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Friday, November 6, 2020

A Letter to the US Department of Education and Student Loan Servicers on Behalf of Student X (Heidi Weber)

[Editors Note: Whistleblowers like this author, Heidi Weber, are an essential part of a democracy, shedding light when there is little transparency, and demanding justice and accountability when it is in short supply.  Her podcast, Whistleblower Revolution, is available at https://whistleblowerrevolution.com/

November 5th, 2020

TO: THE UNITED STATES DEPARTMENT OF EDUCATION, THE US SECRETARY OF EDUCATION, US CONGRESS and ALL FEDERAL SUBSIDIZED AND UNSUBSIDIZED STUDENT LOAN LENDERS

In the Interest of Student X (DOB x-x-xx) regarding GLOBE UNIVERSITY (closed)

To whom it may concern & the above-mentioned recipients,

My name is Heidi Weber, and I am the higher education whistleblower, that spoke up, regarding fraud and deceptive practices I witnessed while being a Dean at Globe University and its sister chain, Minnesota School of Business. I was retaliated against and endured a long legal process resulting in a 7-day jury trial against the large for-profit chain with campuses in several states. [see full Background story attached to this letter]

Fortunately, in my case, truth prevailed, and that jury verdict, along with my evidence, opened the door to scrutiny from the MN State Attorney General, State and Federal Higher Ed Departments, ultimately, forcing the schools to cease operations.

I’ve been invited and still speak at universities, business groups, non-profits, and even in the halls of Congress regarding this sector, what it’s doing to our country and imploring change. Recently, my story was featured as the season one finale of CBS Whistleblower with Alex Ferrer. I also, host a national podcast, and am a consultant and trainer on employee relations/engagement.

THEREFORE, I FEEL I HAVE EARNED THE RIGHT TO BE HEARD, not only on the topic itself, but especially, as an advocate of the students of Globe University/MSB, directly.

As I write this, the owners had retained a group of high dollar attorneys who are still a lengthy process representing them in bankruptcy court, after claiming & filing bankruptcy, days after being court ordered to give thousands of students their money back. Meanwhile, those private owners and senior corporate stakeholders have delayed proceedings, transferred assets, and still enjoy lavish homes and vacation/retirement properties after making hundreds of millions over the years on the backs of people just wanting a promising future.

Instead, they have stolen the futures of those students and grads who haven’t been able to and still cannot, utilize a degree from these schools. A degree that has become even more worthless, many times being a strike against the grad, as the school’s activities have come to light.

What I, and every other American, finds disturbing, is the fact that,

THE OWNERS CAN LEGALLY FILE FOR BANRUPTCY TO GET OUT OF JUDICIAL ORDERS TO PAY STUDENTS BACK, NEVER BE HELD FINANCIALLY OR MORALLY ACCOUNTABLE, AND CONTINUE LIVING WEALTHY LIFESTYLES, YET, THE PEOPLE THEY PREYED UPON, and DEFRAUDED, WHO CANNOT TRANSFER THOSE CREDITS and GRADS WHO CANNOT WORK IN THEIR FIELD, (much less EVER GET THAT TIME BACK), ARE NOT ABLE to FILE BANKRUPTCY OR EVER GET OUT FROM UNDER THE CRUSHING DEBT.

This is a LIFELONG SENTENCE for most of these people, many of which had few opportunities to begin with and struggled to sacrifice already.

I know this.

I had them in my classrooms. Vets, single parents, minorities, immigrants, young people who had little means, and no other options, to finally be “sold” their dream. I loved being a teacher and grew to know many of their stories, before being promoted to Dean.

“Find their pain” and “Sell them their dream.” 

In fact, those were some of GU/MSB mottos, in their admissions representative training manual which I presented as evidence at my trial, and the AG utilized in hers also.

Student X (AND the OTHER STUDENTS AND GRADS) DO NOT DESERVE TO BE SWINDLED OUT OF THEIR FUTURES, burdened with crushing DEBT.

THEY SHOULDN’T BE FORCED TO PAY for these schools’ crimes, loss of credibility and poor reputation in the public as a result.

I would ask, why are you allowing this to happen to so many of our kids, active military and vets, who are the future of our country? Further, why are we, the taxpayers, paying for it?

Please give Student X the same chance as every other American, the freedom to work hard toward the American Dream without being punished for a bait and switch of lies and fraud, pinned to them forever.

It affects all of us. Our country is strong because we showed future generations that here, anyone can better themselves, be treated fairly, and become vital members of our communities; that everyone has the chance at life, liberty, and the pursuit of happiness.

Please discharge her student debt from Globe University.

I stood up for them.

I sacrificed my career and have endured hard times. I still do, but I also, earned my nickname of “the unstoppable” Heidi Weber. I won’t stop until these schools are held accountable and MY students get justice and their futures back.

It’s long overdue!

This is your chance to make a real difference too. Please start by discharging Student X's student debt.

Sincerely with Conviction & Gratitude,

Heidi Weber

Whistleblower, Advocate, Legal Client Coach, Employee Relations Consultant, Speaker and Higher Ed commentator Contact: xxxxxxxxxxxxxxxx

Host of “The Whistleblower Revolution Podcast” available everywhere you listen. https://WhistleblowerRevolution.com


Background

Globe University was a large For-Profit College/University chain in the Midwest that is now closed and in currently in bankruptcy courts, in an attempt to delay and avoid post trial court orders to repay thousands of students. GU/MSB (Globe U/Minnesota School of Business) had approximately 11,000 students across several states, in 2011, and were at the height of their enrollment, when Heidi Weber, a Dean came forward and filed a whistleblower complaint against the schools. After reporting to the school’s corporate leaders, several issues of deceptive and fraudulent practices that she had uncovered, witnessed, and received from students, she was subjected to retaliation, & wrongful termination. Heidi and the school went head to head, through a long “david vs goliath’ legal battle and a 7-day public jury trial. She prevailed with a unanimous jury verdict, and modest jury award. It has become a landmark case for two reasons. First, it was the first very public whistleblower trial loss by a national for-profit college chain that showcased many of the issues that the entire sector still battles today. As such, it opened the door to many other similar cases being filed across the US. Secondly, it was the catalyst to another long legal battle with the State of Minnesota and State & Federal Dept of Higher Ed that consequently resulted in GU/MSB being permanently disqualified from receiving any more Federal funded student grants and loans. Additionally, resulting in the large for-profit chain losing a trial brought by the Attorney General of MN, who subpoenaed Heidi as a key witness. At the same time, the National Accrediting body that GU/MSB and several other for-profit colleges used, and were accredited under, ACICS, was dissolved. This, along with their funding cut, left GU/MSB no choice but to close its doors at over 20 campuses. Even after several convictions and court losses, the school’s leadership still deny any responsibility of wrongdoing. The same private owners still own a few schools under different brands and still lobby to be allowed to reopen.

*[GU/MSB were never regionally accredited. They never even applied as they did not meet the criteria and standards for Regional Accreditation like all State Colleges/Universities and traditional private institutions are accredited through. Each regional body requires high educational standards and the State and Traditional institutions rigorously work to adhere and maintain those standards to show their commitment to providing quality and credible education to potential students, employers and their communities. One main purpose of accreditation is to ensure that schools are held to strict standards and the delivery of education is at the same level between schools. This is how they evaluate and accept transfer credits because they know if the other school is Regionally Accredited, the courses, method and delivery meet the level and match hours making transitions seamless for the student. The other main purpose is to assure financial and Federal funding of student loans and grants that the school is worthy and adhering to their requirements to receive funding. Also, the accrediting institutions evaluate and enforce standards as an outside neutral party which is to avoid and alleviate conflicts of interest and/or “pay to play” schemes by the schools themselves. It is set up very different in the for-profit Sector. ACICS and ACCSC were the two main “National” accreditors for that entire realm generally. For years, the two national accreditors jockeyed back and forth as to which was larger or had the most schools under it, and both shared many of the same personnel who would float between the two. ACICS was a peer review organization, meaning that the schools themselves, were responsible for policing and doing audits on each other. As long as their “fees” were paid, rarely were any of its members held back or forced to meet strict requirements. Consequently, the larger schools with the most campuses were able to monopolize and dictate the direction and activities of the accreditor.]



Monday, January 6, 2025

HEI Resources 2025

[Editor's Note: Please let us know of any additions or corrections.]

Books

  • Alexander, Bryan (2020). Academia Next: The Futures of Higher Education. Johns Hopkins Press.  
  • Alexander, Bryan (2023).  Universities on Fire. Johns Hopkins Press.  
  • Angulo, A. (2016). Diploma Mills: How For-profit Colleges Stiffed Students, Taxpayers, and the American Dream. Johns Hopkins University Press.
  • Apthekar,  Bettina (1966) Big Business and the American University. New Outlook Publishers.  
  • Apthekar, Bettina (1969). Higher education and the student rebellion in the United States, 1960-1969 : a bibliography.
  • Archibald, R. and Feldman, D. (2017). The Road Ahead for America's Colleges & Universities. Oxford University Press.
  • Armstrong, E. and Hamilton, L. (2015). Paying for the Party: How College Maintains Inequality. Harvard University Press.
  • Arum, R. and Roksa, J. (2011). Academically Adrift: Limited Learning on College Campuses. University of Chicago Press. 
  • Baldwin, Davarian (2021). In the Shadow of the Ivory Tower: How Universities Are Plundering Our Cities. Bold Type Books.  
  • Bennett, W. and Wilezol, D. (2013). Is College Worth It?: A Former United States Secretary of Education and a Liberal Arts Graduate Expose the Broken Promise of Higher Education. Thomas Nelson.
  • Berg, I. (1970). "The Great Training Robbery: Education and Jobs." Praeger.
  • Berman, Elizabeth P. (2012). Creating the Market University.  Princeton University Press. 
  • Berry, J. (2005). Reclaiming the Ivory Tower: Organizing Adjuncts to Change Higher Education. Monthly Review Press.
  • Best, J. and Best, E. (2014) The Student Loan Mess: How Good Intentions Created a Trillion-Dollar Problem. Atkinson Family Foundation.
  • Bledstein, Burton J. (1976). The Culture of Professionalism: The Middle Class and the Development of Higher Education in America. Norton.
  • Bogue, E. Grady and Aper, Jeffrey.  (2000). Exploring the Heritage of American Higher Education: The Evolution of Philosophy and Policy. 
  • Bok, D. (2003). Universities in the Marketplace : The Commercialization of Higher Education.  Princeton University Press. 
  • Bousquet, M. (2008). How the University Works: Higher Education and the Low Wage Nation. NYU Press.
  • Brennan, J & Magness, P. (2019). Cracks in the Ivory Tower. Oxford University Press. 
  • Brint, S., & Karabel, J. The Diverted Dream: Community colleges and the promise of educational opportunity in America, 1900–1985. Oxford University Press. (1989).
  • Cabrera, Nolan L. (2024) Whiteness in the Ivory Tower: Why Don't We Notice the White Students Sitting Together in the Quad? Teachers College Press.
  • Cabrera, Nolan L. (2018). White Guys on Campus: Racism, White Immunity, and the Myth of "Post-Racial" Higher Education. Rutgers University Press.
  • Caplan, B. (2018). The Case Against Education: Why the Education System Is a Waste of Time and Money. Princeton University Press.
  • Cappelli, P. (2015). Will College Pay Off?: A Guide to the Most Important Financial Decision You'll Ever Make. Public Affairs.
  • Carney, Cary Michael (1999). Native American Higher Education in the United States. Transaction.
  • Childress, H. (2019). The Adjunct Underclass: How America's Colleges Betrayed Their Faculty, Their Students, and Their Mission University of Chicago Press.
  • Cohen, Arthur M. (1998). The Shaping of American Higher Education: Emergence and Growth of the Contemporary System. San Francisco: Jossey-Bass.
  • Collins, Randall. (1979/2019) The Credential Society. Academic Press. Columbia University Press. 
  • Cottom, T. (2016). Lower Ed: How For-profit Colleges Deepen Inequality in America
  • Domhoff, G. William (2021). Who Rules America? 8th Edition. Routledge.
  • Donoghue, F. (2008). The Last Professors: The Corporate University and the Fate of the Humanities.
  • Dorn, Charles. (2017) For the Common Good: A New History of Higher Education in America Cornell University Press.
  • Eaton, Charlie.  (2022) Bankers in the Ivory Tower: The Troubling Rise of Financiers in US Higher Education. University of Chicago Press.
  • Eisenmann, Linda. (2006) Higher Education for Women in Postwar America, 1945–1965. Johns Hopkins U. Press.
  • Espenshade, T., Walton Radford, A.(2009). No Longer Separate, Not Yet Equal: Race and Class in Elite College Admission and Campus Life. Princeton University Press.
  • Faragher, John Mack and Howe, Florence, ed. (1988). Women and Higher Education in American History. Norton.
  • Farber, Jerry (1972).  The University of Tomorrowland.  Pocket Books. 
  • Freeman, Richard B. (1976). The Overeducated American. Academic Press.
  • Gaston, P. (2014). Higher Education Accreditation. Stylus.
  • Ginsberg, B. (2013). The Fall of the Faculty: The Rise of the All Administrative University and Why It Matters
  • Gleason, Philip. Contending with Modernity: Catholic Higher Education in the Twentieth Century. Oxford U. Press, 1995.
  • Golden, D. (2006). The Price of Admission: How America's Ruling Class Buys its Way into Elite Colleges — and Who Gets Left Outside the Gates.
  • Goldrick-Rab, S. (2016). Paying the Price: College Costs, Financial Aid, and the Betrayal of the American Dream.
  • Graeber, David (2018) Bullshit Jobs: A Theory. Simon and Schuster. 
  • Groeger, Cristina Viviana (2021). The Education Trap: Schools and the Remaking of Inequality in Boston. Harvard Press.
  • Hamilton, Laura T. and Kelly Nielson (2021) Broke: The Racial Consequences of Underfunding Public Universities
  • Hampel, Robert L. (2017). Fast and Curious: A History of Shortcuts in American Education. Rowman & Littlefield.
  • Johnson, B. et al. (2003). Steal This University: The Rise of the Corporate University and the Academic Labor Movement
  • Keats, John (1965) The Sheepskin Psychosis. Lippincott.
  • Kelchen, R. (2018). Higher Education Accountability. Johns Hopkins University Press.
  • Kezar, A., DePaola, T, and Scott, D. The Gig Academy: Mapping Labor in the Neoliberal University. Johns Hopkins Press. 
  • Kinser, K. (2006). From Main Street to Wall Street: The Transformation of For-profit Higher Education
  • Kozol, Jonathan (2006). The Shame of the Nation: The Restoration of Apartheid Schooling in America. Crown. 
  • Kozol, Jonathan (1992). Savage Inequalities: Children in America's Schools. Harper Perennial.
  • Labaree, David F. (2017). A Perfect Mess: The Unlikely Ascendancy of American Higher Education. Chicago: University of Chicago Press.
  • Labaree, David (1997) How to Succeed in School without Really Learning: The Credentials Race in American Education, Yale University Press.
  • Lafer, Gordon (2004). The Job Training Charade. Cornell University Press.  
  • Loehen, James (1995). Lies My Teacher Told Me. The New Press. 
  • Lohse, Andrew (2014).  Confessions of an Ivy League Frat Boy: A Memoir.  Thomas Dunne Books. 
  • Lucas, C.J. American higher education: A history. (1994).
  • Lukianoff, Greg and Jonathan Haidt (2018). The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure. Penguin Press.
  • Maire, Quentin (2021). Credential Market. Springer.
  • Mandery, Evan (2022) . Poison Ivy: How Elite Colleges Divide Us. New Press. 
  • Marti, Eduardo (2016). America's Broken Promise: Bridging the Community College Achievement Gap. Excelsior College Press. 
  • Mettler, Suzanne 'Degrees of Inequality: How the Politics of Higher Education Sabotaged the American Dream. Basic Books. (2014)
  • Newfeld, C. (2011). Unmaking the Public University.
  • Newfeld, C. (2016). The Great Mistake: How We Wrecked Public Universities and How We Can Fix Them.
  • Paulsen, M. and J.C. Smart (2001). The Finance of Higher Education: Theory, Research, Policy & Practice.  Agathon Press. 
  • Rosen, A.S. (2011). Change.edu. Kaplan Publishing. 
  • Reynolds, G. (2012). The Higher Education Bubble. Encounter Books.
  • Roth, G. (2019) The Educated Underclass: Students and the Promise of Social Mobility. Pluto Press
  • Ruben, Julie. The Making of the Modern University: Intellectual Transformation and the Marginalization of Morality. University Of Chicago Press. (1996).
  • Rudolph, F. (1991) The American College and University: A History.
  • Rushdoony, R. (1972). The Messianic Character of American Education. The Craig Press.
  • Selingo, J. (2013). College Unbound: The Future of Higher Education and What It Means for Students.
  • Shelton, Jon (2023). The Education Myth: How Human Capital Trumped Social Democracy. Cornell University Press. 
  • Simpson, Christopher (1999). Universities and Empire: Money and Politics in the Social Sciences During the Cold War. New Press.
  • Sinclair, U. (1923). The Goose-Step: A Study of American Education.
  • Stein, Sharon (2022). Unsettling the University: Confronting the Colonial Foundations of US Higher Education, Johns Hopkins Press. 
  • Stevens, Mitchell L. (2009). Creating a Class: College Admissions and the Education of Elites. Harvard University Press. 
  • Stodghill, R. (2015). Where Everybody Looks Like Me: At the Crossroads of America's Black Colleges and Culture. 
  • Tamanaha, B. (2012). Failing Law Schools. The University of Chicago Press. 
  • Tatum, Beverly (1997). Why Are All the Black Kids Sitting Together in the Cafeteria. Basic Books
  • Taylor, Barret J. and Brendan Cantwell (2019). Unequal Higher Education: Wealth, Status and Student Opportunity. Rutgers University Press.
  • Thelin, John R. (2019) A History of American Higher Education. Johns Hopkins U. Press.
  • Tolley, K. (2018). Professors in the Gig Economy: Unionizing Adjunct Faculty in America. Johns Hopkins University Press.
  • Twitchell, James B. (2005). Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld. Simon and Schuster.
  • Vedder, R. (2004). Going Broke By Degree: Why College Costs Too Much.
  • Veysey Lawrence R. (1965).The emergence of the American university.
  • Washburn, J. (2006). University Inc.: The Corporate Corruption of Higher Education
  • Washington, Harriet A. (2008). Medical Apartheid: The Dark History of Medical Experimentation on Black Americans from Colonial Times to the Present. Anchor. 
  • Whitman, David (2021). The Profits of Failure: For-Profit Colleges and the Closing of the Conservative Mind. Cypress House.
  • Wilder, C.D. (2013). Ebony and Ivy: Race, Slavery, and the Troubled History of America's Universities. 
  • Winks, Robin (1996). Cloak and Gown:Scholars in the Secret War, 1939-1961. Yale University Press.
  • Woodson, Carter D. (1933). The Mis-Education of the Negro.  
  • Zaloom, Caitlin (2019).  Indebted: How Families Make College Work at Any Cost. Princeton University Press. 
  • Zemsky, Robert, Susan Shaman, and Susan Campbell Baldridge (2020). The College Stress Test:Tracking Institutional Futures across a Crowded Market. Johns Hopkins University Press. 

 

Activists, Coalitions, Innovators, and Alternative Voices

 College Choice and Career Planning Tools

Innovation and Reform

Higher Education Policy

Data Sources

Trade publications

 

Wednesday, May 28, 2025

Corruption, Fraud and Scandal at Los Angeles Community College District (LACCD Whistleblower)

During the weekend of May 16-19, 2025, the San Francisco Bay Area Independent Media Center – IndyBay which operates as open platform news source against injustice, scrubbed two years of news articles ranging from May 2023 – May 2025.

The focus of these articles was corruption, fraud and scandal in the Los Angeles Community College District, primarily at Los Angeles Valley College’s Media Arts Department.

A few of these articles summarized.

Erika Endrijonas faces new questions in LACCD fraud | May 2, 2023 |

Pasadena City College President-Superintendent Erika Endrijonas being fired from the institution and trying to get a job at Santa Barbara City College, Mt. SAC, and Los Angeles City College. Endrijonas had been subjected to a vote of no confidence by the Pasadena Academic Senate, Pasadena Full-Time Faculty Union, protests by Part-Time Faculty, and finally the vote to reduce her contract by the newly elected board of trustees.

The article dived into Endrijonas’s tenure at her previous institution – Los Angeles Valley College. Endrijonas was announced in her new role at PCC in December 2018, the same week that a jury in Van Nuys awarded a former LAVC employee $2.9 million jury award for illegal retaliation and abuse. A few months earlier, the Los Angeles Times published a major story about the Valley Academic and Cultural Center – a project meant to be Endrijonas’s crowning achievement – being an alleged massive racketeering scheme.

Further it documented the Media Arts Department the VACC would house had a lengthy history of lawsuits and accreditation complaints against the faculty for not providing the education and training advertised – negating the need for the new building. The building’s approval vote happened in August 2016, the lawsuit happened in 2009, and the Accreditation Complaints happened in June 2016.

Dozen LAVC Cinema Students Narratives challenge Erika Endrijonas’s LACCD Success Story | May 5, 2023 |

This article covered a release of an email thread from a dozen students in 2016 that was ultimately sent to the Accreditation Commission for Junior and Community Colleges in 2016, substantiating that there was widespread fraud in the department. Classes were not scheduled by Department Chair Eric Swelstad, training was not provided, labs were not held, etc . . .

Van Nuys/Los Angeles College Screenwriting Professor Faked Writer’s Guild Membership | May 17, 2023 |

Revealed that LAVC Media Arts Department Chair Eric Swelstad faked his membership in the Writer’s Guild of America – West, and then used it in multiple professional bios.

Los Angeles Valley College perpetuated wage theft against students on Julie Su’s watch | May 19, 2023 |

Documented how Grant Director Dan Watanabe engaged in wage theft against students for two years from 2013 – 2016.

Two Los Angeles Film Professors Bilked Taxpayers Over $3.5 Million Dollars | May 21, 2023 |

Described how LAVC Media Arts Department Founder Joseph Dacursso’s retirement first as Department Chair, then as a full-time faculty in 2012, left Department Chair Eric Swelstad and Arantxa Rodriguez to engage in petty infighting and squabbling that spilled over into scheduling decisions. In short, two faculty members collected six-figure-salaries while putting students in the middle of department in-fighting.

LAVC Omsbudsman Stalked Whistleblowers | August 8, 2023 |

Described how LAVC’s Dean of Students, Annie G. Reed (Goldman) retaliated and stalked students that went to Accreditation, going as far as running a smear campaign that one of them was a potential school shooter. Worse, she began stalking him after he left school – including on social media.


[Image: Annie G. Reed Goldman, Dean of Labor and HR at LACCD]

Further articles questioned where Academic Degrees were given out to students who had not completed Academic classes and criteria, the role of Jo Ann Rivas turned YouTube Personality ‘AuditLA’ who was on the Los Angeles Valley College Citizen’s Building Oversight Committee, whether a number of students with falsified resumes received payments from a Grant as ‘Professional Experts’ etc . . .

The scrubbing of these articles coincided with the formal appointment of Alberto J. Roman as the new Chancellor of the Los Angeles Community College District, following the retirement of disgraced administrator Francisco Rodriguez.

It also came with the publication of two final articles. One about Annie G. Reed’s being named as a Defendant in a lawsuit by former faculty at Los Angeles City College, who came to her about an administrator engaging in illegal behavior – including planting drugs on employees to get them fired.

The second article, probed Los Angeles Valley College Department Chair, Eric Swelstad’s professional bio again and provided evidence that he repeatedly lied and engaged in deceptive advertising and practices for two decades. It provided students who held loans with information about student borrower defenses.

The censorship also came months after Jo Ann Rivas aka AuditLA, herself probed by the articles, launched a barrage of attacks for about a week in January about a former student who had grievance's against the school. Rivas had previously engaged in a similar barrage in July 2020.

This was not the first time that an attempt was made to censor this news stream.

In 2020, an attempt was made to hack the community news feed account on Twitter/X.com @LACCDW. Then a week before the LACCD Board of Trustees election in November 2020, Twitter suspended the community newsfeed altogether. It was only restored two years later after Twitter's sale and the re-evaluation of previous suspended accounts.

In a final update – The Valley Academic and Cultural Center, despite having a 2018 completion date, remains unfinished. According to minutes of the LAVC Work Environment Committee Minutes from 2025-05-08;

“The Valley Academic and Cultural Center (VACC) is as of Friday, May 8th, about 80% complete. They are still patching the roof. There are still some critical items like stage protection net.”

Tuesday, January 2, 2024

Predatory Colleges, Converted To Non-Profit, Are Failing (David Halperin)

About a dozen years ago, owners of some of the biggest, worst-acting for-profit colleges began concocting, with their eager, high-paid lawyers, schemes to convert their schools into non-profits. The apparent aims were to evade the heightened government regulations applied uniquely to for-profit schools in order to guard against waste, fraud, and abuse — and to escape the growing stigma that the industry’s predatory behavior had placed on for-profits.

The clever schemes have come in various colors, yet most of them potentially allowed the sharp operators to keep making big money off the schools they no longer formally owned but, one way or another, still controlled. These dubious deals, mostly blessed by servile government departments and accrediting agencies, have made a mockery of non-profit rules, and, much worse, have helped sustain another decade of predatory college abuses against students and taxpayers, resulting in the waste of billions of dollars and the ruining of the financial futures of tens of thousands of people — veterans, single moms, and others — who sought better lives through higher education.

Yet, just as the private equity owners of the University of Phoenix, historically one of the biggest for-profit schools, are now trying to execute yet another dubious version of this scheme — getting a pile of cash by unloading the school on Scott Green, the hubristic president of the University of Idaho, and potentially allowing the current, high-paid executive team to stay employed — it seems, increasingly, that many of these non-profit conversions are not just harmful to the public but also ultimately unsustainable for the operators.

Here’s what’s been happening lately:

— Last week, the Federal Trade Commission sued Grand Canyon University and its CEO, asserting that the school deceived doctoral students about the costs and course requirements of programs — and about the school’s claimed nonprofit status. The FTC also alleges that Grand Canyon engaged in deceptive and abusive telemarketing.

The FTC lawsuit follows an October announcement by the U.S. Department of Education that it is imposing a $37 million fine on Grand Canyon based on similar allegations.

Grand Canyon CEO Brian Mueller has responded to the FTC and education department investigations with a remarkable series of pronouncements suggesting that the moves against his self-proclaimed Christian university are rooted in religious or ideological bias. But, in reality, Grand Canyon’s troubles with regulators began not in the Biden administration, which has cracked down on for-profit college abuses, but under Trump education secretary Betsy DeVos, a Christian conservative who staffed her office with former for-profit college executives and did almost nothing else over four years to hold predatory colleges accountable.

Grand Canyon in 2018 had restructured itself into two entities: a non-profit college, GCU, and a for-profit company, Grand Canyon Education (GCE), that gets paid to provide a range of services to the school. Even though the IRS already had declared GCU a legitimate non-profit, the DeVos Department of Education in 2019 rejected the school’s bid for preferred non-profit status under federal education rules, concluding that “the primary purpose” of the Grand Canyon conversion to non-profit was “to drive shareholder value for GCE with GCU as its captive client — potentially in perpetuity.” The DeVos team couldn’t help but notice that Brian Mueller is the well-paid head not only of the non-profit school but also of the for-profit company has been getting about 95 percent of the non-profit college’s revenue.

Together, the Department and FTC actions call into question not only the integrity of Grand Canyon’s recruiting and academic operations, but also its effort to be accepted as non-profit.

— Last month, the Department of Education took another step to hold accountable the non-profit Center for Excellence in Higher Education, whose schools, the largest of which was Independence University, shut down in 2021. The Department demanded $23 million from CEHE to pay for “closed-school discharges” — reimbursement for cancellation of federal student loan debts that former students had owed the government. The Department in July already had cancelled $130 million in federal loan debt from former CEHE students, citing school misconduct; the Department could potentially seek to recoup all those funds from CEHE.

The ultra-wealthy Ayn Rand disciple Carl Barney owned the schools until 2012, when he sold them at a hefty valuation to CEHE, a small non-profit that he controlled. Seemingly sleepy career officials at the Department of Education approved the transaction in the Obama years, but public scrutiny raised doubts about the appropriateness of the deal.

Like Grand Canyon, CEHE’s abuses were by no means limited to the terms of the non-profit conversion. In 2020, a Colorado court found the company had engaged in systematic deceptive practices. Barney’s schools, the court concluded after an extensive trial, used a detailed playbook to manipulate vulnerable students into enrolling in high-priced, low-quality programs; directed admissions representatives to “enroll every student,” regardless of whether the student would likely graduate; greatly overstated starting salaries that graduates could earn; and falsely inflated graduation rates. CEHE has been pursuing an appeal, but in 2021, the accrediting agency for the schools withdrew approval, citing performance failures, and the Department of Education soon after tightened the screws on federal aid, precipitating the schools’ closure.

CEHE is a mess. It no longer runs any schools or gets any federal aid; instead its functions seem to be limited to trying to get former students to pay back the sketchy, high-interest private loans the school peddled, and engaging in legal disputes with the federal government; these include a pending fraud lawsuit filed by a CEHE whistleblower and joined by the Justice Department, an investigation of CEHE’s private loans by the Consumer Financial Protection Bureau, and a lawsuit for $500 million brought by CEHE against the government alleging the schools were “a victim” of a campaign by the Department of Education “in coordination with ideological confederates… to cripple and close as many private career colleges as possible.” The Department also has suspended CEHE CEO Eric Juhlin from federal contracting.

— Another of the worst predatory for-profit schools is Ashford University, whose corporate owner Zovio pursued several different schemes for a non-profit conversion before finally selling the college to the University of Arizona, whose president, Robert Robbins, had been pressured by state regents to expand its online offerings.

Zovio’s scheme was to hide behind the prestige and political power of a big state university and yet keep getting for itself hundreds of millions off the school, now called University of Arizona Global Campus, through a long-term contract to provide recruiting, academic, and other services.

But that plan was thwarted after a California judge, in 2022, found Zovio liable for blatant deceptions of Ashford students and imposed $22 million in penalties. By law, the California judgment should compel the Department of Education to terminate federal aid to the school. Although Zovio pursued an appeal, it was discredited, bowed out of its contract to serve UAGC, transferred its infrastructure to the University of Arizona, and shut down.

But, with Zovio out of the picture, what was obvious to some even before the deal closed seems to have played out: Most of what Arizona had purchased, most of what made money, was not some supercharged high tech education platform but instead a predatory playbook and a staff trained to execute it. UAGC may not be able to pay its bills even if it keeps up with Ashford’s old predatory practices, but it almost certainly can’t do so if it tries to go straight. In November, President Robbins admitted that the University of Arizona’s overall financial situation is fragile, with cash reserves below minimum levels. Robbins said the school had “overinvested,” and school document revealed that one such exertion was the deal to buy Ashford, which “added $265.5 million in operating costs…”

Arizona’s financial woes from the Ashford deal may grow. Former Ashford students say they were ripped off and, as a result, have applied to have their federal student loans cancelled under a provision of law called borrower defense to repayment. In August, the U.S. Department of Education said it would cancel $72 million worth of loans because of Ashford’s deceptions. The Department also said it would use its legal powers to recoup those funds from Ashford’s owner, meaning the University of Arizona. UA says in response it had “absolutely no involvement in, and is not directly or indirectly responsible for, the actions of Ashford and its parent company” and will be “assessing its options.” But, reading the school’s agreement with Zovio, Arizona may be out of luck on that score.

— In contrast to Zovio’s fate, Graham Holdings has not been forced out of the 2017 deal in which it sold predatory for-profit Kaplan University to an Indiana state institution, Purdue University. Graham continues to hold a contract to provide a wide range of services to the school, now called Purdue University Global — a deal that Purdue is locked into for a 30-year term.

The Graham/Kaplan schools repeatedly faced law enforcement problems for predatory abuses against students before the sale. But the schools did better exercising political influence: The company’s head, Donald Graham, is a hyper-connected Washington insider; the business, long run by his family, was previously called The Washington Post Company, before it sold the newspaper to Jeff Bezos. Graham exploited his power and connections in DC to become the most effective lobbyist pressuring the Obama administration and Congress not to push too hard on for-profit college accountability; his protege Jeffrey Zients held key positions in the Obama White House, as did Anita Dunn, whom, once she left government, Graham hired to tell his schools’ supposedly compelling story to lawmakers. Dunn and Zients are now perhaps the two most powerful staffers in the Biden White House.

Having utilized his tight connections to key Democrats in the Obama years, Graham then took advantage of the lax regulatory environment under Republicans Trump and DeVos to do his troubling non-profit conversion deal with another top Republican politico, then-Purdue president Mitch Daniels, a former Indiana governor and White House official, who may have been dazzled by Graham’s big money ties, including his status as an ex-Facebook board member, and seen Kaplan as the road to a high-tech future.

But this effort to put state college lipstick on a for-profit pig may be failing as well. As Forbes noted last month, Graham Holdings‘ November filing with the SEC says Purdue Global owes the company $127.8 million — perhaps more than the school, structured as a non-profit associated with Purdue University, would be able to pay. Cutting costs at the school in order to pay Graham Holdings’ fees would likely mean lower-quality educational programs. Boosting enrollment for lower-quality programs would likely mean accelerating the deceptive recruiting practices, targeted at low-income Americans, that sullied Kaplan in the first place. Doing all of that at a time when the Biden administration, to its great credit, is working diligently to hold predatory schools accountable would be risky.

Don Graham’s best shot at continuing to make millions off Purdue Global may be for his long-time allies in the Biden administration to fail this year, and give way again to a president Trump, who once ran his own scam real estate school and likely would identify with Graham’s sense of victimhood about the persecutions of great for-profit educators.

— Finally, there is ultra-wealthy Arthur Keiser and his Keiser University, whose 2011 conversion from for-profit to non-profit was comparable to Carl Barney and CEHE: a sale of the for-profit school owned by Keiser, at a remarkably high valuation, to a non-profit controlled by Keiser. In addition to the inflated loan payments Keiser has since received from the non-profit, there are a range of businesses owned by Keiser that sell various services to the non-profit. Even worse, as we have documented, there is a highly questionable mingling of resources and personnel between the non-profit Keiser University and Southeastern College, another for-profit school owned by Arthur Keiser and his wife.

Keiser University seems to have come the closest to thriving after a shady non-profit conversion, but its troubles are now growing.

Arthur Keiser has gone all the way to the U.S. Supreme Court, with his expensive lawyers trying, but so far failing, to block a landmark court settlement aimed at cancelling the student loan debt of hundreds of thousands of ex-students who have filed borrower defense claims, saying they were deceived by their schools. His complaint is that Keiser University was, for purposes of the deal, unfairly placed by the U.S. Department of Education on a list of presumptively bad-acting colleges when, he insists, “There’s no evidence of misconduct.”

But Keiser’s claim of innocence is just another deception.

Like all the other schools with troubling conversions, Keiser University also has repeatedly gotten in trouble with law enforcement, and settled claims, including with then-Florida attorney general Pam Bondi and with the U.S. Justice Department, over allegations of deceptive and unlawful recruiting practices. And recent staff members have told us about predatory behavior still happening at the school, including recruiting of low-income people seemingly unprepared for college programs and of people with insufficient English language skills to understand the course work.

Keiser University also has been in trouble recently with three different accreditors of specific school programs, who have placed the school on warning, probation, or show cause status due to concerns about matters including program effectiveness and certification exam passage rates.

The non-profit conversion also has, finally, gotten Keiser University in trouble; the school admitted under congressional questioning in 2021 that the IRS imposed a penalty on the school for improperly steering profits to Arthur Keiser by entering into leases above fair market value with Keiser-related for-profit companies. Senior Democrats in Congress, including senators Dick Durbin (D-IL) and Elizabeth Warren (D-MA) have called on the U.S. Department of Education to investigate Keiser’s schools, which have received billions in taxpayer-funded student financial aid.

And, in November 2022, the Department determined that Keiser University’s accreditor, SACS, was out of compliance with numerous federal regulations and directed it to provide more information regarding its oversight of Keiser University and the school conversion to non-profit.

As part of the Department of Education’s regular oversight process for accreditors, I recently wrote to the Department, for a second time, urging it to hold SACS accountable unless it takes steps to address the conversion deal and predatory practices at Keiser’s schools. I hope that will happen, and that the Department itself will take steps to protect students by imposing conditions on Keiser’s future receipt of federal aid.

— Conversion from for-profit to non-profit has not prevented serious financial and / or legal problems at all of the schools we’ve discussed. In recent years, government regulators, accreditors, courts, and students have seen through the conversions, recognizing that predatory for-profit schools — with greedy owners, deceptive practices, poor value educational programs, and low return on student and taxpayer investment — remain predatory schools even when dressed up as non-profit colleges or big state universities. (The conversion of another huge predatory chain, EDMC, to non-profit also has been a disaster.)

Yet somehow the president of the University of Idaho, Scott Green, continues to insist he will be serving his school, and students, by acquiring, through an affiliated new non-profit, the giant for-profit University of Phoenix from huge private equity firm Apollo Global Management. Green remains determined to buy and run Phoenix despite Phoenix’s long and continuing record of abuses and law enforcement problems, despite the enormous potential liability Idaho might assume for debt cancellation for former Phoenix students, and despite opposition from many leaders in his own state, as well as advocates for students across the country. If Green — whose team keeps claiming, falsely, that Phoenix is under honest new management — and the Idaho state board of education can’t look objectively at the evidence that past conversions have been a moral disgrace, and a disaster for school operators, as well as students and taxpayers, then others in his state, the University of Idaho’s accreditor, and the U.S. Department of Education, should act to block the deal.

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

Thursday, June 5, 2025

Higher Education Inquirer Continues to Grow

The Higher Education Inquirer's viewership continues to grow. In the last week, we have had more than 30,000 views, and that's without SEO help.  Some of the content in HEI may be found elsewhere, but our in-depth historical and sociological analysis is rare for a blog or any other news source. HEI also relies on scholars and activists for our outstanding content.  Thank you, Henry GirouxGary Roth, and Bryan Alexander for allowing us to post your work.  And thanks to LACCD Whistleblower and Michael S. Hainline for your investigative exposes.  If you missed any of their articles, please click on their links. FYI: The Higher Education Inquirer archive also includes more than 700 articles and videos. Please check them out and let us know what you think. We want to hear from all sides of the College Meltdown.   



Friday, July 4, 2025

What the Pentagon Doesn’t Want You to See: For-Profit Colleges in the Military-Industrial-Education Complex

[Editor's note: The Higher Education Inquirer has emailed these FOIA documents to ProPublica and the Republic Report.  We will send these documents to any additional media and any individuals who request for the information. We are also seeking experts who can help us review and decipher the information that has been released.]   

On July 3, 2025, the Higher Education Inquirer received the latest response from the U.S. Department of Defense (DoD) regarding FOIA request 22-F-1203—our most recent effort in a nearly eight-year campaign to uncover how subprime and for-profit colleges have preyed on military servicemembers, veterans, and their families. 

The response included confirmation that 1,420 pages of documents were located. But of those, 306 pages were withheld in full, and 1,114 were released only with heavy redactions.  A few for-profit colleges—Trident University International, Grand Canyon University, DeVry University, and American Public University System (which includes American Military University and American Public University)—were specifically mentioned in the partially visible content.

 

And yet the larger truth remains hidden. The names of other institutions known to have exploited military-connected students—University of Phoenix, Colorado Technical University, American InterContinental University, Purdue University Global, and Liberty University Online, among others—were nowhere to be found in the documents we received. Their absence is conspicuous.

We have been pursuing the truth since December 2017, demanding records that would reveal how the DoD enabled these schools to thrive. We sought the list of the 50 worst-performing colleges receiving Tuition Assistance (TA) funds, based on data compiled under Executive Order 13607 during the Obama Administration. That list was never released. When the Trump Administration took power in 2017, they quietly abandoned the protective measures meant to hold these colleges accountable. Our FOIA request DOD OIG-2019-000702 was denied, with the Pentagon claiming that no such list existed. A second request in 2021 (21-F-0411) was also rejected. And now, more than three years after we filed our 2022 request, the DoD continues to deny the public full access to the truth.

The records we did receive are riddled with legal exemptions: internal deliberations, privacy claims, and most notably, references to 10 U.S.C. § 4021, a law that allows the DoD to withhold details of research transactions outside of traditional grants and contracts. In other words, the Pentagon has built legal firewalls around its relationships with for-profit education providers—and continues to shield bad actors from scrutiny.

But the complicity doesn’t end there. It extends deep into the institutional fabric of how the military interfaces with higher education.

Decades of Systemic Corruption

Since the 1980s, the U.S. Department of Defense has worked hand-in-glove with for-profit colleges through a nonprofit called the Council of College and Military Educators (CCME). What began in the 1970s as a noble initiative to expand access to education for military personnel was hijacked by predatory colleges—including the University of Phoenix—that used the organization as a lobbying front.

These schools infiltrated CCME events, using them to curry favor with military officials, often by hiring veterans as on-base sales agents and even providing alcohol to loosen up potential gatekeepers. While CCME publicly maintained the appearance of academic integrity and service, behind the scenes it served as a conduit for lobbying, influence, and enrollment schemes. Military education officers were schmoozed, manipulated, and in some cases, quietly co-opted. This is something you won’t find in CCME’s official history.

We have been told by multiple insiders that the partnership between DoD and these schools was not just tolerated but actively nurtured. Attempts at reform came and went. Investigations were buried. Promises to "do better" evaporated. No one was held accountable. No one went to jail. But the damage has been lasting—measured in ruined credit, wasted benefits, and lives derailed by fraudulent degrees and broken promises.

The Trump-Hegseth Department of Defense

And still, new scandals—except those uncovered by us—go largely unreported. The media has moved on. Congressional attention has shifted. And the same schools, or their rebranded successors, continue to operate freely, often under the protective shadow of military partnerships.

Today, the DoD continues to deny that the DODOIG-2019-000702 list of the 50 worst schools even exists. But we know otherwise. Based on VA data, whistleblower accounts, and independent reporting, we are confident that this list was compiled—and buried. The question is why. And the answer may very well lie in the unredacted names of institutions too politically connected or too legally protected to be exposed.

The Higher Education Inquirer will not stop pushing for those names, those communications, and that accountability. Because behind every redaction is a servicemember who trusted the system—and got scammed. Behind every delay is a taxpayer footing the bill for worthless credentials. Behind every refusal to act is a government too intertwined with profit to protect its own people.

This is not just a story of bureaucratic inertia. It is a story of complicity at the highest levels. And it is ongoing.

Related links:
DoD review: 0% of schools following TA rules (Military Times, 2018)
Schools are struggling to meet TA rules, but DoD isn’t punishing them. Here’s why. (Military Times, 2019)

Friday, June 13, 2025

Harvard and Yale Selling Off Private Equity Stakes

Harvard and Yale—titans of American higher education and longtime bellwethers of endowment strategy—are quietly offloading billions in private equity holdings. These moves, confirmed through multiple reports and market insiders, signal a significant shift in institutional investing, with potential ripple effects across the higher ed landscape and beyond.

The two Ivies, boasting the largest university endowments in the world ($50.7 billion for Harvard, $40.7 billion for Yale as of 2024), have long championed the “Yale model” of endowment investing: high allocations to illiquid assets such as private equity, venture capital, hedge funds, and real assets like timberland and oil. But the bloom is off the rose.

From Darling to Dilemma

Private equity once promised high returns, portfolio diversification, and access to elite deals not available to public investors. In the wake of the 2008 financial crisis, as traditional markets stagnated, institutions doubled down on alternative investments. For years, this strategy paid off—at least on paper.

But cracks have been forming.

Private equity valuations have come under scrutiny as deal activity has slowed, interest rates have risen, and exits through IPOs and acquisitions have dried up. Many private equity funds are now sitting on aging portfolios—so-called "zombie funds"—that have not returned capital in years. Meanwhile, limited partners like universities are increasingly liquidity-constrained, especially as operating costs rise and tuition-dependent revenues remain fragile.

Harvard Management Company and Yale’s Investment Office, once aggressive buyers, are now sellers on the secondary market. Reports indicate both institutions are using intermediaries to quietly market stakes in private equity funds—often at discounts of 10% to 20%, or more, below net asset value.

A Broader Retreat?

This retreat isn’t just about balance sheet management. It’s a broader reassessment of what endowments should be doing—and what risks they should be bearing.

Universities face mounting scrutiny over their massive, tax-advantaged endowments and their relationships with Wall Street. Critics question why institutions with social missions are entangled in opaque, leveraged, and sometimes predatory industries. Private equity firms, after all, have been deeply involved in sectors like healthcare, housing, for-profit education, and prison services—areas where returns often come at the cost of public welfare.

Moreover, the mismatch between the long lock-up periods of private equity investments and the growing need for financial flexibility is becoming more apparent. University administrators now must navigate volatile geopolitical conditions, student protests over divestment, and uncertain federal funding. Liquidity matters more than it did a decade ago.

The End of the Yale Model?

David Swensen, Yale’s late investment chief, revolutionized university finance with his embrace of illiquid alternatives. But times have changed. While the strategy made Yale’s endowment a model for copycats, today it may represent an outdated orthodoxy.

Harvard and Yale’s pivot may be the beginning of the end for the “Yale model” as we know it. Other institutions—especially smaller endowments that tried to mimic the Ivies—may find themselves stuck with toxic assets, unable to unload them without taking steep losses.

In fact, some mid-tier and small colleges may have to choose between covering operational costs and holding on to underperforming private equity positions. For those with limited financial cushions, the fallout could be existential.

Higher Ed’s Reckoning with Risk

The endowment shift also raises a philosophical question: What is the purpose of university wealth?

As elite schools back away from the riskier corners of Wall Street, perhaps it's time for a broader reckoning—about not just how universities invest, but why. Should institutions built on ideals of knowledge, access, and social progress be hand-in-glove with industries known for wage suppression, regulatory arbitrage, and asset stripping?

Harvard and Yale may be late to that moral realization. But their financial pivot is a sign that even the most powerful players can’t ignore reality forever.

In the age of growing student debt, declining public trust, and ballooning inequality, selling off a few private equity funds is a small move. But it could be the start of a larger shift—one where higher education finally begins to question whether its financial strategies align with its educational mission.


If you have insights into university endowment strategies or are a whistleblower inside the private equity world, contact us confidentially at Higher Education Inquirer.