The Prestige of Partnership — and the Problem of Unclear Payoff

For more than a decade, 2U has presented itself as a premier intermediary between elite universities and the expanding global audience for online higher education. The company’s roster of partners includes some of the most recognizable names in academia, as well as a growing list of selective, mid-tier, and international institutions. On its public site, 2U highlights collaborations with universities such as Yale, Northwestern, North Carolina–Chapel Hill, Pepperdine, Maryville, and the University of Surrey. The message is unmistakable: if universities of this caliber trust 2U with their online programs, then students should as well.

These partnerships have fueled the impression that 2U-supported programs deliver high-quality, academically rigorous education backed by prestigious institutional brands. For many learners, especially working adults, international students, and career switchers, such arrangements offer a seemingly ideal blend: the name of an elite university, the flexibility of online learning, and access to fields where credentials are increasingly necessary.

Yet beneath the glossy presentation and impressive partner list, fundamental questions remain unanswered. Despite working with many of the world’s most respected institutions, 2U still does not provide sufficient data to determine the true value of the programs it supports. Even as universities lend their names and curricula, the real-world outcomes of students enrolled in 2U-powered programs remain opaque.

The core difficulty lies in the mismatch between the prestige of the institution and the limited transparency around program performance. For years, 2U issued annual “Transparency and Outcomes” reports designed to demonstrate impact and accountability across its portfolio. But the most recent report available to the public is from 2023. In the fast-moving world of online education—where competition has intensified, student expectations have shifted, and 2U itself has undergone significant financial turmoil—data that old is no longer a reliable indicator of the current state of programs.

This lack of updated reporting is especially notable given 2U’s recent trajectory. After years of rising debt and declining investor confidence, the company filed for Chapter 11 bankruptcy in 2024. Although it has since emerged under new ownership with a streamlined balance sheet, questions persist about its future direction, the stability of its services, and whether its partnerships will endure in their current form. For universities, outsourcing key functions such as marketing, recruitment, student support, and technological infrastructure may expand enrollment and revenue, but it also raises concerns about the consistency and quality of the student experience—areas that become even more vulnerable when the partner company faces financial strain.

This structural opacity makes it nearly impossible for students, policymakers, or even universities themselves to determine whether these programs provide a meaningful return on investment. A degree or certificate bearing the name of Yale or Pepperdine may confer a level of brand recognition, but what does it signify in practice? Are students completing programs at comparable rates to on-campus peers? Are they finding jobs in their fields? Are they earning more than they would have without the credential? Are they satisfied with the instruction, advising, and support they receive? Without rigorous, current, and independently verified data, these remain open—and critical—questions.

The challenge is not solely financial or operational. It is also conceptual. The surge in online learning has created a vast gray zone between institutional brand and educational substance. While universities retain control over academic content, the underlying delivery mechanisms are increasingly intermediated by firms like 2U. Students may assume that an online master’s degree from a prestigious university carries the same weight as an on-campus equivalent, but the learning environments, student services, and community-building opportunities differ dramatically. In many cases, the online experience is shaped more by 2U’s systems and staff than by the university itself.

For prospective students, the implication is clear: a well-known university name is not a guarantee of value. For universities, the stakes are equally high. Partnering with a third-party company can expand their reach, but it can also blur the boundaries of academic identity and accountability. And for anyone tracking the direction of higher education more broadly, 2U’s situation serves as a cautionary example of how prestige can mask the absence of meaningful transparency—and how quickly the economics of online learning can shift.

Until 2U produces up-to-date, independently verifiable data about program quality and student outcomes, the value of its offerings remains an open question. The partnerships look impressive. The marketing is compelling. But the evidence is missing.

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Sources

2U Partners Page
2U 2023 Transparency and Outcomes Report
2U announcements on new degree partnerships and expansions
Washington Post coverage of 2U’s 2024 bankruptcy filing
PR Newswire statements on 2U’s financial restructuring and emergence as a private company

Hyper-Deregulation and the College Meltdown

In March 2025, Studio Enterprise—the online program manager behind South University—published an article titled “A New Era for Higher Education: Embracing Deregulation Amid the DOE’s Transformation.” Written in anticipation of a shifting political landscape, the article framed coming deregulation as an “opportunity” for flexibility and innovation. Studio Enterprise CEO Bryan Newman presented the moment as a chance for institutions and their contractors to do more with fewer federal constraints, implying that regulatory retreat would improve student choice and institutional agility.

What was framed as a strategic easing of oversight has instead arrived as a form of collapse. By late 2025, the U.S. Department of Education has become, in functional terms, a zombie agency—still existing on paper, but stripped of its capacity to regulate, enforce, or even communicate. Consumer protection, accreditation monitoring, program review, financial oversight, and FOIA responses have slowed or stopped entirely. The agency is walking, but no longer awake.

This vacuum has emboldened not only online program managers like Studio Enterprise and giants like 2U, but also a wide array of entities that rely on federal inaction to profit from students. The University of Phoenix—long emblematic of regulatory cat-and-mouse games in the for-profit sector—now faces minimal scrutiny, continuing to recruit aggressively while the federal watchdog sleeps. Elite universities contracting with 2U continue to launch expensive online degrees and certificates whose marketing and outcomes would once have been examined more closely.

Student loan servicers and private lenders have also moved quickly to capitalize on the chaos. Companies like Aidvantage (Maximus), Nelnet, and MOHELA now operate in an environment where enforcement actions, compliance reviews, and borrower complaint investigations have slowed to a near standstill. Servicers once accused of steering borrowers into costly forbearances or mishandling IDR accounts now face fewer barriers and far less public oversight. The dismantling of the Department has also disrupted the small channels borrowers once had for correcting servicing errors or disputing inaccurate records.

Private lenders—including Sallie Mae, Navient, and a growing constellation of fintech-style student loan companies—have seized the opportunity to expand high-interest refinance and private loan products. Without active federal oversight, marketing claims, credit evaluation practices, and default-related consequences have become increasingly opaque. Borrowers with limited financial literacy or unstable incomes are again being targeted with products that resemble the subprime boom of the early 2010s, but with even fewer regulatory guardrails.

Hyper-deregulation has also destabilized the federal loan system itself. Processing backlogs have grown. Borrower defense and closed-school discharge petitions sit in limbo. Decisions are delayed, reversed, or ignored. Automated notices go out while human review has hollowed out entirely. Students struggling with servicer errors find there is no functioning authority to appeal to—not even the already stretched ombudsman’s office, which is now overwhelmed and under-directed.

Across the sector, the same pattern is visible: institutions and corporations functioning without meaningful oversight. OPMs determine academic structures that universities should control. Lead generators push deceptive marketing campaigns with impunity. Universities desperate for enrollment sign long-term revenue-sharing deals without public transparency. Servicers mismanage accounts and communications while borrowers bear the consequences. Private lenders accelerate their expansion into communities least able to withstand financial harm.

Students feel the effect first and most painfully. They face rising costs, misleading claims, aggressive recruitment, and a federal loan system that can no longer assure accuracy or fairness. The collapse of oversight is not theoretical. It manifests in missed payments, lost paperwork, incorrect balances, unresolved appeals, and ballooning debt. For many, there is now no reliable path to recourse.

Studio Enterprise saw deregulation coming. What it left unsaid is that removing federal guardrails does not produce innovation. It produces confusion, predation, and unequal power. Hyper-deregulation rewards those who operate in the shadows—OPMs, for-profit chains, high-fee servicers, and private lenders—while those seeking education and mobility carry the burden.

This moment is not an evolution. It is an abandonment. Higher education is drifting into an environment where profit extraction flourishes while public protection evaporates. Unless new sources of oversight emerge—federal, state, journalistic, or civic—the most vulnerable students will continue to pay the highest price for the disappearance of the referee.

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Sources

Studio Enterprise, A New Era for Higher Education: Embracing Deregulation Amid the DOE’s Transformation (March 2025).
HEI archives on OPMs, for-profit colleges, and regulatory capture (2010–2025).
Public reporting and advocacy analyses on student loan servicers, including Navient, MOHELA, Nelnet, Aidvantage/Maximus, and Sallie Mae (2015–2025).
FOIA request logs, non-responses, and stalled borrower relief cases documented by HEI and partner organizations (2024–2025).
Federal higher education enforcement trends, 2023–2025.

The College Meltdown Index: Profiting from the Wreckage of American Higher Education

“Education, once defended as a public good, now functions as a vehicle for private gain.”

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From Collapse to Contagion

The College Meltdown never truly ended—it evolved.

After a decade of spectacular for-profit implosions, the higher education sector has reconstituted itself around new instruments of profit: debt servicing, edtech speculation, and corporate “partnerships” that disguise privatization as innovation.

The College Meltdown Index—tracking a mix of education providers, servicers, and learning platforms—reveals a sector in quiet decay.

Legacy for-profits like National American University (NAUH) and Aspen Group (ASPU) trade at penny-stock levels, while Lincoln Educational (LINC) and Perdoceo (PRDO) stumble through cost-cutting cycles.

Even the supposed disruptors—Chegg (CHGG), Udemy (UDMY), and Coursera (COUR)—are faltering as user growth plateaus and AI reshapes their value proposition.

Meanwhile, SoFi (SOFI), Sallie Mae (SLM), and Maximus (MMS) thrive—not through learning, but through the management of debt.

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The Meltdown Graveyard

Below lies a sampling of the education sector’s ghost tickers—the silent casualties of a system that turned public trust into private loss.

Symbol	Institution	Status	Approx. Closure/Delisting
CLAS.U	Class Technologies	Defunct	2024
INST	Instructure (pre-acquisition)	Acquired by Thoma Bravo	2020
TWOUQ	2U, Inc.	Bankrupt	2025
CPLA	Capella University	Merged with Strayer (Strategic Ed.)	2018
ESI-OLD	ITT Technical Institute	Defunct	2016
EDMC	Education Management Corporation	Defunct	2018
COCO-OLD	Corinthian Colleges	Defunct	2015
APOL	Apollo Education Group (U. of Phoenix)	Taken Private	2017

Each ticker represents not only a failed business model—but a generation of indebted students.

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The Phoenix That Shouldn’t Have Risen

No institution better symbolizes this moral decay than the University of Phoenix and Phoenix Education Partners (PXED).

At its height, Phoenix enrolled nearly half a million students. By 2017, following federal investigations and mass defaults, Apollo Education Group—its parent company—collapsed under scrutiny.

But rather than disappearing, Phoenix was quietly resurrected through a private equity buyout led by Apollo Global Management, Vistria Group, and Najafi Companies.

Freed from public oversight, the university continued to enroll vulnerable adult learners, harvesting federal aid while shedding accountability.

In 2023, the University of Idaho’s proposed acquisition of Phoenix provoked national outrage, forcing state officials to confront a basic question: Should a public university absorb a for-profit brand built on exploitation?

The deal collapsed—but the temptation to monetize Phoenix’s infrastructure remains. In 2025, a small portion became publicly traded.  Its call centers and online systems remain models of enrollment efficiency, designed to extract just enough engagement to secure tuition payments.

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From Education to Extraction

The sector’s transformation reveals a deeper moral hazard.

If students succeed, investors profit.
If students fail, federal subsidies and servicer contracts ensure the money keeps flowing.

Executives face no downside. Shareholders are protected. The losses fall on students and taxpayers.

In this sense, the “meltdown” is not a market failure—it’s a market design.

“The winners are those who most efficiently extract value from hope.”

Public universities increasingly partner with private Online Program Managers (OPMs), leasing their brands to companies that control marketing, pricing, and student data. The once-clear line between public and for-profit education has blurred beyond recognition.

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The Quiet Winners of Collapse

A few companies continue to prosper by aligning with “practical” or “mission-safe” sectors:

• Adtalem (ATGE) in nursing and health education,

• Grand Canyon Education (LOPE) in faith-branded online degrees,

• Bright Horizons (BFAM) in corporate childcare and workforce training.

Yet all remain heavily dependent on public dollars and tax incentives. The state subsidizes their existence; the market collects the rewards.

Meanwhile, 2U’s bankruptcy leaves elite universities scrambling to explain how a publicly traded OPM, once championed as the future of online learning, could disintegrate overnight—taking with it a network of high-priced “nonprofit” certificate programs.

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A Reckoning Deferred

The College Meltdown Index exposes a system that has internalized its own failures.
Fraud has been replaced by financial engineering, transparency by outsourcing, and accountability by spin.

The real collapse is not in the market—but in moral logic. Education, once the cornerstone of social mobility, has become a speculative instrument traded between hedge funds and holding companies.

Until policymakers—and universities themselves—confront the ethics of profit in higher education, the meltdown will persist, slowly consuming what remains of the public good.

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“The real question is not whether the system will collapse, but who will rebuild it—and for whom.”

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Sources:

• Higher Education Inquirer, College Meltdown 2.0 Index (Nov. 2025)

• SEC Filings (2010–2025)

• U.S. Department of Education, Heightened Cash Monitoring Reports

• An American Sickness – Elisabeth Rosenthal

• The Goosestep – Upton Sinclair

• Medical Apartheid – Harriet A. Washington

• Body and Soul – Alondra Nelson

• The Immortal Life of Henrietta Lacks – Rebecca Skloot

Divestment from Predatory Education Stocks: A Moral Imperative

Calls for divestment from exploitative industries have long been part of movements for social and economic justice—whether opposing apartheid, fossil fuels, or private prisons. Today, another sector demands moral scrutiny: the network of for-profit education corporations and student loan servicers that have turned higher learning into a site of mass indebtedness and despair. From predatory colleges to the companies that profit from collecting on student debt, the system functions as a pipeline of extraction. For those who believe education should serve the public good, the issue is not merely financial—it is moral.

The Human Cost of Predatory Education

For decades, for-profit college chains such as Corinthian Colleges, ITT Tech, the University of Phoenix, DeVry, and Capella targeted low-income students, veterans, single parents, and people of color with high-pressure marketing and promises of career advancement. These institutions, funded primarily through federal student aid, often charged premium tuition for substandard programs that left graduates worse off than when they began.

When Corinthian and ITT Tech collapsed, they left hundreds of thousands of students with worthless credits and mountains of debt. But the collapse did not end the exploitation—it simply shifted it. The business model has re-emerged in online form through education technology and “online program management” (OPM) firms such as 2U, Coursera, and Academic Partnerships. These firms, in partnership with elite universities like Harvard, Yale, and USC, replicate the same dynamics of inflated costs, opaque contracts, and limited accountability.

The Servicing of Debt as a Business Model

Beyond the schools themselves, student loan servicers and collectors—Maximus, Sallie Mae, and Navient among them—have built immense profits from managing and pursuing student debt. Sallie Mae, once a government-sponsored enterprise, was privatized in the 2000s and evolved into a powerful lender and loan securitizer. Navient, its spinoff, became notorious for deceptive practices and aggressive collections that trapped borrowers in cycles of delinquency.

Maximus, a major federal contractor, now services defaulted student loans on behalf of the U.S. Department of Education. These companies profit directly from the misery of borrowers—many of whom are victims of predatory schools or structural inequality. Their incentive is not to liberate students from debt, but to sustain and expand it.

The Role of Institutional Investors

The complicity of institutional investors cannot be ignored. Pension funds, endowments, and major asset managers have consistently financed both for-profit colleges and loan servicers, even after repeated scandals and lawsuits. Public sector pension funds—ironically funded by educators—have held stock in Navient, Maximus, and large for-profit college operators. Endowments that pride themselves on ethical or ESG investing have too often overlooked education profiteering.

Investment firms like BlackRock, Vanguard, and State Street collectively hold billions of dollars in these companies, stabilizing an industry that thrives on the financial vulnerability of students. To profit from predatory education is to participate, however indirectly, in the commodification of aspiration.

Divestment as a Moral and Educational Act

Divesting from predatory education companies and loan servicers is not just an act of conscience—it is an educational statement in itself. It affirms that learning should be a vehicle for liberation, not a mechanism of debt servitude. When universities, pension boards, and faith-based investors divest from corporations like Maximus, Navient, and 2U, they are reclaiming education’s moral purpose.

The divestment movement offers a broader civic lesson: that profit and progress are not synonymous, and that investment must align with justice. Faith communities, student debt activists, and labor unions have made similar stands before—against apartheid, tobacco, and fossil fuels. The same principle applies here. An enterprise that depends on deception, coercion, and financial harm has no place in a socially responsible portfolio.

A Call to Action

Transparency is essential. Pension boards, university endowments, and foundations must disclose their holdings in for-profit education and student loan servicing companies. Independent investigations should assess the human consequences of these investments, particularly their disproportionate impact on women, veterans, and people of color.

The next step is moral divestment. Educational institutions, public pension systems, and religious organizations should commit to withdrawing investments from predatory education stocks and debt servicers. Funds should be redirected to debt relief, community college programs, and initiatives that restore trust in education as a public good.

The corporate education complex—spanning recruitment, instruction, lending, and collection—has monetized both hope and hardship. The time has come to sever public and institutional complicity in this cycle. Education should empower, not impoverish. Divestment is not merely symbolic—it is a declaration of values, a demand for accountability, and a reaffirmation of education’s original promise: to serve humanity rather than exploit it.

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Sources:

• U.S. Department of Education, Borrower Defense to Repayment Reports

• Senate HELP Committee, For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success (2012)

• Consumer Financial Protection Bureau (CFPB) enforcement actions against Navient and Sallie Mae

• The Century Foundation, Online Program Managers and the Public Interest

• Student Borrower Protection Center, Profiting from Pain: The Financialization of the Student Debt Crisis

• Higher Education Inquirer archives

Muckraking and the Modern University

From the Gilded Age to the digital era, muckraking has served as a check on concentrated power. It has exposed exploitation in factories, corruption in government, racial terror, and corporate deceit. Today, that same spirit is urgently needed in higher education—an industry that has become both immensely wealthy and profoundly unequal.

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Ida B. Wells and the Moral Foundation of Muckraking (1890s)

Modern investigative reporting begins with Ida B. Wells, who in the late 19th century documented the horrors of lynching and the complicity of institutions in perpetuating racial terror. In Southern Horrors (1892) and The Red Record (1895), Wells used data, testimony, and moral clarity to challenge both white supremacy and institutional silence.

Her courage established muckraking not just as journalism but as moral resistance—a template for confronting systemic injustice, whether in government, business, or education.

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Thorstein Veblen and the Rise of the Business University (1918)

By the early 20th century, universities themselves had become powerful institutions. Thorstein Veblen, in The Higher Learning in America (1918), described how trustees, presidents, and donors increasingly treated scholarship as a commodity. The pursuit of truth was subordinated to the pursuit of prestige and profit. Veblen’s critique presaged the administrative bloat, branding culture, and market-driven priorities now standard in higher education.

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Upton Sinclair and The Goosestep (1923)

Upton Sinclair, in The Goosestep: A Study of American Education (1923), argued that elite universities were “factories for the ruling class.” Trustees dictated policy, suppressed dissenting faculty, and produced graduates conditioned to serve wealth and power. Sinclair’s critique resonates a century later, as universities remain highly responsive to donors and financial interests rather than the public good.

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Jessica Mitford and Corporate Exploitation (1960s)

Jessica Mitford, best known for The American Way of Death (1963), brought investigative rigor to industries that relied on secrecy, public trust, and consumer inattention. Her work exposed how profit motives could exploit vulnerability and regulatory gaps. Mitford’s methodology—meticulous documentation, ethical outrage, and clear writing—provides a model for exposing modern higher education practices that prioritize revenue over students’ welfare.

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Digital Muckraking: OPMs and 2U (21st Century)

In the 21st century, online program managers (OPMs) like 2U, Inc. have commercialized education in new ways. Chip Paucek, co-founder and longtime CEO of 2U, built partnerships with elite universities offering certificates and degrees that were sometimes of questionable value, while profiting from revenue-sharing agreements.

When independent journalists examined these arrangements and their implications for students and adjunct labor, they sometimes faced threats of litigation. The ongoing Paucek v. Shaulis case (filed 2024, and still pending) illustrates the modern challenge: exposing systemic issues in higher education can trigger lawsuits designed to intimidate or silence critics.

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The Chilling Effect of Legal Retaliation

Even unfounded lawsuits can suppress critical reporting. Independent journalists, adjuncts, and whistleblowers often lack the resources to defend themselves against legal pressure. This modern form of censorship echoes the intimidation faced by Wells, Sinclair, and Mitford in their respective eras.

Higher education, increasingly operated like a business, has become vulnerable to this kind of silencing. Public interest and accountability require journalists who are willing to persist despite the risks.

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The Enduring Importance of Muckraking

From Wells’ moral courage, to Veblen’s economic critique, Sinclair’s exposé of elite conformity, and Mitford’s corporate investigations, muckrakers have shaped public understanding and accountability. Today, independent journalism is one of the few mechanisms capable of exposing predatory practices, financial manipulation, and labor exploitation in higher education.

As Wells wrote, “The way to right wrongs is to turn the light of truth upon them.” That light has always been costly—but without it, universities risk becoming oligarchies rather than public institutions.

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Reclaiming the Public Good (If That's Possible) 

Muckraking is civic duty. It insists that higher education be judged not by prestige or endowment size, but by service to students and society. Independent journalists must continue the Wells–Veblen–Sinclair–Mitford tradition, confronting power, exposing exploitation, and demanding accountability.

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Sources

• Ida B. Wells, Southern Horrors (1892); The Red Record (1895)

• Thorstein Veblen, The Higher Learning in America (1918)

• Upton Sinclair, The Goosestep: A Study of American Education (1923)

• Jessica Mitford, The American Way of Death (1963)

• Harriet A. Washington, Medical Apartheid (2006)

• Elisabeth Rosenthal, An American Sickness (2017)

• Higher Education Inquirer archives, 2014–2025

• Paucek v. Shaulis (filed October 2024, pending 2025)

Hyper Credentialism and the Neoliberal College Meltdown (Glen McGhee and Dahn Shaulis)

In the neoliberal era, higher education has become less a public good and more a marketplace of promises. The ideology of “lifelong learning” has been weaponized into an endless treadmill of hyper-credentialism — a cycle in which students, workers, and institutions are trapped in perpetual pursuit of new degrees, certificates, and micro-badges.

From Education to Signaling

Once, a college degree was seen as a path to citizenship and critical thought. Today, it’s a market signal — and an increasingly weak one. The bachelor’s degree no longer guarantees stable employment, so the system produces ever-more credentials: master’s programs, micro-certificates, “badges,” and other digital tokens of employability.

This shift doesn’t solve economic precarity — it monetizes it. Workers internalize the blame for their own stagnating wages, believing that the next credential will finally make them “market ready.” Employers, meanwhile, use credential inflation to justify low pay and increased screening, outsourcing the costs of training onto individuals.

A Perfect Fit for Neoliberalism

Hyper-credentialism is not a side effect; it’s a feature of the neoliberal education economy. It supports four pillars of the model:

Privatization and Profit Extraction – Public funding declines while students pay more. Each new credential creates a new revenue stream for universities, online program managers (OPMs), and ed-tech corporations.

Individual Responsibility – The structural causes of unemployment or underemployment are reframed as personal failures. “You just need to upskill.”

Debt Dependency – Students and workers finance their “reskilling” through federal loans and employer-linked programs, feeding the student-debt industry and its servicers.

Market Saturation and Collapse – As more credentials flood the market, each becomes less valuable. Institutions respond by creating even more credentials, accelerating the meltdown.

The Education-Finance Complex

The rise of hyper-credentialism is inseparable from the growth of the education-finance complex — a web of universities, private lenders, servicers, and Wall Street investors.
Firms like 2U, Coursera, and Guild Education sell the illusion of “access” while extracting rents from students and institutions alike. University administrators, pressured by enrollment declines, partner with these firms to chase new markets — often by spinning up online master’s programs with poor outcomes.

The result is a debt-driven ecosystem that thrives even as public confidence collapses. The fewer good jobs there are, the more desperate people become to buy new credentials. The meltdown feeds itself.

Winners and Losers

Winners: Ed-tech executives, university administrators, debt servicers, and the politicians who promote “lifelong learning” as a substitute for wage growth or labor rights.

Losers: Students, adjunct faculty, working-class families, and the public universities hollowed out by austerity and privatization.

The rhetoric of “upskilling” and “personal growth” masks a grim reality: a transfer of wealth from individuals to financialized institutions under the guise of opportunity.

A System That Can’t Redeem Itself

As enrollment declines and public trust erodes, the industry doubles down on micro-credentials and “stackable” pathways — small fixes to a structural crisis. Each badge, each certificate, is sold as a ticket back into the middle class. Yet every new credential devalues the old, producing diminishing returns for everyone except those selling the product.

Hyper-credentialism thus becomes both the symptom and the accelerant of the college meltdown. It sustains the illusion of mobility in a collapsing system, ensuring that the blame never reaches the architects of austerity, privatization, and financialization.

Sources and Further Reading

Brown, Wendy. Undoing the Demos: Neoliberalism’s Stealth Revolution.

Giroux, Henry. Neoliberalism’s War on Higher Education.

Cottom, Tressie McMillan. Lower Ed: The Troubling Rise of For-Profit Colleges in the New Economy.

The Higher Education Inquirer archives on the college meltdown, OPMs, and the debt economy.

The College Meltdown: A Retrospective

[In 2017, we collaborated with Crush the Street on a video describing the College Meltdown.]  

“Education is not merely a credentialing system; it is a humanizing act that fosters connection, purpose, and community.”

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Origins

The College Meltdown began in the mid-2010s as a blog chronicling the slow collapse of U.S. higher education. Rising tuition, mounting student debt, and corporatization were visible signs, but the deeper crisis was structural: the erosion of public accountability and mission.

By 2015, the warning signs were unmistakable to us. On some campuses, student spaces were closed to host corporate “best practices” conferences. At many schools, adjunct instructors carried the bulk of teaching responsibilities, often without benefits, while administrators celebrated innovation. Higher education was quietly being reshaped to benefit corporations over students and communities — a true meltdown.

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Patterns of the Meltdown

Enrollment in U.S. colleges began declining as early as 2011, reflecting broader demographic shifts: fewer children entering the system and a growing population of older adults. Small colleges, community colleges, and regional public universities were hardest hit, while flagship institutions consolidated wealth and prestige.

Corporate intermediaries known as Online Program Managers (OPMs) managed recruitment, marketing, and course design, taking large portions of tuition while universities retained risk. Fully automated robocolleges emerged, relying on AI-driven templates, predictive analytics, and outsourced grading. While efficient, these systems dehumanized education: students became data points, faculty became monitors, and mentorship disappeared.

“Robocolleges and AI-driven systems reduce humans to data points — an education stripped of connection is no education at all.”

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Feeding the AI Beast

As part of our effort to reclaim knowledge and influence public discourse, we actively contributed to Wikipedia. Over the years, we made more than 12,000 edits on higher education topics, ensuring accurate documentation of predatory practices, adjunct labor, OPMs, and corporatization. These edits both informed the public and, inadvertently, fed the AI beast — large language models and AI systems that scrape Wikipedia for training data now reflect our work, amplifying it in ways we could never have predicted.

“By documenting higher education rigorously, we shaped both public knowledge and the datasets powering AI systems — turning transparency into a tool of influence.”

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Anxiety, Anomie, and Alienation

The College Meltdown documented the mental health toll of these transformations. Rising anxiety, feelings of anomie, and widespread alienation were linked to AI reliance, dehumanized classrooms, insecure faculty labor, and societal pressures. Students felt like credential seekers; faculty suffered burnout.

“Addressing the psychological and social effects of dehumanized education is essential for ethical recovery.”

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Trump, Anti-Intellectualism, and Fear in the Era of Neoliberalism

The project also addressed the broader political and social climate. The Trump era brought rising anti-intellectualism, skepticism toward expertise, and a celebration of market logic over civic and moral education. For many, it was an era of fear: fear of surveillance, fear of litigation, fear of being marginalized in a rapidly corporatized, AI-driven educational system. Neoliberal policies exacerbated these pressures, emphasizing privatization, metrics, and competition over community and care.

“Living under Trump-era neoliberalism, with AI monitoring, corporate oversight, and mass surveillance, education became a space of anxiety as much as learning.”

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Quality of Life and the Call for Rehumanization

Education should serve human well-being, not just revenue. The blog emphasized Quality of Life and advocated for Rehumanization — restoring mentorship, personal connection, and ethical engagement.

“Rehumanization is not a luxury; it is the foundation of meaningful learning.”

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FOIA Requests and Whistleblowers

From the start, The College Meltdown relied on evidence-based reporting. FOIA (Freedom of Information Act) requests were used to obtain internal communications, budgets, and regulatory filings, shining light on opaque practices. Whistleblowers, including adjunct faculty and staff at universities and OPMs, provided firsthand testimony of misconduct, financial malfeasance, and educational dehumanization. Their courage was central to the project’s mission of transparency and accountability.

“Insider testimony and public records revealed the hidden forces reshaping higher education, from corporate influence to predatory practices.”

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Historical Sociology: Understanding the Systemic Collapse

The importance of historical sociology cannot be overstated in analyzing the decline of higher education. By examining the evolution of educational systems, we can identify patterns of inequality, the concentration of power, and the commodification of knowledge. Historical sociology provides the tools to understand how past decisions and structures have led to the current crisis.

“Historical sociology reveals, defines, and formulates patterns of social development, helping us understand the systemic forces at play in education.”

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Naming Bad Actors: Accountability and Reform

A critical aspect of The College Meltdown was the emphasis on naming bad actors — identifying and holding accountable those responsible for the exploitation and degradation of higher education. This included:

• University Administrators: Prioritizing profit over pedagogy.

• Corporate Entities: Robocolleges and OPMs profiting at the expense of educational quality.

• Political Figures and Ultraconservatives: Promoting policies that undermined public education and anti-intellectualism.

“Holding bad actors accountable is essential for meaningful reform and the restoration of education's ethical purpose.”

[In 2016, we called out several bad actors in for-profit higher education, including CEOs Jack Massimino, Kevin Modany, and Todd Nelson.] 

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Existential Aspects of Climate Change

The blog also examined the existential dimensions of climate change. Students and faculty face a dual challenge: preparing for uncertain futures while witnessing environmental degradation accelerate. Higher education itself is implicated, both as a contributor through consumption and as a forum for solutions. The looming climate crisis intensifies anxiety, alienation, and the urgency for ethical, human-centered education.

“Climate change makes the stakes of education existential: our survival, our knowledge, and our moral responsibility are intertwined.”

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Mass Speculation and Financialization

Another critical theme explored was mass speculation and financialization. The expansion of student debt markets, tuition-backed bonds, and corporate investments in higher education transformed students into financial instruments. These speculative dynamics mirrored broader economic instability, creating both a moral and systemic crisis for the educational sector.

“When education becomes a commodity for speculation, learning, mentorship, and ethical development are subordinated to profit and risk metrics.”

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Coverage of Protests and Nonviolent Resistance

The College Meltdown documented student and faculty resistance: tuition protests, adjunct labor actions, and campaigns against predatory OPM arrangements. Nonviolent action was central: teach-ins, sit-ins, and organized campaigns demonstrated moral authority and communal solidarity in the face of systemic pressures, litigation, and corporate intimidation.

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Collaboration and Resistance

Glen McGhee provided exceptional guidance, connecting insights on systemic collapse, inequality, and credential inflation. Guest authors contributed across disciplines and movements, making the blog a living archive of accountability and solidarity:

Guest Contributors:
Bryan Alexander, Ann Bowers, James Michael Brodie, Randall Collins, Garrett Fitzgerald, Erica Gallagher, Henry Giroux, David Halperin, Bill Harrington, Phil Hill, Robert Jensen, Hank Kalet, Neil Kraus, the LACCD Whistleblower, Wendy Lynne Lee, Annelise Orleck, Robert Kelchen, Debbi Potts, Jack Metzger, Derek Newton, Gary Roth, Mark Salisbury, Gary Stocker, Harry Targ, Heidi Weber, Richard Wolff, and Helena Worthen.

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Lessons from the Meltdown

The crisis was systemic. Technology amplified inequality. Corporate higher education rebranded rather than reformed. Adjunctification and labor precarity became normalized. Communities of color and working-class students suffered disproportionately.

Dehumanization emerged as a central theme. AI, automation, and robocolleges prioritized efficiency over mentorship, data over dialogue, and systems over human relationships. Rising anxiety, anomie, and alienation reflected the human toll.

“Rehumanization, mentorship, community, transparency, ethical accountability, and ecological awareness are essential to restore meaningful higher education.”

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Looking Forward

As higher education entered the Trump era, its future remained uncertain. Students, faculty, and communities faced fear under neoliberal policies, AI-driven monitoring, mass surveillance, litigation pressures, ultraconservative influence, climate crises, and financial speculation. Will universities reclaim their role as public goods, or continue as commodified services? The College Meltdown stands as a testament to those who resisted dehumanization and anti-intellectualism. It also calls for Quality of Life, ethical practice, mental well-being, environmental responsibility, and Rehumanization, ensuring education serves the whole person, not just the bottom line. 

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Sources and References

• Washington, Harriet A. Medical Apartheid. Doubleday, 2006.

• Rosenthal, Elisabeth. An American Sickness. Penguin, 2017.

• Skloot, Rebecca. The Immortal Life of Henrietta Lacks. Crown, 2010.

• Nelson, Alondra. Body and Soul. University of Minnesota Press, 2011.

• Paucek, Chip. “2U and the Growth of OPMs.” EdSurge, 2021. link

• Ravitch, Diane. The Death and Life of the Great American School System. Basic Books, 2010.

• Alexander, Bryan. Academia Next. Johns Hopkins University Press, 2020.

• U.S. Department of Education. “Closed School Information.” 2016–2020. link

• Federal Reserve Bank of New York. Student Debt Statistics, 2024. link

• Wayback Machine Archive of College Meltdown Blog: link

Can College Presidents Tell Us the Truth?

“Truth? You can’t handle the truth!” Jack Nicholson’s Colonel Jessup in A Few Good Men captures the tension at the heart of American higher education: can college presidents confront veritas—the deep, sometimes uncomfortable truths about their institutions—or will they hide behind prestige, endowments, and comforting illusions?

At the foundation of academia lies veritas, Latin for truth or truthfulness, derived from verus, “true” or “trustworthy.” Veritas is not optional decoration on a university crest; it is a moral and intellectual obligation. Yet 2025 reveals a system where veritas is too often sidelined: institutions obscure financial mismanagement, exploit adjunct faculty, overburden students with debt, and misrepresent outcomes to the public.

The Higher Education Inquirer (HEI) embodies veritas in action. In “Ahead of the Learned Herd: Why the Higher Education Inquirer Grows During the Endless College Meltdown,” HEI demonstrates that truth-telling can thrive outside corporate funding or advertising. By reporting enrollment collapses, adjunct exploitation, and predatory for-profit practices, HEI holds institutions accountable to veritas, exposing what many university leaders hope will remain invisible.

Leadership failures are a direct affront to veritas. “Scam Artist or Just Failed CEO?” scrutinizes former 2U CEO Christopher “Chip” Paucek, revealing misleading enrollment tactics and financial mismanagement that serve elite universities more than consumers. These corporate-style decisions in a higher education setting betray the very principle of veritas, prioritizing appearance and profit over educational integrity and human outcomes.

Student journalism amplifies veritas further. Through Campus Beat, student reporters uncover tuition hikes, censorship, and labor abuses, demonstrating that veritas does not belong only to administrators—it belongs to those who seek to document reality, often at personal and professional risk.

Economic and political realities also test veritas. In “Trumpenomics: The Emperor Has No Clothes,” HEI exposes how hollow economic reforms enrich a few while leaving the majority behind. Academia mirrors this pattern: when prestige is elevated over substance, veritas is discarded in favor of illusion, leaving students and faculty to bear the consequences.

Structural crisis continues. In “College Meltdown Fall 2025,” HEI documents federal oversight erosion, AI-saturated classrooms with rampant academic misconduct, rising student debt, and mass layoffs. To honor veritas, leaders would confront these crises transparently, but too often they choose comforting narratives instead.

Debt remains one of the clearest tests of institutional veritas. HEI’s “The Student Loan Mess: Next Chapters” shows how trillions in student loans have become instruments of social control. The Sweet v. McMahon borrower defense cases illustrate bureaucratic inertia and opacity, directly challenging the principles of veritas as thousands of debtors await relief that is slow, incomplete, and inconsistently applied.

Predatory enrollment practices further undermine veritas. Lead generators, documented by HEI, exploit student information to drive enrollment into high-cost, low-value programs, prioritizing revenue over truth, clarity, and student welfare. “College Prospects, College Targets” exposes how prospective students are commodified, turning veritas into a casualty of marketing algorithms.

Through all of this, HEI itself stands as a living testament to veritas. Surpassing one million views in July 2025, it proves that the public demands accountability, clarity, and honesty in higher education. Veritas resonates—when pursued rigorously, it illuminates failures, inspires reform, and empowers communities.

The question remains: can college presidents handle veritas—the unflinching truth about student debt, labor exploitation, mismanagement, and declining institutional legitimacy? If they cannot, they forfeit moral and public authority. Veritas is not optional; it is the standard by which institutions must be measured, defended, and lived.

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Sources

• Calling All Campus Reporters: Help Us Tell the Truth

• Trumpenomics: The Emperor Has No Clothes

• HEI Resources Fall 2025

• College Meltdown Fall 2025

• Why the Higher Education Inquirer Continues

• Higher Education Inquirer Surpasses 1 Million Views

• Scam Artist or Just Failed CEO?

• Lead Generators in Higher Education

• The Student Loan Mess: Next Chapters

• Sweet

• Elite University Presidents: Most Hated Men (and Women) on Campus

• Elite Universities on Lockdown. Protestors Regroup.

The Right-Wing Roots of EdTech

The modern EdTech industry is often portrayed as a neutral, innovative force, but its origins are deeply political. Its growth has been fueled by a fusion of neoliberal economics, right-wing techno-utopianism, patriarchy, and classism, reinforced by racialized inequality. One of the key intellectual architects of this vision was George Gilder, a conservative supply-side evangelist whose work glorified technology and markets as liberating forces. His influence helped pave the way for the “Gilder Effect”: a reshaping of education into a market where technology, finance, and ideology collide, often at the expense of marginalized students and workers.

The for-profit college boom provides the clearest demonstration of how the Gilder Effect operates. John Sperling’s University of Phoenix, later run by executives like Todd Nelson, was engineered as a credential factory, funded by federal student aid and Wall Street. Its model was then exported across the sector, including Risepoint (formerly Academic Partnerships), a company that sold universities on revenue-sharing deals for online programs. These ventures disproportionately targeted working-class women, single mothers, military veterans, and Black and Latino students. The model was not accidental—it was designed to exploit populations with the least generational wealth and the most limited alternatives. Here, patriarchy, classism, and racism intersected: students from marginalized backgrounds were marketed promises of upward mobility but instead left with debt, unstable credentials, and limited job prospects.

Clayton Christensen and Michael Horn of Harvard Business School popularized the concept of “disruption,” providing a respectable academic justification for dismantling public higher education. Their theory of disruptive innovation framed traditional universities as outdated and made way for venture-capital-backed intermediaries. Yet this rhetoric concealed a brutal truth: disruption worked not by empowering the disadvantaged but by extracting value from them, often reinforcing existing inequalities of race, gender, and class.

The rise and collapse of 2U shows how this ideology plays out. Founded in 2008, 2U promised to bring elite universities online, selling the dream of access to graduate degrees for working professionals. Its “flywheel effect” growth strategy relied on massive enrollment expansion and unsustainable spending. Despite raising billions, the company never turned a profit. Its high-profile acquisition of edX from Harvard and MIT only deepened its financial instability. When 2U filed for bankruptcy, it was not simply a corporate failure—it was a symptom of an entire system built on hype and dispossession.

2U also became notorious for its workplace practices. In 2015, it faced a pregnancy discrimination lawsuit after firing an enrollment director who disclosed her pregnancy. Women workers, especially mothers, were treated as expendable, a reflection of patriarchal corporate norms. Meanwhile, many front-line employees—disproportionately women and people of color—faced surveillance, low wages, and impossible sales quotas. Here the intersections of race, gender, and class were not incidental but central to the business model. The company extracted labor from marginalized workers while selling an educational dream to marginalized students, creating a cycle of exploitation at both ends of the pipeline.

Financialization extended these dynamics. Lenders like Sallie Mae and Navient, and servicers like Maximus, turned students into streams of revenue, with Student Loan Asset-Backed Securities (SLABS) trading debt obligations on Wall Street. Universities, including Purdue Global and University of Arizona Global, rebranded failing for-profits as “public” ventures, but their revenue-driven practices remained intact. These arrangements consistently offloaded risk onto working-class students, especially women and students of color, while enriching executives and investors.

The Gilder Effect, then, is not just about technology or efficiency. It is about reshaping higher education into a site of extraction, where the burdens of debt and labor fall hardest on those already disadvantaged by patriarchy, classism, and racism. Intersectionality reveals what the industry’s boosters obscure: EdTech has not democratized education but has deepened inequality. The failure of 2U and the persistence of predatory for-profit models are not accidents—they are the logical outcome of an ideological project rooted in conservative economics and systemic oppression.

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Sources

• EdSurge. “What a New Strategy at 2U Means for the Future of Online Higher Education.” August 5, 2022. https://www.edsurge.com/news/2022-08-05-what-a-new-strategy-at-2u-means-for-the-future-of-online-higher-education

• Newswire. “2U Faces Lawsuit for Pregnancy Discrimination.” June 2015. https://www.newswire.com/news/2u-faces-lawsuit-for-pregnancy-discrimination

• Christensen, Clayton M. and Michael B. Horn. Disrupting Class. McGraw-Hill, 2008.

• McMillan Cottom, Tressie. Lower Ed: The Troubling Rise of For-Profit Colleges in the New Economy. The New Press, 2017.

• Cellini, Stephanie Riegg. “For-Profit Higher Education: An Assessment of Costs and Benefits.” National Bureau of Economic Research, 2012.

• Rosenthal, Elisabeth. An American Sickness. Penguin, 2017.