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

Ambow Education Pushes AI Agenda Abroad While Raising Red Flags in the U.S.

Ambow Education, once linked to the Chinese Communist Party (CCP), is aggressively exporting its AI-driven education platform, HybriU™, to global markets—even as its footprint in the United States remains small and opaque. The company’s international ambitions raise questions about transparency, governance, and potential political influence.

Ambow’s recent partnership with Bamboo System Technology aims to scale HybriU’s AI-education ecosystem across Southeast Asia, touting a deeper technology stack and expanded distribution. Yet outside China, Ambow’s record is spotty, and critics warn that the firm’s rapid expansion may outpace oversight or educational rigor.

In the U.S., Ambow reportedly explored a partnership with Colorado State University (CSU), though details remain murky. Engagements like these, combined with its involvement with specialized institutions such as the NewSchool of Architecture and Design, suggest a strategy of targeting schools where oversight may be limited and innovation promises can be oversold.

That strategy has already seen major fallout. Bay State College, which Ambow once owned, officially closed its doors in 2024 after years of financial instability, regulatory scrutiny, and declining enrollment. The college’s demise, following Ambow’s acquisition and subsequent divestment, underscores the risks faced by institutions entangled with opaque foreign education firms that promise modernization but deliver financial collapse.

Despite these global ambitions, Ambow’s American presence is modest: a small office tucked in Cupertino, California, suggesting the company may be testing the waters in the U.S. market rather than committing to a major operational footprint.

Recent corporate moves add to the uncertainty. In October 2025, Ambow filed a stock offering for up to $80 million, a move that could significantly dilute existing shareholders and raise questions about its capital needs, liquidity, and long-term strategy. While the offering may be designed to fund global expansion of HybriU™, analysts have noted the lack of clear financial disclosures and the company’s history of volatile performance.

Promotional efforts also raise eyebrows. Former Adtalem executive James Bartholomew has been enlisted to boost Ambow’s profile, but whether his role is purely marketing or part of a broader legitimacy campaign remains unclear.

For U.S. institutions, Ambow’s history—including prior CCP ties, the collapse of Bay State College, and its aggressive share issuance—presents a cautionary tale: a company that combines ambitious AI promises with a murky past and minimal transparency. Ambow’s expansion illustrates a growing challenge in higher education—navigating partnerships with foreign edtech firms while safeguarding institutional integrity, regulatory compliance, and academic quality.

Sources: Ambow Education press releases, SEC filings, Bamboo System Technology announcements, Higher Education Inquirer reporting, and U.S. Department of Education data.

Fahmi Quadir, Adtalem, and the High-Stakes Ethics of Short-Selling

In the realm of Wall Street, few figures challenge the system from within quite like Fahmi Quadir. Known in financial circles as “The Assassin,” Quadir has made a name—and a mission—for herself by exposing fraud and predatory behavior in publicly traded companies. But unlike most short-sellers chasing profits on volatility, Quadir brings a moral clarity to her work, emphasizing that short-selling can be an instrument of justice when practiced with rigor, purpose, and transparency. Her recent campaign against Adtalem Global Education, a for-profit college conglomerate, underscores the power—and danger—of this approach.

Fahmi Quadir is the founder and Chief Investment Officer of Safkhet Capital, a short-only hedge fund she launched in 2017 at the age of 26. Safkhet is not your typical Wall Street operation. Built on deep forensic research and a mission to hold corporations accountable, the firm takes bold, high-conviction positions against companies it believes are engaged in deception, exploitation, or fraud.

Quadir's career trajectory is as unlikely as it is impressive. She originally planned to pursue a PhD in mathematics, but a series of encounters at New York’s National Museum of Mathematics—funded by quantitative finance giants like Renaissance Technologies—introduced her to a world where market dynamics and moral imperatives could collide. She quickly realized that capital markets held not just monetary power, but the potential to drive social change. With no formal finance background, she was identified by hedge fund insiders as a natural fit for short-selling. She dove in, eventually appearing in the 2018 Netflix documentary Dirty Money, which chronicled her pivotal role in the takedown of Valeant Pharmaceuticals.

In February 2024, Quadir spoke at Stanford’s Graduate School of Business during an event hosted by the Corporations and Society Initiative (CASI). In a conversation moderated by JD/MBA student Thomas Newcomb, she unpacked her approach to short-selling—one defined by intellectual rigor, emotional resilience, and moral conviction.

"Short selling means you borrow shares from your bank, sell them, and hope the price drops so you can buy them back at a lower price and pocket the difference," Quadir explained. “But prices can go up infinitely. The potential losses on a short are also infinite.”

That risk, she emphasized, is not theoretical—it’s lived. “You need to withstand a lot of pain,” she said. “Short-selling isn't for everyone. It’s about doing uncomfortable work, challenging popular narratives, and being willing to look like a fool—until you're proven right.”

And yet, in Quadir’s view, this discomfort is necessary. “Shorting is important for the functioning of our markets. It provides liquidity and price discovery. But in a tiny corner of the market, there are those of us who are using short selling as a way to expose injustice and correct bad capital market behavior.”

Quadir focuses on companies she believes are harming customers or committing fraud, rather than chasing momentum or hype. “We avoid situations of mass delusion,” she noted, “because mass delusion can stay delusional forever.”

Her most famous case remains the takedown of Wirecard AG, a German electronic payments firm that collapsed in 2020 amid massive accounting fraud. Safkhet's 25% short position on Wirecard was the culmination of years of research and collaboration with whistleblowers and law enforcement. It was a textbook example of what Quadir calls "story-driven" short-selling—piecing together a company's past to uncover the rot at its core.

She recounted a chilling origin story involving Wirecard’s founders, Markus Braun and Jan Marsalek—who is now a confirmed Russian agent—and an Austrian billionaire with ties to adult entertainment who allegedly used intimidation tactics to force a takeover. “When that’s part of your origin story,” she said, “whatever comes after is going to be epic.”

But Quadir’s sights have recently turned toward a different kind of fraud—one operating under the guise of education. In January 2024, Safkhet Capital released a detailed short report on Adtalem Global Education, labeling it a “toxic byproduct of an imperfect higher education system.” The report highlighted Adtalem’s dependence on federal student aid—more than 70% of its revenue—and exposed dismal outcomes at its institutions, including Walden and Chamberlain universities, both of which serve a disproportionately high number of Black and working-class women.

The report also noted a financial responsibility score of 0.2 out of 3.0—far below the threshold used by the U.S. Department of Education to flag institutions at risk of mismanaging federal funds. In Quadir’s view, Adtalem wasn’t just financially shaky—it was “completely uninvestable.”

The market agreed. Following Safkhet’s report, Adtalem’s stock dropped 19% in a single day, with further losses in the days that followed. The company attempted to halt trading and accused Quadir of “short and distort” tactics—a claim that fell flat. “It was very satisfying after that hold was released to see the market validate our thesis,” she said. “Their strategy backfired.”

At Stanford, Quadir reflected on why she made the Adtalem report public: “There was an informational vacuum around this company. The shareholder base was largely passive. No one was doing the kind of research or analysis we were doing.”

But Quadir is quick to point out that short-sellers alone cannot fix a broken system. “Nothing is going to change if there isn’t enforcement,” she said. “We need to have some high-profile cases where people go to jail. These characters continue to get away with it or settle, and what happens? Their stocks go up.”

She remains hopeful, however, that markets—if given the right incentives—can self-correct. “I think the greatest believers in market efficiency have to be short sellers. I believe capital markets can correct bad behavior, and that benefits all of us.”

Short-selling, when practiced ethically, is not about sabotage. It is about storytelling, investigation, and risk—a lot of risk. Quadir’s approach requires patience, emotional stamina, and intellectual courage. It is not for the faint of heart. But in a world where regulators are often captured and media attention can be fleeting, short-sellers like Quadir play an essential, if controversial, role.

Her work against Adtalem is not just a case study in financial activism. It is a call to reexamine how markets reward failure, how federal funds prop up predatory institutions, and how silence—especially in higher education—can be bought. As Quadir puts it, “We have the power to affect change. We just have to be willing to take the hits.”

Sources

This article draws significantly from the February 2024 Stanford Graduate School of Business event, A Conversation with Fahmi Quadir, Wall Street’s Fearless Short Seller, hosted by the Corporations and Society Initiative (CASI). The event transcript and summary are available at https://casi.stanford.edu/news/conversation-fahmi-quadir-wall-streets-fearless-short-seller.

Additional information was compiled from the Safkhet Capital short report on Adtalem Global Education (January 2024), publicly available statements by Adtalem Global Education, coverage of Adtalem’s stock movement by MarketWatch and Bloomberg, investigations into Wirecard by the Financial Times, and Quadir’s portrayal in the 2018 Netflix documentary Dirty Money.

Legal responses to Safkhet’s report were also noted from Pomerantz LLP and Block & Leviton, which opened shareholder investigations into Adtalem in January 2024. Data from the U.S. Department of Education regarding Title IV funding and financial responsibility scores was used to contextualize Adtalem’s regulatory risk.

For further background on short-selling’s role in price discovery and enforcement gaps in higher education, see related coverage in The Wall Street Journal, The Chronicle of Higher Education, and Inside Higher Ed.

Murky Waters 2: Ambow Education, Chinese Influence, and US Edtech, 2013-2025

In Chinese culture, there’s an old proverb: “混水摸鱼” — “In murky waters, it is easier to catch fish.” The lesson is clear: confusion and opacity benefit those looking to manipulate outcomes for personal gain. In politics, finance, and international affairs, it is a warning. In the case of Ambow Education Holding Ltd., it may be a roadmap.

On June 26, 2025, Ambow announced a partnership with the tiny University of the West (UWest), a Buddhist college in Rosemead, California, enrolling just 153 students. The deal will implement Ambow’s HybriU platform—a so-called “phygital” learning solution combining digital and physical education delivery—positioning the technology as a tool for expanding U.S. academic access to international students. But a closer look reveals a story less about educational innovation than about power, soft influence, and the financialization of struggling institutions.

Ambow, a Cayman Islands–registered and formerly Beijing-based EdTech firm, has quietly entrenched itself in U.S. higher education. While other sectors of the U.S. economy—especially semiconductors and AI—have become more cautious of Chinese-linked investment due to national security concerns, American higher education remains notably exposed. The Ambow-UWest partnership exemplifies that vulnerability.

This is not Ambow’s first foray into U.S. academia. In 2013, the company was delisted from the New York Stock Exchange and liquidated after accusations of accounting irregularities. Rebranded and restructured offshore, Ambow re-entered the market, acquiring distressed for-profit colleges. In 2017, it bought Bay State College in Boston. Three years later, Massachusetts fined the school $1.1 million for fraudulent advertising, inflated placement rates, and illegal telemarketing. The school shuttered in 2023 after eliminating key services, including its library, and squandering pandemic-era federal aid.

In 2020, Ambow acquired the NewSchool of Architecture and Design in San Diego. Since then, NewSchool has appeared on the U.S. Department of Education’s Heightened Cash Monitoring 2 list, signifying severe financial instability. Lawsuits followed, including one for unpaid rent and another over compensation disputes involving the school’s former president.

Still, Ambow continues to market itself as a leader in “AI-driven” phygital innovation. HybriU, its flagship platform, has been promoted at edtech and investor conferences like CES and ASU-GSV, with lofty promises about immersive education and intelligent classrooms. But the evidence is thin. The platform’s website contains vague marketing language, no peer-reviewed validation, no public client list, and stock images masquerading as real users. Its core technology, OOOK (One-on-One Knowledge), was piloted in China in 2021 but shows no signs of adoption by credible U.S. institutions.

Why, then, would a college like University of the West—or potentially a major public institution like Colorado State University (CSU), reportedly exploring a partnership with Ambow—risk associating with such an entity?

To understand the stakes, we must follow the money and the power behind the brand.

Ambow’s largest shareholder bloc is controlled by Jian-Yue Pan (aka Pan Jianyue), a Chinese executive with deep ties to the country’s tech and investment elite. Pan is general partner of CEIHL Partners I and II, two Cayman Islands entities that control roughly 26.7 percent of Ambow’s publicly floated Class A shares. He also chairs Uphill Investment Co., which is active in the semiconductor and electronics sectors, and holds board positions in tech firms with connections to Tsinghua University—one of China’s premier talent pipelines for its national strategic industries.

Pan’s voting control over Ambow gives him sweeping influence over its corporate decisions, executive appointments, and strategic direction. His role raises critical concerns about the use of U.S. higher education infrastructure as a potential channel for data access, market expansion, and soft geopolitical influence.

To further legitimize its U.S. operations, Ambow recently appointed James Bartholomew as company president. Bartholomew’s resume includes controversial stints at DeVry University and Adtalem Global Education. While at DeVry, the institution was fined $100 million by the FTC for deceptive marketing. At Adtalem, he oversaw operations criticized for offshore medical schools and active resistance to gainful employment regulations.

Even Ambow’s financial underpinnings are suspect. Its R&D spending hovers around $100,000 per quarter—trivial for a firm purporting to lead in AI and immersive tech. Its audits are performed by Prouden CPA, a virtually unknown Chinese firm, not one of the major global accounting networks. These red flags suggest not a dynamic tech company, but a shell operation kept afloat by hype, misdirection, and strategic ambiguity.

That makes its ambitions in U.S. public education all the more dangerous.

Reports that Colorado State University—a land-grant institution managing sensitive federal research—may be considering a partnership with Ambow should prompt urgent scrutiny. Has CSU conducted a full cybersecurity and national security risk assessment? Have university stakeholders—faculty, students, and the public—been involved in the review process? Or is the university racing blindly into an agreement driven by budget pressures and buzzwords?

American higher education has long been susceptible to bad actors promising solutions to enrollment declines and funding shortfalls. But in recent years, the cost of these decisions has grown. With campuses increasingly dependent on international student tuition and digital platforms, the door has opened to exploitative operators and geopolitical influence.

Ambow has already shuttered one U.S. college. Its remaining campus is on shaky footing. Its technology lacks serious vetting. Its leadership is tethered to past scandals. And its largest shareholder has interests far beyond education.

This is not just about Ambow. It is about the structural vulnerabilities in American higher education—an industry ripe for manipulation by financial speculators, tech opportunists, and foreign actors operating with impunity. The murky waters of privatized, digitized education reward those who operate without transparency.

Public universities must remember who they serve: students, faculty, and the public—not offshore shareholders or unproven platforms.

If Colorado State or any other institution moves forward with Ambow, they owe the public clear answers: What protections are in place? What risks are being considered? Who really controls the platforms delivering instruction? And most importantly, why are public institutions turning to unstable, opaque companies for core educational delivery?

As the proverb reminds us, murky waters are fertile ground for hidden agendas. But education, above all, demands clarity, integrity, and public accountability.

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Sources:

• SEC filings and 20-F reports: sec.gov

• Massachusetts Attorney General settlement with Bay State College, March 2020

• Federal Trade Commission settlement with DeVry University, December 2016

• U.S. Department of Education Heightened Cash Monitoring List

• NYSE delisting notices, 2013

• CES and ASU-GSV conference archives, 2023–2024

• Corporate data from MarketScreener and CEIHL Partners

• Ambow’s 2023 Annual Report and quarterly 6-K filings

Ambow Education's Latest Move Raises Red Flags—A Second Warning to Colorado State University

On June 11, Ambow Education Holding Ltd. (NYSE American: AMBO) announced the appointment of James Bartholomew as its new president, emphasizing his leadership experience at DeVry University and Adtalem Global Education. While this move is being framed as part of a bold pivot toward global expansion through its hybrid learning platform, HybriU, the deeper reality of Ambow’s operations suggests that institutions like Colorado State University (CSU) should proceed with extreme caution.

Ambow Education is no stranger to controversy. In May 2022, The Higher Education Inquirer began investigating the company after credible tips about its mismanagement of Bay State College in Boston. The Massachusetts Attorney General had already fined the school in 2020 for misleading students. By August 2023, Bay State College closed abruptly, leaving behind a mess for students and staff. Throughout this time, Ambow operated with an alarming level of opacity, raising concerns among journalists, regulators, and public officials—including Senator Elizabeth Warren and Representative Ayanna Pressley.

Ambow’s financial practices and leadership structure have remained elusive, with lingering ties to the People’s Republic of China (PRC). The company sold its PRC-based assets in 2022 and relocated to a small office in Cupertino, California, but its auditor remains based in China, and it has expressed interest in projects in Morocco and Tunisia involving Chinese-affiliated partners. The proverb about fishing in murky waters aptly describes how Ambow has operated in both Chinese and American markets.

Now, Ambow is promoting HybriU, a “phygital” platform it claims is revolutionizing education and corporate communication. Marketed heavily at events like CES and ASU-GSV, HybriU has been linked to a $1.3 million contract with a small firm in Singapore, but no major U.S. clients have been named. Visuals from the company’s website include stock images, and there’s no publicly available evidence that HybriU is delivering measurable results in any real-world education setting. The platform’s “OOOK” (One-on-One Knowledge) technology was first introduced in China in 2021, but it has yet to prove itself in American classrooms.

James Bartholomew’s appointment appears to be aimed at lending credibility to the HybriU initiative. However, his background warrants a closer look. DeVry University, where Bartholomew previously served as CEO, was embroiled in a long list of scandals, including a $100 million settlement with the Federal Trade Commission in 2016 for deceptive advertising practices. These included inflated job placement claims and misleading earnings expectations for graduates. The Department of Education also scrutinized DeVry for poor student loan repayment metrics and aggressive recruiting tactics.

At Adtalem Global Education—DeVry’s former parent company—similar concerns persisted. Offshore medical schools under Adtalem’s umbrella, such as Ross University and American University of the Caribbean, were criticized for high tuition, student debt, and low U.S. residency placement rates. The company spent years lobbying against federal gainful employment regulations that were designed to protect students from predatory institutions. While Bartholomew may not have initiated these practices, he held leadership roles during a time when the institutions were navigating declining trust, financial turbulence, and increasing regulatory scrutiny.

Against this backdrop, reports have emerged that Colorado State University is considering a partnership with Ambow to implement the HybriU platform. On the surface, this might seem like a step toward innovation and flexibility in digital learning. But such a partnership could expose CSU to national security and data privacy risks, regulatory backlash, reputational damage, and questionable academic outcomes.

Given Ambow’s historical ties to the PRC, questions have been raised about the possibility of exposing sensitive university data to foreign surveillance or influence. CSU is a major research university with partnerships across science, defense, and technology. Even the perception that its digital infrastructure could be compromised could undermine public trust and jeopardize government grants and contracts.

The regulatory landscape is also increasingly cautious when it comes to foreign influence, particularly from China, in American higher education. Federal agencies have warned about the risks of partnerships that could compromise institutional independence or data integrity. Entering into a relationship with a firm like Ambow could place CSU under increased scrutiny or spark political backlash.

From a pedagogical perspective, HybriU is unproven. It has yet to demonstrate any significant results in U.S. education settings, and its claims are not substantiated by independent data. Adopting a platform without a strong record could endanger CSU’s teaching mission and student learning experiences at a time when the credibility of online education remains fragile.

Historically, investors and institutions have backed away from Ambow. The company was delisted from the NYSE in 2014 following accounting fraud allegations and shareholder lawsuits. It has struggled to maintain financial health and transparency. Its last remaining U.S. college, NewSchool of Architecture and Design in San Diego, has just 280 students and is currently under Heightened Cash Monitoring (HCM2) by the U.S. Department of Education. Lawsuits in San Diego allege non-payment of rent and unpaid compensation to the school’s former president. 

Meanwhile, Ambow has commissioned favorable research reports—like one from Argus Research—even though its spending on research and development remains remarkably low, at only $100,000 per quarter. Its current auditor, Prouden CPA, is new to the company’s books and based in China. Whether Ambow’s next annual report will bring clarity or further confusion remains to be seen.

For these reasons, The Higher Education Inquirer urges the leadership of Colorado State University to approach Ambow with skepticism and perform exhaustive due diligence. The CSU community deserves full transparency regarding Ambow’s ownership, financial practices, and data handling policies. Decisions should be made in consultation with cybersecurity experts, faculty, IT professionals, and government advisors. Alternative domestic edtech providers should be considered—especially those that are accountable, proven, and aligned with CSU’s mission.

At a time when public trust in higher education is strained and geopolitical tensions are high, it is not enough to adopt flashy technology for the sake of appearance. Colorado State University—and the taxpayers who support it—deserve better than an experiment based on unproven claims and a troubling history. CSU should reconsider any move forward with Ambow, before it finds itself entangled in another education debacle disguised as innovation.

Walden University President Michael Betz Cashing In

Walden University President Michael Betz has sold $380,000 worth of Adtalem shares. Walden is one of America's largest robocolleges, proving online education to tens of thousands of folks in psychology, social work, nursing, education, business, and criminal justice each year.  

Adtalem, formerly known as DeVry Education, is Walden's parent company.  Adtalem also owns the Chamberlain College of Nursing and medical schools in the Carribean.  Walden and Adtalem have been profitable despite mediocre results for worker/consumers, a disproportionate number are women and people of color.  

In 2024, Walden settled a case for $28M that claimed the school systematically deceived black and female students.   

2025 Will Be Wild!

2025 promises to be a disruptive year in higher education and society, not just in DC but across the US. While some now can see two demographic downturns, worsening climate conditions, and a Department of Education in transition, there are other less predictable and lesser-known trends and developments that we hope to cover at the Higher Education Inquirer. 

The Trump Economy

Folks are expecting a booming economy in 2025. Crypto and AI mania, along with tax cuts and deregulation, mean that corporate profits should be enormous. The Roaring 2020s will be historic for the US, just as the 1920s were, with little time and thought spent on long-range issues such as climate change and environmental destruction, economic inequality, or the potential for an economic crash.  

A Pyramid, Two Cliffs, a Wall and a Door  

HEI has been reporting about enrollment declines since 2016.  Smaller numbers of younger people and large numbers of elderly Baby Boomers and their health and disability concerns spell trouble ahead for states who may not consider higher education a priority. We'll have to see how Republican promises for mass deportations turn out, but just the threats to do so could be chaotic. There will also be controversies over the Trump/Musk plan to increase the number of H1B visas.  

The Shakeup at ED

With Linda McMahon at the helm of the Department of Education, we should expect more deregulation, more cuts, and less student loan debt relief. Mike Rounds has introduced a Senate Bill to close ED, but the Bill does not appear likely to pass. Diversity, Equity, and Inclusion (DEI) efforts may take a hit. However, online K12 education, robocolleges, and surviving online program managers could thrive in the short run.   

Student Loan Debt 

Student loan debt is expected to rise again in 2025. After a brief respite from 2020 to late 2024, and some receiving debt forgiveness, untold millions of borrowers will be expected to make payments that they may not be able to afford. How this problem affects an otherwise booming economy has not been receiving much media attention. 

Policies Against Diversity, Equity, and Inclusion

This semester at highly selective institutions, Black first-year student enrollment dropped by 16.9 percent. At MIT, the percentage of Black students decreased from 15 percent to 5 percent. At Harvard Law School, the number of Black law students has been cut by more than half.  Florida, Texas, Alabama, Iowa and Utah have banned diversity, equity and inclusion (DEI) offices at public universities. Idaho, Indiana and Kansas have prohibited colleges from requiring diversity statements in hiring and admissions. The resistance so far has been limited.

Failing Schools and Strategic Partnerships 

People should expect more colleges to fail in the coming months and years, with the possibility that the number of closures could accelerate. Small religious schools are particularly vulnerable. Colleges may further privatize their operations to save money and make money in an increasingly competitive market.

Campus Protests and Mass Surveillance

Protests may be limited out of fear of persecution, even if there are a number of legitimate issues to protest, to include human induced climate change, genocide in Palestine, mass deportations, and the resurgence of white supremacy. Things could change if conditions are so extreme that a critical mass is willing to sacrifice. Other issues, such as the growing class war, could bubble up. But mass surveillance and stricter campus policies have been emplaced at elite and name brand schools to reduce the odds of conflict and disruption.

The Legitimization of Robocollege Credentials    

Online higher education has become mainstream despite questions of its efficacy. Billions of dollars will be spent on ads for robocolleges. Religious robocolleges like Liberty University and Grand Canyon University should continue to grow and more traditional religious schools continue to shrink. University of Southern Hampshire, Purdue Global and Arizona Global will continue to enroll folks with limited federal oversight.  Adult students at this point are still willing to take on debt, especially if it leads to job promotions where an advanced credential is needed. 

Apollo Global Management is still working to unload the University of Phoenix. The sale of the school to the Idaho Board of Education or some other state organization remains in question.

AI and Cheating 

AI will continue to affect society, promising to add more jobs and threatening to take others.  One less visible way AI affects society is in academic cheating.  As long as there have been grades and competition, students have cheated.  But now it's become an industry. Even the concept of academic dishonesty has changed over the years. One could argue that cheating has been normalized, as Derek Newton of the Cheat Sheet has chronicled. Academic research can also be mass produced with AI.   

Under the Radar

A number of schools, companies, and related organizations have flown under the radar, but that could change. This includes Maximus and other Student Loan Servicers, Guild Education, EducationDynamics, South University, Ambow Education, National American University, Perdoceo, Devry University, and Adtalem. 

Related links:

Survival of the Fittest

The Coming Boom 

The Roaring 2020s and America's Move to the Right

Austerity and Disruption

Dozens of Religious Schools Under Department of Education Heightened Cash Monitoring

Shall we all pretend we didn't see it coming, again?: higher education, climate change, climate refugees, and climate denial by elites

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

Tracking Higher Ed’s Dismantling of DEI (Erin Gretzinger, Maggie Hicks, Christa Dutton, and Jasper Smith, Chronicle of Higher Education). 

Layoffs in Higher Education

The Layoff.com is a "simple discussion board" for workers who would like to learn more about the rumors or possibility of job cuts in their organization. It's also been helpful for us to understand what has been happening behind the scenes in the US Higher Education business. 

We have been observing and participating on this website for more than a dozen years, watching the fall of Corinthian Colleges (Everest College, Wyotech, and Heald), ITT Tech, Education Management Corporation (the Art Institutes and South University), the partial collapse of Apollo Group (University of Phoenix), Perdoceo (formerly Career Education Corporation), and Laureate International, and the transformation of Kaplan University to Purdue University Global and Bridgepoint Education (Ashford University) to University of Arizona Global.   

 

 

 

As the College Meltdown has advanced, we have also observed a number of private schools collapse and public colleges and universities struggle. As enrollments continue to drop, we can expect more layoffs to occur and for education related businesses to struggle more.  

 

The contents of this article are updated periodically, to illustrate trends in the College Meltdown.  The most recent update was published October 29, 2024.  2U, the online program manager for elite university certificates has been the poster child in 2024, but there are many other companies and institutions in peril.  

 

2U and edX 

 

Adtalem Global Education  

 

Albright College

 

Baldwin-Wallace University  

Barnes and Noble College Booksellers

 

Cengage

Chegg

 

Concordia University, Ann Arbor

Coursera

 

Delta State University 

 

DeVry University 

 

Emerson College 

 

Gwynedd-Mercy University 

 

Keystone College  

 

Maximus 

 

National American University 

 

Navient 

 

Northern Illinois University 

 

Penn State University  

 

Perdoceo   

 

Portland State University 

 

Saint Cloud State University 

 

Sallie Mae  

 

Southern New Hampshire University 

 

Tennessee State University

 

Udemy 

University of Arizona 

University of Maryland Global 

 

University of New Orleans 

 

University of North Carolina, Asheville

 

University of Phoenix 

 

University of Wisconsin-Milwaukee 

 

Walden University 

 

Western Illinois University   

 

Western Washington University 

West Virginia University 

 

Wittenberg University 

College Meltdown 2.1

The Higher Education Inquirer has added three companies to its College Meltdown watchlist: Ambow Education (AMBO),  SoFi (SOFI), and Adtalem (ATGE).  

Leading the way is National American University Holdings (NAUH), which is down to less than $50,000 in cash.  Ambow Education (AMBO) and Aspen Group (ASPU) are near penny stock territory and Barnes and Noble Education (BNED) and SoFi (SOFI) are also in deep financial trouble. 

Declining share price is not the only factor to make the College Meltdown list.  Government contractor Maximus (MMS), for example, is on the list for its predatory behavior with student debtors and its own workers, as well as its questionable contracts with the US Department of Education. 

Adtalem makes the list for continuing to put lots of working-class folks (particularly women and people of color) into a lifetime of student loan debt. 

2U is identified for its fleecing of its clients (universities), end customers (students) and shareholders.  In its last annual report, the company told shareholders that the number one risk was that it may never make a profit.  

2U (TWOU) Shares have dropped 70 percent over the last year (Source: Seeking Alpha) 

Shares of student loan refinance company SoFi (SOFI) are down 70 percent over the last year 

(Source: Seeking Alpha)

Barnes and Noble Education (BNED) shares have dropped 66 percent over the last 6 months.

(Source: Seeking Alpha)

Aspen Group (ASPU) shares have declined 82 percent over the last year. 

(Source: Seeking Alpha) 

Related link: College Meltdown 2.0

Related link: Maximus, Student Loan Debt, and the Poverty Industrial Complex

Related link: Online Program Manager for University of Arizona Global Campus Facing Financial Collapse

Related link: College Meltdown 2.0

Related link: 2U Virus Expands College Meltdown to Elite Universities

Higher Ed Became More Brutal During 2020-21 Pandemic

The Covid-19 pandemic was the largest news item in US higher education in 2020 and the beginning of 2021.  It certainly had an effect on higher education enrollment and revenues.   But the larger story, according to author Gary Roth, was that the “College Dream is Over.”  

College is supposed to be a transitional space between K-12 education and good jobs. But savage inequalities in the K-12 pipeline, alienating and sometimes questionably substandard online education, and fewer good jobs at the end of the pipeline meant that more students would be unprepared for college and for work life in the brutal tech (fintech, medtech, and edtech) and gig economy.  

Banks and big businesses (including brand name universities and for-profit colleges ) were bailed out twice in 2020 by the federal government as student debtors only got temporarily relief.  

Savage inequalities in the K-12 pipeline intensified with online education and the hollowing out of America continued.  

Under the Trump administration, privatization, deregulation, and lack of transparency  (in gainful employment, defense to repayment, student loan repayment rate) were the rule.  2021 shows promise for progressive change, but we'll have to wait and see if anything gets done to reduce the College Meltdown.  

• The Student Debt Crisis is a Crisis of Non-Repayment (Marshall Steinbaum)
• More people with bachelor’s degrees go back to school to learn skilled trades (John Marcus, Hechinger Report)
• Student Loan Losses Seen Costing U.S. More Than $400 Billion (Josh Mitchell, Wal Street Journal)
• Nearly All States Suffer Declines in Education Jobs (Barb Rosewicz & Mike Maciag, Pew)
• COVID-19 Will Likely Shrink Job Market For College Grads (Government Executive)
• Law student debt averages about $165K at graduation, creating stress and restricting choices, survey says (Debra Cassens Weiss, ABA Journal)
• Higher Ed's Dirty Little Secrets (Steven Mintz, Inside Higher Education)
• Colleges Slash Budgets in the Pandemic, With ‘Nothing Off-Limits’ (Shawn Hubler, NY Times)
• Permamanent Budget Cuts Are Coming (Robert Kelchen, CHE)
• A Separate And Unequal System of College Admissions (Anthony Abraham, NY Times)
• House Democrats Drop Canceling Student Loans (Kery Murakami, IHE)
• College Town Economies Brace for Covid Blow (WSJ)
• 30 college towns that could face economic ruin if schools don't reopen or have to close again this fall (Madison Hoff, Business Insider)
• Laureate Education to Sell Walden University to Adtalem Global Education (Market Watch)
• 'It's going horribly': College towns fret about census count (ABC News)
• Student Loans Plummeted for the Summer Term (Kevin Miller, The Century Foundation)
• University of Arizona Acquires Ashford University (IHE, Lindsay McKenzie)
• The Nightmare That Colleges Face This Fall (Adam Harris, The Atlantic)
• No students. No graduation. ‘Total devastation’ in college towns during coronavirus pandemic (Zoe Nicholson and Ed Semmler,Yahoo Finance)
• University Leaders Are Failing (François Furstenberg, Chronicle of Higher Education)
• The Coming Disruption of Higher Education (New York interview with Scott Galloway)
• Demand for refunds intensifies among college students (Jessica Dickler, CNBC)
• Latest Coronavirus News (Inside Higher Education)
• Coronavirus Pushes Colleges to the Breaking Point, Forcing 'Hard Choices' about Education (Wall Street Journal)
• Adjuncts Barely Getting By (Colleen Flaherty, IHE)
• Students are considering dropping out of college because of coronavirus (Abigail Hess, MSN.com)
• Will Parents Pay? (Scott Jaschik, Inside Higher Ed)
• Masters of None (Grace Gedye, Washington Monthly)
• Public Colleges Face Looming Financial Blow (Kery Murakami, Inside Higher Education)
• With May 1 'Decision Day' Looming, 69 Percent of Parents and 55 Percent of Students Say Coronavirus Has Impacted Their Ability to Pay for College (KPVI)
• ‘I Was Horrified’: For Millions of Borrowers, the Coronavirus Stimulus Law Offers No Relief (Danielle McLean, Chronicle of Higher Education)
• Preparing for a Fall Without In-Person Classes (Doug Lederman, Inside Higher Education)
• Presidents Fear Financial, and Human, Toll of Coronavirus (Doug Lederman, Inside Higher Education)
• Will spring breakers become super-spreaders? (Politico)
• The Real Lesson of the College Closures (Saahil Desai, The Atlantic)
• To Fight Coronavirus, Colleges Sent Students Home. Now Will They Refund Tuition? (Melissa Korn and Douglas Belkin, Wall St. Journal)
• The Covid-19 Crisis Is Widening the Gap Between Secure and Insecure Instructors (Megan Zahneis, Chronicle of Higher Education)
• Moody's lowers higher ed outlook to negative amid coronavirus crisis (Jeremy Bauer-Wolf, Education Dive)
• What Is a College Education in the Time of Coronavirus? (NY Times Opinion)
• Community Colleges and the Coronavirus (Madeline St. Amour, Inside Higher Education)
• California AG sues Betsy DeVos for overturning Obama-era rule aimed at for-profit colleges (Aarthi Swaminathan, Yahoo Finance)
• Coronavirus and Admissions Fears (Scott Jaschick, Inside Higher Education)
• Already stretched universities now face huge endowment losses from market meltdown (PBS, Jon Marcus)
• Uncertain Fate for Support Staff (Lilah Burke, IHE)
• 41% of Recent Grads Work in Jobs Not Requiring a Degree (Inside Higher Education)