Liberty University in the Trump Era

Responding to changing demographics, beliefs, and norms, US religious colleges must reflect what's popular and profitable: Christian evangelism, prosperity theology, contemporary technology, and international outreach. Like other areas of higher education, Christian higher education must focus on the realities of revenues, expenses, and politics, as well as religious dogma.  

While a number of Christian colleges and seminaries close each year, and many more face lower enrollment and financial woes, one conservative Christian university stands out for robust enrollment, stellar finances, and political pull: Liberty University. There are other older schools, particularly Catholic schools with more wealth and prestige, but that's changing. And it could be argued that those schools are religious in a historical sense rather than a contemporary sense.    

Two Liberties

Liberty University is an educational behemoth, and has the advantage of being a nonprofit school that uses proprietary marketing strategies. The brick-and-mortar school, with an enrollment of less than 20,000 students, is predominantly straight, white, and middle-class. The school also has a strict honor code called the Liberty Way, which prohibits activity that may be counter to conservative Christian beliefs.

The growing campus includes a successful law school that serves as a pipeline to Christian businesses and conservative government. The Jesse Helms School of Government and the ban of a Young Democrats club reflect its conservative principles. Liberty also houses the Center for Creation Studies and Creation Hall, with a museum to promote a literal interpretation of the Christian Bible, to include the stories of God and the beginning of time, Adam and Eve, Noah and the Ark, and Moses and the Ten Commandments. 

Liberty University Online (LUO), an international Christian robocollege with about 100,000 students, is more diverse in terms of age, race/ethnicity, nationality, and social class. The online school is thriving financially, and excess funds from the operation help fund the university's growing infrastructure, amenities, and institutional wealth. Liberty spends millions on marketing and advertising online, using its campus as a backdrop. And those efforts result in manifold profits.  

Liberty History

Liberty University was founded in 1971 by Jerry Falwell Sr., a visionary in Christian marketing and promotion, who used technology the technology of the time--television--to gain adherents and funders. Fawell's vision was not to create a new seminary, but to educate evangelical Christians to be part of the fabric of professional society, as lawyers, doctors, teachers, and engineers.

Responding to the political and cultural winds, Falwell Sr. moved away from his segregationist roots as he built his church-based Liberty University. It was not easy going for Liberty in the early years, which had to rely on controversial supporters. The minister also used the abortion question, the homosexual question, and conservative Christian evangelism in Latin America and Africa to energize his flock and to create important political alliances during the Ronald Reagan era. Information about those years are available at the Jerry Falwell Library Archives.

During the Reagan era and beyond, Falwell's idea of a Moral Majority proposed that Church and State should not be divided, and those thoughts of a strong Christian theocracy have spread for more than four decades. 

In March 2016, Jerry Falwell Jr. referred to presidential candidate Donald Trump as America's King David. And under the first Trump Administration, the school gained favor from the President. 

Under Donald Trump's second term, Liberty University should be expecting to get closer to that goal of a Christian theocracy. For the moment, LU has the political power and the economic power that few other schools have to enjoy.

Related links:

Jerry Falwell Library Digital Archives 

Dozens of Religious Schools Under Department of Education Heightened Cash Monitoring 

Liberty University fined record $14 million for violating campus safety law (Washington Post) 

How Liberty University Built a Billion Dollar Empire Online (NY Times) 

Robocolleges 2025

Overall, enrollment numbers for online robocolleges have increased as full-time faculty numbers have declined. Four schools now have enrollment numbers exceeding 100,000 students.  

Here's a breakdown of the key characteristics of robocolleges:

• Technology-Driven: Robocolleges heavily utilize online platforms, pre-recorded lectures, automated grading systems, and limited human interaction.
• Focus on Profit: These institutions often prioritize generating revenue over providing a high-quality educational experience.
• Aggressive Marketing: Robocolleges frequently employ aggressive marketing tactics to attract students, sometimes with misleading information.
• High Tuition Costs: They often charge high tuition fees, leading to significant student debt.
• Limited Faculty Interaction: Students may have limited access to faculty members for guidance and support.
• Questionable Job Placement Rates: Graduates of robocolleges may struggle to find employment in their chosen fields.

Concerns:

• Student Debt Crisis: The high tuition costs and potential for low job placement rates contribute to the student debt crisis.
• Quality of Education: The emphasis on technology and limited human interaction can raise concerns about the quality of education students receive.
• Ethical Considerations: The aggressive marketing tactics and potential for misleading students raise ethical concerns.

Here are Fall 2023 numbers (the most recent numbers) from the US Department of Education College Navigator:

Southern New Hampshire University: 129 Full-Time (F/T) instructors for 188,049 students.*
Grand Canyon University 582 F/T instructors for 107,563 students.*
Liberty University: 812 F/T for 103,068 students.*
University of Phoenix: 86 F/T instructors for 101,150 students.*
University of Maryland Global: 168 F/T instructors for 60,084 students.
American Public University System: 341 F/T instructors for 50,187 students.
Purdue University Global: 298 F/T instructors for 44,421 students.
Walden University: 242 F/T for 44,223 students.
Capella University: 168 F/T for 43,915 students.
University of Arizona Global Campus: 97 F/T instructors for 32,604 students.
Devry University online: 66 F/T instructors for 29,346 students.
Colorado Technical University: 100 F/T instructors for 28,852 students.
American Intercontinental University: 82 full-time instructors for 10,997 students.
Colorado State University Global: 26 F/T instructors for 9,507 students.
South University: 37 F/T instructors for 8,816 students.
Aspen University 10 F/T instructors for 5,195 students.
National American University 0 F/T instructors for 1,026 students

*Most F/T faculty serve the ground campuses that profit from the online schools.

Related links:

Wealth and Want Part 4: Robocolleges and Roboworkers (2024) 

Southern New Hampshire University: America's Largest Robocollege Facing Resistance From Human Workers and Student Complaints About Curriculum (2024)

Robocolleges, Artificial Intelligence, and the Dehumanization of Higher Education (2023)

AI-ROBOT CAPITALISTS WILL DESTROY THE HUMAN ECONOMY (Randall Collins, 2023)

Guild Education: Enablers of Anti-Union Corporations and Subprime College Programs (2021)

The Growth of "RoboColleges" and "Robostudents" (2019)

The Higher Education Assembly Line (2019)

$8 Billion in Liberty University Debt: Engaging a Faith-Driven Constituency

More than 290,000 Liberty University borrowers owe over $8 billion in federal student loans, yet most remain politically disengaged. Many are veterans or enrolled in accelerated master’s programs often criticized as “robocolleges.” What sets this population apart is not just the size of their debt, but their faith and social conservatism—a demographic frequently overlooked by traditional student debt advocacy.

For unions and nonprofit organizations committed to civic engagement and economic justice, this represents a unique opportunity: mobilize borrowers in ways that align with their values, rather than against them. Messaging that highlights fairness, personal responsibility, and stewardship—core Christian principles—can resonate deeply while framing student debt as a challenge to both economic and moral accountability.

These borrowers are approaching peak voting age, meaning that engagement now could influence local and national politics in the coming election cycles. Institutions like the University of Phoenix show the scale of the opportunity: over one million borrowers owe more than $21 billion nationwide, suggesting that faith-aligned organizing strategies could have broad impact.

The strategy is clear: educate borrowers about their rights, expose predatory practices, and organize them into civic action, all while respecting their values and beliefs. Done thoughtfully, this approach can build trust and spur meaningful participation in democracy, turning a population long overlooked into an informed, motivated constituency.

The coming years will test whether unions and nonprofits seize this moment. Hundreds of thousands of conservative, Christian borrowers could become a powerful force for accountability and change—but only if engagement is value-driven, strategic, and timely.

---

Sources:

• Higher Education Inquirer, More than 290,000 Liberty University student loan debtors owe more than $8 Billion

• Higher Education Inquirer, Liberty University Targeting Vets for Robocollege Master's Degrees

• Higher Education Inquirer, New Data Show Nearly a Million University of Phoenix Debtors Owe $21.6 Billion Dollars

• Higher Education Inquirer, Fraud Claims Against University of Phoenix Continue to Grow

• U.S. Department of Education, Federal Student Aid Data Center

• National Center for Education Statistics (NCES), Integrated Postsecondary Education Data System (IPEDS)

Rehumanization in Higher Education: An Alternative to Maximizing Panic and Profit

It's questionable whether the Earth's tech bros (e.g. Gates, Musk, Bezos, Thiel, Zuckerberg) really believe in democracy, but they do believe in enriching themselves, like the robber barons of the 19th century, or going back even further, to myths of flawed rulers and gods of ancient times. A few of these bros, believing mostly in themselves, have suggested that democracy is incompatible with progress. There are probably more of these elites (and their backers) who agree, but on the back stage. 

Today, there are apps for just about everything, and there are some good ones. But there are few signs that the most recent technological innovations have improved the overall existence of humans, the planet we live on, or the many other species with share the planet with. Life is great for some, good for many, and not as happy for many more. Folks feel anxious, alienated, and dehumanized and for good reason.

Rehumanization: An Alternative to Maximizing Panic and Profit 

Despite all this new technology, climate change is an existential threat and its consequences are looming. Wars and conflicts are raging around the world and there are threats of more war. Stock prices have risen, but American Quality of Life (QOL) has not improved significantly. Information for the masses is laced with toxic propaganda. Mental illness is rising. US life expectancy has plateaued. Debt is a normal part of middle class life. People are more sedentary and obese. 

For many in this new tech world, sh*t jobs are plentiful and good jobs are hard to find. Bitcoin is an alternative (and speculative) currency used for illegal and predatory activity. Online teachers and content creators are throwaway items. You can have prepared food, of varying quality, delivered to your door. Pornography is omnipresent. Mass surveillance is accepted and normalized. Brutality and genocide can be watched like entertainment, to be played over and over or swept away at the touch of a finger. Online robocollege education is available 24/7/365 and cheating is rampant, but for many a degree is just a ticket to be punched in a world of hypercredentialism.   

Some of us are half-conscious of the algorithms of oppression and those who dictate the code, but we have enough faith in technology and the tech bros that it will be ok if we accept certain social realities--and don't fight it or challenge it. If we just go along. However sick, pathological, or evil it is, no matter how greedy these tech bros and their enablers are, "it is what it is." 

How is this progress? And does it have to be this way? We don't think so. There are even models to bring light into the approaching darkness.

That's why we want to highlight the bright spots in higher education in a series called the Rehumanization of Higher Ed. Stay tuned. 

2025 Will Be Wild!

2025 promises to be a disruptive year in higher education and society, not just in DC but across the US. While some now can see two demographic downturns, worsening climate conditions, and a Department of Education in transition, there are other less predictable and lesser-known trends and developments that we hope to cover at the Higher Education Inquirer. 

The Trump Economy

Folks are expecting a booming economy in 2025. Crypto and AI mania, along with tax cuts and deregulation, mean that corporate profits should be enormous. The Roaring 2020s will be historic for the US, just as the 1920s were, with little time and thought spent on long-range issues such as climate change and environmental destruction, economic inequality, or the potential for an economic crash.  

A Pyramid, Two Cliffs, a Wall and a Door  

HEI has been reporting about enrollment declines since 2016.  Smaller numbers of younger people and large numbers of elderly Baby Boomers and their health and disability concerns spell trouble ahead for states who may not consider higher education a priority. We'll have to see how Republican promises for mass deportations turn out, but just the threats to do so could be chaotic. There will also be controversies over the Trump/Musk plan to increase the number of H1B visas.  

The Shakeup at ED

With Linda McMahon at the helm of the Department of Education, we should expect more deregulation, more cuts, and less student loan debt relief. Mike Rounds has introduced a Senate Bill to close ED, but the Bill does not appear likely to pass. Diversity, Equity, and Inclusion (DEI) efforts may take a hit. However, online K12 education, robocolleges, and surviving online program managers could thrive in the short run.   

Student Loan Debt 

Student loan debt is expected to rise again in 2025. After a brief respite from 2020 to late 2024, and some receiving debt forgiveness, untold millions of borrowers will be expected to make payments that they may not be able to afford. How this problem affects an otherwise booming economy has not been receiving much media attention. 

Policies Against Diversity, Equity, and Inclusion

This semester at highly selective institutions, Black first-year student enrollment dropped by 16.9 percent. At MIT, the percentage of Black students decreased from 15 percent to 5 percent. At Harvard Law School, the number of Black law students has been cut by more than half.  Florida, Texas, Alabama, Iowa and Utah have banned diversity, equity and inclusion (DEI) offices at public universities. Idaho, Indiana and Kansas have prohibited colleges from requiring diversity statements in hiring and admissions. The resistance so far has been limited.

Failing Schools and Strategic Partnerships 

People should expect more colleges to fail in the coming months and years, with the possibility that the number of closures could accelerate. Small religious schools are particularly vulnerable. Colleges may further privatize their operations to save money and make money in an increasingly competitive market.

Campus Protests and Mass Surveillance

Protests may be limited out of fear of persecution, even if there are a number of legitimate issues to protest, to include human induced climate change, genocide in Palestine, mass deportations, and the resurgence of white supremacy. Things could change if conditions are so extreme that a critical mass is willing to sacrifice. Other issues, such as the growing class war, could bubble up. But mass surveillance and stricter campus policies have been emplaced at elite and name brand schools to reduce the odds of conflict and disruption.

The Legitimization of Robocollege Credentials    

Online higher education has become mainstream despite questions of its efficacy. Billions of dollars will be spent on ads for robocolleges. Religious robocolleges like Liberty University and Grand Canyon University should continue to grow and more traditional religious schools continue to shrink. University of Southern Hampshire, Purdue Global and Arizona Global will continue to enroll folks with limited federal oversight.  Adult students at this point are still willing to take on debt, especially if it leads to job promotions where an advanced credential is needed. 

Apollo Global Management is still working to unload the University of Phoenix. The sale of the school to the Idaho Board of Education or some other state organization remains in question.

AI and Cheating 

AI will continue to affect society, promising to add more jobs and threatening to take others.  One less visible way AI affects society is in academic cheating.  As long as there have been grades and competition, students have cheated.  But now it's become an industry. Even the concept of academic dishonesty has changed over the years. One could argue that cheating has been normalized, as Derek Newton of the Cheat Sheet has chronicled. Academic research can also be mass produced with AI.   

Under the Radar

A number of schools, companies, and related organizations have flown under the radar, but that could change. This includes Maximus and other Student Loan Servicers, Guild Education, EducationDynamics, South University, Ambow Education, National American University, Perdoceo, Devry University, and Adtalem. 

Related links:

Survival of the Fittest

The Coming Boom 

The Roaring 2020s and America's Move to the Right

Austerity and Disruption

Dozens of Religious Schools Under Department of Education Heightened Cash Monitoring

Shall we all pretend we didn't see it coming, again?: higher education, climate change, climate refugees, and climate denial by elites

The US Working-Class Depression: "Let's all pretend we couldn't see it coming."

Tracking Higher Ed’s Dismantling of DEI (Erin Gretzinger, Maggie Hicks, Christa Dutton, and Jasper Smith, Chronicle of Higher Education). 

Guild (Education) No Longer Glitters: Layoffs, Toxic Work Environment, Questionable Acquisition

Here's our latest analysis of Guild (formerly Guild Education) based on a limited amount of publicly available data. Guild is a third-party provider of adult education, connecting big corporations like Walmart, JP Morgan, Tesla, and Disney with online schools like Purdue University Global (Purdue University's robocollege) and e-Cornell (Cornell's online school). 

For years, Guild Education received a substantial amount of positive press, which put them on our radar in 2021. We and others in the education world were wary of all the hype. Forbes was a big contributor to Guild's rise, along with its supporters: Silicon Valley Bank, ASU+GSV, Steph Curry, Oprah,  Johny C. Taylor Jr., Michael Horn, and Kenneth Chenault. And Guild had political ties with Mae Podesta, a daughter of Democratic Party powerbroker John Podesta.

In 2023, Guild was again on the radar as the edtech meltdown was occurring and investor money was drying up, especially in Silicon Valley. In September of 2024, Disney cut back on its Guild-managed education program.

Since Guild is a private, for-profit company, this limits our ability to fully assess the company, including its value. It appears Guild has not received a capital infusion since the summer of 2022, and there is no indication that it has ever been profitable. Valuations.fyi reports that Guild's value has dropped from a peak of $4.4B in 2022 to $1.3B in 2024.

The last two years Guild has suffered significant layoffs, and its charismatic CEO Rachel Romer, who suffered a stroke, was replaced by a less popular Bijal Shah (who only has a 37 percent favorability rating on Glassdoor). The edtech company has gone through major transitions, including a rebranding, while downsizing its core business. In early 2024, Guild announced that it was offering AI training. More recently, it has acquired Nomadic Learning, a platform for educating corporate leadership.

Glassdoor reviews have provided more information that are summarized here:

1. Toxic Work Environment/Hostile leadership: The behavior of senior leadership, particularly the CMO, is described as hostile, manipulative, and discriminatory. 

Lack of empathy: A lack of empathy from leadership towards employees is a recurring theme.

Discrimination: Instances of discrimination, both overt and subtle, are alleged, especially against women and employees of color.
 

2. Unfair Treatment and Inequity/Favoritism: Friends of leadership seem to be favored, regardless of merit or performance.

Unequal treatment: Women and employees of color appear to be disproportionately affected by negative actions, such as layoffs and discrimination.

Limited opportunities for advancement: The focus on "allies" in ERG spaces may limit opportunities for marginalized employees.
 

3. Erosion of Employee Benefits/Reduced holiday time: The removal of holiday time off and restrictions on PTO use have negatively impacted employees' ability to balance work and personal life.

Decreased support for employees: The company's focus on reducing costs has led to a decline in benefits and support for employees.
 

4. Misalignment with Mission/Prioritizing profits over people: The company's actions seem to prioritize financial gain over its stated mission of unlocking opportunity.

Disregard for employee needs: The company's failure to address the needs of its employees, particularly women and caregivers, contradicts its mission.
 

5. Loss of Talent/High turnover: The toxic work environment and declining benefits are likely contributing to a high turnover rate among talented employees.

Loss of marketing talent: The company's reputation is suffering due to the loss of its best marketing talent.

These issues raise serious concerns about Guild Education's culture, leadership, and commitment to its employees and mission. Addressing these problems will be crucial for the company's long-term success.

Why Acquire Nomadic Learning?

There could be several reasons why a company with a toxic work environment and declining employee morale would continue to acquire other businesses:

Diversification: Acquisitions can be seen as a way to diversify the company's revenue streams and reduce its reliance on a single product or service.

Market expansion: Acquiring other companies can help a company expand into new markets or geographic regions.

Synergies: The acquisition of complementary businesses can create synergies that lead to cost savings or increased revenue.

Talent acquisition: Acquisitions can be a way to acquire talented employees or intellectual property.

Short-term financial gains: Acquisitions can sometimes provide short-term financial gains, such as increased revenue or stock price appreciation.

However, it's important to note that these reasons may not be sufficient to justify the acquisition of other businesses if the company's internal problems are not addressed. A toxic work environment and declining employee morale can negatively impact a company's ability to retain talent, attract customers, and innovate.

It's possible that the company's leadership believes that acquisitions can help to mask or distract from the underlying problems. However, this is a short-term solution that is unlikely to be sustainable in the long run.

To truly improve its situation, Guild Education will need to address the root causes of its problems, including the toxic work environment, declining employee morale, and misalignment with its mission.

University of Phoenix and the Ash Heap of Higher Ed History

 (Updated September 14, 2023)

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

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

Pattern of Fraud

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

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

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

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

Wolves in Sheep's Clothing

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

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

University of Phoenix's Finances

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

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

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

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

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

Attempts to Sell UoPX

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Related link: 

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

The Growth of "RoboColleges" and "Robostudents"

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

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

Higher Education Inquirer continues to follow IPO/sale of University of Phoenix

On March 6, 2025, Apollo and Vistria publicly announced a possible IPO or sale of the University of Phoenix.  These companies have been trying to sell the University of Phoenix since 2021, but there have been no takers. The owners claim the school is worth $1.5B to $1.7B, but we (and experts we know) are skeptical, given the financials we have seen so far. The University of Phoenix was previously on sale for about $500M-$700M but the University of Arkansas System, the State of Idaho, and apparently other colleges declined the offers. 

The University of Phoenix offers subprime education to folks, historically targeting servicemembers, veterans, and people of color. While some students may profit from these robocollege credentials, one wonders what these workers actually learn. The current student-teacher ratio at the University of Phoenix, according to the US Department of Education, is 132 to 1.   

The University of Phoenix has faced a number of scandals, sometimes getting away with no penalty, and other times paying large fines.  

In 2023 we made a Freedom of Action (FOIA) request to the US Department of Education (ED) to get Phoenix's most recent audited financials. In March 2025, more than 20 months later, we were provided with a 35-page report, audited by Deloitte, with numbers from 2021 and 2022. 

HEI has filed a number of FOIAs with ED and discovered that almost 1 million former University of Phoenix students owe approximately $21.6 Billion in student loan debt. In addition, about 19,000 borrowers have had their student loans forgiven as a result of the Sweet v Cardona Borrower Defense to Repayment case.  According to ED FOIA 23-02373-F, more than 73,000 have filed fraud claims against the school. 

This month the Higher Education Inquirer followed up with a Freedom of Information request with the ED to obtain more up-to-date financial numbers for the University of Phoenix. We hope they will be responsive and timely enough to get the word out to the public.   

Google, Amazon Web Services, and the Robocollege Gold Rush

The rise of robocolleges—massive, data-driven online universities like Southern New Hampshire University (SNHU), Liberty University Online, and the University of Phoenix—has not only reshaped the American higher education landscape but also become a lucrative revenue stream for Big Tech giants like Google and Amazon Web Services (AWS). These corporations, often thought of in the context of search engines or online retail, are quietly cashing in on the transformation of higher education into a sprawling digital enterprise.

Google profits primarily through its dominant advertising platform. Robocolleges spend tens of millions of dollars annually on Google Ads, targeting prospective students through highly refined search engine marketing. When a person types “online college” or “fastest bachelor’s degree,” Google’s algorithms serve up ads from SNHU, Liberty, University of Phoenix, and similar institutions, often above organic search results. These schools bid aggressively on search terms, particularly those that resonate with working adults, single parents, and veterans—populations that are more vulnerable to misleading advertising and frequently take on large student loans with low completion rates. A 2018 New York Times report revealed that the University of Phoenix spent $27 million on Google ads in a single year. SNHU and Liberty have since increased their digital marketing budgets dramatically, much of it funneled into the Google ecosystem.

But Google’s relationship with robocolleges goes far beyond advertising. Through its YouTube platform, also part of Alphabet Inc., the company monetizes education-related content and ads aimed at vulnerable populations. Whether viewers are watching videos about job interviews or financial survival, they’re often served high-pressure ads from online universities offering "flexible" degrees with "no SAT required." These targeted promotions generate both direct revenue and valuable behavioral data, which is used to optimize future advertising and extract more profit from the education market.

Amazon Web Services (AWS), the dominant player in cloud computing, profits from robocolleges in a different but equally impactful way. The University of Phoenix, for instance, migrated its entire infrastructure to AWS, entrusting Amazon with the storage and management of its student data, financial systems, and learning platforms. This move was framed as a way to increase efficiency and reduce costs, but it also locked a major for-profit university into the AWS ecosystem, with recurring fees that scale with student enrollment and data usage. Liberty University and other online-heavy institutions have also entered cloud partnerships with AWS and its competitors, making Amazon a key stakeholder in the delivery and surveillance of digital education.

The integration of Big Tech with robocolleges isn't just about services—it's about power. These tech platforms shape who gets seen and who remains invisible. Google's search and ad algorithms essentially control the public-facing narrative of higher education, prioritizing those who pay the most, not those who offer the best outcomes. Meanwhile, Amazon’s infrastructure ensures that these institutions can operate at scale with minimal human oversight, using cloud tools to automate enrollment, course delivery, and even student monitoring.

This alliance between Big Tech and robocolleges has significant implications for students, many of whom take on large debts in pursuit of degrees that may have limited labor market value. The same students who are recruited through Google ads often end up attending classes hosted on AWS servers, their tuition dollars indirectly supporting some of the richest corporations on the planet. As regulators begin to scrutinize student outcomes and loan defaults, the role of Google and Amazon in propping up this system remains largely invisible—and unaccountable.

What we are witnessing is not just the digitization of higher education, but its full-scale commercialization, driven by two of the most powerful technology firms in the world. In this new regime, education becomes a pipeline for data extraction, ad revenue, and cloud profits—where the student is no longer the customer, but the product.

Sources:
The New York Times, “How Google Took Over the Classroom” (2017)
The Chronicle of Higher Education, “Online Education’s Marketing Machine” (2020)
The Markup, “Google Is Earning Big From Predatory For-Profit Colleges” (2020)
University of Phoenix Newsroom, “University of Phoenix Moves to AWS” (2019)
SNHU Financial Statements (2020-2023)
Liberty University Marketing Disclosures (Various)
Alphabet Inc. and Amazon.com Inc. Annual Reports (2023-2024)

Fraud Claims Against University of Phoenix Continue to Grow

The Higher Education Inquirer received a FOIA response today from the US Department of Education stating that 73,740 consumer fraud claims have been filed against the University of Phoenix. These claims have been made through the Department of Education's Borrower Defense to Repayment program.

The Sweet v Cardona lawsuit, concluded earlier in 2023, allowed for about 19,000 claims to be settled immediately--in favor of student debtors and against the University of Phoenix. Another 15,000 or so cases are supposed to be expedited as a result of the federal ruling.  

23-02373-F Final Response

We estimate that the potential liability of these immediate claims to be $200M-$600M with another $500M-$1.5B for the remaining cases. The higher estimates are based on the median federal loan debt among borrowers who completed their undergraduate degree ($32,421) and a study by Adam Looney and Constantine Yannelis that indicated University of Phoenix debtors, on average, paid off almost nothing of their principal. The authors also estimated that total student loan debt from more than a million University of Phoenix debtors was $35B. 

The Department of Education has not presented any estimates on the total debt by University of Phoenix students or its costs to the US government.  

Thousands of new cases continue to be filed. From January 2015 through January 1, 2022, there were 32,040 Borrower Defense claims made against the University of Phoenix. An additional 41,700 claims were filed between 2022 and August 2023. 

Idaho Sale

University of Phoenix's current owners are Apollo Global Management and Vistria Group, who have been trying to unload the online robocollege for years. The University of Idaho has been the most recent target, but the sale is far from being consummated.  The entire deal is expected to cost $685M. Idaho Attorney General Raul Labrador has filed a lawsuit to stop or at least slow down the acquisition. And members of the Idaho Legislature continue to have questions.

In order to shield itself from liability the University of Idaho created a non-profit organization called 43 Education. But the state university may be responsible if the non-profit fails to make enough money to repay the bondholders of the new non-profit. 

The liability of these Borrower Defense claims to the current or future owners of the University of Phoenix seems possible in light of a recent statement by Department of Education Undersecretary James Kvaal. Kvaal said the University of Arizona Global Campus may be liable for the misdeeds of Ashford University (UAGC's former name). The University of Arizona purchased Ashford in 2020 for one dollar. 

Related articles:

Feds Cancel Loans for 2,300 Students Scammed by Ashford U. So Why Does the School Still Get Tax Dollars? (David Halperin)

University of Phoenix and the Ash Heap of Higher Ed History

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

The Growth of "RoboColleges" and "Robostudents"

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

 

End of an Era

For now, we have suspended our three decade long run of citizen journalism and will let you know where we go from here.  Two of our other publications, American Injustice and street sociologist are also closed, but remain online for now on Blogger. 

Our Anti-SLAPP lawsuit (Chip Paucek and Pro Athlete Community v Dahn Shaulis) is pending. While the legal bill is enormous, we expect to win. In the meantime, please support independent voices like Democracy Now!, Richard Wolff, Robert A. Pape, Julie K. Brown, Roger Sollenberger, and Troy Barile. 

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   Higher Education and Class Sorting. Image by Glen McGhee

On our last full day of operation, we extend our deepest gratitude to the many courageous voices who have contributed to the Higher Education Inquirer over the years. Through research, reporting, whistleblowing, analysis, and public service, you have exposed inequities, challenged powerful interests, and helped the public understand the realities of higher education. Together, you form a resilient network of knowledge, courage, and public service, showing that collective insight can illuminate even the most entrenched systems. Your dedication has been, and continues to be, invaluable.

Special thanks to:
Bryan Alexander (Future Trends Forum), J. J. Anselmi (author), Devarian Baldwin (Trinity College),  Lisa Bannon (Wall Street Journal), Joe Berry (Higher Education Labor United), Kate Bronfenbrenner (Cornell), Stephen Burd (New America), Ann Bowers (Debt Collective), James Michael Brodie (Black and Gold Project Foundation), Patrick Campbell (Vets Ed Brief), Richard Cannon (activist), Kirk Carapezza (WGBH), Kevin L. Clay (Rutgers), Randall Collins (UPenn), Marianne Dissard (activist), Cory Doctorow, William Domhoff (UC Santa Cruz), Ruxandra Dumitriu, Keil Dumsch, Garrett Fitzgerald (College Recon), Glen Ford (with the ancestors), Richard Fossey (Condemned to Debt), Erica Gallagher (2U Whistleblower), Cliff Gibson III (Gibson & Keith), Henry Giroux (McMaster University), Terri Givens (University of British Columbia), Aaron Glantz, Luke Goldstein (The Lever),  Nathan Grawe (Carleton College), Michael Green (UNLV), Michael Hainline (Restore the GI Bill for Veterans), Debra Hale Shelton (Arkansas Times), Stephanie M. Hall (Protect Borrowers),  David Halperin (Republic Report), Bill Harrington (Croatan Institute), Phil Hill (On EdTech), Investor X (business insider), Robert Jensen (UT Austin), Seth Kahn (WCUP), Hank Kalet (Rutgers), Ben Kaufman (Protect Borrowers), Robert Kelchen (University of Tennessee), Karen Kelsky (The Professor Is In), Neil Kraus (UWRF), LACCD Whistleblower, Michelle Lee (whistleblower), Wendy Lynne Lee (Bloomsburg University of PA), Emmanuel Legeard (whistleblower), Adam Looney (University of Utah), Alec MacGillis (ProPublica), Jon Marcus (Hechinger Report), Steven Mintz (University of Texas), John D. Murphy (Mission Forsaken), Annelise Orleck (Dartmouth), Margaret Kimberly (Black Agenda Report), Austin Longhorn (UT student loan debt whistleblower), Richard Pollock (journalist), Debbi Potts (whistleblower), Jack Metzger (Roosevelt University), Derek Newton (The Cheat Sheet), Jeff Pooley (Annenberg Center), Fahmi Quadir (Safkhet Capital), Chris Quintana (USA Today), Jennifer Reed (University of Akron), Kevin Richert (Idaho Education News), Gary Roth (Rutgers-Newark), Mark Salisbury (TuitionFit), Stephanie Saul (NY Times), Christopher Serbagi (Serbagi Law), Alex Shebanow  (Fail State), Bob Shireman (TCF), Bill Skimmyhorn (William & Mary), Peter Simi (Chapman University), Jeffrey Sonnenfeld (Yale), Gary Stocker (College Viability), Strelnikov (Wikipedia Sucks), Taylor Swaak (Chronicle of Higher Education), Theresa Sweet (Sweet v Cardona), Harry Targ (Purdue University), Moe Tkacik (American Prospect),  Kim Tran (activist), Mark Twain Jr. (business insider), Michael Vasquez (The Tributary), Marina Vujnovic (Monmouth), Richard Wolff (Economic Update), David Whitman, Todd Wolfson (Rutgers, AFT), Helena Worthen (Higher Ed Labor United), DW (South American Correspondent), Heidi Weber (Whistleblower Revolution), Michael Yates (Monthly Review), government officials who have supported transparency and accountability, and the countless other educators, researchers, whistleblowers, advocates, and public servants whose work strengthens our understanding of higher education.

Dum spiro spero  (While I breathe, I hope),

Dahn Shaulis and Glen McGhee

State Universities and the College Meltdown

 

State Universities are using Google Ads to boost enrollment numbers.

(Updated November 28, 2022) 

While for-profit colleges, community colleges, and small private schools received the most attention in the first iteration of the College Meltdown, regional public universities (and a few flagship schools) have also experienced financial challenges, reorganizations, and mergers, enrollment losses, layoffs and resignations, off-campus learning site closings and campus dorm closings, lower graduation rates, and the necessity to lower admissions standards. They are not facing these downturns, though, without a fight. 

State universities, for example, are attempting to maintain or boost their enrollment through marketing and advertising--sometimes with the assistance of helpful, yet sometimes questionable online program managers (OPMs) like 2U and Academic Partnerships and lead generators such as EducationDynamics.  

 

Academic Partnerships claims to serve 50 university clients.  HEI has identified 25 of them. 

Google ads also follow consumers across the Web, with links to enrollment pages.  And enrollment pages include cookies to learn about those who click onto the enrollment pages. Schools share the information that consumers provide with Google Analytics and Chartbeat.  

                                       A pop-up Google Ad for Penn State World Campus

Advanced marketing will not improve institutional quality directly but it may raise awareness of these state schools to targeted audiences.  Whether this becomes predatory may be an issue worth examining.

 

In order to stay competitive, state universities have to have a strong online presence and spend an inordinate amount of money on marketing and advertising.  Ohio University and other schools now offer programs that are 100 percent online.  

 

State universities have joined for-profit colleges in the television advertising space. 

Despite marketing and enrollment appeals like this, we believe the financial situation could worsen at non-flagship state universities when austerity is reemployed--something likely to happen during the next economic downturn. 

While state flagship universities have multiple revenue streams, they are often unaffordable for working families.  Elite state universities, also known as the Public Ivies, have increasingly shut out state residents--in favor of people from out of state and outside the US--who are willing to pay more in tuition. 

Aaron Klein at the Brookings Institution calls this significant (and dysfunctional) out-of-state enrollment pattern as The Great Student Swap.  

State Universities with more than 4000 foreign students include UC San Diego, University of Illinois, UC Irvine, University of Washington, Arizona State University, Purdue University, Ohio State University, Michigan State University, and UC Berkeley. 

People fortunate enough to attend large state universities as undergrads may feel alienated by large and impersonal classrooms led by graduate assistants and other adjuncts.  There are also significant and often under-addressed social problems related to larger universities, including hunger, substance abuse, sexually transmitted diseases, hazing and sexual assault.  

Online only versions of flagship schools may not be of the same quality as their brick and mortar counterparts. Purdue University Global and University of Arizona Global Campus, for example, are open enrollment schools for working adults which produce questionable student outcomes.  These "robocollege" schools hire few full-time instructors and often spend a great deal of their resources on marketing and advertising.  

EducationDynamics is a lead generator for "robocolleges" such as Purdue University Global and University of Arizona, Global Campus.  

 

                    Purdue University Global has used questionable marketing and advertising.

The Higher Education Inquirer has already noticed the following schools in the Summer and Fall 2022 that received media scrutiny for lower enrollment, financial problems, or labor issues:

Westfield State University 

Connecticut State Colleges and Universities

Western Connecticut State University 

State University of New York 

Montclair State University (Merger with Bloomfield College)

William Paterson University

Montclair State University

Rutgers University, Camden

New Jersey City University

 

Penn State University

Indiana University of Pennsylvania

Slippery Rock University of Pennsylvania 

Penn West University (Merging Cal University of PA, Clarion, and Edinboro)

 

Virginia Commonwealth University

University of North Carolina, Ashville

East Carolina University  

Columbus State University 

University of Tennessee, Chattanooga

Northwestern State University of Louisiana

Henderson State University 

Missouri State University

Missouri Western University  

 

Youngstown State University  

University of Akron 

Cleveland State University 

University of Toledo 

Indiana State University  

University of Southern Indiana

Eastern Michigan University

University of Michigan, Flint  

Central Michigan University 

University of Wisconsin System 

University of Wisconsin, Milwaukee 

Northern Illinois University

Southern Illinois University 

Minnesota State System of Colleges and Universities

Southwest Minnesota University  

Iowa State University 

University of Northern Iowa 

University of Nebraska, Kearney

University of Nebraska, Lincoln

University of Nebraska, Omaha

Kansas State University 

Emporia State University  

Fort Hays State University 

Pittsburg State University 

 

South Dakota State University 

Black Hills State University 

University of Colorado, Boulder

University of Montana  

Montana State University 

University of Wyoming  

 

Stephen M. Austin University

 

Northern Arizona University 

Eastern Washington University 

Washington State University 

Portland State University

San Francisco State University  

Cal State University System  

Cal State University, Chico

Fresno State University

 

University of Hawaii

More schools will be added as information comes in. 

 

Related link: Community Colleges at the Heart of College Meltdown

Related link: A preliminary list of private colleges at risk

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

Related link: HEI Investigation: Academic Partnerships 

Related link: HEI Investigation: EducationDynamics 

Related link: One of Higher Ed’s Worst-Kept Secrets Is Out. It’s Even Grimmer Than We Knew (John Warner, Slate) 

Related link: The Great Student Swap (Aaron Klein, Brookings Institution)

Related link: College Meltdown 2.0 

Related link: "Let's all pretend we couldn't see it coming" (The US Working-Class Depression)

Related link: The Growth of "Robocolleges" and "Robostudents"

Related link: Flagships Fail on Financial Equity (Madeline St. Amour, Inside Higher Education)

Related link: What happens when Big 10 grads think "college is bullsh*t"? 

Related link: UT Austin President Eats Cake in a Pandemic (Austin Longhorn*)