The Four Envelopes: A Cautionary Tale for Higher Education

When a new university president arrives on campus, they inherit more than a title and a set of obligations. They inherit a political ecosystem, a financial tangle, an entrenched culture of silence, and a long list of unresolved failures handed down like family heirlooms. Academic folklore captures this reality in the famous story of the three envelopes, a darkly humorous parable that has circulated for decades. But the contemporary landscape of higher education—with its billionaire trustees, private-equity logic, political interference, and donor-driven governance—demands an updated version. In 2025, the story no longer ends with three envelopes.

It begins the usual way. On the new president’s first day, they find a note from their predecessor and three envelopes in the top drawer. A few months later, enrollment stumbles, faculty grow restless, and trustees begin asking pointed questions. The president opens the first envelope. It reads: “Blame your predecessor.” And so they do, invoking inherited deficits, outdated practices, and “a period of transition.” Everyone relaxes. Nothing changes.

The second crisis comes with even less warning. Budget gaps widen. Donors back away. A scandal simmers. Morale erodes. The president remembers the drawer and opens the second envelope. It says: “Reorganize.” Suddenly the campus is flooded with restructuring proposals, new committees, new vice provosts, and flowcharts that signal movement rather than direction. The sense of activity buys time, which is all the president really needed.

Eventually comes the kind of crisis that neither blame nor reshuffling can contain: a revolt among faculty, a public scandal, a collapse in confidence from every constituency that actually keeps the university functioning. The president reaches for the third envelope. It contains the classic message: “Prepare three envelopes.” Leadership in higher education is cyclical, and presidents come and go with the expensive inevitability of presidential searches and golden-parachute departures.

But that is where the old story ends, and where the modern one begins.

In the updated version, the president sees one more envelope in the drawer. This one is heavier, embossed, and unmistakably official. When they open it, they find a severance agreement and a check already drafted. The fourth envelope is a parting gift from megadonor and trustee Marc Rowan.

The symbolism is blunt. In an era when billionaire donors treat universities like portfolio companies and ideological battlegrounds, presidential tenures can end not because of institutional failure but because the wrong donor was displeased. Rowan, the financier who helped drive leadership changes at the University of Pennsylvania, represents a broader shift in American higher education: presidents are increasingly accountable not to faculty, staff, students, or the public, but to wealthy benefactors whose money exerts gravitational pull over governance itself. When those benefactors want a president removed, the departure is not a matter of process or principle but of power.

The fourth envelope reveals the new architecture of control. It tells incoming presidents that their exit was negotiated before their first decision, that donor influence can override shared governance, and that golden severance packages can help smooth over conflicts between public mission and private interest. It is a warning to campus communities that transparency is not a value but an obstacle, and that leadership stability is fragile when tied to the preferences of a handful of financiers.

The revised story ends not with resignation but with a question: what happens to the public mission of a university when private wealth dictates its leadership? And how long will faculty, students, and staff tolerate a structure in which the highest office is subject not to democratic accountability but to donor impatience?

The four envelopes are no longer folklore. They are a mirror.

Sources
Chronicle of Higher Education reporting on donor-driven leadership pressure at Penn
Inside Higher Ed coverage on presidential turnover and governance conflicts
Public reporting on Marc Rowan’s influence in university decision-making
Research literature on billionaire philanthropy and power in higher education

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

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

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

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

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

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

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

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Sources

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

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

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

NCAA Football Is Dirty… And It Always Has Been

For more than a century, college football has wrapped itself in pageantry, school colors, marching bands, and the language of amateur virtue. It has sold itself as character-building, educational, and fundamentally different from professional sports. Yet from its earliest days to the present NIL era, NCAA football has been marked by exploitation, corruption, racial inequality, physical harm, and institutional hypocrisy. The truth is not that college football has recently become “dirty.” It has always been this way.

College football emerged in the late 19th century as a violent, chaotic game played almost exclusively by elite white men at private Northeastern universities. By the 1890s, dozens of players were dying each season from on-field injuries. In 1905 alone, at least 18 young men were killed. The brutality became so extreme that President Theodore Roosevelt summoned university leaders to the White House, demanding reforms to save the sport—or shut it down entirely. The NCAA’s predecessor organization was born not to protect players, but to protect football itself.

From the beginning, control and image management mattered more than athlete welfare.

As the sport spread nationally in the early 20th century, universities discovered football’s power as a marketing and fundraising engine. Gate receipts financed campuses, built stadiums, and elevated institutional prestige. With that money came cheating. Schools openly paid players under the table, provided fake jobs, and created academic loopholes to keep athletes eligible. The NCAA responded not by ending exploitation, but by codifying “amateurism”—a concept designed to deny players compensation while preserving institutional profit.

That amateur ideal was always selective. Coaches became highly paid public figures, administrators gained power and prestige, and universities used football to attract donors and students. Players, meanwhile, were expected to risk their bodies for scholarships that could be revoked, often steered into academic programs that prioritized eligibility over education. The system worked exactly as intended.

Race made the exploitation even starker. For much of the 20th century, Black athletes were excluded outright or limited by quotas, especially in the South. When integration finally occurred in the 1960s and 1970s, it did not bring equity. Black players disproportionately filled the most physically punishing positions, generated enormous revenue, and remained shut out of coaching, administrative leadership, and long-term financial benefit. The plantation metaphor—uncomfortable as it is—has endured because it fits.

Throughout the postwar era, scandals became routine. Academic fraud at powerhouse programs. Boosters laundering payments. Universities covering up recruiting violations while publicly moralizing about rules and integrity. The NCAA positioned itself as a regulator, but enforcement was inconsistent and often political. Blue-blood programs negotiated slaps on the wrist while smaller schools were hammered to make examples. Justice was never blind; it was strategic.

Meanwhile, the physical toll on players worsened. As athletes grew larger, faster, and stronger, the sport became more dangerous. Concussions were downplayed for decades. Chronic traumatic encephalopathy (CTE) was ignored until it could no longer be denied. Players suffering brain injuries were dismissed as weak, while universities and conferences cashed ever-larger media checks. The NCAA claimed ignorance, even as evidence mounted and lawsuits piled up.

The television era transformed college football into a billion-dollar entertainment industry. Conference realignment chased broadcast revenue, not regional tradition or student well-being. Athletes were asked to travel cross-country on school nights, miss classes, and perform under relentless pressure—all while being told they were “students first.” The hypocrisy became harder to conceal.

By the early 21st century, the contradictions finally cracked. Legal challenges exposed the NCAA’s amateurism rules as a restraint of trade. Courts acknowledged what players had long known: universities were profiting massively from their labor while denying them basic economic rights. Name, Image, and Likeness (NIL) was not a revolution—it was an overdue concession.

Yet even in the NIL era, the dirt remains. The system still lacks transparency. Booster-driven collectives operate in legal gray zones. Players are encouraged to chase short-term deals without long-term protections. There is no guaranteed healthcare beyond enrollment, no pension, no real collective bargaining for most athletes. Coaches can leave at will; players are scrutinized, transferred, or discarded.

The NCAA insists it is reforming. Conferences promise stability. Universities speak the language of athlete empowerment. But the underlying structure remains unchanged: unpaid or under-protected labor generating extraordinary wealth for institutions that claim educational mission while operating like entertainment corporations.

College football’s defenders often say, “It’s always been this way,” as if that excuses the harm. In reality, that phrase is an indictment. From the deadly fields of the 1900s to the concussion-ridden stadiums of today, from Jim Crow exclusion to modern NIL chaos, the sport has been built on control, denial, and profit.

The problem with NCAA football is not that it lost its way. It never had one.

What is new is not the dirt—but the visibility. Players now speak openly. Courts intervene. Fans question the myths. The mask is slipping, and the century-old fiction of purity is harder to maintain. Whether that leads to real change—or merely a cleaner narrative over the same exploitative core—remains to be seen.

But history is clear. College football did not fall from grace.

It was born compromised.

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Sources

– National Collegiate Athletic Association, History of the NCAA
– Michael Oriard, Reading Football: How the Popular Press Created an American Spectacle
– Taylor Branch, “The Shame of College Sports,” The Atlantic
– Allen Sack & Ellen Staurowsky, College Athletes for Hire
– ESPN Investigations and NCAA Infractions Reports
– Boston University CTE Center research on football-related brain injury
– U.S. Supreme Court, NCAA v. Alston (2021)

NACIQI Elects DEI Opponent as Chair Amid Hyper-Deregulation: What Did You Expect?

WASHINGTON, D.C., December 16, 2025 — In a predictable yet alarming turn, the U.S. Department of Education’s National Advisory Committee on Institutional Quality and Integrity (NACIQI) elected Jay Greene, a vocal opponent of diversity, equity, and inclusion (DEI) policies, as its new chair. Greene, formerly of the Heritage Foundation and now director of research at Do No Harm, won a narrow 8-7 re-vote over NACIQI vice chair Zakiya Smith Ellis, who had served as chair in February.

The vote underscores the growing partisanship on NACIQI, a body responsible for reviewing private accrediting agencies that oversee colleges and universities and gatekeep federal student aid. For the first time in NACIQI’s history, members were seated, introduced, and voted along party lines—Senate Democrats in the case of Smith Ellis, and Trump appointees, including Greene, in the other.

Hyper-Deregulation and Systemic Vulnerabilities

Observers and experts see Greene’s leadership as part of a broader pattern of hyper-deregulation that has destabilized U.S. higher education. Decades of advocacy by David Halperin, a longtime attorney and counselor in Washington, have warned of the dangers of allowing accreditation and oversight to be politicized or weakened. Halperin spoke during today’s public comment segment, noting that the administration is pressuring schools to conform to a single ideological agenda—threatening federal funding unless colleges abandon equal opportunity, silence free speech, or police students’ personal identities.

Halperin noted that cuts to staff and regulatory enforcement, combined with the rise of predatory online program managers, for-profit chains, and unregulated private lenders, have created an environment where students bear the brunt of failed oversight.

“Accreditation review should focus on preventing shoddy practices, not protecting abusive companies or advancing a political agenda,” Halperin said. “It should be based on facts, not disinformation; consistent standards, not bias; integrity and independence, not obedience to special interests; and respect for all our children, not bigotry and persecution.”

The Stakes Are High

With Greene now in the chair, NACIQI is considering the renewal application of the Middle States Commission on Higher Education, which accredits Columbia University, the University of Pennsylvania, and other institutions previously scrutinized by the Trump administration. Experts warn that under hyper-deregulation, politically motivated evaluations could replace the standards and oversight that historically protected students, taxpayers, and educational integrity.

Halperin’s decades of work on accreditation, regulatory oversight, and student protections have long championed transparency and accountability. His comments today serve as a warning: in an era of hyper-deregulation and partisan control, the consequences for students, institutions, and the federal student aid system could be severe.

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

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

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

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

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

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

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

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

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

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

Kleptocracy, Militarism, Colonialism: A Counterrecruiting Call for Students and Families

The United States has long framed itself as a beacon of democracy and upward mobility, yet students stepping onto college campuses in 2025 are inheriting a system that looks less like a healthy republic and more like a sophisticated kleptocracy entwined with militarism, colonial extraction, and digital exploitation. The entanglement of higher education with these forces has deep roots, but its modern shape is especially alarming for those considering military enlistment or ROTC programs as pathways to opportunity. 

The decision to publish on December 7th is deliberate. In 1941, Americans were engaged in a clearly defined struggle against fascism, a moral fight that demanded national sacrifice. The world in 2025 is far murkier. U.S. militarism now often serves corporate profit, global influence, and the security of allied autocracies rather than clear moral or defensive imperatives.

This is an article for students, future students, and the parents who want something better for their children. It is also a call to pause and critically examine the systems asking for young people’s allegiance and labor.

Higher education has become a lucrative extraction point for political and financial elites. Universities now operate as hybrid corporations, prioritizing endowment growth, real-estate expansion, donor influence, and federal cash flows over public service or student welfare. Tuition continues to rise as administrative bloat accelerates. Private equity quietly moves into student housing, online program management, education technology, and even institutional governance. The result is a funnel: taxpayers support institutions; institutions support billionaires; students carry the debt. Meanwhile, federal and state funds flow through universities with minimal oversight, especially through research partnerships with defense contractors and weapons manufacturers. What looks like innovation is often simply public money being laundered into private hands.

For decades, the U.S. military has relied on higher education to supply officers and legitimacy. ROTC programs sit comfortably on campuses while recruiters visit high schools and community colleges with promises of financial aid, job training, and escape from economic insecurity. But the military’s pitch obscures the broader structure. The United States spends more on its military than the next several nations combined, maintaining hundreds of foreign bases and intervening across the globe. American forces are involved, directly or indirectly, in conflicts ranging from Palestine to Venezuela to Ukraine, and through support of allies such as Saudi Arabia and the United Arab Emirates, often supplying weapons used in devastating campaigns. This is not national defense. It is a permanent war economy, one that treats young Americans as fuel.

At the same time, Russian cybercriminal networks have infiltrated U.S. institutions, targeting critical infrastructure, education networks, and private industry. Reports show that the U.S. government has frequently failed to hold these actors accountable and, in some cases, appears to prioritize intelligence or geopolitical advantage over domestic security, allowing cybercrime to flourish while ordinary Americans bear the consequences. This environment adds another layer of risk for students and families, showing how interconnected digital vulnerabilities are with global power games and domestic exploitation.

For those who enlist hoping to fund an education, the GI Bill frequently underdelivers. For-profit colleges disproportionately target veterans, consuming their benefits with low-quality, high-cost programs. Even public institutions have learned to treat veterans as revenue streams. U.S. universities have always been entwined with colonial projects, from land-grant colleges built on seized Indigenous land to research that supported Cold War interventions and overseas resource extraction. Today these legacies persist in subtler forms. Study-abroad programs and global campuses often mirror corporate imperialism. Research partnerships with authoritarian regimes proceed when profitable. University police departments are increasingly stocked with military-grade equipment, and curricula frequently erase Indigenous, Black, and Global South perspectives unless students actively seek them out. The university presents itself as a space of liberation while quietly reaffirming colonial hierarchies, militarized enforcement of U.S. interests worldwide, and even complicity in digital threats.

For many young people, enlistment is not a choice—it is an economic survival strategy in a country that refuses to guarantee healthcare, housing, or affordable education. Yet the military’s promise of stability is fragile and often deceptive. Students and parents should understand that young Americans are being recruited for geopolitics, not opportunity. Wars in Ukraine, Palestine, and Venezuela, along with arms support to Saudi Arabia and the United Arab Emirates, rarely protect ordinary citizens—they protect corporations, elites, and global influence. A person’s body and future become government property. ROTC contracts and enlistments are binding in ways that most eighteen-year-olds do not fully understand, and penalties for leaving are severe. Trauma is a predictable outcome, not an anomaly. The military’s mental health crisis, suicide rates, and disability system failures are well documented. Education benefits are conditional and often disappointing. The idea that enlistment is a reliable pathway to college has long been more marketing than truth, especially in a higher-education landscape dominated by predatory schools. Young people deserve more than being used as leverage in someone else’s empire.

A non-militarized route to opportunity requires acknowledging how much talent, energy, and potential is lost to endless war, endless debt, and the growing digital threats that go unaddressed at the highest levels. It requires demanding that federal and state governments invest in free or affordable public higher education, universal healthcare, and stronger civilian service programs rather than military pipelines. Students can resist by refusing enlistment and ROTC recruitment pitches, advocating for demilitarized campuses, supporting labor unions, student governments, and anti-war coalitions, and demanding transparency about university ties to weapons manufacturers, foreign governments, and cybersecurity vulnerabilities. Parents can resist by rejecting the false choice presented to their children between military service and crippling debt, and by supporting movements pushing for tuition reform, debt cancellation, and public investment in youth.

It is possible to build a higher-education system that serves learning rather than empire, but it will not happen unless students and families refuse to feed the machinery that exploits them. America’s kleptocracy, militarism, colonial legacies, and complicity in global digital crime are deeply embedded in universities and the workforce pipelines that flow through them. Yet young people—and the people who care about them—still hold power in their decisions. Choosing not to enlist, not to sign an ROTC contract, and not to hand over your future to systems that see you as expendable is one form of reclaiming that power. Hope is limited but not lost.

Sources

1. U.S. Department of Defense. Defense Budget Overview Fiscal Year 2025. 2024.

2. Amnesty International. “Saudi Arabia and UAE Arms Transfers and Human Rights Violations.” 2024.

3. Human Rights Watch. “Conflicts in Ukraine, Venezuela, and Palestine.” 2024.

4. FBI and CISA reports on Russian cybercrime and critical infrastructure infiltration. 2023–2025.

5. Cybersecurity & Infrastructure Security Agency (CISA). National Cybersecurity Annual Review. 2024.

The Educated Underclass and the Enshittification of Job Platforms

The Higher Education Inquirer has long examined how digital labor platforms shape the trajectories of college graduates. For years, Indeed, LinkedIn, and an expanding universe of niche job boards promised to democratize opportunity and connect graduates to meaningful work. Today, they increasingly represent something else: evidence of a broken system in which educated workers—often carrying significant debt—are funneled into precarious labor markets mediated by platforms whose incentives are misaligned with student success. What Cory Doctorow has described as enshittification is no longer an exception but the operating model.

Indeed’s trajectory is the clearest expression of this decline. The site began as a transparent aggregator designed to make employment searchable and accessible. Over time, it has transformed into a pay-to-play environment in which sponsored listings overshadow organic results, duplicates and recycled ads clutter searches, and misleading postings reduce trust. Users on both sides—job seekers and employers—report diminishing value even as the company extracts more revenue from each.

LinkedIn has followed a parallel arc. Once positioned as a professional network that expanded access and visibility, it now privileges those who can pay for premium placement or “boosted” visibility. The platform’s feed is increasingly dominated by engagement-optimized content, sales pitches, and algorithmic noise. Genuine networking—the discovery of mentors, colleagues, and opportunities—has been pushed to the background by monetized features and incessant upselling. Graduates hoping to build relationships now find themselves navigating a digital marketplace that treats their careers as data points to be monetized.

Niche job boards, often touted as more curated alternatives, have also succumbed to similar dynamics. As private equity money flows into the sector, these boards increasingly rely on subscription fees, visibility boosts, lead-generation schemes, and paywalls that frustrate both applicants and employers. The promise of specialization is overshadowed by the same structural pressures: monetization first, user value second.

For graduates—especially those from working-class backgrounds—the consequences are profound. They enter the labor market carrying debt, often underemployed, and reliant on platforms that promise opportunity while quietly undermining it. The search for stable employment becomes a cycle of misdirection: applying to ghost jobs, fighting algorithmic opacity, and competing in markets distorted by platform-driven gatekeeping. Instead of delivering upward mobility, digital labor platforms frequently reproduce inequality, masking structural failures in higher education and the U.S. economy behind glossy interfaces and “skills gap” rhetoric.

Employers, meanwhile, face their own frustrations: rising costs for visibility, declining applicant quality driven by algorithmic prioritization of click-throughs rather than fit, and a sense that recruitment has shifted from a relational process to a transactional one. The platforms that were supposed to streamline hiring have introduced new layers of friction, opacity, and expense.

The deeper issue is systemic. Digital labor markets now operate on extractive logic: workers and employers are commodities to be converted into revenue streams. For the educated underclass—graduates who followed the prescribed path but find the rewards collapsing beneath them—these platforms do not solve structural inequality. They obscure it.

Higher education institutions must acknowledge this reality. Career centers cannot simply direct students to LinkedIn or Indeed and hope for the best. Instead, institutions should cultivate critical digital literacy, teaching students how to understand the incentives and limitations of platform-mediated job markets. They must invest in direct employer engagement, build relationships that bypass intermediaries, and challenge the outdated narrative that degrees alone guarantee upward mobility. The task is not merely to help students navigate broken systems but to recognize how these systems perpetuate precarity.

The enshittification of job platforms is not a marginal story. It is a window into the lived experience of millions of graduates—and an indictment of an economy that relies on debt-financed education feeding into precarious labor. The Higher Education Inquirer will continue to track these developments, expose the structural forces behind them, and advocate for approaches that put students and workers before platform profits.

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Sources

Cory Doctorow, The Internet Con: How to Seize the Means of Computation (Verso, 2023).
Cory Doctorow, “Tiktok’s Enshittification,” Pluralistic (2023).
Gary Roth. The Educated Underclass: Students and the False Promise of Social Mobility (Pluto Press, 2019).  

David Streitfeld, “The Cost of Posting a Job on Indeed Keeps Rising,” New York Times, 2022.
Emily Stewart, “LinkedIn Has a Spam Problem,” Vox, 2023.
Suresh Naidu and Eric Posner, Labor Market Power (2024).
Annie Lowrey, “The College Debt Crisis Is Now a Labor Crisis,” The Atlantic, 2022.
Philipp Staab, Digital Capitalism (Polity, 2019).
Alex Hern, “Job Platforms and the Algorithmic Trap,” The Guardian, 2021.

Cybercrime, Hypocrisy, and the Geopolitics of Blame: Why Russia Isn’t Always the Enemy

In the summer of 2025, the CLOP hacking group—operating from Russia—exploited weaknesses at the University of Phoenix, exposing sensitive data on thousands of students and staff. The breach was devastating, yet Russia was not officially condemned as an adversary.

The contrast with U.S. policy toward countries like Venezuela is striking. Venezuela faces crippling sanctions, economic isolation, and constant political pressure under the banner of protecting democracy and human rights. Meanwhile, Russian-based cybercriminals are allowed to inflict real harm on U.S. institutions with little official pushback. The reason, officials say, is a lack of direct evidence tying these attacks to the Russian state. But the discrepancy reveals a deeper hypocrisy: punitive measures are applied selectively, often based on geopolitical convenience rather than consistent principles.

CLOP-style attacks exploit vulnerabilities in U.S. institutions. Universities, especially those operating on outdated IT systems and under private equity pressures, are frequent targets. Students—many already burdened by debt and systemic inequities—bear the brunt when personal data is exposed. Yet the broader conversation rarely extends to foreign actors who take advantage of these weaknesses or to the structural failures within U.S. education.

Venezuela’s citizens suffer sanctions and economic hardship, while Russian cybercriminals operate from the safety of a country that tolerates them, so long as domestic interests remain untouched. This double standard undermines the credibility of U.S. claims to principled leadership and exposes the uneven moral framework guiding foreign policy.

Higher education becomes a battleground in this selective application of power. Cyberattacks, fraud, and systemic negligence converge to threaten students and faculty, revealing the real victims of international hypocrisy. Protecting U.S. institutions requires acknowledging both the foreign actors who exploit weaknesses and the domestic policies and practices that leave them vulnerable.

The CLOP breach is more than a single incident—it is a reflection of a system that punishes some nations for internal crises while tolerating damage inflicted by others on critical domestic infrastructure. Until U.S. policy addresses both sides of this equation, the cost will continue to fall on the most vulnerable: the students, staff, and faculty caught in the crossfire.

Sources: U.S. Department of Education reports; investigative journalism on CLOP and Russian cybercrime; analyses of U.S.-Venezuela sanctions and policy. 

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

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

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

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

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

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

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

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

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

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

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

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

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

A Century of American Exploitation: Oil, Crypto, and the Struggle for Latin America’s Universities

Latin America—a region of thirty-three countries stretching from Mexico through Central and South America and across the Caribbean—has spent more than a century fighting against foreign exploitation. Its universities, which should anchor local prosperity, cultural autonomy, and democratic life, have instead been repeatedly reshaped by foreign corporations, U.S. government interests, global lenders, and now crypto speculators. Yet the region’s history is also defined by persistent, courageous resistance, led overwhelmingly by students, faculty, and Indigenous communities.

Understanding today’s educational crisis in Latin America requires tracing this long arc of exploitation—and the struggle to build systems rooted in equity rather than extraction.

1900s–1930s: Bananas, Oil, and the Rise of the “Banana Republics”

Early in the 20th century, American corporations established vast profit-making empires in Latin America. United Fruit Company—today’s Chiquita Banana—dominated land, labor, and politics across Guatemala, Honduras, and Costa Rica. Standard Oil and Texaco secured petroleum concessions in Venezuela and Ecuador, laying foundations for decades of foreign control that extracted immense wealth while leaving behind environmental devastation, as seen in Texaco’s toxic legacy in the Ecuadorian Amazon between 1964 and 1992.

Universities were bent toward these foreign interests. Agricultural programs were geared toward serving plantation economies, not local farmers. Engineering and geological research aligned with extractive industries, not community development.

Resistance did emerge. Student groups in Guatemala and Costa Rica formed part of early anti-oligarchic movements, linking national sovereignty to university reform. Their demands echoed global currents of democratization. Evidence of these early student-led struggles appears in archival materials and Latin American scholarship on university reform, and culminates in the influential 1918 Córdoba Manifesto in Argentina—a radical declaration that attacked oligarchic, colonial universities and demanded autonomy, co-governance, and public responsibility.

1940s–1980s: Coups, Cold War Interventions, and the Deepening of U.S. Oil Interests

During the Cold War, exploitation intensified. In Guatemala, the CIA-backed overthrow of democratically elected President Jacobo Árbenz in 1954 protected United Fruit’s land holdings. Universities were purged or militarized, and critical scholars were exiled or killed.

In Chile, the 1973 overthrow of Salvador Allende—supported by American corporate giants such as ITT and Anaconda Copper—ushered in a brutal dictatorship. Under Augusto Pinochet, thousands were murdered, tortured, or disappeared, while the Chicago Boys imported radical neoliberal reforms that privatized everything, including the higher education system.

Throughout the region, oil deals disproportionately favored American companies. Mexico and Venezuela saw petroleum wealth siphoned off through arrangements that benefited foreign investors while leaving universities underfunded and politically surveilled. Scholarship critical of foreign intervention was marginalized, while programs feeding engineers and economists to multinational firms were expanded.

Student resistance reached historic proportions. Chilean students and faculty formed the core of the anti-dictatorship movement. Mexico’s students rose in 1968, demanding democracy and university autonomy before being massacred in Tlatelolco. CIA declassified documents reveal that student uprisings across Latin America in the early 1970s were so widespread that U.S. intelligence considered them a regional threat.

1990s–2000s: Neoliberalism, Privatization, and the Americanization of Higher Education

In the 1990s, neoliberalism swept the region under pressure from Washington, the IMF, and the World Bank. After NAFTA, Mexico’s universities became increasingly aligned with corporate labor pipelines. In Brazil, Petrobras’ partnerships with American firms helped reshape engineering curricula. Private universities and for-profit models proliferated across the region, echoing U.S. higher ed corporatization.

Hugo Chávez captured the broader sentiment of resistance when he declared that public services—including education—cannot be privatized without violating fundamental rights.

Students fought back across Latin America. In Argentina and Brazil they contested tuition hikes and privatization. In Venezuela, the debate shifted toward whether oil revenue should fund tuition-free universities.

Indigenous Exclusion, Racism, and the Colonial Foundations of Inequality

One of the greatest challenges in understanding Latin American education is acknowledging the deep racial and ethnic stratification that predates U.S. exploitation but has been exacerbated by it. Countries like Ecuador, Bolivia, Peru, Mexico, Brazil, and Guatemala have large Indigenous populations that, to this day, receive the worst education—much like Native American communities relegated to underfunded reservation schools in the United States.

Racism remains powerful. Whiter populations enjoy greater economic and educational access. University admission is shaped by class and color. These divisions are not accidental; they are a machinery of control.

There have been important exceptions. Under President Rafael Correa, Ecuador built hundreds of new schools, including Siglo XXI and Millennium Schools, and expanded public education access. In Mexico, the 2019 constitutional reform strengthened Indigenous rights, including commitments to culturally relevant education. Bolivia—whose population is majority Indigenous—has promoted Indigenous languages, judicial systems, and education structures.

But progress is fragile. Austerity, IMF conditionalities, and elite resistance have led to cutbacks, school closures, and renewed privatization across the region. The study you provided on Ecuador documents Indigenous ambivalence, even hostility, toward Correa’s universal education plan—revealing how colonial wounds, cultural erasure, and distrust of state power complicate reform and provide openings for divide-and-conquer strategies long exploited by ruling classes.

These contradictions deepen when Indigenous movements—rightfully demanding no mining, no oil extraction, and protection of ancestral lands—collide with leftist governments reliant on resource extraction to fund public services. This tension is especially acute in Ecuador and Bolivia.

2010s–Present: Crypto Colonialism and a New Frontier of Exploitation

Cryptocurrency has opened a new chapter in Latin America’s long history of foreign-driven experimentation. El Salvador’s adoption of Bitcoin in 2021, promoted by President Nayib Bukele, transformed the country into a speculative test lab. Bukele has now spent more than $660 million in U.S. dollars on crypto, according to investigative reporting from InSight Crime. Universities rushed to create blockchain programs that primarily serve international investors rather than Salvadoran students.

In Venezuela, crypto became a survival tool amid hyperinflation and economic collapse. Yet foreign speculators profited while universities starved. Student groups warned that crypto research was being weaponized to normalize economic chaos and distract from public-sector deterioration.

Resistance has grown. Salvadoran students have protested the Bitcoin law, demanding that public resources focus on infrastructure, health, and education. Venezuelan students call for rebuilding social programs rather than chasing speculative financial technologies.

Contemporary Student Resistance: 2010s–2020s

Across the region, student movements remain powerful. The Chilean Winter of 2011–2013 demanded free, quality public education and challenged Pinochet’s neoliberal legacy. The movement culminated in the 2019 uprising, where education reform was central.

Mexico’s UNAM students continue to resist corruption, tuition hikes, gender violence, and the encroachment of corporate and foreign interests. The 1999–2000 UNAM strike remains one of the longest in modern higher education.

Colombian students have forced governments to negotiate and invest billions in public universities, framing their struggle as resistance to neoliberal austerity shaped by U.S. policy.

Argentina continues to face massive austerity-driven cuts, sparking protests in 2024–2025 reminiscent of earlier waves of resistance. Uruguay’s Tupamaros movement—largely student-led—remains a historical touchstone.

Every country in Latin America has experienced student uprisings. They reflect a truth that Paulo Freire, exiled from Brazil for teaching critical pedagogy, understood deeply: education can either liberate or oppress. Authoritarians, privatizers, and foreign capital prefer the latter, and they act accordingly.

Today’s Regional Education Crisis

The COVID-19 pandemic pushed the system into further crisis. Children in Latin America and the Caribbean lost one out of every two in-person school days between 2020 and 2022. Learning poverty now exceeds 50 percent. Entire generations risk permanent economic loss and civic disenfranchisement.

Infrastructure is collapsing. Rural and Indigenous communities suffer the worst conditions. Public investment is chronically insufficient because governments are trapped in cycles of debt repayment to international lenders. Ecuador has not seen a major public-investment program in a decade, as austerity and IMF repayments dominate national budgets.

The result is a system starved of resources and increasingly vulnerable to privatization schemes—including U.S.-style online coursework, ideological “instruction kits,” and for-profit degree mills.

Latin American Universities as Battlegrounds for Sovereignty

Latin America’s universities are shaped by the same forces that have dominated the region’s history: oil extraction, agribusiness, foreign capital, neoliberalism, structural racism, debt, and now crypto speculation. Yet universities have also been homes to transformation, rebellion, cultural resurgence, and hope.

Across more than a century, students—Indigenous, Afro-descendant, mestizo, working-class—have been the region’s fiercest defenders of public education and national sovereignty. Their resistance continues today, from Quito to Buenos Aires, from Mexico City to Santiago.

For readers of the Higher Education Inquirer, the lesson is clear: the struggle for higher education in Latin America is inseparable from the struggle for democracy, racial justice, Indigenous autonomy, and freedom from foreign domination. The region’s ruling elites and international lenders understand that an educated public is dangerous, which is why they starve, privatize, and discipline public schools. Students understand the opposite: that education is power, and that power must be reclaimed.

The next chapter—especially in countries like Ecuador—will depend on whether students, teachers, and communities can defend public education against the dual forces that have undermined it for more than a century: privatizers and fascists.

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Sources (Selection)

National Security Archive, CIA Declassified Documents (1971)
InSight Crime reporting on El Salvador Bitcoin expenditures
Luciani, Laura. “Latin American Student Movements in the 1960s.” Historia y Memoria (2019)
The Córdoba Manifesto (1918)
UNESCO, World Bank data on learning poverty (2024)
Latin American studies on United Fruit, Standard Oil, Texaco/Chevron in Ecuador
LASA Forum: Analysis of Indigenous responses to Correa’s education reforms
Periodico UNAL: “The Student Rebellion: Córdoba and Latin America”
Multiple regional news sources on Argentina’s 2024–2025 education protests

Medugrift and the price makers in higher education

In the United States, the cost of higher education is not a natural phenomenon. It is deliberately constructed by a network of institutional actors who function as price makers: university presidents, chief financial officers, boards of trustees, governors, and state legislators. They determine what students pay, how institutions are structured, and whose interests higher education ultimately serves. Their decisions shape tuition, labor conditions, program priorities, and the balance between education and the expanding world of medugrift—the hybrid system where medicine, education, debt, and corporate extraction intersect.

For decades, the American public has been told that tuition rises because education is inherently expensive. But as Richard Wolff argues in his critiques of the “War on the Working Class,” the economic decisions shaping tuition, labor costs, athletics, administrative growth, and capital projects reflect class priorities. The price makers choose which costs are fundamental and which are negotiable. They choose what gets built, who gets hired, and how much debt institutions take on. They choose who pays.

University presidents now act more like corporate executives than academic leaders. They negotiate seven-figure salaries, travel globally for fundraising, and preside over campuses where luxury construction often outruns academic needs. They approve budgets that elevate branding and athletics while pressuring academic departments to justify their existence through profit metrics. Tuition increases rarely slow presidential compensation; instead, they are framed as regrettable necessities dictated by “the market” or “competitive realities.”

CFOs enforce a financial logic that prioritizes credit ratings, cash reserves, and debt-financed expansion. They present budgets as neutral, but each line reflects a hierarchy of value. Instruction is cast as a cost center. Staff health care, faculty benefits, and student services become “inefficiencies.” Meanwhile, massive expenditures on consultants, real estate, information systems, and administration are justified as essential to “modernization.” The result is predictable: the people who teach and learn bear the burden while those who administer expand.

Trustees represent another layer of price making. Often drawn from banking, private equity, real estate, biotech, and corporate medicine, trustees bring a worldview shaped by capital accumulation rather than public service. They authorize tuition hikes, approve investment strategies, and greenlight partnerships that blend public education with private profit. Many trustees sit simultaneously on hospital boards or medical investment firms, allowing medugrift to flourish in the shadows of institutional legitimacy. Their decisions shape which programs expand, which shrink, and which students are offered genuine opportunity.

State governors and legislators are external architects of scarcity. Since the 1980s, state governments have systematically defunded public higher education while channeling resources to mass incarceration, gambling revenue schemes, corporate tax breaks, and subsidies to companies like Amazon. These choices undermine the ability of public institutions to remain affordable and force them to operate increasingly like private universities. The shift from public funding to tuition revenue is not inevitable; it is a political strategy. HBCUs and tribal colleges have lived with this manufactured scarcity for generations. Their chronic underfunding—documented in numerous state audits and federal investigations—illustrates what happens when government treats education for marginalized communities as optional.

The emergence of medugrift reveals a deeper structural problem. At the intersection of higher education and corporate medicine sits an engine of extraction. University medical systems leverage public funding, student tuition, and philanthropic contributions to build financial empires that often serve administrators first and communities last. Medical schools charge extreme tuition while placing students into debt-heavy paths. University hospitals consolidate regional health systems, increasing costs while reducing access. Research produced through public dollars is routinely captured by private pharmaceutical or biotech companies. Meanwhile, residents and faculty in these health systems often endure poor working conditions and stagnant pay. Medugrift conceals itself behind the prestige of medicine, but its logic mirrors that of predatory education: privatize gains, socialize losses, and extract from those with the least bargaining power.

Who determines the costs to students? The answer lies in the aggregated decisions of these actors. When a university raises tuition to protect its bond rating, that is a decision. When trustees invest in athletics while cutting humanities programs, that is a decision. When governors choose prisons over scholarships, that is a decision. When state legislatures allow gambling revenue to substitute for stable taxation, that is a decision. Each choice shifts the financial burden downward while consolidating power upward.

This is not simply mismanagement; it is a class project. The people who determine prices do not feel them. Students, families, adjunct instructors, and underfunded communities do. For working-class students, particularly those from historically excluded backgrounds, the price makers have built a system defined by debt, precarity, and limited mobility.

Nothing about this system is inevitable. There was a time when public universities were affordable, when trustees included community members and labor leaders, when presidents were educators, and when medical centers served the public rather than corporate conglomerates. If the price makers can build this system, a more democratic and humane system can be built to replace it.

The question for the coming decade is not whether higher education is too expensive. The public has already reached its verdict. The question is whether students, workers, and communities will continue to let the price makers—and the medugrift machinery attached to them—define who gets educated, who gets indebted, and who gets left behind.

Sources
Richard D. Wolff, Understanding Socialism; Capitalism Hits the Fan
Elisabeth Rosenthal, An American Sickness
Harriet A. Washington, Medical Apartheid
Rebecca Skloot, The Immortal Life of Henrietta Lacks
Alondra Nelson, Body and Soul
State Higher Education Finance (SHEF) Reports
U.S. Department of Education, Office for Civil Rights, HBCU Funding Analyses

The Link Between Greed and Efficiency

In the mythology of American capitalism, “efficiency” is the magic word that justifies austerity for workers, rising tuition for students, and ever-expanding wealth for administrators, financiers, and institutional elites. It is framed as neutral, technocratic, and rational. In reality, efficiency in higher education has become inseparable from greed, functioning as a mask for extraction and consolidation.

Universities and their sprawling medical centers have become some of the largest landowners and employers in the cities they inhabit. As Devarian Baldwin has shown, these institutions operate as urban empires, expanding aggressively into surrounding neighborhoods, raising housing costs, displacing long-time residents, and reshaping cities to suit institutional priorities. University medical centers, nominally nonprofit, consolidate smaller hospitals, close services deemed unprofitable, and charge some of the highest healthcare prices in the nation. These operations are justified as efficiency or economic development, yet they often destabilize the communities they claim to serve.

Endowments, some exceeding fifty billion dollars at elite institutions, have become central to this dynamic. Managed like hedge funds, these pools of capital are heavily invested in private equity, venture capital, real estate, and derivatives. The financial logic of endowment management now shapes university priorities, shifting focus from public service and learning to capital accumulation, investor returns, and risk management. Efficiency is defined not by educational outcomes but by the growth of financial assets.

This culture of extraction has been amplified by decades of government austerity. Public funding for higher education has steadily declined since the 1980s, forcing institutions to behave like corporations. At the same time, the aging Baby Boomer generation is creating unprecedented financial pressures on Social Security, Medicare, and healthcare systems, leaving public coffers stretched thin and reinforcing a winner-take-all national mentality. In this environment, universities compete fiercely for students, research dollars, donors, and prestige, producing conditions ripe for exploitation.

Outsourcing has become a standard method to achieve “efficiency.” Universities frequently contract out food service, custodial work, IT, housing management, and security. Workers employed by these contractors often face lower wages, fewer benefits, and higher turnover, while administrators present these arrangements as cost-saving measures. Meanwhile, administrative layers within institutions continue to expand, creating a managerial class that oversees growth and strategy while teaching budgets shrink. As Marc Bousquet has argued, the corporate-style management model displaces faculty governance and treats students and staff as revenue streams rather than participants in a shared educational mission.

The adjunctification of the faculty exemplifies efficiency as exploitation. Contingent instructors now teach the majority of classes in American higher education, earning poverty-level wages without benefits while juggling multiple teaching sites. Institutions call this “flexibility” and “cost containment,” but in reality it transfers value from instruction to administrative overhead, athletics, real estate, and financial operations, all while reducing the quality of education and undermining academic continuity.

The rise of Online Program Managers, or OPMs, further illustrates the fusion of greed and efficiency. These companies design, manage, and market entire online degree programs, often taking forty to seventy percent of tuition revenue. While presented as efficiency partners, OPMs aggressively recruit students, inflate costs, and minimize academic oversight. Their business model mirrors the exploitative strategies of for-profit colleges, which pioneered high-cost, low-quality instruction combined with heavy marketing to capture federal loan dollars. The collapse of chains such as Corinthian, ITT, and EDMC left millions of borrowers with debt and no degree, yet the model persists inside nonprofit universities through OPMs and algorithm-driven online programs.

“Robocolleges” represent the latest evolution of this trend. AI-driven instruction, predictive analytics, automated grading, and digital tutoring promise unprecedented efficiency, but they often replace human educators, reduce pedagogical oversight, exploit student data, and prioritize enrollment growth over educational quality. Efficiency here serves the financial bottom line rather than the learning or well-being of students.

The result of these extractive practices is a national crisis of student debt, now exceeding one trillion dollars. Students borrow to cover skyrocketing tuition, outsourced services, underpaid instruction, and the costs of programs shaped by OPMs or automated platforms. Debt is not an accident of the system; it is the intended outcome, a mechanism for transferring public resources and student labor into private profit.

The broader social context intensifies the problem. Higher education exists in a winner-take-all, financialized society, where resources flow upward and the majority of people are told to compete harder, work longer, and borrow more. Universities have internalized this ideology, acting as both symbols and engines of extraction. Efficiency, under this paradigm, is defined not by the effectiveness of teaching or research but by the expansion of institutional power, wealth, and influence.

True efficiency would look very different. It would invest in educators rather than contractors, stabilize academic labor rather than exploit it, serve surrounding communities rather than displace them, expand learning opportunities rather than debt, and prioritize democratic governance over corporate-style hierarchy. Efficiency should measure how well institutions serve the public good, not how well they protect endowment returns, OPM profits, or administrative salaries.

Until such a redefinition occurs, efficiency will remain one of the most powerful tools of extraction in American higher education, a rhetorical justification for greed disguised as rational management.

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Sources

Devarian Baldwin, In the Shadow of the Ivory Tower
Marc Bousquet, How the University Works
Tressie McMillan Cottom, Lower Ed
Christopher Newfield, The Great Mistake
Sara Goldrick-Rab, Paying the Price
Government reports on for-profit colleges, student debt, and OPMs
Research on higher education financialization, outsourcing, and austerity policies

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

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

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

[Image: Power Player Marty Nesbitt]

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

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

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

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

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

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

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

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Sources

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

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

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

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

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