The report filed this week by the Trump committee lists, among hundreds of other gifts from corporations and individuals, a $50,000 donation from “CEC Educational Services,” which is the name of a Perdoceo subsidiary, and gives the donor address as the Schaumberg, Illinois, location of Perdoceo’s corporate offices.
The Trump inaugural committee raised $239 million, more than doubling the record-breaking amount raised by the Trump committee for the 2017 inauguration.
As the New York Times noted, presidential inaugurations, even with all the glitzy balls and other events, “have never cost anything near roughly a quarter-billion dollars, and the amount raised by the committee will resurface questions about where any leftover funds might go.” Trump associates have suggested it could be spent on other Trump projects, including a presidential library.
The Times speculated that the high volume of gifts was “driven by corporate America’s eagerness to win the president’s favor.”
Perdoceo, whose stock is publicly traded, is one corporation that would be motivated to win the transactional Trump’s favor. It is almost entirely dependent on federal government largesse. The two mostly online colleges it operates — American Intercontinental University and Colorado Technical University — have at times received as much as 97 percent of their revenue from taxpayer dollars in the form of federal student grants and loans; in the most recent reported year 83 percent came from the U.S. Department of Education alone, plus more from the departments of defense and veterans affairs.
That means, effectively, that almost all of the gift that Perdoceo made to curry favor with Trump was paid for by American taxpayers.
The donation is also consistent with Perdoceo CEO Todd Nelson’s past support for Republican politicians. More importantly, it reflects Perdoceo’s continuing need to have the federal government keep the money flowing and look the other way while the company’s schools, which have repeatedly faced law enforcement actions, offer low-quality, high-priced programs that leave many students deep in debt and without the career advancement they sought.
As Republic Report has chronicled for over a decade, Perdoceo has been one of the worst actors in all of for-profit higher education, taking in billions of dollars from taxpayers for student grants and loans while repeatedly engaging in predatory abuses.
Like Donald Trump’s own fraudulent Trump University, Perdoceo has faced multiple law enforcement investigations for predatory conduct.
In 2019, the company entered into a $494 million settlement with 48 state attorneys general, plus the District of Columbia, over allegations that it engaged in widespread deceptive practices against students.
Later that same year, Perdoceo agreed to pay $30 million to settle charges brought by the Federal Trade Commission that its schools have recruited students through deceptive third-party lead generation operations. In each case, the company did not admit guilt.
More recently, Perdoceo employees told media outlets USA Today and Capitol Forum, as well as Republic Report, that company recruiters continued to feel pressure to make misleading sales pitches and to enroll low-income people into programs that aren’t strong enough to help them succeed. Some of those former employees also spoke with federal investigators.
USA Today reported in 2022 that the U.S. Department of Education, in December 2021, requested information from Perdoceo; the Department also asked Perdoceo to retain records regarding student recruiting, marketing, financial aid practices, and more. Perdoceo confirmed the probe, while seeming to minimize its significance, in a February 2022 SEC filing. Perdoceo also acknowledged in May 2022 that it received a request for documents and information from the U.S. Justice Department.
The Department of Education provided AIU and CTU with more than $551 million in student grants and loans in the 2022-23 school year, the most recent year that was reported. A bachelor’s degree from CTU is priced at about $66,000.
But data released by the Department in 2023 show that Perdoceo’s two schools, AIU and CTU, deliver poor results for students, with low graduation rates and graduate incomes and high levels of student debt.
Before joining Perdoceo, company CEO Todd Nelson ran two of the other biggest for-profit colleges operations: the University of Phoenix and now-demised Education Management Corp. Both of those chains, like Perdoceo, ran into major law enforcement issues because of deceptive recruiting practices and other abuses that occurred on Nelson’s watch.
The Biden Department of Education never proceeded with an enforcement action to penalize Perdoceo or take away its federal aid. But it did issue a series of regulations that would make it more difficult for that company and others to engage in predatory practices going forward. The Trump administration, whose previous incarnation coddled predatory schools, and whose current incarnation has gutted the Department of Education and its accountability efforts, is likely to do nothing while Nelson’s schools keeping enrolling students, with taxpayer dollars, in substandard education programs.
$50,000 may not be a lot of money to Perdoceo or its CEO, but it’s a lot of money to each of the thousands of students across the country who are in debt to Perdoceo for multiples of that amount. Perdoceo’s donation to Trump’s inauguration, using your money, can only reinforce the company’s entitlement and impunity.
It’s wrong when a company can take money from students and taxpayers and use it curry favor with a president whose team is shutting down higher education enforcement efforts and aggressively seeking student loan repayments, even from borrowers who were deceived and abused by that company’s schools.
The donation from a supposed “education” company also sends a bad message to America’s students, because it celebrates the return to power of a twice-impeached, four-times-indicted, convicted felon and adjudged sexual assaulter who incited a murderous Capitol riot aimed at overthrowing a democratic election. Not a good civics lesson.
Perdoceo did not respond to a request for comment.
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