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Tuesday, March 4, 2025

The Future of Federal Student Loans

The U.S. student loan system, now exceeding $1.7 trillion in debt and affecting over 40 million borrowers, is facing significant challenges. As political pressures rise, the management of student loans could be significantly altered. A combination of potential privatization, the elimination of the U.S. Department of Education (ED), and a new role for the Department of the Treasury raises critical questions about the future of the system.

U.S. Department of Education: Strained Resources and Outsourcing

The U.S. Department of Education (ED) is responsible for managing federal student loan servicing, loan forgiveness programs, and borrower defense to repayment (BDR) claims. However, ED has faced ongoing issues with understaffing and inefficiency, particularly as many functions have been outsourced to contractors. Companies like Maximus (including subsidiaries like AidVantage) manage much of the administrative burden for loan servicing. This has raised concerns about accountability and the impact on borrowers, especially those seeking loan relief.

In recent years, ED has also experienced staff reductions and funding cuts, making it difficult to process claims or maintain high-quality service. The potential for further cuts or even the elimination of the department could exacerbate these problems. If ED’s role is diminished, other entities, such as the Department of the Treasury, could assume responsibility for managing the student loan portfolio, though this would present its own set of challenges.

Potential for Privatization of the Student Loan Portfolio

One of the most discussed options for addressing the student loan crisis is the privatization of the federal student loan portfolio. Under previous administration discussions, including those during President Trump’s tenure, there were talks about selling off parts of the student loan portfolio to private companies. This would be done with the aim of reducing the federal deficit.

In 2019, McKinsey & Company was hired by the Trump administration to analyze the value of the student loan portfolio, considering factors such as default rates and economic conditions. While the report's findings were never made public, the idea of transferring the loans to private companies—such as banks or investment firms—remains a possibility.

The consequences of privatizing federal student loans could be significant. Private companies would likely focus on profitability, which could result in stricter repayment terms or less flexibility for borrowers seeking loan forgiveness or other relief options. This shift may reduce borrower protections, making it harder for students to challenge repayment terms or pursue loan discharges.

The Department of the Treasury and its Potential Role

If the U.S. Department of Education is restructured or eliminated, there is a possibility that the Department of the Treasury could step in to manage some aspects of the student loan portfolio. The Treasury is responsible for the country’s financial systems and debt management, so it could, in theory, handle the federal student loan portfolio from a financial oversight perspective.

However, while the Treasury has experience in financial management, it lacks the specialized knowledge of student loans and borrower protections that the Department of Education currently provides. For example, the Treasury would need to find ways to process complex Borrower Defense to Repayment claims, a responsibility ED currently manages. In 2023, over 750,000 Borrower Defense claims were pending, with thousands of claims related to predatory practices at for-profit colleges such as University of Phoenix, ITT Tech, and Kaplan University (now known as Purdue Global). Additionally, some of these for-profit schools were able to reorganize and continue operating under different names, further complicating the situation.

The Treasury could also contract out loan servicing, but this could increase reliance on profit-driven companies, possibly compromising the interests of borrowers in favor of financial performance.

Borrower Defense Claims and the Impact of For-Profit Schools

A large portion of the Borrower Defense to Repayment claims comes from students who attended for-profit colleges with a history of deceptive practices. These institutions, often referred to as subprime colleges, misled students about job prospects, program outcomes, and accreditation, leaving many with significant student debt but poor employment outcomes.

Data from 2023 revealed that over 750,000 Borrower Defense claims were filed with the Department of Education, many of them against for-profit institutions. The Sweet v. Cardona case showed that more than 200,000 borrowers were expected to receive debt relief after years of waiting. However, the process was slow, with an estimated 16,000 new claims being filed each month, and only 35 ED workers handling these claims. These delays, combined with the uncertainty around the future of ED, leave borrowers vulnerable to prolonged financial hardship. 

Lack of Transparency and Accountability in the System

While the U.S. Department of Education tracks Borrower Defense claims, it does not publish institutional-level data, making it difficult to identify which schools are responsible for the most fraudulent activity. 

In response to this, FOIA requests have been filed by organizations like the National Student Legal Defense Network and the Higher Education Inquirer to obtain detailed information about which institutions are disproportionately affecting borrowers. 

In one such request, the Higher Education Inquirer asked for information regarding claims filed against the University of Phoenix, a school with a significant number of Borrower Defense claims.

The lack of transparency in the system makes it harder for borrowers to make informed decisions about which institutions to attend and limits accountability for schools that have harmed students. If the Treasury or private companies take over management of the loan portfolio, these transparency issues could worsen, as private entities are less likely to prioritize public accountability.

Conclusion

The future of the U.S. student loan system is uncertain, particularly as the Department of Education faces the potential of funding cuts, staff reductions, or even complete dissolution. If ED’s role diminishes or disappears, the Department of the Treasury could take over some functions, but this would raise questions about the fairness and transparency of the system.

The possibility of privatizing the student loan portfolio also looms large, which could shift the focus away from borrower protections and toward financial gain for private companies. For-profit schools, many of which have a history of predatory practices, are responsible for a disproportionate number of Borrower Defense claims, and any move to privatize the loan portfolio could exacerbate the challenges faced by borrowers seeking relief from these institutions.

Ultimately, there is a need for greater transparency and accountability in how the student loan system operates. Whether managed by the Department of Education, the Treasury, or private companies, protecting borrowers and ensuring fairness should remain central to any future reforms. If these issues are not addressed, millions of borrowers will continue to face significant financial hardship.

Thursday, March 13, 2025

States, Suing Trump Over Gutting of Education Dept., Cite Threat of Predatory College Abuses (David Halperin)

Twenty-one Democratic state attorneys general sued President Trump and Secretary of Education Linda McMahon today, 48 hours after the Department of Education announced it was firing more than 1,300 employees, which, combined with previously Trump-Musk efforts to cull the staff, reduced the employee roster to less than half of the 4000+ person team that was working as of January.

The 53-page complaint, filed in federal court in Massachusetts, alleges that the staff reductions are illegal and unconstitutional, because they are “equivalent to incapacitating key, statutorily-mandated functions of the Department.” The AGs say that although McMahon has authority from Congress to restructure the Department, she is “not permitted to eliminate or disrupt functions required by statute, nor can she transfer the department’s responsibilities to another agency outside of its statutory authorization.”

Among the federal statutes that the state AGs contend will be undermined by this week’s staff cuts are those covering higher education, including the Department’s obligations to ensure that federal student grants and loans may be used only at colleges and universities that provide quality educations and comply with the law. The complaint notes that the Department is charged with ensuring that colleges receiving federal aid are financially responsible, that they submit to financial audits, and that they provide adequate counseling to students concerning debt management.

The AGs also note that the Department is required to review and approve private college accrediting agencies, because under the law only schools approved by Department-recognized accreditors are eligible for federal student aid. Without that process, the AGs warn, “institutions of higher education may engage in profit-seeking behaviors without relating any educational benefits to students.”

The AGs might have added that the cuts will undermine the capacity of the Department to directly investigate colleges that engage in predatory and deceptive behavior. Data released by the Department shows the largest number of layoffs — 326 people — were at the Office of Federal Student Aid (FSA), which oversees student lending and school compliance with legal obligations not to mislead and abuse students.

The Department of Education’s higher education accountability efforts over decades have often been half-hearted and ineffectual; despite the scores of staff assigned to overseeing colleges, many students, and hundreds of billions in taxpayer dollars, have been directed to deceptive, poor-quality schools that have left many students worse off than when they started. But gutting these efforts to the degree suggested by this week’s staff reductions would make matters much worse. And the first-term higher education record of President Trump, guided by Secretary of Education Betsy DeVos and her aide Diane Auer Jones, was heavily skewed in favor of slashing accountability rules and enforcement, providing no reason to be optimistic that an aim of slashing the staff this year is to improve accountability.

The cuts would also undermine core Department responsibilities in K-12 education, civil rights, disability rights, privacy rights, campus safety, and the student loan portfolio.

Secretary McMahon is publicly insisting that everything will be fine and more efficient with the reduced and reorganized staff. But, as the new lawsuit from the attorneys general notes, McMahon said on Tuesday that the firing are the “first step” on the road to a “total shutdown” of the Department.

The attorneys general who filed the complaint are from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, Washington, Wisconsin, Vermont and the District of Columbia.

Former Department officials and education advocates plan to rally Friday morning at 8 am outside Department of Education headquarters in Washington to protest the mass firings and plans to shut down the agency.

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

Friday, January 3, 2025

Higher Education Must Champion Democracy, Not Surrender to Fascism (Henry Giroux)

[Editor's note: This article by Henry Giroux first appeared in Truthout.]

Critical education must become a key organizing principle to defeat the emerging authoritarianism in the US. 

For decades, neoliberalism has systematically attacked the welfare state, undermined public institutions and weakened the foundations of collective well-being. Shrouded in the alluring language of liberty, it transforms market principles into a dominant creed, insisting that every facet of life conform to the imperatives of profit and economic efficiency.

But in reality, neoliberalism consolidates wealth in the hands of a financial elite, celebrates ruthless individualism, promotes staggering levels of inequality, perpetuates systemic injustices like racism and militarism, and commodifies everything, leaving nothing sacred or untouchable. Neoliberalism operates as a relentless engine of capitalist accumulation, driven by an insatiable pursuit of unchecked growth and the ruthless concentration of wealth and power within the hands of a ruling elite. At its core, it’s a pedagogy of repression: crushing justice, solidarity and care while deriding critical education and destroying the very tools that empower citizens to resist domination and reclaim the promise of democracy.

As neoliberalism collapses into authoritarianism, its machinery of repression intensifies. Dissent is silenced, social life militarized and hate normalized. This fuels a fascistic politics which is systematically dismantling democratic accountability, with higher education among its primary targets. For years, the far right has sought to undermine education, recognizing it as a powerful site of resistance. This has only accelerated, as MAGA movement adherents seek to eliminate the public education threat to their authoritarian goals.

Vice President-elect J.D. Vance openly declared “the professors are the enemy.” President-elect Donald Trump has stated that “pink-haired communists [are] teaching our kids.” In response to the Black Lives Matter protests following George Floyd’s killing, MAGA politicians like Sen. Tom Cotton openly called for deploying military force against demonstrators.  

The authoritarian spirit driving this party is crystallized in the words of right-wing activist Jack Posobiec, who, at the 2023 Conservative Political Action Conference, said: “We are here to overthrow democracy completely. We didn’t get all the way there on January 6, but we will. After we burn that swamp to the ground, we will establish the new American republic on its ashes.” This is more than anti-democratic, authoritarian rhetoric. It also shapes poisonous policies in which education is transformed into an animating space of repression and violence, and becomes weaponized as a tool of censorship, conformity and discrimination. 

As authoritarianism surges globally, democracy is being dismantled. What does this rise in illiberal regimes mean for higher education? What is the role of universities in defending democratic ideals when the very notion of democracy is under siege? In Trump’s United States, silence is complicity, and inaction a moral failing. Higher education must reassert itself as a crucial democratic public sphere that fosters critical thought, resists tyranny and nurtures the kind of informed citizens necessary to a just society.

Trump’s return to the presidency marks the endpoint of a deeply corrupt system, one that thrives on anti-intellectualism, scorn for science and contempt for reason. In this political climate, corruption, racism and hatred have transformed into a spectacle of fear, division and relentless disinformation, supplanting any notion of shared responsibility or collective purpose. In such a degraded environment, democracy becomes a hollowed-out version of itself, stripped of its legitimacy, ideals and promises. When democracy loses its moral and aspirational appeal, it opens the door for autocrats like Trump to dismantle the very institutions vital to preserving democratic life.

The failure of civic culture, education and literacy is starkly evident in the Trump administration’s success at emptying language of meaning — a flight from historical memory, ethics, justice and social responsibility. Communication has devolved into exaggerated political rhetoric and shallow public relations, replacing reason and evidence with spectacle and demagoguery. Thinking is scorned as dangerous, and news often serves as an amplifier for power rather than a check on it.

Corporate media outlets, driven by profits and ratings, align themselves with Trump’s dis-imagination machine, perpetuating a culture of celebrity worship and reality-TV sensationalism. In this climate, the institutions essential to a vibrant civil society are eroding, leaving us to ask: What kind of democracy can survive when the foundations of the social fabric are collapsing? Among these institutions, the mainstream media — a cornerstone of the fourth estate — have been particularly compromised. As Heather McGhee notes, the right-wing media has, over three decades, orchestrated “a radical takeover of our information ecosystem.”

Universities’ Neoliberal Audit Culture

As public-sector support fades, many institutions of higher education have been forced to mirror the private sector, turning knowledge into a commodity and eliminating departments and courses that don’t align with the market’s bottom line. Faculty are increasingly treated like low-wage workers, with labor relations designed to minimize costs and maximize servility. In this climate, power is concentrated in the hands of a managerial class that views education through a market-driven lens, reducing both governance and teaching to mere instruments of economic need. Democratic and creative visions, along with ethical imagination, give way to calls for efficiency, financial gain and conformity.

This neoliberal model not only undermines faculty autonomy but also views students as mere consumers, while saddling them with exorbitant tuition fees and a precarious future shaped by economic instability and ecological crisis. In abandoning its democratic mission, higher education fixates on narrow notions of job-readiness and cost-efficiency, forsaking its broader social and moral responsibilities. Stripped of any values beyond self-interest, institutions retreat from fostering critical citizenship and collective well-being.

Pedagogy, in turn, is drained of its critical content and transformative potential. This shift embodies what Cris Shore and Susan Wright term an “audit culture” — a corporate-driven ethos that depoliticizes knowledge, faculty and students by prioritizing performance metrics, measurable outputs and rigid individual accountability over genuine intellectual and social engagement.

In this process, higher education relinquishes its role as a democratic public sphere, shifting its mission from cultivating engaged citizens to molding passive consumers. This transformation fosters a generation of self-serving individuals, disconnected from the values of solidarity and justice, and indifferent to the creeping rise of authoritarianism.

The suppression of student dissent on campuses this year, particularly among those advocating for Palestinian rights and freedom, highlights this alarming trend. Universities increasingly prioritize conformity and corporate interests, punishing critical thinking and democratic engagement in the process. These developments lay the groundwork for a future shaped not by collective action and social equity, but by privatization, apathy and the encroachment of fascist politics.

Education, once the bedrock of civic engagement, has become a casualty in the age of Trump, where civic illiteracy is celebrated as both virtue and spectacle. In a culture dominated by information overload, celebrity worship and a cutthroat survival ethic, anti-intellectualism thrives as a political weapon, eroding language, meaning and critical thought. Ignorance is no longer passive — it is weaponized, fostering a false solidarity among those who reject democracy and scorn reason. This is not innocent ignorance but a calculated refusal to think critically, a deliberate rejection of language’s role in the pursuit of justice. For the ruling elite and the modern Republican Party, critical thinking is vilified as a threat to power, while willful ignorance is elevated to a badge of honor.

If we are to defeat the emerging authoritarianism in the U.S., critical education must become a key organizing principle of politics. In part, this can be done by exposing and unraveling lies, systems of oppression, and corrupt relations of power while making clear that an alternative future is possible. The language of critical pedagogy can powerfully condemn untruths and injustices.

History’s Emancipating Potential

A central goal of critical pedagogy is to cultivate historical awareness, equipping students to use history as a vital lens for understanding the present. Through the critical act of remembrance, the history of fascism can be illuminated not as a relic of the past but as a persistent threat, its dormant traces capable of reawakening even in the most robust democracies. In this sense, history must retain its subversive function — drawing on archives, historical sources, and suppressed narratives to challenge conventional wisdom and dominant ideologies.

The subversive power of history lies in its ability to challenge dominant narratives and expose uncomfortable truths — precisely why it has become a prime target for right-wing forces determined to rewrite or erase it. From banning books and whitewashing historic injustices like slavery to punishing educators who address pressing social issues, the assault on history is a calculated effort to suppress critical thinking and maintain control. Such assaults on historical memory represent a broader attempt to silence history’s emancipatory potential, rendering critical pedagogy an even more urgent and essential practice in resisting authoritarian forces. These assaults represent both a cleansing of history and what historian Timothy Snyder calls “anticipatory obedience,” which he labels as behavior individuals adopt in the service of emerging authoritarian regimes.

he fight against a growing fascist politics around the world is more than a struggle over power, it is also a struggle to reclaim historical memory. Any fight for a radical democratic socialist future is doomed if we fail to draw transformative lessons from the darkest chapters of our history, using them to forge meaningful resolutions and pathways toward a post-capitalist society. This is especially true at a time when the idea of who should be a citizen has become less inclusive, fueled by toxic religious and white supremacist ideology.

Consciousness-Shifting Pedagogy

One of the challenges facing today’s educators, students and others is the need to address the question of what education should accomplish in a historical moment when it is slipping into authoritarianism. In a world in which there is an increasing abandonment of egalitarian and democratic impulses, what will it take to educate young people and the broader polity to hold power accountable?

In part, this suggests developing educational policies and practices that not only inspire and motivate people but are also capable of challenging the growing number of anti-democratic tendencies under the global tyranny of capitalism. Such a vision of education can move the field beyond its obsession with accountability schemes, market values, and unreflective immersion in the crude empiricism of a data-obsessed, market-driven society. It can also confront the growing assault on education, where right-wing forces seek to turn universities into tools of ideological tyranny — arenas of pedagogical violence and white Christian indoctrination.

Any meaningful vision of critical pedagogy must have the power to provoke a radical shift in consciousness — a shift that helps us see the world through a lens that confronts the savage realities of genocidal violence, mass poverty, the destruction of the planet and the threat of nuclear war, among other issues. A true shift in consciousness is not possible without pedagogical interventions that speak directly to people in ways that resonate with their lives, struggles and experiences. Education must help individuals recognize themselves in the issues at hand, understanding how their personal suffering is not an isolated event, but part of a systemic crisis. In addition, activism, debate and engagement should be central to a student’s education.

n other words, there can be no authentic politics without a pedagogy of identification — an education that connects people to the broader forces shaping their lives, an education that helps them imagine and fight for a world where they are active agents of change.

The poet Jorie Graham emphasizes the importance of engaging people through experiences that resonate deeply with their everyday lives. She states that “it takes a visceral connection to experience itself to permit us to even undergo an experience.” Without this approach, pedagogy risks reinforcing a broader culture engrossed in screens and oversimplifications. In such a context, teaching can quickly transform into inaccessible jargon that alienates rather than educates.

Resisting Educational “Neutrality”

In the current historical moment, education cannot surrender to the call of academics who now claim in the age of Trump that there is no room for politics in the classroom, or the increasing claim by administrators that universities have a responsibility to remain neutral. This position is not only deeply flawed but also complicit in its silence over the current far right politicization of education.

The call for neutrality in many North American universities is a retreat from social and moral responsibility, masking the reality that these institutions are deeply embedded in power relations. As Heidi Matthews, Fatima Ahdash and Priya Gupta aptly argue, neutrality “serves to flatten politics and silence scholarly debate,” obscuring the inherently political nature of university life. From decisions about enrollment and research funding to event policies and poster placements, every administrative choice reflects a political stance. Far from apolitical, neutrality is a tool that silences dissent and shields power from accountability.

It is worth repeating that the most powerful forms of education today extend far beyond public and higher education. With the rise of new technologies, power structures and social media, culture itself has become a tool of propaganda. Right-wing media, conservative foundations, and a culture dominated by violence and reality TV created the fertile ground for the rise of Trump and his continued legitimacy. Propaganda machines like Fox News have fostered an anti-intellectual climate, normalizing Trump’s bigotry, lies, racism and history of abuse. This is not just a political failure — it is an educational crisis.

In the age of new media, platforms like Elon Musk’s X and tech giants like Facebook, Netflix and Google have become powerful teaching machines, actively serving the far right and promoting the values of gangster capitalism. These companies are reshaping education, turning it into a training ground for workers who align with their entrepreneurial vision or, even more dangerously, perpetuating a theocratic, ultra-nationalist agenda that views people of color and marginalized groups as threats. This vision of education must be rejected in the strongest terms, for it erodes both democracy and the very purpose of education itself. 

Education as Mass Mobilization

Education, in its truest sense, must be about more than training students to be workers or indoctrinating them into a white Christian nationalist view of who does and doesn’t count as American. Education should foster intellectual rigor and critical thinking, empowering students to interrogate their experiences and aspirations while equipping them with the agency to act with informed judgment. It must be a bold and supportive space where student voices are valued and engaged with pressing social and political issues, cultivating a commitment to justice, equality and freedom. In too many classrooms in the U.S., there are efforts to make students voiceless, which amounts to making them powerless. This must be challenged and avoided at all times.

Critical pedagogy must expose the false equivalence of capitalism and democracy, emphasizing that resisting fascism requires challenging capitalism. To be transformative, it should embrace anti-capitalist principles, champion radical democracy and envision political alternatives beyond conventional ideologies.

In the face of growing attacks on higher education, educators must reclaim their role in shaping futures, advancing a vision of education as integral to the struggle for democracy. This vision rejects the neoliberal framing of education as a private investment and instead embraces a critical pedagogy as a practice of freedom that disrupts complacency, fosters critical engagement, and empowers students to confront the forces shaping their lives.

In an age of resurgent fascism, education must do more than defend reason and critical judgment — it must also mobilize widespread, organized collective resistance. A number of youth movements, from Black Lives Matter and the Sunrise Movement to Fridays for Future and March for Our Lives, are mobilizing in this direction. The challenge here is to bring these movements together into one multiracial, working-class organization.

The struggle for a radical democracy must be anchored in the complexities of our time — not as a fleeting sentiment but as an active, transformative project. Democracy is not simply voting, nor is it the sum of capitalist values and market relations. It is an ideal and promise — a vision of a future that does not imitate the present; it is the lifeblood of resistance, struggle, and the ongoing merging of justice, ethics and freedom.

In a society where democracy is under siege, educators must recognize that alternative futures are not only possible but that acting on this belief is essential to achieving social change.

The global rise of fascism casts a long shadow, marked by state violence, silenced dissent and the assault on critical thought. Yet history is not a closed book — it is a call to action, a space for possibility. Now, more than ever, we must dare to think boldly, act courageously, and forge the democratic futures that justice demands and humanity deserves.

Thursday, April 3, 2025

US K-12 Education: Still the "Shame of the Nation"

In 2005, Jonathan Kozol’s The Shame of the Nation powerfully critiqued the deeply entrenched educational inequalities that have disproportionately harmed Black, Latino, and low-income students. Kozol exposed the systemic racial and economic segregation that has continued to plague American schools, and his analysis remains deeply relevant today. However, the future of U.S. public education is at risk of becoming even bleaker under the Trump administration, especially as the federal government's role in education continues to be weakened.

The K-12 Pipeline: A Growing Divide

The K-12 pipeline to higher education—the path students follow from early childhood through to high school—is increasingly segmented, with disparities in the quality of education between wealthy and low-income districts widening. Kozol’s focus on how underfunded urban schools limit students' opportunities remains central today. A new Trump administration, with Linda McMahon potentially leading the Department of Education, threatens to exacerbate these existing divides.

McMahon, with little background in public education, will champion policies that reduce federal oversight, resulting in less accountability for schools, particularly those in marginalized communities. The federal funding that historically helped level the playing field, particularly through programs like Title I, could be slashed, further undermining schools in low-income neighborhoods. As a result, these schools would continue to fall behind, denying their students the resources and opportunities needed to succeed in higher education.

The Impact of Charter Schools and Privatization

The Trump administration's push to expand charter schools is another major policy shift that could further fragment the education system. Charter schools, while often touted as innovative solutions for struggling students, have been criticized for contributing to the already entrenched inequality that Kozol highlighted. Although some charter schools provide high-quality education, many are selective, serving predominantly higher-income students. By draining resources away from traditional public schools, charter schools perpetuate the educational divide, leaving students in underfunded public schools without the same opportunities.

The rise in charter schools often leads to an increase in school segregation, as wealthier families gain access to better-funded charter schools while lower-income students remain trapped in poorly funded public schools. This trend is especially harmful to Black, Latino, and low-income students, whose educational outcomes are already significantly worse than those of their wealthier peers. The expansion of charter schools under the Trump administration, combined with a decrease in public school funding, could result in further neglect for students in the most vulnerable communities.

Dismantling the U.S. Department of Education

Under Linda McMahon, the federal government’s role in ensuring educational equity will diminish drastically. The department has long played a critical role in enforcing civil rights protections and promoting equal access to education for all students, especially those from historically marginalized communities. Under McMahon’s leadership, however, the department may reduce its oversight, weakening protections for disadvantaged students and further deregulating education standards.

Dismantling the Department of Education will severely impact funding for some of the most vital programs for disadvantaged students, particularly those from low-income families and students with disabilities. Title I, which provides essential funding to help poor schools close achievement gaps, could be gutted or eliminated, leaving millions of students without the resources they need to succeed. Schools in high-poverty areas rely on Title I funds to provide tutoring, after-school programs, and other support services that directly address educational inequality. Similarly, the Individuals with Disabilities Education Act (IDEA), which mandates funding for special education programs, could face significant cuts or be poorly managed if oversight is moved to less equipped agencies. Students with disabilities, who rely on specialized services and accommodations to succeed in school, would be at greatest risk of losing access to the tailored support they need. Without these protections, both vulnerable children and their schools could face a future where educational opportunities are increasingly limited, further entrenching inequality and leaving these children behind.

With fewer safeguards in place, the privatization of education could become the norm, as more school services, including special education and after-school programs, are outsourced to private companies. This would leave the most vulnerable students without the necessary support to succeed, particularly in crucial areas like literacy and numeracy. 

The Growing Literacy Crisis: Math and Reading Inequality

The persistent gaps in math and reading literacy are among the most pressing challenges in American education. Despite efforts to improve educational outcomes, a significant disparity remains in the proficiency levels of students based on race and socioeconomic status. According to the National Assessment of Educational Progress (NAEP), only about 35% of Black and Latino 4th-graders are proficient in reading, compared to 50% of White students. Similarly, in math, only 25% of Black and Latino 8th-graders reach proficiency, compared to nearly 45% of White students.

These gaps are not merely statistical—they represent the unequal opportunities that students in underserved schools face. When underfunded schools struggle to attract and retain qualified teachers, or fail to provide students with essential learning resources, these disparities deepen. In a system where wealthy districts receive far more funding and resources, these gaps are perpetuated.

Under the Trump administration’s proposed policies, which prioritize charter schools and private sector involvement, students in public schools—especially those in impoverished areas—could see even fewer resources dedicated to addressing these literacy gaps. Charter schools, with their selective nature, may be able to provide higher-quality instruction in some cases, but this further isolates students who remain in traditional public schools with large class sizes and inadequate materials.

Making US Schools Less Accountable

The dismantling of the Department of Education would also jeopardize critical data collection and national testing systems that are vital for understanding and addressing the state of education in the United States. The National Center for Education Statistics (NCES), which operates under the Department of Education, is the primary source of reliable, comprehensive data on student performance, educational attainment, and resource allocation across the country. Without the NCES, efforts to assess educational disparities, track progress over time, and formulate evidence-based policies would be severely hindered. Additionally, national testing programs like the National Assessment of Educational Progress (NAEP), often referred to as the "Nation’s Report Card," provide valuable insights into student achievement and educational trends at the national and state levels. These assessments help inform policy decisions and highlight areas in need of intervention. Without these data-gathering tools, policymakers and educators would be left without a clear picture of how schools are performing, making it far more difficult to address systemic inequities or improve educational outcomes nationwide. The loss of these resources would leave the U.S. education system flying blind, unable to measure success or pinpoint areas for improvement.

Social Promotion: Masking the Problem Until It’s Too Late

One of the most damaging practices exacerbating the literacy crisis in American schools is social promotion—the practice of advancing students to the next grade level, despite their failure to meet basic academic standards. Social promotion is often used to avoid the stigma of holding students back, but in reality, it perpetuates the cycle of educational inequity by masking deep-rooted academic struggles.

For students in underfunded schools—particularly those in low-income neighborhoods—social promotion delays crucial interventions. Students who are promoted without mastering basic literacy and numeracy skills are allowed to move forward with significant gaps in their knowledge. By the time they reach high school, it is often too late to catch up, and many of these students find themselves unprepared for the rigors of higher education or the workforce.

Social promotion is particularly harmful for students of color, who are already more likely to attend schools with fewer resources and less experienced teachers. When these students are promoted despite not having the foundational skills needed for success, they are set up for failure. This delayed intervention further widens the achievement gap and reduces their chances of succeeding in higher education.

As the Trump administration’s policies could continue to reduce federal oversight and place more control in the hands of state and local governments, the problem of social promotion could go unchecked. Without a strong, federally mandated system of accountability, more students may be left behind, and the opportunity to fix the systemic issues before it’s too late will be missed.

The Danger of Increasing Segregation: School Discipline and the School-to-Prison Pipeline

In addition to the academic challenges, discipline policies in schools have long contributed to the inequities Kozol highlighted. The school-to-prison pipeline, which disproportionately impacts Black and Latino students, has resulted in higher rates of suspension, expulsion, and even criminal justice involvement for students of color. Under the Trump administration, this pipeline could be exacerbated by loosening federal regulations and reducing accountability for discriminatory disciplinary practices.

The expansion of charter schools could further isolate students of color, as these schools often have less stringent rules for discipline and may screen out students who are considered high-risk. This leaves public schools, especially in poorer neighborhoods, dealing with the fallout of disproportionate discipline practices, which can lead to higher dropout rates, decreased academic engagement, and fewer opportunities for college readiness.

The Path Forward: A Deepening Crisis or Hope for Reform?

While the dismantling of the U.S. Department of Education and the increased push for charter schools under the Trump administration threaten to deepen the educational crisis, there is still hope. Advocacy for stronger public education, equitable funding, and systemic reform must continue to be at the forefront of the national conversation. Kozol’s work serves as a powerful reminder of the devastating consequences of neglecting America’s most vulnerable students. Without urgent action to address the disparities in educational resources, teacher quality, and funding, the gaps in math and reading literacy will only grow wider, and the K-12 pipeline to higher education will become more fragmented.

Efforts to combat these inequities could include increased investment in early childhood education, improved access to social-emotional learning programs, and a renewed commitment to ensuring that all students, regardless of race or background, have access to the same opportunities for success. However, this can only happen if the federal government plays a strong role in holding schools accountable and ensuring equitable access to resources.

Ultimately, as Kozol’s critique has shown, the educational divide in America will continue to grow unless systemic changes are made. If the focus shifts away from equity and toward privatization and deregulation, the cycle of educational inequality will continue to harm the students who need help the most, leaving them without the tools they need to succeed in higher education and beyond.

Monday, March 10, 2025

For-Profit College Barons Backed Trump, But Now May Be Scared (David Halperin)

Many top for-profit college industry owners supported Donald Trump’s bid to return to the White House. They had benefitted when, during Trump’s first term, his education secretary, Betsy DeVos, largely ended federal regulatory and enforcement efforts to hold for-profit schools accountable for deceiving students and ripping off taxpayers. But some industry barons, having contributed to the Trump 2024 campaign, now may be scared by efforts of the new Trump administration, including Elon Musk’s DOGE team, to disrupt operations of the U.S. Department of Education. Both Trump and his new Secretary of Education Linda McMahon publicly suggested last week that the Department will be abolished.

Although the for-profit college industry endlessly complained that the Biden and Obama education departments were unfairly targeting the industry with regulations and enforcement actions, they now seem concerned about the possibility that the Trump administration will shutter the Department entirely, abandon the federal role in higher education oversight, and leave regulation to the states. They likely are even more frightened that the proposed gutting of the Department will interfere with the flow of billions in federal taxpayer dollars to their schools.

The Chronicle of Higher Education reports that Jason Altmire, the former congressman who is now the CEO of the largest lobbying group of for-profit colleges, Career Education Colleges and Universities (CECU), says that his schools are worried about the potential disruption of funding for federal student grants and loans. Altmire apparently also expressed concern that turning regulation over to the states could create problems for online schools that operate in multiple states, especially because some states have relatively strong accountability rules.

Many for-profit colleges receive most of their revenue — as much as the 90 percent maximum allowed by U.S. law — from federal taxpayer-supported student grants and loans. For-profit schools have received literally hundreds of billions in these taxpayer dollars over the past two decades, as much as $32 billion at the industry’s peak around 2010, and around $20 billion annually n0w.

But many for-profit schools have used deceptive advertising and recruiting to sell high-priced low quality college and career training programs that leave many students worse off than when they started, deep in debt and without the career advancement they sought. Dozens of for-profit schools have faced federal and state law enforcement actions over their abuses.

CECU (previously called APSCU and before that CCA) has included in its membership over the years many of the most abusive, deceptive school operations, including Corinthian Colleges, ITT Tech, Education Management Corp., Perdoceo, Center for Excellence in Higher Education, DeVry, Kaplan (now called Purdue University Global), and Ashford University (now called University of Arizona Global Campus). (Republic Report highlighted the bad actors on CECU’s membership list for many years; CECU removed the list from its website about four years ago.)

Florida couple Arthur and Belinda Keiser are among those who have benefited the most from CECU lobbying and taxpayer funding. The Keisers run for-profit Southeastern College and non-profit Keiser University, which collectively have received hundreds of million in federal education dollars over the years. They also are among the most politically active owners in the career college industry.

While Belinda Keiser has run, unsuccessfully, for the state legislature, Arthur Keiser has been one of the most aggressive lobbyists for the career college industry in Washington. He has been a dominant figure on the board of CECU, and he hired expensive lawyers to go all the way to the U.S. Supreme Court in a failed effort to block a settlement that provides debt relief to students who attended deceptive colleges, including Keiser University. During Trump’s first term, Arthur Keiser chaired NACIQI, the Department of Education’s advisory committee reviewing the performance of college accreditors.

The Keisers created controversy and were eventually penalized by the IRS for a shady 2011 conversion of Keiser University from for-profit to non-profit, in a deal that allowed the couple to continue making big money off the school. Keiser University has also settled cases with the Justice Department and the Florida attorney general over deceptive practices.

In the two years leading up to the November 2024 election, according to Federal Election Committee records, Belinda Keiser donated more than $250,000 to various Republican candidates and political committees, including $35,000 to the Trump 47 Committee, $10,300 to the Trump-affiliated Save America PAC, $3300 to the Trump Save America Joint Fundraising Committee, and $33,400 to the Republican National Committee.

Ultra-wealthy college owner Carl Barney was another big Trump 2024 donor. Barney operated the Center for Excellence in Higher Education, another troubling conversion from for-profit to non-profit that kept taxpayer money flowing into his bank accounts, for schools including CollegeAmerica and Independence University. Barney’s schools lost their accreditation, and then their federal aid, after the Colorado attorney general in 2020 won a lawsuit accusing CollegeAmerica of deceptive practices. (The case is still pending after an appeal.)

Amid a torrent of donations to Republican committees last fall totaling over $1.6 million, Barney donated $924,600 to the Trump 47 Committee, $74,500 to the Trump-supporting Make America Great Again PAC, and $247,800 to the Republican National Committee, according to federal records.

In a September post on his personal website, Barney explained that he liked that Trump “wants to work with Elon Musk to reduce spending, regulations, waste, and fraud in the federal government.”

What exactly waste, fraud, and abuse seems to mean in the context of the Trump/Musk effort is troubling. There is little evidence that what DOGE has found and shut down relates to actual fraud, abuse, or corruption.

Instead it appears that much of what Musk and DOGE have focused on is weakening or eliminating either (1) federal agencies that have been investigating Musk businesses, or businesses of other top Trump donors; or (2) agencies that work on priorities — such as equal opportunity for Americans or alleviation of poverty or disease overseas — that Trump or Musk dislike.

And the Trump team has been firing, across multiple federal agencies, the inspectors general, ethics watchdogs, and other top officials actually charged with rooting out waste, fraud, and abuse — further undermining the claim that the Trump team is trying to bring about more honest and efficient government.

It’s doubtful that even the heaviest sledgehammer DOGE attack would eliminate the federal student grants and loans that Congress has mandated to give low and moderate income Americans of all backgrounds a better chance to improve their lives through higher education. Assuming such financial aid will continue, then if Trump, Musk, and DOGE truly wanted to root out waste, fraud, and abuse, and save big money for taxpayers, one thing they could do is strengthen, rather than abolish, the Department of Education — not to keep the money flowing to all for-profit colleges, as CECU seems to want, but to advance efforts to ensure that taxpayer dollars go only to those colleges that are creating real benefits for students and for our economy.

That would mean enforcing and building on, not destroying, the Department of Education rules put in place by the Biden administration, including: the gainful employment rule, which creates performance standards to cut off aid to for-profit and career programs that consistently leave graduates with insurmountable debt; the borrower defense rule, which cancels the debts of students scammed by their schools and empowers the Department to go after those predatory schools to recoup the taxpayer money; and the 90-10 rule, which helps keep low-quality programs out of the federal aid program and reduces the risk that poor quality schools will target U.S. veterans and service members.

It would also mean continuing the Biden administration’s efforts to more aggressively evaluate the performance of the private college accrediting agencies that oversee colleges and serve as gatekeepers for federal student grants and loans.

Fighting waste, fraud, and abuse would also mean strengthening, not gutting, efforts to investigate and fight predatory college abuses by enforcement teams at the Department of Education, Federal Trade Commission, Consumer Financial Protection Bureau, Justice Department, Department of Veterans Affairs, and Department of Defense. Many deceptive school operations remain in business today, recruiting veterans, single parents, and others into low-quality, over-priced college programs; they include Perdoceo’s American Intercontinental and Colorado Technical University, Purdue University Global, University of Arizona Global Campus, DeVry University, Walden University, the University of Phoenix, South University, Ultimate Medical Academy, and UEI College.

Fighting waste, fraud, and abuse also would likely require a different higher ed leader at the Department than Nicholas Kent, the Virginia state official whom Trump has nominated to serve as Under Secretary of Education. Kent previously worked at CECU as a lobbyist advancing the interests of for-profit schools. Prior to that, he worked at Education Affiliates, a for-profit college operation that faced civil and criminal investigation and actions by the Justice Department for deceptive practices.

Diane Auer Jones, who held the same job in the first Trump administration, had a career background similar to Kent’s, and she twisted Department policies and actions to benefit predatory colleges. That is presumably the world CECU and its for-profit college barons want to restore: All the money, none of the accountability rules.

In the end, the predatory college owners may get what they want. Given the brazen self-dealing, and fealty to corporate donors, of the Trump-Musk administration, and the sharp elbows of paid-for congressional backers of the for-profit college industry like Rep. Virginia Foxx (R-NC), we will probably end up with the worst of all outcomes: the destruction of the Department of Education but a continued flow of taxpayer billions to for-profit schools, without meaningful accountability measures to ensure that everyday Americans are actually protected from waste, fraud, and abuse.

Americans should demand from Trump and Secretary McMahon a different course — one that provides educational opportunity for all and strengthens the U.S. economy by investing in higher education, while removing from the federal aid program the abusive colleges that rip off students and scam taxpayers.

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

Wednesday, January 22, 2025

How President Trump's Executive Orders May Affect Higher Education (Glen McGhee)

Here are the key executive orders and actions President Trump has issued so far that may affect higher education:

1. Signed an executive order to dismantle diversity, equity, and inclusion (DEI) initiatives across federal agencies, including in higher education[4]. This order aims to end what the administration calls "divisive preferential hierarchy" in favor of merit-based systems[4].

2. Issued an order to freeze hiring at federal agencies, including the Department of Education[3]. This could potentially lead to a reduction in staff and expertise at the department.

3. Directed federal employees, including those in education-related agencies, to return to full-time in-office work, potentially ending telework arrangements[3].

4. Signed an order making it easier to remove career staffers in policy-related positions by reclassifying them as political appointees[3]. [[BELOW for analysis]]

5. Required companies with federal contracts to certify they do not maintain DEI programs defined as "discriminatory practices" by the order[4].

6. Authorized immigration enforcement on school campuses, which could affect international students and undocumented students in higher education[9].

These executive orders have already faced criticism and potential legal challenges from civil rights organizations, business leaders, and education advocates[4][7][8]. The full impact of these orders on higher education remains to be seen, as some may be tied up in courts or face legislative challenges[7].

Citations:
[1] https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=412157
[2] https://www.insidehighered.com/news/government/politics-elections/2025/01/20/now-office-how-trump-could-overhaul-higher-ed
[3] https://www.edweek.org/policy-politics/what-will-trumps-orders-for-federal-workers-do-to-the-education-department/2025/01
[4] https://www.diverseeducation.com/leadership-policy/article/15712680/trump-executive-order-targets-federal-dei-initiatives-drawing-swift-backlash
[5] https://www.chronicle.com/article/trump-has-issued-a-blitz-of-executive-orders-some-could-affect-higher-ed
[6] https://www.capradio.org/articles/2025/01/21/trump-is-signing-a-flurry-of-executive-orders-heres-how-those-work/
[7] https://www.washingtonpost.com/politics/2025/01/21/trump-executive-orders-challenges-lawsuits/
[8] https://www.presidentsalliance.org/press/presidents-alliance-reacts-to-harmful-impact-of-new-administrations-executive-orders/
[9] https://www.usatoday.com/story/news/education/2025/01/21/trump-executive-orders-immigration-schools/77851480007/
==========================================================
President Trump signed an executive order on January 20, 2025, that aims to make it easier to remove certain federal employees by reclassifying them into a new category called "Schedule Policy/Career"[1][2]. This order is a reinstatement of a similar policy from Trump's previous administration, which was known as "Schedule F"[1].

The key points of this executive order are:
1. It targets federal employees in "policy-influencing positions"[3].
2. It reclassifies these employees, potentially stripping them of civil service protections[2].
3. The order argues that this change is necessary to ensure accountability and loyalty to the President's policies[3]. 

Critics argue that this order:
1. Could lead to the politicization of the civil service[2].
2. Might result in career officials being dismissed for political reasons[2].
3. May affect tens of thousands of federal employees[7].

The legality of this executive order is being questioned, and federal worker unions are expected to challenge it in court[4][6]. The implementation of this order could significantly impact the structure and functioning of federal agencies, including the Department of Education[4].

Citations:
[1] https://www.meritalk.com/articles/president-reinstates-schedule-f-classification-for-feds/
[2] https://www.cnn.com/2025/01/20/politics/federal-employee-protections-trump-executive-order/index.html
[3] https://www.whitehouse.gov/presidential-actions/2025/01/restoring-accountability-to-policy-influencing-positions-within-the-federal-workforce/
[4] https://www.edweek.org/policy-politics/what-will-trumps-orders-for-federal-workers-do-to-the-education-department/2025/01
[5] https://www.pbs.org/newshour/show/trump-unleashes-wave-of-executive-orders-in-promised-overhaul-of-u-s-policies
[6] https://thehill.com/homenews/administration/5098444-federal-worker-union-sues-trump-schedule-f/
[7] https://www.washingtonpost.com/politics/2025/01/20/trump-schedule-f-reinstated/
[8] https://www.afge.org/publication/trump-order-politicizing-federal-workers-threatens-integrity-of-government-work-union-leader-says/

Tuesday, January 17, 2023

Need Student Debtors to Provide Information about Low-Financial-Value Postsecondary Programs (Updated February 15, 2023)

 

[Editor's Note: The public comment period ended February 10, 2023.]  

The US Department of Education is accepting public comments as a Request for Information (RFI) about "Public Transparency for Low-Financial-Value Postsecondary Programs."  The announcement is available at the US Federal Register.  

The URL to make these comments is at 

https://www.regulations.gov/document/ED-2022-OUS-0140-0001

As with most US government rules and policies, industry insiders have great influence in these decisions--and concerned citizens are often shut out of the process. When consumers do have a chance to speak, they may not even know of those opportunities.  That's why the Higher Education Inquirer is asking student loan debtors to contribute to this RFI while they can.   

Tell DC policymakers and technocrats about your unique struggles (and your family's struggles) tied to student debt--and what could be done to better inform consumers like you. 

There you can find public comments that have already been made.  As of February 15, only 129 comments were posted. 

According to the announcement: 

"a misalignment of prices charged to financial benefits received may cause particularly acute harm for student loan borrowers who may struggle to repay their debts after discovering too late that their postsecondary programs did not adequately prepare them for the workforce. Taxpayers also shoulder the costs when a substantial number and share of borrowers are unable to successfully repay their loans. The number of borrowers facing challenges related to the repayment of their student loans is significant."  

The Request for Information continues...

"Programs that result in students taking on excessive amounts of debt can make it challenging for students to reach significant life milestones like purchasing a home, starting a family, or saving enough for retirement, ultimately undermining their ability to climb the economic mobility ladder. Especially for borrowers who attended graduate programs, debt-to-income ratios often rise well above sustainable levels. IDR (Income-Driven Repayment) plans also cannot fully protect borrowers from the consequences of low financial-value programs. For instance, IDR plans cannot give students back the time they invested in such programs. For many programs, the cost of students' time may be at least as significant as direct program costs such as tuition, fees, and supplies. Loans will also still show up on borrowers' credit reports, including any periods of delinquency or default prior to enrollment in IDR."

"The Biden-Harris Administration is committed to improving accountability for institutions of higher education. One component of that work is to increase transparency and public accountability by drawing attention to the postsecondary programs that are most likely to leave students with unaffordable loans and provide the lowest financial returns for students and taxpayers."

CECU, an group representing for-profit colleges, has an organized effort to protect its interests. 
 
Meanwhile, Robert Kelchen has provided an EXCEL spreadsheet that provides many answers. The dataset covers 45,971 programs at 5,033 institutions with data on both student debt and earnings for those same cohorts. We found more than 12,200 programs where debt exceeds income. And more than 7200 programs resulted in median incomes of less than $25,000 a year with debt greater than $10,000.

While some of these high-debt programs in medicine and law may eventually be profitable, many more paint a picture of struggle with a lifetime of debt peonage. Cosmetology schools had a large number of low-income programs.  But the fine arts, humanities, social sciences, and education also produced low-value programs in terms of debt to income ratio. 

Some of subprime schools HEI has been investigating (Purdue University Global, University of Arizona Global, The Art Institutes) had a number of low-value majors. But elite and brand name schools like Duke, Drexel, Emory, Syracuse, Baylor, DePaul, New School, and University of Rochester even have high debt and low-income programs. 

Related link:  I Went on Strike to Cancel My Student Debt and Won. Every Debtor Deserves the Same. (Ann Bowers)

Related link: More Transparency About the Student Debt Portfolio Is Needed: Student Debt By Institution

Related link: The College Dream is Over (Gary Roth)

Related link: Even Elite Schools Have Subprime Majors (Keil Dumsch and Dahn Shaulis)

Monday, July 11, 2022

Colleges Are Outsourcing Their Teaching Mission to For-Profit Companies. Is That A Good Thing? (Richard Fossey*)

[This article is part of the Transparency-Accountability-Value series.]

Years ago, colleges employed people to perform auxiliary services. University employees staffed the campus bookstore, ran the student union, and performed janitorial services.

Over time, however, universities began outsourcing almost all of their auxiliary services. Barnes & Noble now runs hundreds of college bookstores. National fast-food chains operate stores in countless student unions.

Recently, however, American colleges have gone beyond outsourcing their non-instructional activities. Now, the universities are outsourcing their core mission: teaching students.

According to the Government Accountability Office (as reported in the Wall Street Journal), 550 colleges and universities are partnering with for-profit companies to design courses, recruit students, and manage instruction.

Academic Partnerships, one of the leading for-profit outfits, contracts with universities all over the United States to manage graduate programs--for a hefty fee, of course. Higher Education Inquirer estimates that AP collects about half the revenue from the courses and programs they manage.

2U, another for-profit online instruction provider, has a contract for services with the University of Oregon and gets 80 percent of the tuition for 2U-managed courses. That's a good deal for 2U's stockholders.

What the hell is going on?

As the Wall Street Journal explained, colleges are losing revenue due to declining enrollments. They aren't raising enough money to pay all their administrators and bureaucrats. Thus, hundreds of schools are investing heavily in online academic programs--especially graduate programs--to juice their revenues.

Respected public universities like the University of North Carolina and the University of Oregon have turned to for-profit companies to design or revamp various graduate programs, recruit students, and oversee instruction.

Why don't the professors do those things?

I don't know. Perhaps the faculty don't have the skills necessary to recruit students, manage enrollment, or design academic programs for an online format. Or maybe doing these things is just too fuckin' hard.

I have a professor friend whose dean ordered him to design and teach an online course for a master's degree program managed by Academic Partnerships. He was told the class would be conducted online over five weeks.

My friend was a good soldier and taught the course as directed. He had over 600 online students! When the class was completed, my friend told the dean he would never teach an online course that way again, even if it meant being fired.

As the Wall Street Journal pointed out, students are often unaware that they are taking a course managed by a profit-driven company, not the university.

For example, the University of Texas at Arlington has a big-time financial relationship with Academic Partnerships, which manages graduate programs in nursing, education, business, and public health. Nevertheless, UTA's promotional materials do not disclose that Academic Partnerships manages these online graduate programs.

Students all over the United States are taking out loans to pay tuition bills at public universities in the naive belief that these schools are non-profit entities dedicated solely to the public good.

Most of these students would be surprised to learn that a profit-making company is sucking up a good share of their tuition dollars to enrich their executives and investors.

My take on this? If a public university is so goddamn lazy or incompetent that it has to pay a private company to manage its academic programs, then that university should be closed. 

My Photo

Richard Fossey


*This article originally appeared in Richard Fossey's Condemned to Debt Blog. The blog's URL is https://www.condemnedtodebt.org/

 

 

Tuesday, May 14, 2024

College Meltdown 3.0 Could Start Earlier (And End Worse) Than Planned


Chronicling the College Meltdown 

Since 2016, the Higher Education Inquirer has documented the College Meltdown as a series of demographic and business trends leading to lower enrollments and making higher education of decreasing value to working-class and middle-class folks. This despite the commonly-held belief that college is the only way to improve social mobility.  

For more than a dozen years, the College Meltdown has been most visible at for-profit colleges and community colleges, but other non-elite schools and for-profit edtech businesses have also been affected. Some regions, states, and counties have been harder hit than others. Non-elite state universities are becoming increasingly vulnerable

Elite schools, on the other hand, do not need students for revenues, at least in the short run.  They depend more on endowments, donations, real estate, government grants, corporate grants, and other sources of income. Elite schools also have more than enough demand for their product even after receiving bad press.    

The perceived value and highly variable real value of higher education has made college less attractive to many working-class consumers and to an increasing number of middle-class consumers--who see it as a risky proposition. Degrees in the humanities and social sciences are becoming a tough sell. Even some STEM degrees may not be valuable for too long.  Public opinion about higher education and the value of higher education has been waning and many degrees, especially graduate degrees, have a negative return on investment. 

Tuition and room and board costs have skyrocketed. Online learning has become more prominent, despite persistent questions about its educational value. 

While college degrees have worked for millions of graduates, student loans have mired millions of other former students, and their families, in long-term debt, doing work in fields they aren't happy with

Elite degrees for people in the upper class still make sense though, as status symbols and social sorters. And there are some professions that require degrees for inclusion. But those degrees and the lucrative jobs accompanying them disproportionately go to foreigners and immigrants, and their children--a demographic wave that may draw the ire of folks who have lived in the US for generations and who may have not enjoyed the same opportunities.  

Starting Sooner and Ending Worse

The latest phase of the College Meltdown was supposed to result from a declining number of high school graduates in 2025, something Nathan Grawe projected from lower birth rates following the 2008-2009 recession.

But problems with the federal government's financial aid system may mean that a significant decline in enrollment at non-elite schools starts this fall instead of 2025.  

The College Meltdown may become even worse than planned, in terms of lower enrollment and declining revenues to non-elite schools. Enrollment numbers most assuredly will be worse than Department of Education projections of slow growth until 2030

In 2023, we wrote about something few others reported on: that community colleges and state universities would feel more financial pressure from by the flip-side of the Baby Boom: the enormous costs of taking care of the elderly which could drain public coffers that subsidize higher education. This was a phenomenon that should also have been anticipated by higher education policy makers, but is still rarely discussed. Suzanne Mettler graphed this out in Degrees of Inequality a decade ago--and the Government Accountability Office noted the huge projected costs in 2002

Related links: 

Starting my new book project: Peak Higher Education (Bryan Alexander)

Long-Term Care:Aging Baby Boom Generation Will Increase Demand and Burden on Federal and State Budgets (Government Accountability Office, 2002)

Forecasting the College Meltdown (2016)

Charting the College Meltdown (2017)

US Department of Education Fails to Recognize College Meltdown (2017)

Community Colleges at the Heart of the College Meltdown (2017)

College Enrollment Continues Decline in Several States (2018) 

The College Dream is Over (Gary Roth, 2020)

The Growth of RoboColleges and Robostudents (2021)

Even Elite Schools Have Subprime Majors (2021)

College Meltdown 2.0 (2022)

State Universities and the College Meltdown (2022) 

"20-20": Many US States Have Seen Enrollment Drops of More Than 20 Percent (2022) 

US Department of Education Projects Increasing Higher Ed Enrollment From 2024-2030. Really?(2022)

EdTech Meltdown (2023) 

Enrollment cliff? What enrollment cliff ? (2023)

Department of Education Fails (Again) to Modify Enrollment Projection (2023)

Sunday, January 19, 2025

Higher Ed Unbridled (And Muzzled)

In early 2025, we will slowly begin to see what US higher education looks like with less oversight and accountability, something that many business leaders and administrators secretly hope for. At the same time, we can imagine higher education and its media wary of talking out of turn.

In the past, the Higher Education Inquirer (HEI) focused on exposing bad actors in a few areas of the higher education business: online program managers, large robocolleges, student loan servicers, lead generators, SLAB makers, and university endowments. 

We followed the plight of student loan debtors and their families, working-class adjuncts, and striking academic labor. Together, they represented tens of millions of Americans. And we covered funding cuts, layoffs, and universities in financial peril. 

We promoted people, in higher education and the higher education business, who fight for more transparency and accountability--those who provided value to consumers. 

And HEI highlighted the work of important scholars who discussed the role of higher education in larger matters of politics and economics, climate change and global conflicts.

Despite all of this work, we believe there will be a need to expand our focus over the next four years. We expect fraud and corruption to widen across the higher ed sector and for media coverage of this malfeasance to be minimal--maybe even less than the past.  

While higher ed may be unbridled, the higher ed media may be muzzled.  We hope to do the opposite despite the costs.  

Please support the Higher Education Inquirer by consistently reading and sharing our work with allies, and by letting us know what you all see. Your comments are always welcome and your participation does matter. Let's work and struggle together--in solidarity.