closing. But when my lender pulled an updated credit report, a new collection for $1,115 had mysteriously appeared. It was from Chamberlain.

This debt had never shown up before. It wasn’t on my May report, but suddenly it showed up in June — just two months before it was scheduled to fall off my credit report entirely (August, 2025). With that, my mortgage approval was revoked.

I had the option to pay it off. But honestly? I couldn’t stomach paying another cent to a school that left me with no degree, unclear clinical credentials, and a mountain of debt. So I let the home go.

In the meantime, I’ve discovered resources I wish I’d known about years ago. I submitted an application for Public Service Loan Forgiveness (PSLF) — something I assumed I wasn’t eligible for because I was on a standard repayment plan. But I’ve now been told I have 144 qualifying payments on my original loans and around 70 qualifying months on the second set tied to Chamberlain. I'm now working on certifying my employment to formalize that progress. One where I have had 10, yes 10 failed submissions due to silly clerical errors.

I also submitted a Borrower Defense to Repayment application — twice. The first time, I felt unsure. The second time, I attached emails and evidence showing the misleading guidance, false promises about timelines and costs, and unclear accreditation issues. I now believe my application is materially complete, without any assurances or timeline. Promises from others shared experiences that this process will in fact take me years if not decades. With no legal representation, or protections like the earlier class action members. Feeling alone, and kind of like a loser. I just wish I had known about it sooner.

I know my case might be denied. I know this might take months — or years- or decades. But I’m not giving up. Because this isn’t just my story. It’s the story of so many of us who tried to do everything right… and are still paying for it.

FOIA Request Seeks Updated Borrower Defense Data from U.S. Department of Education

The Higher Education Inquirer has submitted a new Freedom of Information Act (FOIA) request to the U.S. Department of Education seeking updated data on Borrower Defense to Repayment (BDR) claims.

Specifically, the request asks for the latest report generated from the Department’s Consumer Engagement Management System (CEMS)—the internal platform that tracks borrower complaints and federal discharge decisions related to school misconduct and misrepresentation. The request mirrors a prior release, FOIA Request No. 22-00011-F, which produced a 94-page report itemizing all institutions with BDR claims, the number of applications per school, and their adjudication status (approved, denied, pending, or closed).

This new request covers the period from July 15, 2024 through July 13, 2025, a timeframe that includes a volatile political year, further fallout from collapsed for-profit schools, ongoing litigation, and changes in regulatory enforcement under a fractured Department of Education.

The goal of this FOIA request is to provide the public with clear, updated, and comprehensive insight into which schools—across all sectors—continue to generate complaints from borrowers who claim they were misled or defrauded. These data are vital for researchers, journalists, legal advocates, and students trying to navigate an often opaque and treacherous higher education marketplace.

The original CEMS disclosure from 2022 helped illuminate systemic abuse, particularly among large for-profit college chains and online universities. It also revealed how some nonprofit and public institutions had quietly accumulated significant numbers of BDR claims, often with little media scrutiny or regulatory response.

The current FOIA request follows growing public concern over borrower protections, the fairness and efficiency of the BDR process, and the lack of institutional accountability. While the Department of Education has discharged billions in student debt under expanded BDR rules in recent years, critics argue that transparency has been lacking—especially as political and legal pressure intensifies.

In submitting this request, the Higher Education Inquirer reaffirms its commitment to independent, investigative journalism focused on the intersection of education, debt, and power. Once the data are released, HEI will analyze and publish key findings to expose patterns of harm, regulatory failure, and corporate influence—wherever they may lie.

Source:
FOIA Request No. 25-04397-F, U.S. Department of Education, July 13, 2025
Prior FOIA Disclosure: FOIA 22-00011-F, released 2022 (94-page CEMS report)

Pigs on Parade: The University of Phoenix IPO

Apollo Global Management and Vistria have an offer only a pig would consider: the Phoenix Education Partners IPO.

Touted by Morgan Stanley, Goldman Sachs, Bank of Montreal, Jefferies, and Apollo Global Securities, the offering of Phoenix Education Partners brings the University of Phoenix (PXED) back to public markets—but few fans remain in the audience.

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A Decade of Decline: From Expansion to Erosion

In the early 2000s, the University of Phoenix was hailed as a pioneering force in adult education—cozy campuses near freeway exits and an advanced online infrastructure for working learners earned praise. Its founder John Sperling was seen as visionary.

But by 2010 enrollment had already begun plummeting after reaching nearly 470,000 students, and the school’s academic quality and recruiting ethics were under the microscope. Critics decried “The Matrix,” a perverse scheme where recruiters were aggressively incentivized to push enrollments—no matter the cost.

By 2018, more than 450 locations had shuttered, enrollment was down by approximately 80%, and half the remaining sites were no longer accepting new students. Even Hawaii, Jersey City, Detroit, and other major cities were on the closure list.

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Regulatory Fallout: Lawsuits, Settlements, and Borrower Defenses

From the early 2010s onward, the University of Phoenix (aka UoPX) saw an avalanche of legal scrutiny. In 2019, the FTC leveled a $191 million settlement against it for misleading advertising, including deceptive claims about job placement and corporate partnerships.

By late 2023, 73,740 borrower-defense claims had been filed by former students under federal programs. Many of these were settled under the Sweet v. Cardona class action, with estimates of the university’s potential liability ranging from $200 million to over $1 billion. Meanwhile, nearly one million debtors owed a combined $21.6 billion in student loans—about $22,000 per borrower on average.

Another flashpoint: UoPX agreed to pay $4.5 million in 2024 to settle investigations by California’s Attorney General over military-targeted recruiting tactics.

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The Ownership Unicorn: Apollo, Vistria, and Political Backing

After Apollo Global Management and the Vistria Group acquired UoPX in 2016, the school became a commodified unit in a larger private equity portfolio. The deal brought in figures like Tony Miller, a political insider, as chairman—signaling strategic power play as much as financial management.

Vistria’s broader stable included Risepoint (previously Academic Partnerships), meaning both UoPX and OPM entities were controlled by one private-equity firm—drawing criticism for creating a “for-profit, online-education industrial complex.”

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The IPO Circus: “Pigs on Parade”

Enter the Phoenix Education Partners IPO (PXED), steered onto the market with all the pomp of a carnival but none of the substance. The front-line banks—Morgan Stanley, Goldman Sachs, BMO, Jefferies, Apollo Global Securities—are being paid handsomely to dress up this distressed asset as a growth opportunity.

But here’s what those colorful floats hide:

• Collapse, not comeback. Enrollment and campus infrastructure have withered.

• Debt, not opportunity. Nearly a million debt-laden alumni owe $21.6 billion.

• Liability, not credibility. Borrower defense claims and state investigations continue to mount.

• Profit, not public good. Ownership is consolidated in private equity with political access, not academic mission.

This is a pig in parade attire. Investors are being asked to cheer for ribbon-cutting and banners, while the mud-stained hooves of exploitative business models trudge behind.

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The HEI Verdict

This PXED IPO isn’t a pivot toward better education—it’s a rebrand of an exploitative legacy. From aggressive recruitment of vulnerable populations (“sandwich moms,” military servicemembers) to mounting legal liabilities, the University of Phoenix remains the same broken system.

Investors, regulators, and the public must not be dazzled by slick packaging. The real story is one of failed promises, students carrying lifelong debt, and private equity cashing out. In education, as in livestock, parades are meant to show off—just make sure you're not cheering at the wrong spectacle.

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Sources

• Higher Education Inquirer. Search: University of Phoenix

• Higher Education Inquirer. “The Slow-Motion Collapse of America’s Largest University” (2018)

• Higher Education Inquirer. “University of Phoenix Collapse Kept Quiet” (2019)

• Higher Education Inquirer. “Fraud Claims Against University of Phoenix” (2023)

• Higher Education Inquirer. “University of Phoenix Uses ‘Sandwich Moms’ in Recruiting” (2025)

• Higher Education Inquirer. “What Do the University of Phoenix and Risepoint Have in Common?” (2025)

• Federal Trade Commission. “FTC Obtains $191 Million Settlement from University of Phoenix” (2019)

• Sweet v. Cardona Settlement Documents (2022–2023)

• California Attorney General. “University of Phoenix to Pay $4.5 Million Over Deceptive Military Recruiting” (2024)

List of Schools with Strong Indicators of Misconduct, Evidence for Borrower Defense Claims

Here (below) is a list of schools where there are strong indicia of misconduct, per the Department of Education and/or the Department of Justice. 

Student loan debtors who have attended these schools, and believe they were defrauded, are encouraged to file Borrower Defense to Repayment claims if they haven't already. 

More than 750,000 Borrower Defense fraud claims have been filed, and tens of thousands have resulted in debt forgiveness. Folks can also join the r/BorrowerDefense group on Reddit for support and guidance.  

Alta Colleges, Inc. (Westwood)

• Westwood College

American Commercial Colleges, Inc.

• American Commercial College

American National University

• American National University

Ana Maria Piña Houde and Marc Houde

• Anamarc College

Anthem Education Group (International Education Corporation)

• Anthem College
• Anthem Institute

Apollo Group

• University of Phoenix
• Western International University

ATI Enterprises

• ATI Career Training Center
• ATI College
• ATI College of Health
• ATI Technical Training Center

Baker College

B&H Education, Inc.

• Marinello School of Beauty

Berkeley College (NY)

• Berkeley College

Bridgepoint Education

• Ashford University
• University of the Rockies

Capella Education Company (Strategic Education, Inc.)

• Capella University

Career Education Corporation

• American InterContinental University
• Briarcliffe College
• Brooks College
• Brooks Institute
• Collins College
• Colorado Technical University
• Gibbs College
• Harrington College of Design
• International Academy of Design and Technology
• Katharine Gibbs School
• Le Cordon Bleu
• Le Cordon Bleu College of Culinary Arts
• Le Cordon Bleu Institute of Culinary Arts
• Lehigh Valley College
• McIntosh College
• Missouri College of Cosmetology North
• Pittsburgh Career Institute
• Sanford‐Brown College
• Sanford‐Brown Institute
• Brown College
• Brown Institute
• Washington Business School
• Allentown Business School
• Western School of Health and Business Careers
• Ultrasound Diagnostic Schools
• School of Computer Technology
• Al Collins Graphic Design School
• Orlando Culinary Academy
• Southern California School of Culinary Arts
• California Culinary Academy
• California School of Culinary Arts
• Pennsylvania Culinary Institute
• Cooking and Hospitality Institute of Chicago
• Scottsdale Culinary Institute
• Texas Culinary Academy
• Kitchen Academy
• Western Culinary Institute

Center for Employment Training

• Center for Employment Training

Center for Excellence in Higher Education (CEHE)

• California College San Diego
• CollegeAmerica
• Independence University
• Stevens‐Henager

Corinthian Colleges, Inc.

• American Motorcycle Institute
• Ashmead College
• Blair College
• Bryman College
• Bryman Institute
• CDI College
• Duff's Business Institute
• Eton Technical Institute
• Everest
• Everest University Online
• Everest College Phoenix
• Florida Metropolitan University
• Georgia Medical Institute
• Heald College
• Kee Business College
• Las Vegas College
• National Institute of Technology
• National School of Technology
• Olympia Career Training Institute
• Olympia College
• Parks College
• Rochester Business Institute
• Sequoia College
• Tampa College
• Western Business College
• WyoTech

Computer Systems Institute

• Computer Systems Institute

Court Reporting Institute, Inc.

• Court Reporting Institute

Cynthia Becher

• La' James College of Hairstyling
• La' James International College

David Pyle

• American Career College
• American Career Institute

Delta Career Education Corporation

• McCann School of Business & Technology
• Miami‐Jacobs Career College
• Miller Motte Business College
• Miller‐Motte College
• Miller‐Motte Technical College
• Tucson College

DeVry

• American University of the Caribbean
• Carrington College
• Chamberlain University
• DeVry College of Technology
• Devry Institute of Technology
• DeVry University
• Keller Graduate School of Management
• Ross University School of Veterinary Medicine
• Ross University School of Medicine

EDMC/Dream Center

• Argosy University
• The Art Institute (including The Art Institute of Atlanta, The Art Institute of California, and more)
• Brown Mackie College
• Illinois Institute of Art
• Miami International University of Art & Design
• New England Institute of Art
• South University
• Western State University College of Law

Education Affiliates (JLL Partners)

• All‐State Career School
• Fortis College
• Fortis Institute

Edudyne Systems Inc.

• Career Point College

Empire Education Group

• Empire Beauty School

Everglades College, Inc.

• Everglades University
• Keiser University

FastTrain

• FastTrain

Full Sail University

Globe Education Network

• Globe University
• Minnesota School of Business

Graham Holdings Company (Kaplan)

• Bauder College
• Kaplan Career Institute
• Kaplan College
• Mount Washington College
• Purdue University Global

Grand Canyon Education, Inc.

• Grand Canyon University

Infilaw Holding, LLC

• Arizona Summit Law School
• Charlotte School of Law
• Florida Coastal School of Law

International Education Corporation

• Florida Career College
• United Education Institute

ITT Educational Services Inc.

• ITT Technical Institute

JTC Education, Inc.

• Gwinnett College
• Medtech College
• Radians College

Laureate Education, Inc

• Walden University

Leeds Equity Partners V, L.P.

• Florida Technical College
• National University College
• NUC University

Liberty Partners

• Concorde Career College
• Concorde Career Institute

Lincoln Educational Services Corporation

• International Technical Institute
• Lincoln College of Technology
• Lincoln Technical Institute

Mark A. Gabis Trust

• Daymar College

Mission Group Kansas, Inc.

• Wright Business School
• Wright Career College

Premier Education Group L.P.

• American College for Medical Careers
• Branford Hall Career Institute
• Hallmark Institute of Photography
• Hallmark University
• Harris School of Business
• Institute for Health Education
• Micropower Career Institute
• Suburban Technical School
• Salter College

Quad Partners LLC

• Beckfield College
• Blue Cliff College
• Dorsey College

Remington University, Inc. (Remington College)

• Remington College

Southern Technical Holdings, LLC

• Southern Technical College

Star Career Academy

• Star Career Academy

Strayer University

Sullivan and Cogliano Training Center, Inc.

• Sullivan and Cogliano Training Centers

TCS Education System

• Chicago School of Professional Psychology

Vatterott Educational Centers, Inc.

• Court Reporting Institute of St Louis
• Vatterott College

Wilfred American Education Corp.

• Robert Fiance Beauty Schools
• Robert Fiance Hair Design Institute
• Robert Fiance Institute of Florida
• Wilfred Academy
• Wilfred Academy of Beauty Culture
• Wilfred Academy of Hair & Beauty Culture

Willis Stein & Partners (ECA)

• Brightwood Career Institute
• Brightwood College
• New England College of Business and Finance
• Virginia College