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Thursday, December 19, 2024
Zenith Prep Academy: Getting Admitted to an Ivy League University
Tuesday, December 17, 2024
Scam Artist or Just Failed CEO?
For eight years, this blog has been investigating greed and corruption in higher education at all levels, from predatory for-profit colleges and student loan servicers to elite university endowments. We have also highlighted the good people in higher education: those who promote transparency, accountability, value, justice, and empathy.
Over those years, we have gained a good number of friends and allies and received a small amount of negative feedback. When we did face staunch criticism, or in a few cases, threats, we had to consider the sources, who were always bad actors or those who worked for them. The bad actor, Christopher (Chip) Paucek, and his attorneys, have filed a federal litigation, suing this blog and its author for giving you, our valued readers, our opinion. Specifically, Paucek has taken exception to our characterization of him as a scam artist.
We stand by our opinion of Chip based on what we learned in more than five years of investigations of 2U, the company Paucek led for over 10 years. And we hope that more people will do their own investigations.
We took our first look at 2U in 2019. In time, we were not the only ones paying attention. Workers in social media presented an inside view of the inner workings of 2U, describing what they viewed as enrollment practices that were highly questionable. Student consumers stepped forward, saying they had been deceived by 2U. Shareholders came forward, presenting Chip’s own words, saying he had misled them. The Wall Street Journal published a number of investigative pieces about 2U and the Chronicle of Higher Education also published two articles. While none of these outlets mentioned Chip, he was the CEO at the time, and in our view was responsible.
By March 2022, Chip Paucek was still CEO of 2U, and was formally setting up the Pro Athlete Community, also known as PAC. There was nothing secret about this venture by this time. But it did seem to us questionable that a CEO of a large corporation would be formally setting up another for-profit organization while the one he was running was failing.
In 2024, Chip admitted in an interview that he should have left 2U in 2019, but he didn’t. Chip also admitted that without his staying at 2U during that five year period, he wouldn’t have been able to start PAC. Last June, while still being paid as a consultant to 2U, a company nearly bankrupt, he led a group of retired players to ring the bell at NASDAQ. No one in the mainstream media picked up on the hypocrisy of all that exuberance on Wall Street. But we did.
Chip’s lawsuit against us was a surprise on several levels. First, our statements were just our opinion–it’s not provable or disprovable. Second, it seems nonsensical to bother with a blog seen by only 25,000 people a month. Third, and most importantly, Chip Paucek’s track record in business could reasonably lead someone to believe he is, indeed, someone who says untrue things to his own benefit.
Our feeling is that this lawsuit is more than a man taking exception to being called out for his track record; it’s, in our view, an attempt to keep us from warning his next potential victims–the athletes, employees, and investors who will be the next to learn about his methods.
Many states (including New Jersey, where Chip filed suit) have a law to deal with situations in which someone uses the courts to squelch investigative journalism. Accordingly, we are pursuing an Anti-SLAPP (strategic lawsuits against public participation) counter suit, asking for his case to be dismissed, and for him to pay our legal fees and court costs.
On November 25th, David Halperin, an ally of ours for many years, let the public know that 2U is likely to be under investigation by the Federal Trade Commission and the California Attorney General. The company Chip left in 2023, but is still being paid by, as a special advisor. We are not surprised.
If Chip would grant us an interview, we’d like to know more.
Related links:
A Hidden Risk of Online Higher Education (Student Borrower Protection Center)
David Bernard v Climb Credit, University Accounting Services, Loan Science & 2U
2U Investors Reach $37 Million Settlement With Online Educator (Bloomberg Law)Letter from CFPB to Richard Cordray about 2U
The Long, Steep Fall of an Online Education Giant (Wall Street Journal)
That Fancy University Course? It Might Actually Come From an Education Company.
USC Pushed a $115,000 Online Degree. Graduates Got Low Salaries, Huge Debts. (Wall Street Journal)Wednesday, December 4, 2024
Sunday, November 24, 2024
The Admissions Game
History and Structure of Selective Admissions
Folks are not privy to the inner workings of admissions, especially at elite and brand name schools. The College Admissions Scandal (aka Varsity Blues) gave us a small window into this structure, but that story will soon be forgotten. And it only touched the surface of how the system works for some and not for others.
What little the public has access about selective admissions can be found in a few historical and sociological sources, like Craig Steven Wilder's Ebony and Ivy: Race, Slavery, and the Troubled History of America's Universities and William Domhoff's Who Rules America?: The Corporate Rich, White Nationalist Republicans, and Inclusionary Democrats in the 2020s. Books that are not best sellers or readily available in public libraries.
The 400 year history of American higher education begins with selective admissions. From the 1600s to the 1860s, access was largely restricted to white, Anglo-Saxon Protestant male landowners, reflecting the societal norms of the time. A few Native American elites were forced into universities as tools of assimilation, colonization, and cultural erasure.
There were some notable exceptions. Georgetown, a Catholic college, was founded in 1789, and like other schools relied on enslaved people for labor. For others, there were for-profit trade schools for bookkeeping, engineering and technical drawing. In 1836, the first women's college, Wesleyan College, was founded.
In the 19th century, as the United States industrialized and urbanized, the concept of meritocracy began to take hold. However, this meritocracy was often defined narrowly, excluding women, people of color, religious minorities, and those from lower socioeconomic classes.
The 20th century saw some progress in expanding access to higher education. The GI Bill, for example, provided educational benefits to male veterans, including many from marginalized backgrounds. However, systemic racism and sexism continued to limit opportunities for Black students and women.
Today, while elite colleges have become more diverse, they remain elite in nature, especially in terms of social class (wealth, power, prestige). The private school pipeline, legacy admissions, active recruiting, and the financial motivations of these institutions continue to perpetuate inequalities. Students from under-resourced schools and communities may still face significant barriers to admission, even with impressive academic records.
The admissions process at elite colleges and universities has become increasingly scrutinized in recent years. Critics argue that the system favors a select group of students, often from privileged backgrounds, while excluding others with equally impressive credentials.
Feeder Schools: The Private School Pipeline
Private schools provide students with a distinct advantage in the college admissions process. These schools offer smaller class sizes, specialized resources, and extracurricular opportunities that can enhance a student's application. Private schools also have established relationships with admissions officers at top colleges, which can give their students an edge. This pipeline effectively funnels a disproportionate number of students from wealthy families into elite institutions.
Legacy Admissions
Legacy admissions, which give preference to applicants whose parents or grandparents attended the same college, further perpetuate the advantages of wealth and privilege. Studies have shown that legacy students are significantly more likely to be admitted to top schools, even when compared to non-legacy applicants with higher test scores and GPAs. This practice raises questions about meritocracy and equal opportunity in higher education.
Active Recruiting
Elite colleges engage in extensive recruiting efforts to attract top students. They often target high-achieving students at selective high schools and even travel internationally to scout talent. While this practice may seem beneficial, it can also reinforce existing inequalities. Students from under-resourced schools and communities may not have the same access to information and opportunities, making it difficult for them to compete in the admissions process.
It is important to acknowledge that elite colleges are businesses. They generate significant revenue from tuition, endowments, and other sources. Admissions practices, such as legacy preferences and active recruiting, can be seen as strategies to attract wealthy students who can contribute to the institution's financial bottom line. This raises concerns about whether the primary goal of these colleges is to provide a quality education or to maximize profits.
While a "lottery mindset" isn't directly beneficial to elite universities in terms of increasing applications, it can indirectly impact the perception of the admissions process. As more and more qualified students apply to these institutions, the acceptance rate decreases, making it feel like a lottery. This perception can lead to several outcomes:
Increased Application Volume: Students may feel compelled to apply to a wider range of schools, including elite universities, increasing the overall application pool.
Early Decision Strategies: Students and parents may be more inclined to apply early decision to increase their chances, as it often has a higher acceptance rate.
Focus on Holistic Review: As the application pool grows, admissions officers may place greater emphasis on holistic review, considering factors beyond grades and test scores. This can benefit students with unique talents, experiences, or backgrounds.
However, it's important to note that a "lottery mindset" can also be detrimental. It can lead to increased stress and anxiety among applicants, as well as a sense of disillusionment with the college admissions process. Ultimately, while a lottery mindset may have some unintended consequences, it's essential to remember that college admissions is not solely a game of chance. Hard work, dedication, and a well-rounded application can significantly improve a student's chances of acceptance.
Wednesday, October 30, 2024
A Trump v Harris Decision
The US has never been a true democracy. Since its inception, it has systematically disenfranchised entire groups of people because of their race, class, gender, and national origin. Some of those undemocratic levers have been reduced over time as more folks have become enfranchised through waves of legislation, at the state and federal level. By the mid-1960s, with the Voting Rights Act, progressives believed that a more perfect union was possible. But those times seem so long ago.
In 2000, the Supreme Court, in Bush v Gore, decided for George Bush despite irregularities in Florida. And the rest is recent history. 9-11 and the Great Recession followed. Mass surveillance is now taken for granted. And bank bailouts are considered the antidote to economic crises.
In 2016, Donald Trump was elected with millions fewer votes than Hillary Clinton, because Trump received more Electoral College votes. During Trump's term, hundreds of thousands of people died from the poorly managed Covid pandemic. And unemployment reached Depression level numbers before massive bailouts were enacted. Bailouts that put a huge hole in the federal government debt.
Democracy in America has not been a straightforward path. Dred Scott (1857) and Plessy v Ferguson (1896) were Supreme Court decisions that took America backward. The Hayes/Tilden compromise (1877) brought the end to the Reconstruction Era, and the US took several steps back in racial equality.
In the weeks ahead, the US Supreme Court may be tasked with deciding the election in what cannot be called democratic. A body of twelve men and women, all with elite degrees, interpreting the Constitution and the law as they see it. And their decision could affect not just the 330 million folks living in the US, but the entire human world. Will this august body make the decision in good faith and with due respect to the People? Let us pray, and organize peacefully, so that if the case comes to the Supreme Court, the justices make the right decision.
Monday, July 8, 2024
Socrates in Space: University of Austin as a Model of America's Ivory Tower Future
The University of Austin's inaugural class begins this September. While its founding has had some media attention, critical and uncritical, little is known about the school, other than its founders and some of the curriculum--and more recently about the school's constitution and austere, free market business model. We expect the public to receive information akin to propaganda from the new university while investigative reporters attempt to find what's really developing.
Tomorrowland's Elite Model
The US has had three major growth periods in elite higher education with the founding of Christian-based Ivy League schools in the 17th and 18th centuries, the rise of more private colleges in the 19th century, and the evolution of state flagship universities in the 20th century, which altered their missions from teaching to focus more on research and medicine.
According to President Pano Kanelos, the University of Austin (UATX) is modeled after elite schools founded by the money of 19th century capitalists: Johns Hopkins University, the University of Chicago (John D. Rockefeller), and Stanford University. In its original plan, the school is seeking accreditation but not public funding. And without federal funding, the school is not required to be transparent on a number of issues, including finances, student demographics, and crime statistics. A limited amount of information will be available on the institution's IRS 990 forms.
UATX's leaders see the school as a model for elite education in the 21st century and beyond: socializing future elites in neo-classical western thought and the search of the truth as they know it: through the lens of US venture capitalists and US private equity. The school's donors include Palantir co-founder Joe Lonsdale who created the start up funds for UATX, real estate investor Harlan Crow, and global real estate investor Scott Malkin.
Despite its calling for intellectual diversity, the University of Austin will serve as a safe space for conservative and libertarian youth, especially young men: blind to race, class, and gender, and friendly to those who may feel intimidated by progressive folks and the recent pro-Palestinian movement on elite campuses. UATX will be attuned to the needs of private capital and the promotion of their ventures and the ventures of their allies: from bitcoin, to artificial intelligence, to private space exploration.
Command and Control
At the University of Austin, there will be no faculty senate and no faculty tenure. The initial faculty roster is composed of 19 men and 4 women--and appears to be disproportionately white. Staff and support roles will be done largely by artificial intelligence and workers in Guatemala.
Artificial Intelligence will be used to reduce labor costs at the University of Austin.
Prospective students will selected by the faculty and on merit, which includes standardized test scores. Those who matriculate will learn classical and neoclassical western philosophy (like Socrates and the Federalist Papers) and English Literature in combination with science and engineering, where all students will take the same coursework for the first two years, then become research fellows in the remaining two years, with each student involved in practically solving "a major political, social or economic problem...by the time they graduate."
Students will share apartments off campus where they will do
their own cooking. There will be no amenities on campus or campus police, but local gyms and local police will be in the area. Aside from the Austin Union, the student body is expected to start their own clubs
and activities. The physical library is a small room with a few bookshelves, and the librarian has additional duties. Civil debate is encouraged, but campus protests will be limited--it is said, to protect the rights of all students.
The founding 2024 class is expected to enroll 100 students,
growing to 200 students in 2025 and 1,000 students in 2028, reaching a peak of 4,000, and with a new campus. After the
founding class, which will receive free tuition for four years, tuition
is expected to be about $32,500 per year, with a number of
students receiving scholarships.
Related links:
The Constitution of Academic Liberty (Niall Ferguson, National Affairs)
An American Education: Notes from UATX (Noah Rawlings, The New Inquiry)
Austin’s Anti-Woke University Is Living in Dreamland (Morgan O'Hanlon)
The Future of Publicly-Funded University Hospitals (Dahn Shaulis and Glen McGhee)A People's History of Higher Education in the US?
Dangerous Spaces: Sexual Assault and Other Forms of Violence On and Off Campus