Epstein, Dershowitz, Summers, and the Long Arc of Elite Impunity

For many observers, Jeffrey Epstein, Alan Dershowitz, and Larry Summers appear as separate figures orbiting the world of elite academia, finance, and politics. But together—and through the long lens of history—they represent something far more revealing: the modern expression of a centuries-old system in which elite institutions protect powerful men while sacrificing the vulnerable.

The Epstein-Dershowitz-Summers triangle is not a scandal of individuals gone astray. It is the predictable result of structures that make such abuses almost inevitable.

The Modern Version of an Old System

Jeffrey Epstein built his influence not through scholarship or scientific discovery—he had no advanced degrees—but by inserting himself into the financial bloodstream of the Ivy League. Harvard and MIT accepted his money, his introductions, and his promises of access to ultra-wealthy networks. Epstein did not need credibility; he purchased it.

Larry Summers, as president of Harvard from 2001 to 2006, continued to engage with Epstein after the financier’s first arrest and plea deal. Summers’ administration accepted substantial Epstein donations, including funds channeled into the Program for Evolutionary Dynamics. Summers and his wife dined at Epstein’s Manhattan home. After leaving Harvard, Summers stayed in touch with Epstein even as the financier’s abuses became increasingly public. Summers used the same revolving door that has long connected elite universities, Wall Street, and presidential administrations—moving freely and comfortably across all three.

Alan Dershowitz, former Harvard Law Professor and Epstein’s close associate and legal strategist, exemplifies another pillar of this system: elite legal protection. Dershowitz defended Epstein vigorously, attacked survivors publicly, and remains embroiled in litigation connected to the case. Whether one believes Dershowitz’s claims of innocence is secondary to the structural fact: elite institutions reliably shield their own.

Together, Epstein offered money and connections; Summers offered institutional prestige and political access; Dershowitz offered legal insulation. Harvard, meanwhile, offered a platform through which all three profited.

Knowledge as a Shield—Not a Light

For centuries, elite universities have served as both engines of knowledge and fortresses of power. They are not neutral institutions.

They defended slavery and eugenics, supplying “scientific” justification for racial hierarchies.
They exploited labor—from enslaved workers who built campuses to adjuncts living in poverty today.
They marginalized survivors of sexual violence while protecting benefactors and faculty.
They accepted fortunes derived from war profiteering, colonial extraction, hedge-fund predation, and private-equity devastation.

Epstein did not invent the model of the toxic patron. He merely perfected it in the neoliberal era.

A Four-Step Pattern of Elite Impunity

The scandal surrounding Epstein, Dershowitz, and Summers follows a trajectory that dates back centuries:

1. Wealth accumulation through exploitation
   From slave plantations to private equity, concentrated wealth is generated through systems that harm the many to benefit the few.

2. The purchase of academic legitimacy
   Endowed chairs, laboratories, fellowships, and advisory roles allow dubious benefactors to launder reputations through universities.

3. Legal and cultural shielding
   Elite lawyers, confidential settlements, non-disclosure agreements, and institutional silence create protective armor.

4. Silencing of survivors and critics
   Reputational attacks, threats of litigation, and internal pressure discourage transparency and accountability.

Epstein operated within this system. Dershowitz defended it. Summers benefited from it. Harvard reinforced it.

Larry Summers: An Anatomy of Power

Summers’ career illuminates the deeper structure behind the scandal. His trajectory—Harvard president, U.S. Treasury Secretary, World Bank chief economist, adviser to hedge funds, consultant to Big Tech—mirrors the seamless circulation of elite power between universities, finance, and government.

During his presidency, Harvard publicly embraced Epstein’s donations. After Epstein’s first sex-offense conviction, Summers continued to meet with him socially and professionally. Summers leveraged networks that Epstein also sought to cultivate. And even after the Epstein scandal fully broke open, Summers faced no meaningful institutional repercussions.

The message was clear: individual wrongdoing matters less than maintaining elite continuity.

Higher Education’s Structural Complicity

Elite universities were not “duped.” They were beneficiaries.

Harvard returned only a fraction of Epstein’s donations, and only after the press exposed the relationship. MIT hid Epstein’s gifts behind false donor names. Faculty traveled to his island and penthouse without demanding transparency.

Meanwhile:

Adjuncts qualify for food assistance
Students carry life-crippling debt
Administrators earn CEO-level pay
Donors dictate priorities behind closed doors

This is not hypocrisy—it is hierarchy. A system built to serve wealth does exactly that.

A Timeline Much Longer Than Epstein

To understand the present, we must zoom out:

Oxford and Cambridge accepted slave-trade wealth as institutional lifeblood.
Gilded Age robber barons endowed libraries while crushing labor movements.
Cold War intelligence agencies quietly funded research centers.
Today’s oligarchs, tech billionaires, and private-equity titans buy influence through endowments and think tanks.

The tools change. The pattern does not.

Universities help legitimate the powerful—even when those powerful figures harm the public.

Why This Still Matters

The Epstein scandal is not resolved. Court documents continue to emerge. Survivors continue to speak. Elite institutions continue to stall and deflect. Harvard still resists meaningful transparency, even as its endowment approaches national GDP levels.

The danger is not simply that another Epstein will emerge. It is that elite universities will continue to provide the conditions that make another Epstein inevitable.

What Breaking the Pattern Requires

Ending this system demands more than symbolic gestures or public-relations apologies. Real reform requires:

Radical donor transparency—with all gifts, advisory roles, and meetings disclosed
Worker and student representation on governing boards
Strong whistleblower protections and the abolition of secret NDAs
Robust public funding to reduce reliance on elite philanthropy
Independent journalism committed to exposing institutional power

Ida B. Wells, Jessica Mitford, Upton Sinclair, and other muckrakers understood what universities still deny: scandals are symptoms. The disease is structural.

Epstein was not an anomaly.
Dershowitz is not an anomaly.
Summers is not an anomaly.

They are products of a system in which universities serve power first—and truth, only if convenient.

If higher education wants to reclaim public trust, it must finally decide which side of history it is on.

Entangled Frontiers: Saudi Arabia, Yemen, the UAE, South Sudan, and the Israel-Palestine Arena — Implications for Higher Education, Censorship, and Global Governance

The global higher education landscape is increasingly shaped by conflicts, diplomacy, and shifting regional alliances. The relationships among Saudi Arabia, Yemen, the United Arab Emirates (UAE), South Sudan, and the Israel-Palestine conflict highlight the interconnections between geopolitics, humanitarian crises, and the responsibilities of universities as institutions of knowledge, ethics, and justice. These contexts influence not only student mobility and research collaboration but also institutional priorities, funding flows, and academic freedom. Understanding the intersection of geopolitics and higher education is essential for institutions seeking to engage globally with integrity, equity, and impact.

For scholars and administrators, these regions exemplify the challenge of balancing opportunity and risk. Research and student engagement opportunities abound in humanitarian crises, fragile states, and post-conflict zones, yet these are embedded in complex political and ethical landscapes. Additionally, the growing pressures on American universities to navigate internal censorship, legislative constraints, and donor-influenced agendas have profound implications for their global credibility and ability to engage abroad. This article explores each of these regions in depth, examines the cross-cutting implications for higher education, and discusses the domestic pressures in U.S. higher education that shape international engagement.

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Saudi Arabia and Yemen

The war in Yemen has devastated the nation, creating one of the most severe humanitarian crises in recent history. Civilian infrastructure has been destroyed, millions of people have been displaced, and famine and disease threaten vast swathes of the population. Saudi Arabia, as the leading actor in the coalition intervening in Yemen, has faced both international criticism and pressure to negotiate. Recent diplomatic initiatives have suggested that Riyadh may be seeking to recalibrate its involvement, including attempts to engage Houthi representatives in peace talks. For higher education institutions, these shifts have important implications for student mobility, research opportunities, and refugee education programs. Yemen's crisis represents not only a humanitarian emergency but also a research frontier in global health, humanitarian logistics, and post-conflict educational reconstruction.

Saudi Arabia’s position on Israel adds another layer of complexity for global academic partnerships. The Kingdom continues to insist that it will not normalize relations with Israel without the establishment of a Palestinian state. This position affects regional alliances, funding priorities, and the willingness of other states to engage in collaborative academic initiatives. For universities, this reality translates into both opportunities and constraints. Scholarship programs, research funding, and institutional partnerships linked to Saudi Arabia may be influenced by the Kingdom’s foreign policy priorities. Institutions engaging with Yemen must navigate a humanitarian context that is deeply intertwined with the diplomatic posturing of a regional superpower.

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The United Arab Emirates

The UAE has emerged as a significant regional actor, leveraging economic strength to expand its influence across Africa, the Red Sea corridor, and the Middle East. Its normalisation with Israel through the Abraham Accords marked a historic diplomatic shift in Arab-Israeli relations, yet the UAE has simultaneously articulated clear objections to unilateral Israeli annexation plans in the West Bank. In Africa, the UAE has deepened ties with South Sudan and other fragile states through financial agreements, including banking cooperation and long-term oil-backed loans. These interventions exemplify how foreign investment, diplomacy, and regional security concerns intersect in ways that directly affect higher education.

For universities, the UAE represents both opportunity and caution. Institutions can engage with new funding streams, branch campuses, and international partnerships facilitated by Gulf state investment. At the same time, ethical considerations are paramount. Funding sources tied to conflict zones, extractive economic deals, or contested geopolitical agendas require careful institutional scrutiny. Universities must develop frameworks that incorporate conflict sensitivity, ethical risk assessment, and transparency. The UAE’s dual role as a facilitator of academic mobility and a participant in contested geopolitical spaces underscores the complexity of engagement in regions influenced by external power.

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South Sudan

South Sudan, the world’s youngest nation, has struggled to stabilize since its independence in 2011. Recurring conflict, economic dependence on oil, and weak governance structures have hindered the development of higher education infrastructure. Agreements with the UAE, including long-term oil-backed loans and financial cooperation, highlight the influence of foreign investment on the state’s trajectory and, by extension, its educational system.

For higher education, South Sudan presents both a critical research site and an urgent development need. Universities can contribute to capacity-building, curriculum development, and scholarship programs for displaced or return diaspora students. Research in post-conflict governance, peace studies, and resource management can inform broader academic understanding of fragile states. Yet these opportunities come with ethical and practical complexities. Partnerships with South Sudanese institutions must navigate the implications of resource-linked foreign investment, the risk of perpetuating inequality, and the fragility of governance structures. Universities engaging in South Sudan must balance their commitment to education with a nuanced understanding of political and economic realities.

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Israel and Palestine

The Israel-Palestine conflict continues to shape the global higher education discourse, affecting student mobility, refugee education, research collaborations, and institutional partnerships. Saudi Arabia’s insistence that normalization with Israel is contingent upon Palestinian statehood and East Jerusalem as its capital remains a critical point of leverage in regional diplomacy. The UAE, despite having normalized with Israel, continues to assert that Israeli annexation of the West Bank represents a “red line” that could destabilize the region.

For universities, this context presents both opportunities and ethical challenges. Engaging with Palestinian students, hosting refugee scholars, and conducting research on human rights and humanitarian crises are vital areas of academic intervention. At the same time, institutions must navigate funding sources, regional political sensitivities, and reputational risks. Academic freedom in research on Israel and Palestine is often contested, both abroad and domestically in the United States, where political and donor pressures shape what research is feasible, safe, or fundable.

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Censorship and Academic Freedom in U.S. Higher Education

Recent developments in American higher education highlight the fragility of academic freedom, which directly affects international engagement. Surveys indicate that over one-third of U.S. faculty perceive a decline in academic freedom, and approximately 70% report self-censorship on topics such as the Israel-Palestine conflict. Legislation in several states, framed under terms like “viewpoint diversity” or “campus neutrality,” imposes constraints on curriculum, speech, faculty tenure, and university governance. These pressures are compounded by donor influence, administrative oversight, and the politicization of higher education.

Censorship and self-censorship are not abstract concerns; they have tangible impacts on research agendas, global partnerships, and the capacity of universities to host refugee or international scholars. Institutions with programs in global health, humanitarian response, Middle East studies, or post-conflict development must contend with domestic pressures that may limit the scope of inquiry or public engagement. The erosion of academic freedom in the United States thus has a direct effect on the credibility and effectiveness of universities abroad, as it mirrors, in some respects, the constraints faced by institutions in fragile or authoritarian states.

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Cross-Cutting Themes

Several themes cut across these regional and domestic contexts. First, conflict and displacement in Yemen, South Sudan, and Palestine create urgent educational needs for refugees and internally displaced scholars. Universities must develop programs that provide access, mentorship, and flexible pathways to education. Second, foreign investment and resource-linked funding—from the UAE in South Sudan to Saudi-backed initiatives in Yemen—underscore the ethical complexities of international partnerships. Transparency, due diligence, and conflict-sensitive frameworks are essential. Third, diplomatic realignments, including the Abraham Accords and evolving Saudi-Israel relations, create new corridors for collaboration but also introduce geopolitical risk. Fourth, domestic censorship and political pressures in the U.S. affect research capacity, ethical engagement, and the freedom to examine contentious topics, directly influencing global credibility.

Finally, structural inequality and systemic injustice are central concerns. Funding flows, research agendas, and student access are all mediated by power structures that can perpetuate inequities. Universities must be conscious of whose voices are amplified, whose perspectives are sidelined, and how partnerships with conflict-affected states influence the production of knowledge. Ethical global engagement requires institutions to address these imbalances proactively.

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References & Sources

1. PEN America, “New Report Unveils Alarming Tactics in Censorship of Higher Education,” pen.org

2. Times of India, “Is Academic Freedom on the Decline? 35% of US College Professors Say Yes,” timesofindia.indiatimes.com

3. Times of Israel, “Faculty Survey Reveals Fear, Self-Censorship at US Universities,” timesofisrael.com

4. Associated Press, “Under Threat from Trump, Columbia University Agrees to Policy Changes,” apnews.com

5. The Guardian, “US Universities’ Faculty Unite to Defend Academic Freedom After Trump’s Attacks,” theguardian.com

6. Le Monde, “UC Berkeley, the US Capital of Free Speech, Stands Firm Against Trump,” lemonde.fr

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

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

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From Collapse to Contagion

The College Meltdown never truly ended—it evolved.

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

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

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

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

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

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The Meltdown Graveyard

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

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

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

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The Phoenix That Shouldn’t Have Risen

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

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

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

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

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

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

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From Education to Extraction

The sector’s transformation reveals a deeper moral hazard.

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

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

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

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

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

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The Quiet Winners of Collapse

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

• Adtalem (ATGE) in nursing and health education,

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

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

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

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

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A Reckoning Deferred

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

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

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

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

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Sources:

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

• SEC Filings (2010–2025)

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

• An American Sickness – Elisabeth Rosenthal

• The Goosestep – Upton Sinclair

• Medical Apartheid – Harriet A. Washington

• Body and Soul – Alondra Nelson

• The Immortal Life of Henrietta Lacks – Rebecca Skloot

Divestment from Predatory Education Stocks: A Moral Imperative

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

The Human Cost of Predatory Education

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

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

The Servicing of Debt as a Business Model

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

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

The Role of Institutional Investors

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

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

Divestment as a Moral and Educational Act

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

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

A Call to Action

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

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

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

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Sources:

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

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

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

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

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

• Higher Education Inquirer archives

South University Faces $35.4 Million Balloon Payment Amid Limited Oversight

[Editor's note: On October 29, 2025, the Higher Education Inquirer emailed South University for a status update. South University did not respond. On November 1, 2025, Benjamin DeGweck replaced Steven Yoho as CEO and Chancellor.]

South University, a former for-profit college network now operating under nonprofit ownership, is facing a $35 million balloon payment this month on a loan obtained through the Federal Reserve’s Main Street Lending Program. The looming debt and the school’s status on Heightened Cash Monitoring (HCM) raise questions about financial stability and the adequacy of regulatory oversight in the nonprofit higher education sector.

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A Heavy Loan Load

According to publicly available financial statements, South University carries more than $35 million in long-term debt maturing this month, part of a $50 million Main Street loan issued during the COVID-19 pandemic. The approaching balloon payment represents a major financial test for an institution already under federal scrutiny and struggling with declining enrollment.

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Heightened Cash Monitoring—But Limited Oversight

South University is currently listed under Heightened Cash Monitoring (HCM) by the U.S. Department of Education, a status that requires extra documentation before federal aid funds are released. While the designation signals potential financial or compliance issues, it does not necessarily result in strong day-to-day oversight.

The school remains accredited by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC)—an accreditor known for minimal intervention in institutional finances unless there is clear evidence of collapse. This means that despite the HCM flag, South University continues to operate with significant autonomy, even as federal and student aid dollars flow through additional administrative checks.

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A Complicated Legacy

South University’s story is deeply tied to the rise and fall of the for-profit college industry. Once part of Education Management Corporation (EDMC), the school was sold in 2017 to the ill-fated Dream Center Education Holdings (DCEH). When DCEH collapsed in 2019, the Education Principle Foundation (EPF)—a nonprofit—took over South University and The Art Institutes. South University is now an independent non-profit enterprise.  

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A Pattern of Fragile Conversions

South University’s precarious position reflects a larger trend: the conversion of failing for-profit schools into nominal nonprofits that rely on tuition, federal aid, and private service contracts to survive. These conversions often preserve the same management structures and business practices while benefiting from the public trust and tax advantages of nonprofit status.

The $35 million balloon payment highlights the risks of these financial engineering strategies—especially when public money is involved but public accountability is weak.

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What Comes Next

With the 2025 deadline approaching, South University faces a pivotal decision: refinance the Main Street loan, restructure operations, or seek new capital through other partners.

If the institution falters, students could once again be caught in the aftermath of a sector-wide collapse—echoing the failures of EDMC, DCEH, and the Art Institutes.

For now, South University continues to operate with limited transparency, under a light-touch accreditor, and with a multimillion-dollar federal debt hanging over its future.

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Sources:

• U.S. Department of Education, Heightened Cash Monitoring List (October 2025)

• Federal Reserve, Main Street Lending Program Overview

• South University financial statements (publicly available data)

• U.S. Department of Education, College Scorecard

• Wikipedia, South University (accessed October 2025)

University of Phoenix’s “TransferPath” App: Convenience or Marketing Hype?

The University of Phoenix has launched TransferPath, a mobile app promising prospective students a quick estimate of how many previous college credits might transfer toward a Phoenix degree. At first glance, it sounds like a win: upload your transcripts, get a pre-evaluation, and move faster toward completing your degree. The EdTech Innovation Hub article covering the launch presents the app as an unambiguously positive innovation—but a closer look raises serious questions.

The EdTech piece reads more like a press release than investigative reporting. It offers no insight into how pre-evaluations are calculated, whether faculty are involved, or how often initial predictions align with final credit acceptance. Without this transparency, students risk developing false confidence and making financial or academic decisions based on incomplete or misleading information.

The app also reflects the asymmetry of power between institution and student. While marketed as a convenience, it is ultimately a recruitment tool. The University of Phoenix controls which credits are accepted, and the app’s messaging may funnel students into its programs regardless of whether other paths would better serve their educational goals.

Missing from the coverage is context. Phoenix’s history as a for-profit institution has drawn scrutiny over retention rates, student debt, and degree outcomes. Presenting TransferPath without acknowledging this background creates a misleading narrative that the app is purely a student-centered innovation. Equity concerns are similarly absent. Students without smartphones, stable internet, or digital literacy may be excluded or misled. There is no evidence that the app serves all students fairly or that its credit predictions are accurate across diverse educational backgrounds.

TransferPath may indeed offer some convenience, but convenience alone does not equal value. Prospective students deserve clarity, honesty, and rigorous evaluation of how tools like this actually function. They need more than marketing optimism—they need realistic guidance to navigate the complexities of credit transfer, institutional incentives, and long-term outcomes.

Until such transparency and accountability are provided, TransferPath risks being more of a recruitment gimmick than a meaningful step forward in higher education.

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.

The College Meltdown: A Retrospective

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

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

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Origins

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

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

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Patterns of the Meltdown

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

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

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

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Feeding the AI Beast

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

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

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Anxiety, Anomie, and Alienation

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

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

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

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

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

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Quality of Life and the Call for Rehumanization

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

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

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FOIA Requests and Whistleblowers

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

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

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Historical Sociology: Understanding the Systemic Collapse

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

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

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Naming Bad Actors: Accountability and Reform

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

• University Administrators: Prioritizing profit over pedagogy.

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

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

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

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

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Existential Aspects of Climate Change

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

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

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Mass Speculation and Financialization

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

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

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Coverage of Protests and Nonviolent Resistance

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

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Collaboration and Resistance

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

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

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Lessons from the Meltdown

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

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

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

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Looking Forward

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

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Sources and References

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

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

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

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

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

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

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

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

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

• Wayback Machine Archive of College Meltdown Blog: link

A HUGE legal win for MILLIONS of borrowers (Protect Borrowers)

Borrowers just secured a MAJOR victory! In AFT v. U.S. Department of Education (ED), the Trump Administration agreed to protect borrowers enrolled in Income-Driven Repayment (IDR) plans and deliver student debt relief to borrowers making payments under those plans for decades.

This is a huge milestone. At the time AFT originally filed the lawsuit in March 2025—represented by Protect Borrowers and Berger Montague—the Trump Administration had removed the application to enroll in IDR from government websites and had issued a secret order to student loan contractors to halt all IDR enrollment and processing. After we filed, the government quickly resumed accepting applications and, months later, began processing those applications again. ED’s recent agreement is the first time the Trump Administration has publicly committed its intent to follow the law, after representations it made that it wouldn’t cancel debt under certain—and at times, any—IDR plan.

The Administration has now agreed to:



• Cancel student debt for all eligible borrowers enrolled in Income-Based Repayment (IBR), Income-Contingent Repayment, and Pay As You Earn payment plans and the Public Service Loan Forgiveness (PSLF) program;

• Refund any borrower who makes additional payments beyond the date of eligibility for IDR cancellation;

• Process IDR applications and PSLF Buyback applications—including applications for the IBR plan from borrowers without a partial financial hardship.

• Recognize the date a borrower becomes eligible for cancellation as the effective date of discharge and not issue IRS forms suggesting that cancelled debt is taxable for borrowers whose effective date is on or before December 31, 2025; and

• File six monthly status reports with the court on the status of its IDR and PSLF application and loan cancellation processing—increasing transparency and accountability.

This relief will extend to all borrowers.

Borrowers urgently needed this agreement. Prior to it, borrowers eligible to have their loans cancelled in 2025 were at risk of getting stuck with a large tax bill due to the Administration’s processing delays. This is because Trump and Congressional Republicans’ “One Big Beautiful Bill Act” (OBBBA) permanently extended Congress’s 2018 action to exclude cancelled debts for death or disability from federal taxable income—but not all cancelled student loan debt. As a result, millions of borrowers who earn debt relief under an IDR plan after January 1, 2026, could see their taxes skyrocket. Working families can’t shoulder thousands of dollars in additional taxes—they’re already stretched thin by rising costs of living, a weak job market, mounting levels of debt, and OBBBA’s historic cuts to public benefits.