South University's Accreditor Takes School Off Warning Status

South University has been given a clean bill of health by its regional accreditor, the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). This week, SACS removed the school from Warning status and reaffirmed accreditation for the school for 10 years. The accreditor also requested a Monitoring Report within six (6) months.

According to a South University press release issued today: 

Dr. Steven Yoho, Chancellor of South University, expressed his pride in the university's achievement. "This renewed accreditation is a testament to the dedication and hard work of our faculty, staff, and students. It reflects our ongoing commitment to providing transformative and quality student outcomes that prepare them for success in a rapidly evolving world. We are proud to maintain the highest standards in academic quality and student support, and this accreditation reinforces our position as a leader in higher education."  

Additional Intel from HEI

South University has been profitable lately, and currently has more assets than liabilities, but it is facing a $36M balloon payment from a $50M Main Street Loan due in December 2025. Main Street Loans cannot be forgiven, and a $36M payment might be difficult to pay out so quickly. SACS is well aware of this impending payment.  Admittedly, the latest posted finances are almost two years old.  We look forward to seeing more up-to-date finances when the latest IRS 990 is posted. 

South could seek another lender to pay off the Main Street Loan. It could also renegotiate its contracts, reduce staffing, and sell off various assets to continue operating. By moving students online, South University could also reduce costs and consolidate operations. It may also be able to increase revenues through increased enrollment and grants.   

For a number of years, the US Department of Education has had South University on Heightened Cash Monitoring 1 for disbursement of federal student aid funds.

We have reached out to South University for comment, but have not received a response as of this publishing date.  HEI is also waiting on a Freedom of Information (FOIA) request regarding Borrower Defense to Repayment claims, which at some point the school could be liable for.  

South University currently educates about 10,000 students, with an estimated 7700 participating online. South also has ground campuses in Atlanta (GA), Virginia Beach (VA), Glen Allen (VA), Round Rock (TX), Columbia (SC), High Point (NC), Montgomery (AL), Orlando (FL), Savannah (GA), Tampa (FL), and Palm Beach (FL).  The school has been in operation since 1899. 

US College Closures Set to Soar Amid Prospective Student Slowdown (Bloomberg Television)

The number of colleges that close each year is poised to significantly increase as schools contend with a slowdown in prospective students, according to a new working paper published by the Federal Reserve Bank of Philadelphia. Nic Querolo reports on "Bloomberg The Close."

 

How much will global economic and political forces affect international enrollment in 2025?

Elite and brand name universities serve the world's elite. But how much will global economic and political forces affect US higher education in 2025? More than one million foreign students attend higher education institutions in the US, but those numbers could change. 

There are several ongoing developments that could affect the influx of international students in 2025. This includes problems with the political economy in Asia (China, South Korea) and in Europe (the UK, Germany, and France). 

Trade wars, which incoming President Trump has threatened, could also affect enrollment. And deportations of Muslim students, including those who have protested the war in the Middle East, could create a chilling effect on student in-migration. 

Indian students are already the largest group coming into the US and they serve as a major pipeline for the tech industry and medicine, and that is unlikely to change in the near future. 

 

(KTLA Video) International students at the University of Southern California are being urged to return to the US before the Trump Administration gains power. 

Austerity and Disruption

With a concerted effort now to reduce government spending, higher education leaders should expect reduced state and federal support in 2025 and beyond, with demographic and climate trends also darkening the clouds. Workers and consumers should also see it all coming. 

Austerity has already begun. In July 2024, the Pew Foundation reported that state budgets were facing cuts as Covid-era funds ended.  The most notable cuts are coming to the California State University System, which is expected to reduce its budget by hundred of millions of dollars. But several other states are feeling the pinch. 

Austerity for higher education is also likely to increase at the state level as baby boomers reach advanced age and require more medical attention and nursing home care. How this demographic cliff of old age, reduced fertility, and fluctuating populations plays out will vary greatly across the United States. 

Some Southern states, like Florida, Texas, Georgia, and North Carolina, have improved financially despite threats from climate change. Anti-tax, anti-regulation, and anti-union laws make them friendly to corporations in search of relocation and a better deal. States in the West, like Utah, Arizona, and Nevada, are are also likely to continue thriving. Besides climate change, which is profoundly disruptive but takes generations to notice, mass deportations could affect their economies quickly--if the Trump Administration's threats can be carried out. 

Alaska, New Mexico, Oregon, and several states in the Midwest and Atlantic regions will face more austerity as their populations remain stagnant or decline and folks move to states with lower housing costs and less taxes, leaving others to die. Deaths of despair among youth will continue to ravage them. What happens with these failing states in the future is anyone's guess. One would hope higher education leaders would have solutions and be courageous enough to act, or at the very least allow those with solutions to talk. 

Dozens of Religious Schools Under Department of Education Heightened Cash Monitoring

The US Department of Education (ED) has placed a number of religious colleges and universities under Heightened Cash Monitoring (HCM).  For a complete list of institutions under HCM, and a brief explanation of each institution's status, go to the US Department of Education website. 

According to ED, "Heightened Cash Monitoring is a step that Federal Student Aid (FSA) can take with institutions to provide additional oversight for a number of financial or federal compliance issues, some of which may be serious and others that may be less troublesome."

While specific reasons for HCM vary, common factors may include financial mismanagement, student aid violations, and fraud or abuse (allegations of fraudulent activities, such as falsifying enrollment data or misrepresenting program offerings). 

Here's a partial list:

Arkansas Baptist College
Central Baptist College
Ecclesia College
America Evangelical University
Dominican University of California
Epic Bible College
Naropa University
Wesley Theological Seminary
Wesley College
Hope College of Arts and Sciences
St. John Vianney College Seminary
Reformed University
Garrett - Evangelical Theological Seminary
Christian Theological Seminary
Bethany College
Central Christian College of Kansas
Kansas Christian College
Manhattan Christian College
Clear Creek Baptist Bible College
Lexington Theological Seminary
Boston Baptist College
Hellenic College & Holy Cross Greek Orthodox School of Theology
Northpoint Bible College
Saint John's Seminary
Ecumenical Theological Seminary
Bethany Global University
United Theological Seminary of the Twin Cities
Calvary University
Eden Theological Seminary
Evangel University
Carolina Christian College
Central Yeshiva Beth Joseph
Elim Bible Institute and College
Mesivtha Tifereth Jerusalem of America
New York Seminary (The)
Rabbinical College of Ohr Shimon Yisroel
Rabbinical Seminary of America
Saint Bernard's School of Theology and Ministry
Seminar L'Moros Bais Yaakov
St. Paul's School of Nursing (1)
St. Paul's School of Nursing (2)
Torah Temimah Talmudical Seminary
Union Theological Seminary
Yeshiva of Nitra Rabbinical College
Antioch College

Can the newly formed PA Board of Higher Education do much for the People?

In 2024, Pennsylvania has formed a state Board of Higher Education. Can the organization create value for all its citizens and improve the Quality of Life for Pennsylvanians, or is it just another layer of bureaucracy whose major role is to maintain the status quo? 

The Pennsylvania Board of Higher Education is composed of 21 members, representing postsecondary education, government, business, labor and students. Some schools like Penn State, Pitt, and Temple each have a representative. Other institutions, like the state's 15 community colleges and 10 PASSHE schools are represented by one person.

The University of Pennsylvania ($20.9 billion endowment and 1,085 acres of urban property), Carnegie-Mellon University ($2.7 billion and 157 acres of urban property), and other elite private schools are not represented and stand apart from the oversight.

What's the Mission?

There is no mention about how this new Board can make a difference. No progressive ideas or policies have been introduced other than that the organization seeks to ensure that there is no undue competition among the schools. 

Wealth and Want in PA Higher Education 

Pennsylvania has more than 150 colleges, universities, and technical schools. They are all connected by a harsh economic system that promotes increasing wealth and want. Pennsylvania's immense wealth is illustrated in a handful of elite and brand name colleges and universities primarily in and around its two major urban areas: Philadelphia and Pittsburgh. And wealth is demonstrated in their endowments and real estate holdings. 

University of Pennsylvania: $20.9 billion and 1,085 acres of urban property

Pennsylvania State University: $4.44 billion and 22,484 acres of property statewide

Carnegie-Mellon: $2.7 billion and 157 acres of urban property

Thomas Jefferson University: $2.3 billion and 100 acres of urban property

Swarthmore: $2.2 billion and 425 acres of suburban property

Lehigh University: $1.8 billion and 2350 acres of suburban property

Bryn Mawr College: $1.6 billion and 135 acres of suburban property

Villanova University $1.5 billion and 408 acres of suburban property

University of Pittsburgh: $1.1 billion and 132 acres of suburban property

Drexel University: $1.1 billion and 96 acres of urban property

Lafayette College: $1 billion and 340 acres of suburban property

Bucknell: $1 billion and 450 acres of suburban property

Duquesne University: $1 billion and 50 acres of urban property

Temple University: $750 million and 115 acres of urban property

Haverford University: $643 million and 216 acres of suburban property. 

Washington and Jefferson: $380 million and 60 acres of small-town property

Widener University: $90 million and 216 acres of urban property

The differences between life outside of Penn, Temple, and Drexel and other parts of Philadelphia (North and West Philly) are stark.  And the Philadelphia suburbs that include some of the elite schools are reflective of wealth, power, and prestige. Scenes of wealth and want are also apparent in and around Pittsburgh. 

State universities outside of these urban and suburban areas, aside from College Park, have been declining for more than a decade. The Community College of Philadelphia, a career lifeline for the working class, has one of the lowest graduation rates in the US. The same goes for Harrisburg Area Community College. Pennsylvania also has Lincoln University and Cheyney University of Pennsylvania: two Historically Black Colleges and Universities that have been historically underfunded and serve as lasting symbols of resistance against white supremacy, an ideology still deeply embedded in Pennsylvania's society and economy.

PA Economy: Growing Inequality and Rural Decline 

Pennsylvania's economy is diverse yet unsustainable. It consists of traditional industries such as manufacturing and agriculture as well as healthcare, energy, technology, and education. Healthcare (reactive medicine) and energy (fossil fuels), in particular, are expensive for the state and expensive the planet. 

The problems in Pennsylvania's higher education system extend beyond the schools represented in the new Board. These economic and social problems are persistent and worsening for the working class. Pennsylvania's population is stagnant, increasing slightly in urban areas and declining in rural areas. 

There is also a demographic cliff with Baby Boomers reaching their 80s (and greater disability) and fewer children being born in the Commonwealth. Children living with Asset Limited, Income Constrained, Employed (ALICE) families is 41 percent.  

Savage Inequalities in K-12 Education

Pennsylvania has some of the widest education gaps in the country. A national study found Pennsylvania at the bottom of all states in school funding fairness. Among the 50 states, Pennsylvania ranked 49th in the Black-white opportunity gap, 50th in the Hispanic-white opportunity gap, and 49th in the gap between students from low-income families and their wealthier peers. 

Unequal Wealth Distribution 

Pennsylvania is one of the most unequal states in the country, with the top 1% of earners making 21.7 times more than the bottom 99%. 

The richest people in Pennsylvania are Jeff Yass ($29B), Michael Rubin ($11.5B), Victoria Mars ($9.7B), Arthur Dantchik ($7.3B), Thomas Hagen ($5.2B), Jeff Lurie ($4.9B), Maggie Hardy ($4.1B), Mary Alice Dorrance Malone ($3.7B), John Middleton ($3.7B), and Thomas Tull ($2.9B). 

The average income of the top 1% is $1,100,962, compared to $50,830 for the rest of the state. Income inequality in Pennsylvania has been worsening since the 1970s. The richest 5% of households have incomes that are 11.7 times larger than the bottom 20%. 

Over half of Pennsylvania's wealth is concentrated in six counties: Montgomery, Allegheny, Bucks, Chester, Delaware, and Philadelphia. The wealthiest county is Chester, with a median household income of $104,161 in 2020. 

Regressive Tax Structure 

Pennsylvania has a flat tax rate of 3 percent, and its corporate tax rate is a flat 8.49 percent and falling. The combined state personal income tax and local earned income tax led to Pennsylvania having the 18th highest income tax burden. Pennsylvania ranked 25th for its total per capita property tax burden. New Jersey, New York, and Maryland had a higher tax burden in both comparisons.  

Mass Incarceration for Social Control, Deaths of Despair

Pennsylvania has the highest incarceration rate in the Northeast and the second highest rate in the country when including people on probation or parole. And its correctional system spends nearly $3 billion annually. Black adults make up 46% of Pennsylvania's prison population, even though they only make up 11% of the state's population. The flip side of the coin, deaths of despair (suicide, drug overdoses) are common among the working class in rural and urban areas.  

Related links:

"20-20": Many US States Have Seen Enrollment Drops of More Than 20 Percent 

College Meltdown: NY, IL, MI, PA, VA hardest hit

Lies, Damn Lies, and Projections: Higher Ed Business and the Enrollment Cliff

While nothing is for sure, we at the Higher Education Inquirer believe higher education enrollment is going to continue on a slow downward slope for the foreseeable future, and that it could get worse. Looking at the numbers we see, it's difficult to imagine anyone arguing this. But today there is a debate between those who believe in the enrollment cliff and those who do not.

The Debate

Carleton College Professor Nathan Grawe has used the term "enrollment cliff" to describe the decline that is projected to come to a number of states within the next two years and with a trend that will last for a number of years. He uses information from a number of sources, including the Western Interstate Commission for Higher Education (WICHE) to make these estimates. These projected declines are the result of a decline in births during and after the Great Recession. US fertility and birth rates have been declining for generations, but enrollment has been shored up by in-migration and higher rates of high school graduation. These rates could increase as abortions are criminalized.  

US Department of Education enrollment projections are fueling the debate for enrollment cliff deniers. But HEI has observed that ED has been wrong in its projections for years and has largely maintained its faulty formula. Presumably the enrollment cliff deniers also don't believe in the projections by WICHE which predicts modest declines in the number of high school graduates. For the record, these deniers are not uniform in their beliefs, values, or their intentions. 

University of Wisconsin-River Falls Professor Neil Kraus, author of the Fantasy Economy: Neoliberalism, Inequality, and the Education Reform Movement, believes that "in the aggregate, higher ed enrollments are fairly constant over time, and if you go back decades, have gradually gone up." Kraus has a point. Relatively stable birth rates would seemingly keep enrollments stable, but there are other social, economic, and political factors in the equation. 

It's a Racket on Both Sides 

Some enrollment deniers may not be so sincere. Many in the education business, including the Department of Education, have vested interests in believing everything is OK. But it's not OK. And while funding is important, it's not the entire answer, especially when the money goes into the wrong (greedy) hands, as it frequently does. 

Higher education has become a racket that has garnered increasing public skepticism about its value. That does not mean that parents won't continue to buy into the college mania and encourage all their children to go to a college regardless of the costs, and the potential debt.   

Some who believe in the enrollment cliff, and pitch it to others, may also be insincere. The President of the University of Idaho, for example, has used the enrollment cliff to rationalize their purchase of the University of Phoenix to shore up their revenues, even though Idaho is not likely to feel dramtic looses in enrollment. There are undoubtedly many others who are using this phenomenon to scare people into buying and selling their products and services.

Coming to a Consensus?

Perhaps the term "enrollment cliff" needs to be defined or the term to define the enrollment decline needs to be renamed. No one can deny that US higher education has seen an enrollment peak and a slow steady decline since 2011. There are also estimates that population declines will occur in many states, as a result of out-migration patterns that have been ongoing. There are other states that will continue to see enrollment gains, especially in the South and West. Maybe enrollment cliff is too harsh a term, but reduced enrollment cannot be ignored. 

Related links: 

Department of Education Fails (Again) to Modify Enrollment Projections

State Budgets Are Downsizing (Pew)

College Meltdown 3.0 Could Start Earlier (And End Worse) Than Planned

Baby Boomers Turning 80: The Flip Side of the 2026 Enrollment Cliff

State Universities and the College Meltdown

"20-20": Many US States Have Seen Enrollment Drops of More Than 20 Percent

US Department of Education Fails to Recognize College Meltdown

Forecasting the US College Meltdown

Workers at 2U expect more layoffs in 2024

After successfully completing its recent bankruptcy proceedings, 2U workers expect another round of layoffs.  2U, with its subsidiary edX, is the online program manager for dozens of elite universities, like Harvard and Yale, who offer their brand names to sell online degrees and certificates.  But two schools, the University of Southern California and Fordham, have distanced themselves from the company. 2U's new board chair of is Brian Napack, who served as an executive at John Wiley and McMillan, two other companies that have faced financial challenges. 

Related links: 

2U Collapse Puts Sallie Mae and SLABS Back on the Radar (Glen McGhee)

2U Suspended from NASDAQ. Help for USC and UNC Student Loan Debtors.

2U Declares Chapter 11 Bankruptcy. Will Anyone Else Name All The Elite Universities That Were Complicit?

HurricaneTWOU.com: Digital Protest Exposes Syracuse, USC, Pepperdine, and University of North Carolina in 2U edX Edugrift

2U-edX crash exposes the latest wave of edugrift

2U Virus Expands College Meltdown to Elite Universities

Buyer Beware: Servicemembers, Veterans, and Families Need to Be On Guard with College and Career Choices

EdTech Meltdown

Erica Gallagher Speaks Out About 2U's Shady Practices at Department of Education Virtual Listening Meeting 

Good ideas are stolen. Great ideas are buried. We uncover both. And we publish them.

Over the course of our tenure at the Higher Education Inquirer, we have discovered that the US political economy (including the higher education system that serves it) is in a state of dysfunction-that the situation is worsening--and that there is some resistance (and hope). 

This critical analysis is not merely a belief, but something that can be objectively measured, whether its child poverty, student loan debt, loss of good jobs and union busting, mental illness and suicide, social inequality, life expectancy, or global climate chaos. 

It can also be measured in protests, strikes, and progressive social change.  

It doesn't have to be this way, but lots of American time and energy is spent with greed and fear in mind, instead of improving quality of life and sustaining the planet. That's why the Higher Education Inquirer exists: not just to expose rampant corruption, but to provide viable, detailed, life-sustaining alternatives. 

We aim not just to educate, but to agitate and help organize. We are not ashamed to say that our list of guest authors and contributors reflects human diversity, equity, inclusion--and justice for students, workers, and activists--people who are often marginalized and silenced by the higher education establishment and the higher ed business.   

Unlike other sources, we believe in the power of the People.

If you have good ideas and great ideas for higher education, send them to us. If you have stories of challenges and resistance, send them. We'll publish them when others won't. If you fear retribution or ridicule, we'll publish those stories anonymously. And the good ideas (and great ideas) will get out.  

Related links:

Ahead of the Learned Herd: Why the Higher Education Inquirer Grows During the Endless College Meltdown

Higher Education, Technology, and A Growing Social Anxiety

A People's History of Higher Education in the US?

Higher Education, Technology, and A Growing Social Anxiety

The Era We Are In

We are living in a neoliberal/libertarian era filled with technological change, emotional and behavioral change, and social change. An era resulting in alienation (disconnection/isolation) for the working class and anomie (lawlessness) among elites and those who serve them. We are simultaneously moving forward with technology and backward with human values and principles. Elites are reestablishing a more brutal world, hearkening back to previous centuries--a world the Higher Education Inquirer has been observing and documenting since 2016. No wonder folks of the working class and middle class are anxious. 

Manufactured College Mania

For years, authorities such as the New York Federal Reserve expressed the notion (or perhaps myth) that higher education was an imperative for young folks. They said that the wealth premium for college graduates was a million dollars over the course of a lifetime--ignoring the fact that a large percentage of people who started college never graduated--and that tens of millions of consumers and their families were drowning in student loan debt. 

2U, Guild Education, and a number of online robocolleges reflected the neoliberal promise of higher education and online technology to improve social mobility.  The mainstream media were largely complicit with these higher ed schemes. 

2U brought advanced degrees and certificates to the masses, using brand names such as Harvard, MIT, Yale, USC, University of North Carolina, and the University of Texas to promote the expensive credentials that did not work for many consumers. 

Guild Education brought educational opportunities to folks at Walmart, Target, Macy's and other Fortune 500 companies who would be replacing their workers with robotics, AI, and other technologies. But the educational opportunities were for credentials from subprime online schools like Purdue University Global. Few workers took the bait. 

As 2U files for bankruptcy, it leaves a number of debt holders holding the bag, including more than $500M to Wilmington Trust, and $30M to other vendors and clients, including Guild Education, and a number of elite universities. Guild Education is still alive, but like 2U, has had to fire a quarter of its workers, even downsizing its name to Guild, as investor money dries up. It continues to spend money on its image, as a Team USA sponsor.    

The online robocolleges (including Liberty University, Grand Canyon University, University of Phoenix, Purdue University Global, and University of Arizona Global)  brought adult education and hope to the masses, especially those who were underemployed. In many cases, it was false hope, as they also brought insurmountable student debt to American consumers. Billions and billions in debt that cannot be repaid, now considered toxic assets to the US government. 

Along the way there have been important detractors in popular culture, especially on the right. Conservative radio celebrity Dave Ramsey, railed against irresponsible folks carrying lots of debt, including student loan debt. He was not wrong, but he did not implicate those who preyed on student consumers. On the left, the Debt Collective also railed against student loan debt, long before the right, but they were often ignored or marginalized. 

Adapting to a Brutal System

The system  works for elites and some of those who serve them, but not for others, even some of the middle class. Good jobs once at the end of the education pipeline have been replaced by 12-hour shifts, 60 hour work weeks, bullsh*t jobs, and gig work. 

Working-class Americans are living shorter lives, lives in some cases made worse not so much by lack of education, but by the destruction of union jobs, and by social media, and other intended and unintended consequences of technology and neoliberalism. Millions of folks, working class and some middle class, who have invested in higher education and have overwhelming debt and fading job prospects, feel like they have been lied to.

We also have lives made more sedentary and solitary by technology. Lives made more hectic and less tolerable. Inequality making lives too easy for those with privilege and lives too difficult for the working class to manage. Lives managed by having fewer relationships and fewer children. Many smartly choosing not to bring children into this new world. All of this manufactured by technology and human greed.  

The College Dream is Over...for the Working Class

There are two competing messages about higher education: the first that college brings opportunity and wealth and the second, that higher education may bring debt and misery. The truth is, these different messages are meant for two groups: pushing brand name schools and student loans for the most ambitious middle class/working class and a lesser form of education for the struggling working class. 

In 2020, Gary Roth said that the college dream was over. Yet the socially manufactured college mania continues, flooding the internet with ads for college and college loans, as social realities point to a future with fewer good and meaningful jobs even for those with degrees. Higher education will continue to work for some, but should every consumer, especially among the struggling working class, believe the message is for them? 

Related links:

More than half of college grads are stuck in jobs that don't require degrees (msn.com)

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

Edtech Meltdown 

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

2U Declares Chapter 11 Bankruptcy. Will Anyone Else Name All The Elite Universities That Were Complicit?

College Mania!: An Open Letter to the NY Fed (2019)

"Let's all pretend we couldn't see it coming": The US Working-Class Depression (2020)

The College Dream is Over (Gary Roth, 2020)

US Department of Education Closed Schools Monthly Reports Has a New Home

Consumers can get the latest closed schools lists from the Department of Education here: The website's URL is https://fsapartners.ed.gov/additional-resources/reports/monthly-closed-school-reports. From there, you can download the Postsecondary Education Participants System (PEPS) monthly reports. 

The July 2024 report is 61 pages, and it includes Cabrini University, the University of the Arts in Philadelphia, and a number of for-profit schools and university branch campuses. 

About 20,000 schools and learning sites have closed since 1986.  The peak year for closures was 2016.  Unfortunately, the new site does not include the Excel spreadsheet that lists all of those closed schools.

Related link:

Campus and Learning Site Closings Nearing 20,000