Preston Cooper Is Wrong: Enrollment Is Only One of Higher Education’s Many Crises

In a recent American Enterprise Institute article, Preston Cooper insists that the post-2010 collapse in college enrollment is “a correction, not a crisis.” According to Cooper, students are becoming more discerning consumers, abandoning low-value colleges and low-ROI degrees while flocking to higher-quality institutions and more lucrative majors. In this narrative, the system is simply shedding inefficiencies. The market is working.

But this argument is incomplete to the point of distortion. Enrollment decline is not a tidy market correction. It is a symptom of profound structural problems: affordability, inequality, political interference, labor exploitation, deteriorating academic quality, widespread cheating, and the growing reliance on “robocolleges” and automated learning platforms with questionable educational value. Cooper’s analysis ignores all of this and reduces higher education to a single variable—student choices—when the system is being reshaped by forces far larger and more corrosive than consumer preference.

Affordability remains the biggest barrier to access. Surveys repeatedly show that adults who never enrolled or who dropped out cite cost as their primary obstacle, and higher education leaders themselves acknowledge that families often do not understand the real price until they are already overwhelmed. Tuition, fees, housing, food, and transportation are enough to make college inaccessible for millions. This is not a sign of students shopping wisely; it is evidence of a system that has priced out vast segments of the population.

Cooper’s argument also ignores how structural inequalities determine who even reaches the point of decision-making. Research from multiple institutions shows that disparities in academic preparation—rooted in racial segregation, school funding inequity, socioeconomic status, and access to quality teachers—heavily influence college-going patterns. Students from under-resourced schools or low-income families do not have equal access to information, support systems, or opportunities. The idea that they are “choosing” not to attend low-value schools disregards the constraints that shape those choices.

Meanwhile, colleges themselves are destabilizing. Shrinking enrollments and stagnant public funding have produced financial crises across the sector. Even reputable institutions rely on aggressive discounting, program cuts, hiring freezes, and dependence on contingent faculty. Student support services shrink while administrative costs continue to rise. Cooper’s framing of “let the weak fail” overlooks the collateral damage: students denied needed resources, programs eliminated, and entire communities harmed when regional colleges collapse.

The crisis extends beyond finances. Students’ freedom of speech is increasingly under pressure as state legislatures, governors, and politically reactive boards restrict curricula, censor faculty, and monitor student organizations. Expression around race, inequality, gender, and geopolitical issues is under surveillance or actively punished. Whether driven by conservative politics, donor pressure, or administrative fear of controversy, the suppression of student and faculty voices undermines the university’s democratic mission.

Cooper also fails to address the degrading working conditions of adjunct faculty, who now make up the majority of instructors. Adjuncts often earn poverty-level wages, lack health insurance, and have no job security. Many teach at multiple institutions simply to survive. The system Cooper describes as “self-correcting” rests on the exploitation of the people responsible for delivering the education students are supposedly choosing.

Then there are the emerging problems he completely ignores: robocolleges and AI-driven instruction. As institutions cut costs, many outsource teaching to automated platforms, online mega-providers, and algorithmic tutoring systems. These “robocolleges” promise efficiency but often deliver shallow instruction, predatory recruitment, weakened student support, and minimal human interaction. They generate revenue, but not always learning. Cooper assumes that students are leaving low-value institutions, yet many of these automated systems are themselves low-value—and increasingly difficult to regulate or evaluate.

The rise of automated education connects directly to another crisis: academic integrity. AI-assisted cheating is now widespread across campuses. Students, overwhelmed by cost pressures, mental health struggles, large class sizes, and insufficient support, increasingly rely on AI tools to complete assignments without understanding the material. Instructors struggle to identify misconduct, institutions scramble to respond, and genuine learning becomes harder to guarantee. This is not the sign of a system “correcting” itself. It is evidence of a sector that has lost its footing and is failing to uphold educational standards.

Cooper’s argument rests on the assumption that higher education should primarily be judged by short-term labor-market returns. But higher education is more than a job-training pipeline. It is a public good that supports social mobility, civic participation, community development, scientific and cultural advancement, and democratic life. A system that suppresses speech, exploits faculty, overrelies on automated instruction, and cannot distinguish real learning from AI-generated work is not corrected. It is in crisis.

The enrollment decline is real, but it is only the surface. Beneath it lies a system plagued by affordability barriers, entrenched inequality, political intrusion, labor precarity, academic degradation, technological misuse, and rising distrust. To call this a “correction” is to look away from the deeper rot. For students, educators, and communities, it is a crisis—one that demands urgent structural reform rather than market-based optimism.

Sources
National Association of Student Financial Aid Administrators (NASFAA). “The Biggest Barriers to Higher Education Enrollment Are Cost and Lack of Financial Aid.”
Inside Higher Ed. “Student Success Leaders Worry About Affordability, AI, and DEI.”
Brookings Institution. “Persistent Gaps in Academic Preparation Generate College Enrollment Disparities.”
Deloitte Insights. “Top Risks in Higher Education.”
Independent Institute. “Higher Education’s Triple Crisis.”
PEN America. “Tracking Campus Free Speech Legislation and Suppression.”
American Federation of Teachers / AAUP. “The Gig Academy: Precarity and the Exploitation of Adjunct Labor.”
The Century Foundation. Analyses of Online Program Management (OPM) and automated higher education risks.
Inside Higher Ed and Times Higher Education reporting on AI-driven cheating and academic integrity.

Kleptocracy, Militarism, Colonialism: A Counterrecruiting Call for Students and Families

The United States has long framed itself as a beacon of democracy and upward mobility, yet students stepping onto college campuses in 2025 are inheriting a system that looks less like a healthy republic and more like a sophisticated kleptocracy entwined with militarism, colonial extraction, and digital exploitation. The entanglement of higher education with these forces has deep roots, but its modern shape is especially alarming for those considering military enlistment or ROTC programs as pathways to opportunity. 

The decision to publish on December 7th is deliberate. In 1941, Americans were engaged in a clearly defined struggle against fascism, a moral fight that demanded national sacrifice. The world in 2025 is far murkier. U.S. militarism now often serves corporate profit, global influence, and the security of allied autocracies rather than clear moral or defensive imperatives.

This is an article for students, future students, and the parents who want something better for their children. It is also a call to pause and critically examine the systems asking for young people’s allegiance and labor.

Higher education has become a lucrative extraction point for political and financial elites. Universities now operate as hybrid corporations, prioritizing endowment growth, real-estate expansion, donor influence, and federal cash flows over public service or student welfare. Tuition continues to rise as administrative bloat accelerates. Private equity quietly moves into student housing, online program management, education technology, and even institutional governance. The result is a funnel: taxpayers support institutions; institutions support billionaires; students carry the debt. Meanwhile, federal and state funds flow through universities with minimal oversight, especially through research partnerships with defense contractors and weapons manufacturers. What looks like innovation is often simply public money being laundered into private hands.

For decades, the U.S. military has relied on higher education to supply officers and legitimacy. ROTC programs sit comfortably on campuses while recruiters visit high schools and community colleges with promises of financial aid, job training, and escape from economic insecurity. But the military’s pitch obscures the broader structure. The United States spends more on its military than the next several nations combined, maintaining hundreds of foreign bases and intervening across the globe. American forces are involved, directly or indirectly, in conflicts ranging from Palestine to Venezuela to Ukraine, and through support of allies such as Saudi Arabia and the United Arab Emirates, often supplying weapons used in devastating campaigns. This is not national defense. It is a permanent war economy, one that treats young Americans as fuel.

At the same time, Russian cybercriminal networks have infiltrated U.S. institutions, targeting critical infrastructure, education networks, and private industry. Reports show that the U.S. government has frequently failed to hold these actors accountable and, in some cases, appears to prioritize intelligence or geopolitical advantage over domestic security, allowing cybercrime to flourish while ordinary Americans bear the consequences. This environment adds another layer of risk for students and families, showing how interconnected digital vulnerabilities are with global power games and domestic exploitation.

For those who enlist hoping to fund an education, the GI Bill frequently underdelivers. For-profit colleges disproportionately target veterans, consuming their benefits with low-quality, high-cost programs. Even public institutions have learned to treat veterans as revenue streams. U.S. universities have always been entwined with colonial projects, from land-grant colleges built on seized Indigenous land to research that supported Cold War interventions and overseas resource extraction. Today these legacies persist in subtler forms. Study-abroad programs and global campuses often mirror corporate imperialism. Research partnerships with authoritarian regimes proceed when profitable. University police departments are increasingly stocked with military-grade equipment, and curricula frequently erase Indigenous, Black, and Global South perspectives unless students actively seek them out. The university presents itself as a space of liberation while quietly reaffirming colonial hierarchies, militarized enforcement of U.S. interests worldwide, and even complicity in digital threats.

For many young people, enlistment is not a choice—it is an economic survival strategy in a country that refuses to guarantee healthcare, housing, or affordable education. Yet the military’s promise of stability is fragile and often deceptive. Students and parents should understand that young Americans are being recruited for geopolitics, not opportunity. Wars in Ukraine, Palestine, and Venezuela, along with arms support to Saudi Arabia and the United Arab Emirates, rarely protect ordinary citizens—they protect corporations, elites, and global influence. A person’s body and future become government property. ROTC contracts and enlistments are binding in ways that most eighteen-year-olds do not fully understand, and penalties for leaving are severe. Trauma is a predictable outcome, not an anomaly. The military’s mental health crisis, suicide rates, and disability system failures are well documented. Education benefits are conditional and often disappointing. The idea that enlistment is a reliable pathway to college has long been more marketing than truth, especially in a higher-education landscape dominated by predatory schools. Young people deserve more than being used as leverage in someone else’s empire.

A non-militarized route to opportunity requires acknowledging how much talent, energy, and potential is lost to endless war, endless debt, and the growing digital threats that go unaddressed at the highest levels. It requires demanding that federal and state governments invest in free or affordable public higher education, universal healthcare, and stronger civilian service programs rather than military pipelines. Students can resist by refusing enlistment and ROTC recruitment pitches, advocating for demilitarized campuses, supporting labor unions, student governments, and anti-war coalitions, and demanding transparency about university ties to weapons manufacturers, foreign governments, and cybersecurity vulnerabilities. Parents can resist by rejecting the false choice presented to their children between military service and crippling debt, and by supporting movements pushing for tuition reform, debt cancellation, and public investment in youth.

It is possible to build a higher-education system that serves learning rather than empire, but it will not happen unless students and families refuse to feed the machinery that exploits them. America’s kleptocracy, militarism, colonial legacies, and complicity in global digital crime are deeply embedded in universities and the workforce pipelines that flow through them. Yet young people—and the people who care about them—still hold power in their decisions. Choosing not to enlist, not to sign an ROTC contract, and not to hand over your future to systems that see you as expendable is one form of reclaiming that power. Hope is limited but not lost.

Sources

1. U.S. Department of Defense. Defense Budget Overview Fiscal Year 2025. 2024.

2. Amnesty International. “Saudi Arabia and UAE Arms Transfers and Human Rights Violations.” 2024.

3. Human Rights Watch. “Conflicts in Ukraine, Venezuela, and Palestine.” 2024.

4. FBI and CISA reports on Russian cybercrime and critical infrastructure infiltration. 2023–2025.

5. Cybersecurity & Infrastructure Security Agency (CISA). National Cybersecurity Annual Review. 2024.

A Century of American Exploitation: Oil, Crypto, and the Struggle for Latin America’s Universities

Latin America—a region of thirty-three countries stretching from Mexico through Central and South America and across the Caribbean—has spent more than a century fighting against foreign exploitation. Its universities, which should anchor local prosperity, cultural autonomy, and democratic life, have instead been repeatedly reshaped by foreign corporations, U.S. government interests, global lenders, and now crypto speculators. Yet the region’s history is also defined by persistent, courageous resistance, led overwhelmingly by students, faculty, and Indigenous communities.

Understanding today’s educational crisis in Latin America requires tracing this long arc of exploitation—and the struggle to build systems rooted in equity rather than extraction.

1900s–1930s: Bananas, Oil, and the Rise of the “Banana Republics”

Early in the 20th century, American corporations established vast profit-making empires in Latin America. United Fruit Company—today’s Chiquita Banana—dominated land, labor, and politics across Guatemala, Honduras, and Costa Rica. Standard Oil and Texaco secured petroleum concessions in Venezuela and Ecuador, laying foundations for decades of foreign control that extracted immense wealth while leaving behind environmental devastation, as seen in Texaco’s toxic legacy in the Ecuadorian Amazon between 1964 and 1992.

Universities were bent toward these foreign interests. Agricultural programs were geared toward serving plantation economies, not local farmers. Engineering and geological research aligned with extractive industries, not community development.

Resistance did emerge. Student groups in Guatemala and Costa Rica formed part of early anti-oligarchic movements, linking national sovereignty to university reform. Their demands echoed global currents of democratization. Evidence of these early student-led struggles appears in archival materials and Latin American scholarship on university reform, and culminates in the influential 1918 Córdoba Manifesto in Argentina—a radical declaration that attacked oligarchic, colonial universities and demanded autonomy, co-governance, and public responsibility.

1940s–1980s: Coups, Cold War Interventions, and the Deepening of U.S. Oil Interests

During the Cold War, exploitation intensified. In Guatemala, the CIA-backed overthrow of democratically elected President Jacobo Árbenz in 1954 protected United Fruit’s land holdings. Universities were purged or militarized, and critical scholars were exiled or killed.

In Chile, the 1973 overthrow of Salvador Allende—supported by American corporate giants such as ITT and Anaconda Copper—ushered in a brutal dictatorship. Under Augusto Pinochet, thousands were murdered, tortured, or disappeared, while the Chicago Boys imported radical neoliberal reforms that privatized everything, including the higher education system.

Throughout the region, oil deals disproportionately favored American companies. Mexico and Venezuela saw petroleum wealth siphoned off through arrangements that benefited foreign investors while leaving universities underfunded and politically surveilled. Scholarship critical of foreign intervention was marginalized, while programs feeding engineers and economists to multinational firms were expanded.

Student resistance reached historic proportions. Chilean students and faculty formed the core of the anti-dictatorship movement. Mexico’s students rose in 1968, demanding democracy and university autonomy before being massacred in Tlatelolco. CIA declassified documents reveal that student uprisings across Latin America in the early 1970s were so widespread that U.S. intelligence considered them a regional threat.

1990s–2000s: Neoliberalism, Privatization, and the Americanization of Higher Education

In the 1990s, neoliberalism swept the region under pressure from Washington, the IMF, and the World Bank. After NAFTA, Mexico’s universities became increasingly aligned with corporate labor pipelines. In Brazil, Petrobras’ partnerships with American firms helped reshape engineering curricula. Private universities and for-profit models proliferated across the region, echoing U.S. higher ed corporatization.

Hugo Chávez captured the broader sentiment of resistance when he declared that public services—including education—cannot be privatized without violating fundamental rights.

Students fought back across Latin America. In Argentina and Brazil they contested tuition hikes and privatization. In Venezuela, the debate shifted toward whether oil revenue should fund tuition-free universities.

Indigenous Exclusion, Racism, and the Colonial Foundations of Inequality

One of the greatest challenges in understanding Latin American education is acknowledging the deep racial and ethnic stratification that predates U.S. exploitation but has been exacerbated by it. Countries like Ecuador, Bolivia, Peru, Mexico, Brazil, and Guatemala have large Indigenous populations that, to this day, receive the worst education—much like Native American communities relegated to underfunded reservation schools in the United States.

Racism remains powerful. Whiter populations enjoy greater economic and educational access. University admission is shaped by class and color. These divisions are not accidental; they are a machinery of control.

There have been important exceptions. Under President Rafael Correa, Ecuador built hundreds of new schools, including Siglo XXI and Millennium Schools, and expanded public education access. In Mexico, the 2019 constitutional reform strengthened Indigenous rights, including commitments to culturally relevant education. Bolivia—whose population is majority Indigenous—has promoted Indigenous languages, judicial systems, and education structures.

But progress is fragile. Austerity, IMF conditionalities, and elite resistance have led to cutbacks, school closures, and renewed privatization across the region. The study you provided on Ecuador documents Indigenous ambivalence, even hostility, toward Correa’s universal education plan—revealing how colonial wounds, cultural erasure, and distrust of state power complicate reform and provide openings for divide-and-conquer strategies long exploited by ruling classes.

These contradictions deepen when Indigenous movements—rightfully demanding no mining, no oil extraction, and protection of ancestral lands—collide with leftist governments reliant on resource extraction to fund public services. This tension is especially acute in Ecuador and Bolivia.

2010s–Present: Crypto Colonialism and a New Frontier of Exploitation

Cryptocurrency has opened a new chapter in Latin America’s long history of foreign-driven experimentation. El Salvador’s adoption of Bitcoin in 2021, promoted by President Nayib Bukele, transformed the country into a speculative test lab. Bukele has now spent more than $660 million in U.S. dollars on crypto, according to investigative reporting from InSight Crime. Universities rushed to create blockchain programs that primarily serve international investors rather than Salvadoran students.

In Venezuela, crypto became a survival tool amid hyperinflation and economic collapse. Yet foreign speculators profited while universities starved. Student groups warned that crypto research was being weaponized to normalize economic chaos and distract from public-sector deterioration.

Resistance has grown. Salvadoran students have protested the Bitcoin law, demanding that public resources focus on infrastructure, health, and education. Venezuelan students call for rebuilding social programs rather than chasing speculative financial technologies.

Contemporary Student Resistance: 2010s–2020s

Across the region, student movements remain powerful. The Chilean Winter of 2011–2013 demanded free, quality public education and challenged Pinochet’s neoliberal legacy. The movement culminated in the 2019 uprising, where education reform was central.

Mexico’s UNAM students continue to resist corruption, tuition hikes, gender violence, and the encroachment of corporate and foreign interests. The 1999–2000 UNAM strike remains one of the longest in modern higher education.

Colombian students have forced governments to negotiate and invest billions in public universities, framing their struggle as resistance to neoliberal austerity shaped by U.S. policy.

Argentina continues to face massive austerity-driven cuts, sparking protests in 2024–2025 reminiscent of earlier waves of resistance. Uruguay’s Tupamaros movement—largely student-led—remains a historical touchstone.

Every country in Latin America has experienced student uprisings. They reflect a truth that Paulo Freire, exiled from Brazil for teaching critical pedagogy, understood deeply: education can either liberate or oppress. Authoritarians, privatizers, and foreign capital prefer the latter, and they act accordingly.

Today’s Regional Education Crisis

The COVID-19 pandemic pushed the system into further crisis. Children in Latin America and the Caribbean lost one out of every two in-person school days between 2020 and 2022. Learning poverty now exceeds 50 percent. Entire generations risk permanent economic loss and civic disenfranchisement.

Infrastructure is collapsing. Rural and Indigenous communities suffer the worst conditions. Public investment is chronically insufficient because governments are trapped in cycles of debt repayment to international lenders. Ecuador has not seen a major public-investment program in a decade, as austerity and IMF repayments dominate national budgets.

The result is a system starved of resources and increasingly vulnerable to privatization schemes—including U.S.-style online coursework, ideological “instruction kits,” and for-profit degree mills.

Latin American Universities as Battlegrounds for Sovereignty

Latin America’s universities are shaped by the same forces that have dominated the region’s history: oil extraction, agribusiness, foreign capital, neoliberalism, structural racism, debt, and now crypto speculation. Yet universities have also been homes to transformation, rebellion, cultural resurgence, and hope.

Across more than a century, students—Indigenous, Afro-descendant, mestizo, working-class—have been the region’s fiercest defenders of public education and national sovereignty. Their resistance continues today, from Quito to Buenos Aires, from Mexico City to Santiago.

For readers of the Higher Education Inquirer, the lesson is clear: the struggle for higher education in Latin America is inseparable from the struggle for democracy, racial justice, Indigenous autonomy, and freedom from foreign domination. The region’s ruling elites and international lenders understand that an educated public is dangerous, which is why they starve, privatize, and discipline public schools. Students understand the opposite: that education is power, and that power must be reclaimed.

The next chapter—especially in countries like Ecuador—will depend on whether students, teachers, and communities can defend public education against the dual forces that have undermined it for more than a century: privatizers and fascists.

---

Sources (Selection)

National Security Archive, CIA Declassified Documents (1971)
InSight Crime reporting on El Salvador Bitcoin expenditures
Luciani, Laura. “Latin American Student Movements in the 1960s.” Historia y Memoria (2019)
The Córdoba Manifesto (1918)
UNESCO, World Bank data on learning poverty (2024)
Latin American studies on United Fruit, Standard Oil, Texaco/Chevron in Ecuador
LASA Forum: Analysis of Indigenous responses to Correa’s education reforms
Periodico UNAL: “The Student Rebellion: Córdoba and Latin America”
Multiple regional news sources on Argentina’s 2024–2025 education protests

He Helped Run Some of the Worst For-Profit Colleges. The Trump Team Just Picked Him to Oversee College Quality. (David Halperin)

On the eve of the Thanksgiving holiday, when most people are focused on travel plans and food preparation, the Trump administration released a list of its four nominees for open slots on the National Advisory Committee on Institutional Quality and Integrity (NACIQI). That is the panel of outside experts that advises the U.S. Department of Education on whether to approve or reject the accrediting bodies that serve as gatekeepers for federal student financial aid. Amid five candidates picked by Secretary of Education Linda McMahon — representatives from conservative think tanks and universities, and a student member — one name stands out: Robert Eitel, a senior education department official in the first Trump administration, and before that — which the Department’s press release does not mention at all — a senior executive at two of the most deceptive and abusive companies in the history of U.S. for-profit higher education.

Eitel, who had served as the Department of Education’s deputy general counsel during the George W. Bush administration, joined Career Education Corporation (CEC) in 2013 as a vice president of regulatory operations. In 2015, Eitel left CEC to join Bridgepoint Education as vice president of regulatory legal services. He remained in that role through April 2017, the last three months on leave of absence while serving as an advisor to Trump Secretary of Education Betsy DeVos. Eitel then resigned from Bridgepoint and was senior counsel to DeVos through Trump’s first term.

The first of Eitel’s corporate employers, Career Education Corp., which changed its name in 2020 to Perdoceo, has faced multiple law enforcement investigations for predatory conduct.

In 2013, soon after Eitel joined CEC, the company agreed to a $10.25 million settlement with the New York state attorney general over charges that it had exaggerated job placement rates for graduates of its schools.

In 2019, after Eitel’s departure, the company entered into a $494 million settlement with 48 state attorneys general, plus the District of Columbia, over an investigation, launched in 2014, that for years it had engaged in widespread deceptive practices against students.

Later that same year, Perdoceo agreed to pay $30 million to settle charges brought by the Federal Trade Commission that its schools, at least since 2012, had recruited students through deceptive third-party lead generation operations.

In each case, the company did not admit guilt.

Misconduct at CEC/Perdoceo continued well past Eitel’s departure, suggesting the rot at the company’s core. In this decade, Perdoceo employees told media outlets USA Today and Capitol Forum, as well as Republic Report, that company recruiters have continued to feel pressure to make misleading sales pitches and to enroll low-income people into programs that aren’t strong enough to help them succeed. Some of those former employees also spoke with federal investigators. USA Today reported in 2022 that the U.S. Department of Education, in December 2021, requested information from Perdoceo; the Department also asked Perdoceo to retain records regarding student recruiting, marketing, financial aid practices, and more. Perdoceo confirmed the probe, while seeming to minimize its significance, in a February 2022 SEC filing. Perdoceo also acknowledged in May 2022 that it received a request for documents and information from the U.S. Justice Department.

The Department of Education has provided CEC/Perdoceo schools — with current brand names including American Intercontinental University and Colorado Technical University and demised brands including Brooks Institute and Sanford-Brown College — with billions of dollars over the years. American Intercontinental University and Colorado Technical University have at times received as much as 97 percent of their revenue from taxpayer dollars in the form of federal student grants and loans.

But data released by the Department in 2023 showed that the Perdoceo schools deliver poor results for students, with low graduation rates and graduate incomes and high levels of student debt.

Meanwhile, the company Eitel left CEC to join, Bridgepoint Education, compiled its own record of predatory abuses. At a 2011 investigative hearing, then-Senate HELP committee chair Tom Harkin (D-IA) called Bridgepoint’s main school, Ashford University, “an absolute scam”; the hearing highlighted the company’s deceptive advertising, predatory recruiting, high prices, and weak educational offerings. Bridgepoint used false promises to purchase in 2005 a small college in Iowa and used that school’s accreditation to build a giant, mostly online school whose attendance peaked in 2012 at around 77,000 students and received billions from taxpayers.

Bridgepoint/Ashford deceived, crushed the dreams of, and buried in debt veterans, single moms, and others across the country, and put the company in jeopardy with law enforcement multiple times. In 2022, justice finally caught up with the company, which by that time had changed its name to Zovio. Following a trial where the California attorney general’s office presented extensive evidence of deceptive practices by the school, a state judge ruled that the company “violated the law by giving students false or misleading information about career outcomes, cost and financial aid, pace of degree programs, and transfer credits, in order to entice them to enroll at Ashford.” An appeals court subsequently upheld the verdict.

Zovio tried to launder its bad reputation by selling Ashford in 2020 to the public University of Arizona, while maintaining a lucrative service contract to run the school. After the California verdict, Zovio was pushed out of the deal, and the troubled school operation was folded into U. of Arizona, creating more controversy and turmoil at that school; the deceptive practices have continued.

After his revolving door journey through the Department of Education, two predatory college companies, and back to a Trump education department that repeatedly used its regulatory and enforcement powers to make it easier for predatory schools to prosper, Robert Eitel co-founded and became president of the Defense of Freedom Institute, a well-funded think tank dedicated at its outset to fighting the Biden administration’s education agenda through lawsuits and “vigorous oversight” of the regulatory process and advocating for public money for religious schools. It also has aggressively opposed the rights of transgender students.

In July, the Trump administration, in another effort to bulldoze laws and norms to get the personnel it wants, declared after the fact that the appointment earlier this year of Zakiya Smith Ellis, a Democratic appointee, as chair of NACIQI was “erroneous.” Accordingly, as far as the Trump administration is concerned, NACIQI currently has no chair. Don’t be surprised if, at the next NACIQI meeting, set for December 16, Trump officials maneuver to make Bob Eitel, a former top executive of some of the worst colleges in America, the head of the committee that is supposed to guard against college failures and abuses. Responsible NACIQI members should pick someone else as chair.

David Halperin
Attorney and Counselor
Washington, DC

[Editor's note: This article originally appeared on Republic Report.]

National Day of Mourning: Higher Education’s Long Reckoning With Indigenous Oppression

[Editor's note: United American Indians of New England host the National Day of Mourning. Their website is at United American Indians of New England - UAINE.]

Each November, while much of the United States celebrates Thanksgiving, Indigenous communities and their allies gather in Plymouth, Massachusetts, and across the country for the National Day of Mourning. It is a day that confronts the mythology of national innocence and replaces it with historical clarity. For Higher Education Inquirer, the significance of this day extends directly into the heart of American higher education—a system built, in no small part, on the expropriation of Indigenous land, the exploitation of Native Peoples, and the continued structural racism that shapes their educational opportunities today.

From the earliest colonial colleges to the flagship research institutions of the twenty-first century, U.S. higher education has never been separate from the project of settler colonialism. It has been one of its instruments.

Land, Wealth, and the Origins of the University

America’s oldest colleges—Harvard, Yale, William & Mary, Dartmouth—were founded within the colonial order that dispossessed Indigenous communities. While missionary language framed some of these institutions’ early purposes, they operated through an extractive logic: the seizure of land, the conversion of cultural worlds, and, eventually, the accumulation of immense academic wealth.

The Morrill Land-Grant Acts of 1862 and 1890 expanded this pattern on a national scale. Recent research documented by the “Land-Grab Universities” project shows that nearly eleven million acres of Indigenous land—taken through coercive treaties, forced removal, or outright theft—were funneled into endowments for public universities. Students today walk across campuses financed by displacements their own institutions have yet to fully acknowledge, let alone remedy.

Higher Education as an Arm of Assimilation

The United States also used education as a tool for forced assimilation. The Indian boarding school system, with the Carlisle Industrial School as its model, operated in partnership with federal officials, church agencies, and academic institutions. Native children were taken from their families, stripped of their languages, and subjected to relentless cultural destruction.

Universities contributed research, training, and personnel to this system, embedding the logic of “civilizing” Indigenous Peoples into the academy’s structure. That legacy endures in curricula that minimize Indigenous knowledge systems and in institutional cultures that prize Eurocentric epistemologies as default.

Scientific Racism, Anthropology, and the Theft of Ancestors

American universities played a central role in producing scientific racism. Anthropologists and medical researchers collected Indigenous remains, objects, and sacred items without consent. Museums and university labs became repositories for thousands of ancestors—often obtained through grave robberies, military campaigns, or opportunistic scholarship.

The 1990 Native American Graves Protection and Repatriation Act (NAGPRA) was designed to force institutions to return ancestors and cultural patrimony. Yet decades later, many universities are still out of compliance, delaying repatriation while continuing to benefit from the research collections they amassed through violence.

Contemporary Structural Racism in Higher Education

The oppression is not confined to history. Structural racism continues to constrain Native Peoples in higher education today.

Native students remain among the most underrepresented and under-supported groups on American campuses. Chronic underfunding of Tribal Colleges and Universities (TCUs) reflects a broader political disregard for Indigenous sovereignty and self-determination. Meanwhile, elite institutions recruit Native students for marketing purposes while failing to invest in retention, community support, or Indigenous faculty hiring.

Some universities have begun implementing land acknowledgments, but these symbolic gestures have little impact when institutions refuse to confront their material obligations: returning land, committing long-term funding to Indigenous programs, or restructuring governance to include tribal representatives.

What a Real Reckoning Would Require

A genuine response to the National Day of Mourning would require far more than statements of solidarity. It would involve confronting the ways American higher education continues to profit from dispossession and the ways Native students continue to bear disproportionate burdens—from tuition to cultural isolation to the racist violence that still occurs on and around campuses.

Real accountability would include:

• Full compliance with NAGPRA and expedited repatriation.
• Transparent reporting of land-grant wealth and the return or shared governance of those lands.
• Stable, meaningful funding for TCUs.
• Hiring, tenure, and research policies that center Indigenous scholarship and sovereignty.
• Long-term institutional commitments—financial, curricular, and political—to Indigenous communities.

These steps require institutions to shift from performative recognition to structural transformation.

A Day of Mourning—And a Call to Action

The National Day of Mourning is not merely a counter-holiday. It is a reminder that the United States was founded on violence against Native Peoples—and that its colleges and universities were not passive beneficiaries but active participants in that violence.

For higher education leaders, faculty, and students, the question is no longer whether these histories are real or whether they matter. They are documented. They are ongoing. They matter profoundly.

The real question is what institutions are willing to give up—land, power, wealth, or narrative control—to support Indigenous liberation.

On this National Day of Mourning, HEI honors the truth that Indigenous survival is an act of resistance, and Indigenous sovereignty is not a symbolic aspiration but an overdue demand. The future of higher education must move through that truth, not around it.

Sources
Roxanne Dunbar-Ortiz, An Indigenous Peoples’ History of the United States.
The Land-Grab Universities Project (High Country News & Land-Grab Universities database).
David Treuer, The Heartbeat of Wounded Knee.
Margaret D. Jacobs, A Generation Removed: The Fostering and Adoption of Indigenous Children in the Postwar World.
NAGPRA regulations and compliance reports.

The Secret and Tragic World of Robert F. Kennedy Jr.

Robert F. Kennedy Jr. is a man whose name carries the weight of one of America’s most storied political dynasties. Environmentalist, activist, author, and political figure, he has long cultivated a public image of intelligence, idealism, and reform-minded zeal. Yet behind this public persona lies a deeply troubled personal history marked by tragedy, accusations of sexual misconduct, and disturbing claims of animal cruelty. With his rise to the position of Secretary of the U.S. Department of Health and Human Services (HHS) in 2025, the stakes of this hidden history have grown far beyond family drama—they now intersect with public health, national science policy, and the higher education ecosystem.

Personal Tragedy and Allegations

Mary Richardson Kennedy, RFK Jr.’s second wife, died by suicide in May 2012. She was found with antidepressants in her system but no alcohol. At the time, the couple was separated, embroiled in a bitter divorce. Later-revealed documents suggest that Mary Richardson described her husband as a “sexual deviant,” alleging prescription-drug abuse and psychological manipulation, including gaslighting. She claimed he secretly recorded more than 60 phone conversations and maintained diaries documenting extramarital relationships. What may have seemed private marital discord became serious allegations of betrayal, manipulation, and emotional trauma.

In 2024, Eliza Cooney, a former live-in babysitter for the Kennedy children, publicly accused Kennedy of sexually assaulting her in the late 1990s. She described multiple incidents, including groping in a pantry, appearing shirtless in her bedroom, and being asked to rub lotion on his back. Kennedy sent Cooney a text apologizing if he had made her feel uncomfortable, claiming he had no memory of the events. Publicly, he called the allegations “a lot of garbage,” framing them as part of a “rambunctious youth” while refusing to categorically deny the events. These allegations, alongside Mary Richardson’s claims, paint a portrait of private behavior in stark contrast to the public image Kennedy has long projected.

Claims of animal cruelty have also surfaced. A 2010 photograph published in media outlets shows Kennedy with what appears to be a charred animal carcass. While Kennedy claims it was a goat from a Patagonia camping trip, a veterinarian quoted in the press suggested it could be a dog. Fact-checkers cannot conclusively identify the animal, yet the image, whether misinterpreted or not, is troubling in the context of someone who has publicly championed environmental and public health causes.

Ascension to HHS and Early Decisions

In February 2025, Kennedy was sworn in as Secretary of HHS, instantly gaining authority over national health policy, agency staffing, and public health programs. His tenure has been marked by swift, controversial moves. Kennedy launched the “Make America Healthy Again” (MAHA) commission, aiming to address chronic disease and childhood illness, with a focus on prevention and environmental health. He has emphasized removing conflicts of interest from advisory committees, arguing that existing members often have ties to pharmaceutical companies.

Kennedy’s tenure has also included a sweeping reorganization of HHS, consolidating its 28 divisions into 15, centralizing administrative functions, and cutting staff from roughly 82,000 to 62,000 in pursuit of $1.8 billion in annual savings. He has defended these changes as necessary to streamline operations and focus on environmental toxicity, clean water, and healthy food, while critics warn they could weaken public health infrastructure and reduce oversight. Perhaps most controversially, Kennedy has moved to eliminate the long-standing practice of public comment on many HHS decisions. Other early actions have included removing expert members from CDC vaccine advisory committees and revising CDC guidance on autism and vaccines in ways aligned with Kennedy’s previously expressed views.

Higher Education and Kennedy’s Influence

Kennedy’s connection to higher education is both personal and institutional. He attended Harvard College, graduating in 1976 with a degree in American history and literature, and went on to earn a Juris Doctor from the University of Virginia School of Law in 1982. While he has no formal scientific or medical degree, his public role as HHS Secretary gives him authority over federal research funding, grants, and university partnerships.

Since taking office, Kennedy has influenced HHS grants to universities, particularly those focused on public health, environmental research, and childhood disease prevention. Reports indicate he has prioritized funding for schools conducting research aligned with his personal priorities, such as environmental toxicity, vaccine alternatives, and holistic health programs. Critics argue this approach risks politicizing federal funding, favoring institutions that align with his beliefs while disadvantaging traditional biomedical research programs. Some universities have reportedly altered research agendas to secure or maintain grants under Kennedy’s administration, raising concerns about academic independence.

Kennedy’s educational background, combined with his control over grants and research priorities, illustrates how personal ideology and public policy intersect with higher education. It underscores the stakes for universities, faculty, and students: research funding decisions now operate in a landscape influenced by a leader whose private life is controversial and whose professional philosophy challenges established scientific norms.

The Interplay of History, Power, and Trust

The combination of Kennedy’s personal controversies, his public health authority, and his influence on higher education presents a complex portrait of power, legacy, and trust. Allegations from Mary Richardson Kennedy and Eliza Cooney, along with the animal cruelty claims, raise questions about judgment, ethics, and personal responsibility. Now, those questions carry weight far beyond private circles—they intersect with national public health, scientific research, and the education of future professionals.

The public often sees only the polished exterior: speeches, causes, charisma. In Kennedy’s case, the hidden world includes tragic suicide, allegations of sexual misconduct, and disturbing claims regarding animals. These shadows, now coupled with sweeping policy authority and influence over universities, underscore the importance of scrutinizing both character and action. Leadership in public health and science funding is not solely about vision or ambition—it requires judgment, transparency, and accountability.

What Kennedy does next will not just define his legacy; it will shape the health, safety, and education of the country he now serves. For advocates of transparency, survivors of abuse, academic researchers, and public health professionals, watching closely is not optional—it is a civic imperative.

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Sources

Vanity Fair. “RFK Jr.’s Family Doesn’t Want Him to Run. Even They May Not Know His Darkest Secrets.” 2024. https://www.vanityfair.com/news/story/robert-kennedy-jr-shocking-history

New York Post. “Mary Kennedy Accuses Ex-Husband RFK Jr. of Being 'Sexual Deviant' and 'Gaslighting' from Beyond the Grave.” 2025. https://nypost.com/2025/01/29/us-news/rfk-jrs-late-wife-accused-him-of-being-sexual-deviant-addict/

Reuters. “Woman Who Accused RFK Jr. of Sexual Assault Says He Apologized by Text.” 2024. https://www.reuters.com/world/us/woman-who-accused-rfk-jr-sexual-assault-says-he-apologized-by-text-2024-07-12/

Forbes. “RFK Jr. Calls Report Alleging He Sexually Assaulted His Children’s Nanny and Ate a Dog ‘A Lot of Garbage.’” 2024. https://www.forbes.com/sites/siladityaray/2024/07/03/rfk-jr-calls-report-alleging-he-sexually-assaulted-his-childrens-nanny-and-ate-a-dog-a-lot-of-garbage/

WRAL. “RFK Jr. Denies Eating a Dog While Sidestepping Sexual Assault Allegations in Vanity Fair Article.” 2024. https://www.wral.com/story/rfk-jr-denies-eating-a-dog-while-sidestepping-sexual-assault-allegations-in-vanity-fair-article/21508133/

AP News. “RFK Jr. Made Promises About Vaccines. Here's What He's Done as Health Secretary.” 2025. https://apnews.com/article/d1ad570053583d953f15ec3e566e426f

Reuters. “Kennedy Proposes Ending Public Comment on HHS Decisions.” 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/kennedy-proposes-ending-public-comment-hhs-decisions-2025-02-28/

Time. “What to Know About RFK Jr. Removing All Experts From CDC Vaccine Advisory Committee.” 2025. https://time.com/7292553/rfk-jr-removes-cdc-vaccine-committee-experts/

HHS.gov. “Make America Healthy Again Commission Launch.” 2025. https://www.hhs.gov/press-room/eo-maha.html

The Link Between Greed and Efficiency

In the mythology of American capitalism, “efficiency” is the magic word that justifies austerity for workers, rising tuition for students, and ever-expanding wealth for administrators, financiers, and institutional elites. It is framed as neutral, technocratic, and rational. In reality, efficiency in higher education has become inseparable from greed, functioning as a mask for extraction and consolidation.

Universities and their sprawling medical centers have become some of the largest landowners and employers in the cities they inhabit. As Devarian Baldwin has shown, these institutions operate as urban empires, expanding aggressively into surrounding neighborhoods, raising housing costs, displacing long-time residents, and reshaping cities to suit institutional priorities. University medical centers, nominally nonprofit, consolidate smaller hospitals, close services deemed unprofitable, and charge some of the highest healthcare prices in the nation. These operations are justified as efficiency or economic development, yet they often destabilize the communities they claim to serve.

Endowments, some exceeding fifty billion dollars at elite institutions, have become central to this dynamic. Managed like hedge funds, these pools of capital are heavily invested in private equity, venture capital, real estate, and derivatives. The financial logic of endowment management now shapes university priorities, shifting focus from public service and learning to capital accumulation, investor returns, and risk management. Efficiency is defined not by educational outcomes but by the growth of financial assets.

This culture of extraction has been amplified by decades of government austerity. Public funding for higher education has steadily declined since the 1980s, forcing institutions to behave like corporations. At the same time, the aging Baby Boomer generation is creating unprecedented financial pressures on Social Security, Medicare, and healthcare systems, leaving public coffers stretched thin and reinforcing a winner-take-all national mentality. In this environment, universities compete fiercely for students, research dollars, donors, and prestige, producing conditions ripe for exploitation.

Outsourcing has become a standard method to achieve “efficiency.” Universities frequently contract out food service, custodial work, IT, housing management, and security. Workers employed by these contractors often face lower wages, fewer benefits, and higher turnover, while administrators present these arrangements as cost-saving measures. Meanwhile, administrative layers within institutions continue to expand, creating a managerial class that oversees growth and strategy while teaching budgets shrink. As Marc Bousquet has argued, the corporate-style management model displaces faculty governance and treats students and staff as revenue streams rather than participants in a shared educational mission.

The adjunctification of the faculty exemplifies efficiency as exploitation. Contingent instructors now teach the majority of classes in American higher education, earning poverty-level wages without benefits while juggling multiple teaching sites. Institutions call this “flexibility” and “cost containment,” but in reality it transfers value from instruction to administrative overhead, athletics, real estate, and financial operations, all while reducing the quality of education and undermining academic continuity.

The rise of Online Program Managers, or OPMs, further illustrates the fusion of greed and efficiency. These companies design, manage, and market entire online degree programs, often taking forty to seventy percent of tuition revenue. While presented as efficiency partners, OPMs aggressively recruit students, inflate costs, and minimize academic oversight. Their business model mirrors the exploitative strategies of for-profit colleges, which pioneered high-cost, low-quality instruction combined with heavy marketing to capture federal loan dollars. The collapse of chains such as Corinthian, ITT, and EDMC left millions of borrowers with debt and no degree, yet the model persists inside nonprofit universities through OPMs and algorithm-driven online programs.

“Robocolleges” represent the latest evolution of this trend. AI-driven instruction, predictive analytics, automated grading, and digital tutoring promise unprecedented efficiency, but they often replace human educators, reduce pedagogical oversight, exploit student data, and prioritize enrollment growth over educational quality. Efficiency here serves the financial bottom line rather than the learning or well-being of students.

The result of these extractive practices is a national crisis of student debt, now exceeding one trillion dollars. Students borrow to cover skyrocketing tuition, outsourced services, underpaid instruction, and the costs of programs shaped by OPMs or automated platforms. Debt is not an accident of the system; it is the intended outcome, a mechanism for transferring public resources and student labor into private profit.

The broader social context intensifies the problem. Higher education exists in a winner-take-all, financialized society, where resources flow upward and the majority of people are told to compete harder, work longer, and borrow more. Universities have internalized this ideology, acting as both symbols and engines of extraction. Efficiency, under this paradigm, is defined not by the effectiveness of teaching or research but by the expansion of institutional power, wealth, and influence.

True efficiency would look very different. It would invest in educators rather than contractors, stabilize academic labor rather than exploit it, serve surrounding communities rather than displace them, expand learning opportunities rather than debt, and prioritize democratic governance over corporate-style hierarchy. Efficiency should measure how well institutions serve the public good, not how well they protect endowment returns, OPM profits, or administrative salaries.

Until such a redefinition occurs, efficiency will remain one of the most powerful tools of extraction in American higher education, a rhetorical justification for greed disguised as rational management.

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Sources

Devarian Baldwin, In the Shadow of the Ivory Tower
Marc Bousquet, How the University Works
Tressie McMillan Cottom, Lower Ed
Christopher Newfield, The Great Mistake
Sara Goldrick-Rab, Paying the Price
Government reports on for-profit colleges, student debt, and OPMs
Research on higher education financialization, outsourcing, and austerity policies

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

When Was Higher Education Truly a Public Good? (Glen McGhee)

Like staring at the Sun too long, that brief window in time, when higher ed was a public good, has left a permanent hole for nostalgia to leak in, becoming a massive black hole for trillions of dollars, and a blind-spot for misguided national policies and scholars alike. 

The notion that American higher education was ever a true public good is largely a myth. From the colonial colleges to the neoliberal university of today, higher education has functioned primarily as a mechanism of class reproduction and elite consolidation—with one brief, historically anomalous exception during the Cold War.

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Colonial Roots: Elite Reproduction in the New World (1636–1787)

The first American colleges—Harvard, William and Mary, Yale, Princeton, and a handful of others—were founded not for the benefit of the public, but to serve narrow elite interests. Their stated missions were to train Protestant clergy and prepare the sons of wealthy white families for leadership. They operated under monopoly charters and drew funding from landowners, merchants, and slave traders.

Elihu Yale, namesake of Yale University, derived wealth from his commercial ties to the East India Company and the slave trade. Harvard’s early trustees owned enslaved people. These institutions functioned as “old boys’ clubs,” perpetuating privilege rather than promoting equality. Their educational mission was to cultivate “gentlemen fit to govern,” not citizens of a democracy.

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Private Enterprise in the Republic (1790–1860)

After independence, the number of colleges exploded—from 19 in 1790 to more than 800 by 1880—but not because of any commitment to the public good. Colleges became tools for two private interests: religious denominations seeking influence, and land speculators eager to raise property values.

Ministers often doubled as land dealers, founding small, parochial colleges to anchor towns and boost prices. State governments played a minimal role, providing funding only in times of crisis. The Supreme Court’s 1819 Dartmouth College decision enshrined institutional autonomy, shielding private colleges from state interference. Even state universities were created mainly out of interstate competition—every state needed its own to “keep up with its neighbors.”

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Gilded Age and Progressive Era: Credential Capitalism (1880–1940)

By the late 19th century, industrial capitalism had transformed higher education into a private good—something purchased for individual advancement. As family farms and small businesses disappeared, college credentials became the ticket to white-collar respectability.

Sociologist Burton Bledstein called this the “culture of professionalism.” Families invested in degrees to secure middle-class futures for their children. By the 1920s, most students attended college not to seek enlightenment, but “to get ready for a particular job.”

Elite universities such as Harvard, Yale, and Princeton solidified their dominance through exclusive networks. C. Wright Mills later observed that America’s “power elite” circulated through these same institutions and their associated clubs. Pierre Bourdieu’s concept of cultural capital helps explain this continuity: elite universities convert inherited privilege into certified merit, preserving hierarchy under the guise of meritocracy.

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The Morrill Acts: Public Promise, Private Gains (1862–1890)

The Morrill Act of 1862 established land-grant colleges to promote “practical education” in agriculture and engineering. While often cited as a triumph of public-minded policy, the act’s legacy is ambivalent.

Land-grant universities were built on land expropriated from Indigenous peoples—often without compensation—and the 1890 Morrill Act entrenched segregation by mandating separate institutions for Black Americans in the Jim Crow South. Even as these colleges expanded access for white working-class men, they simultaneously reinforced racial and economic hierarchies.

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Cold War Universities: The Brief Public Good (1940–1970)

For roughly thirty years, during World War II and the Cold War, American universities functioned as genuine public goods—but only because national survival seemed to depend on them.

The GI Bill opened college to millions of veterans, stabilizing the economy and expanding the middle class. Massive federal investments in research transformed universities into engines of technological and scientific innovation. The university, for a moment, was understood as a public instrument for national progress.

Yet this golden age was marred by exclusion. Black veterans were often denied GI Bill benefits, particularly in the South, where discriminatory admissions and housing policies blocked their participation. The “military-industrial-academic complex” that emerged from wartime funding created a new elite network centered on research universities like MIT, Stanford, and Berkeley.

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Neoliberal Regression: Education as a Private Commodity (1980–Present)

After 1970, the system reverted to its long-standing norm: higher education as a private good. The Cold War’s end, the tax revolt, and the rise of neoliberal ideology dismantled the postwar consensus.

Ronald Reagan led the charge—first as California governor, cutting higher education funding by 20%, then as president, slashing federal support. He argued that tuition should replace public subsidies, casting education as an individual investment rather than a social right.

Since 1980, state funding per student has fallen sharply while tuition at public universities has tripled. Students are now treated as “customers,” and universities as corporations—complete with branding departments, executive pay packages, and relentless tuition hikes.

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The Circuit of Elite Network Capital

Today, the benefits of higher education flow through a closed circuit of power that links elite universities, corporations, government agencies, and wealthy families.

1. Elite Universities consolidate wealth and prestige through research funding, patents, and endowments.

2. Corporations recruit talent and license discoveries, feeding the same institutions that produce their executives.

3. Government and Military Agencies are staffed by alumni of elite universities, reinforcing a revolving door of privilege.

4. Elite Professions—law, medicine, finance, consulting—use degrees as gatekeeping mechanisms, driving credential inflation.

5. Wealthy Families invest in elite education as a means of preserving status across generations.

What the public receives are only residual benefits—technologies and medical innovations that remain inaccessible without money or insurance.

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Elite Network Capital, Not Public Good

The idea of higher education as a public good has always been more myth than reality. For most of American history, colleges and universities have functioned as institutions of elite reproduction, not engines of democratic uplift.

Only during the extraordinary conditions of the mid-20th century—when global war and ideological conflict made mass education a national imperative—did higher education briefly align with the public interest.

Today’s universities continue to speak the language of “public good,” but their actions reveal a different truth. They serve as factories of credentialism and as nodes in an elite network that translates privilege into prestige. What masquerades as a public good is, in practice, elite network capital—a system designed not to democratize opportunity, but to manage and legitimize inequality.

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Sources:
Labaree (2017), Bledstein (1976), Bourdieu (1984, 1986), Mills (1956), Geiger (2015), Thelin (2019), and McGhee (2025).