Showing posts sorted by relevance for query robocollege. Sort by date Show all posts
Showing posts sorted by relevance for query robocollege. Sort by date Show all posts

Thursday, July 1, 2021

The Growth of "RoboColleges" and "Robostudents"


In a previous Higher Education Inquirer article, I presented frightening full-time faculty numbers at some large online universities which I call "robocolleges."  Full-time faculty at these robocolleges, in fact, are nearly nonexistent. Bear in mind that all of them are regionally accredited, the highest level of institutional accreditation, and the list includes well-known public university systems as well as for-profit ones.  

Robocolleges have de-skilled instruction by paying teams of workers, some qualified and some not, to write content, while computer programs perform instructional and management tasks. Learning management systems with automated instruction programs are known by different names and their mechanisms are proprietary.  As professor jobs are deskilled, tasks can be farmed out at reduced costs.  

Besides the human content creators who may be given instructional titles, other staff members at robocolleges are paid to communicate with students regarding their progress. The assumption is that managing work this way significantly reduces costs, and it does, at least in the short and medium terms.  However, instructional costs are frequently replaced by marketing and advertising expenses to pitch the schools to prospective students and their families.  Companies like EducationDynamics and Guild Education have filled the niche of promoting robocolleges to workers at a reduced cost but their overall impact is minimal.  

Meanwhile,  companies like Chegg profit from this form of learning, helping students game the system in greater numbers, in essence creating robostudents.  

The business model in higher education for reducing labor power and faculty costs is not reserved to for-profit colleges.  Community colleges also rely on a small number of full-time faculty and armies of low-wage contingent labor.  

In some cases, colleges and universities, including many brand name schools, utilize outside companies, online program managers (OPMs), to run their online programs, with OPMs like 2U taking up as much as 60 percent of the revenues.  OPMs can perform a variety of jobs, but are best known for their work in enrollment and retention.  Prospective students may believe they are talking to representatives of a particular university when in fact they are talking to someone from an outside source.  Noodle has disrupted the OPM model by selling their services ala carte, but only time will tell whether it has an impact, or whether schools will merely find less costly outsourced servicers.  

Outsourcing higher education has been a reality in US higher education for decades. And automation is also part of education, as it should, when it performs menial tasks, such as taking roll and doing preliminary work to determine student cheating.  It's likely that more schools will become more robotic in nature to reduce organizational expenses.  But what are the long-term consequences with long-term student outcomes, when automation is used to perform higher level tasks, and when outsourced individuals act in the name of brand name colleges?  

To get a small glimpse of this robocollege phenomenon, these schools cumulatively have about 3000 full-time instructors for more than a half-million students.  

American Intercontinental University: 51 full-time instructors for about 8,700 students.
American Public University System has 345 F/T instructors for more than 50,000 students. 
Aspen University has 34 F/T instructors for about 9,500 students.  
Capella University: 216 F/T for about 38,000 students.
Colorado State University Global: 34 F/T instructors for 12,000 students.
Colorado Technical University: 59 F/T instructors for 26,000 students.
Devry University online: 53 F/T instructors for about 17,000 students.
Grand Canyon University has 461 F/T instructors for 103,000 students.*  
Liberty University: 1072 F/T for more than 85,000 students.*
Purdue University Global: 346 F/T instructors for 38,000 students.
South University: 0 F/T instructors for more than 6000 students.
Southern New Hampshire University: 164 F/T for 104,000 students.
University of Arizona Global Campus: 194 F/T instructors for about 35,000 students.
University of Maryland Global: 193 F/T instructors for 60,000 students.
University of Phoenix: 127 F/T instructors for 96,000 students.
Walden University: 206 F/T for more than 50,000 students.

*Most of these full-time instructors are faculty at the physical campuses.  

Wednesday, July 12, 2023

University of Phoenix and the Ash Heap of Higher Ed History (Updated September 14, 2023)

[Editor's Note: The Higher Education Inquirer will continue to update this story as more information comes in.]

The University of Phoenix (or at least its name) may soon enter the ash heap of US higher education history--and rise again as a state-run robocollege.  But it shouldn't--at least not yet. Once hailed as the leader in affordable adult education for workers entering middle management, it is a shell of its former self--in an economy less certain for workers and consumers. 

With the school's wreckage are approximately one million people buried alive in an estimated $14B-$35B in student loan debt.  

Pattern of Fraud

As of January 2023, more than 69,000 of these student loan debtors have filed Borrower Defense to Repayment fraud claims with the US Department of Education against the University of Phoenix (UoPX). Many more could file claims when they become aware of their rights to debt relief. In the partial FOIA response below, the US Department of Education reported that 69,180 Borrower Defense claims had been made against the school.

In a recent federal case, Sweet v Cardona, most if not all of the 19,860 "denied" cases were overturned in favor of the student loan debtors.  We estimate the smaller number of fraud claims alone to amount to hundreds of millions of dollars.  

Through a FOIA request, we also discovered 6,265 consumer complaints in the FTC database. In 2019, the FTC and the University of Phoenix settled a claim for $191M for deceptive employment claims.  Based on the consumer complaints, we have no reason to believe that Phoenix has changed its behavior as a bad actor. 

On May 3, 2023, six US Senators (Warren, Brown, Blumenthal, Durbin, Merkley, Hassan) called for the US Department of Education, Department of Veterans Affairs, and Department of Defense to investigate the University of Phoenix for launching a new program suggesting that it was a public university.  The letter stated that the school "has long preyed on veterans, low-income students, and students of color."

Wolves in Sheep's Clothing

University of Phoenix's owners could potentially be liable for refunding the US government for the fraud. But as a state-related organization, it may be more politically difficult to claw back funds, no matter how predatory the school is.  

Purdue University Global and University of Arizona Global set a precedence in state-related organizations acquiring subprime schools (Kaplan University and Ashford University) and rebranding them as something better. Whether they are better for consumers is questionable. Phoenix will have to cut costs, largely by reducing labor. Using Indian labor (like Purdue Global) and AI could be profitable strategies.  It's likely that this deal, even if profitable, will add fuel to the growing skepticism of higher education in the US. 

University of Phoenix's Finances

Apollo Global Management and Vistria Group currently own University of Phoenix but have been trying (unsuccessfully) to unload the subprime college for more than two years. Little is publicly known about the school's finances. What is known is that UoPX gets about $800M every year from the federal government, through federal student loans, Pell Grants, GI Bill funds, and DOD Tuition Assistance.

Despite this government funding, US Department of Education data show the school's equity value for the Arizona segment declined significantly, from $361M in FY 2018 to $187M in FY 2021. 

$347M of the University of Phoenix's $518M in assets are intangible assets. Intangible assets typically include intellectual property and brand reputation. The school has $348M in liabilities.  

The University of Phoenix has been reducing expenses by cutting instructional costs, from $70M in FY 2020 to $60M in FY 2021. UoPX spends about 8 percent of its revenues on instruction.

Marketing and advertising expenses are not available, but Phoenix has been visible on the Discovery Channel's Shark Week, CBS' Big Brother, and other television events. ISpot.tv reports that University of Phoenix spends millions of dollars each year on television ads.  On one ad alone, the ad spend from February 2023 to July 2023 was an estimated $3.5M. 

Attempts to Sell UoPX

There have been two known potential buyers for the University of Phoenix: the University of Arkansas System and the University of Idaho. In both cases, the owners required the potential buyers to keep the deal secret until the sale was imminent.  

Fear of the impending higher education enrollment cliff appears to be an important pitch to potential buyers. 

Arkansas, the first target, was in the process of making the deal, and it might have gone through if nit for the voice of one whistleblower and one outstanding investigative reporter, Debra Hale Shelton of the Arkansas Times.

In the case of Idaho, news of the potential deal was publicly noted just one day before the preliminary agreement was made with the Idaho Board of Education. Two other secret meetings were held before that.  

A number of journalists including Kevin Richert (Idaho EdNews), Laura Guido (The Idaho Press), Troy Oppie (Boise State Public Radio), and Noble Brigham (Idaho Statesman) have exposed some of the problems and potential problems with the deal.  In June, Idaho legislators began questioning the acquisition.  

More recently, the opinion editor at the Idaho Statesman argued that the deal may actually be worthwhile

Particulars about the finances are sketchy at best and misleading at worst.  The University of Phoenix is said to include $200M in cash in the deal, but they have not said how much of that sum is required by law as "restricted cash"--money the school needs if the Department of Education needs to claw back funds.  Phoenix also claims to be highly profitable, but without showing any evidence.  

What is known about the deal is that the University of Idaho will have to borrow $685M and put its (bond) credit rating at risk. The school has not identified important information how the bonds would be sold (underwriters, bond raters, date to maturity, interest rate). 

The University of Idaho has created an FAQ to answer questions about the sale, but HEI has identified a number of misleading statements about University of Phoenix's present finances (failure to report the school's equity), potential liability (cost of tens of thousands of Borrower Defense claims), and leadership (lack of background information about Chris Lynne, the President of the University of Phoenix).  These deficiencies have been reported to the University of Idaho and to the Representative Horman. 

On June 20, Idaho Attorney General Raul Labrador filed a lawsuit to halt, or at least slow down the deal. 

The University of Idaho submitted a Pre-Acquisition Review from the US Department of Education, and it may take up to three months before the application is completed. 

As of September 2023, the deal is far from done.  Since this article was first published there have been a number of developments:

On September 11,  US Senators Elizabeth Warren, Dick Durbin, and Richard Blumenthal called on University of Idaho President Green to abandon the sale.  The Senators also asked Green if he had a plan to pay for the Borrower Defense claims, noting that University of Arizona may be on the hook for thousands of claims against Ashford University (aka University of Arizona Global campus).

In November, the Joint Finance-Appropriations Committee of the Idaho Legislature is expected to discuss the issue again.

*The Higher Education Inquirer has made a FOIA request for more up-to-date numbers from the US Department of Education. We have also filed FOIA requests with the FTC. 


Related link: 

How University of Phoenix Failed. It's a Long Story. But It's Important for the Future of Higher Education.

The Growth of "RoboColleges" and "Robostudents"

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

Borrower Defense Claims Surpass 750,000. Consumers Empowered. Subprime Colleges and Programs Threatened.

Wednesday, February 7, 2024

Robocollege Update

 


Robocolleges are a mix of for-profit and non-profit online colleges, both secular and Christian.  Their focus is on automation and reduced costs, particularly labor costs:

Instruction is delivered through automated Learning Management Systems (LMS) and online platforms, relying less on professors and more on pre-recorded lectures and automated grading. Even support staff are being replaced by chatbots.  

While some qualified individuals might be involved, educational content is often developed by large teams with varying expertise, potentially sacrificing quality for cost-effectiveness.

Marketing and advertising continue to be costly. But targeting marketing (e.g. targeting military service members and veterans, teachers, nurses, and government workers in low-income neighborhoods) can improve cost efficiency. 

Robocolleges offer degrees with a wide range of value to consumers (return on investment versus debt).  For people who need a degree (or an advanced degree) to play the game in government and medicine, these credentials may have value. 

Competency-based education and credits for life experience reduce the number of courses some students need to graduate.  Servicemembers going to Purdue Global, for example, can get an AA with as few as five college courses and a BS with as little as seven additional courses.

Cheating is probably easier for online students who are so inclined and whether these companies care is not really known.  

Southern New Hampshire (SNHU) continues to be the growth and efficiency leader, with the highest enrollment, more than 160,000 students. SNHU is also experimenting with artificial intelligence to reduce labor costs. In addition, SNHU works with Guild (aka Guild Education), which recruits workers from Walmart, Target, Waste Management, and other large employers.  

Grand Canyon (for-profit) and Liberty University (non-profit) target Christians for online credentials.  But oppressive debt is a concern with some of their programs. Social mobility for students is subpar.  

Purdue University Global and University of Arizona, Global Campus are two former for-profit colleges now owned by state universities. Information about their financial status is sketchy. Like SNHU, Purdue Global works with Guild to recruit working folks.  Purdue Global owes its online program manager. Kaplan Education, about $128 million.  Arizona Global has had financial difficulties which have affected the University of Arizona's bottom line.  

The University of Phoenix has returned to profitability by reducing instruction and student services by $100 million a year and legal costs by $50 million a year.  Consumers continue to file fraud complaints by the tens of thousands.  And debt is an enormous problem with former students.  It's not apparent whether Phoenix can maintain such enormous profits, but its future as a non-profit affiliated with the University of Idaho may reduce its tax burden and legal liabilities. 

Here are the most recent numbers from the US Department of Education College Navigator:

American Intercontinental University: 89 full-time instructors for 14,333 students.
American Public University System has 332 F/T instructors for 48,688 students.
Aspen University has 27 F/T instructors for 7,386 students.
Capella University: 180 F/T for 39,727 students.
Colorado State University Global: 40 F/T instructors for 9,565 students.
Colorado Technical University: 55 F/T instructors for 24,808 students.
Devry University online: 61 F/T instructors for 26,384 students.
Grand Canyon University has 550 F/T instructors for 101,816 students.*
Liberty University: 735 F/T for 96,709 students.*
Purdue University Global: 337 F/T instructors for 45,125 students.
South University: 41 F/T instructors for 7,707 students.
Southern New Hampshire University: 130 F/T for 164,091 students.
University of Arizona Global Campus: 122 F/T instructors for 34,190 students.
University of Maryland Global: 177 F/T instructors for 55,838 students.
University of Phoenix: 80 F/T instructors for 88,891 students.
Walden University: 235 F/T for 42,312 students.

*Most F/T faculty serve the ground campuses that profit from the online schools. 

 

Related links:


Robocolleges, Artificial Intelligence, and the Dehumanization of Higher Education (2023)

 

 

 

 

Friday, September 15, 2023

Fraud Claims Against University of Phoenix Continue to Mount

The Higher Education Inquirer received a FOIA response today from the US Department of Education stating that 73,740 consumer fraud claims have been filed against the University of Phoenix. These claims have been made through the Department of Education's Borrower Defense to Repayment program.

The Sweet v Cardona lawsuit, concluded earlier in 2023, allowed for about 19,000 claims to be settled immediately--in favor of student debtors and against the University of Phoenix. Another 15,000 or so cases are supposed to be expedited as a result of the federal ruling.  

23-02373-F Final Response

We estimate that the potential liability of these immediate claims to be $200M-$600M with another $500M-$1.5B for the remaining cases. The higher estimates are based on the median federal loan debt among borrowers who completed their undergraduate degree ($32,421) and a study by Adam Looney and Constantine Yannelis that indicated University of Phoenix debtors, on average, paid off almost nothing of their principal. The authors also estimated that total student loan debt from more than a million University of Phoenix debtors was $35B. 

The Department of Education has not presented any estimates on the total debt by University of Phoenix students or its costs to the US government.  

Thousands of new cases continue to be filed. From January 2015 through January 1, 2022, there were 32,040 Borrower Defense claims made against the University of Phoenix. An additional 41,700 claims were filed between 2022 and August 2023. 

Idaho Sale

University of Phoenix's current owners are Apollo Global Management and Vistria Group, who have been trying to unload the online robocollege for years. The University of Idaho has been the most recent target, but the sale is far from being consummated.  The entire deal is expected to cost $685M. Idaho Attorney General Raul Labrador has filed a lawsuit to stop or at least slow down the acquisition. And members of the Idaho Legislature continue to have questions.

In order to shield itself from liability the University of Idaho created a non-profit organization called 43 Education. But the state university may be responsible if the non-profit fails to make enough money to repay the bondholders of the new non-profit. 

The liability of these Borrower Defense claims to the current or future owners of the University of Phoenix seems possible in light of a recent statement by Department of Education Undersecretary James Kvaal. Kvaal said the University of Arizona Global Campus may be liable for the misdeeds of Ashford University (UAGC's former name). The University of Arizona purchased Ashford in 2020 for one dollar. 

Related articles:

Feds Cancel Loans for 2,300 Students Scammed by Ashford U. So Why Does the School Still Get Tax Dollars? (David Halperin)

University of Phoenix and the Ash Heap of Higher Ed History

Borrower Defense Claims Surpass 750,000. Consumers Empowered. Subprime Colleges and Programs Threatened.

The Growth of "RoboColleges" and "Robostudents"

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

 


Sunday, September 11, 2022

State Universities and the College Meltdown

State Universities are using Google Ads to boost enrollment numbers.

(Updated November 28, 2022) 

While for-profit colleges, community colleges, and small private schools received the most attention in the first iteration of the College Meltdown, regional public universities (and a few flagship schools) have also experienced financial challenges, reorganizations, and mergers, enrollment losses, layoffs and resignations, off-campus learning site closings and campus dorm closings, lower graduation rates, and the necessity to lower admissions standards. They are not facing these downturns, though, without a fight. 

State universities, for example, are attempting to maintain or boost their enrollment through marketing and advertising--sometimes with the assistance of helpful, yet sometimes questionable online program managers (OPMs) like 2U and Academic Partnerships and lead generators such as EducationDynamics.  

 

Academic Partnerships claims to serve 50 university clients.  HEI has identified 25 of them. 

Google ads also follow consumers across the Web, with links to enrollment pages.  And enrollment pages include cookies to learn about those who click onto the enrollment pages. Schools share the information that consumers provide with Google Analytics and Chartbeat.  

                                       A pop-up Google Ad for Penn State World Campus

Advanced marketing will not improve institutional quality directly but it may raise awareness of these state schools to targeted audiences.  Whether this becomes predatory may be an issue worth examining.

 

In order to stay competitive, state universities have to have a strong online presence and spend an inordinate amount of money on marketing and advertising.  Ohio University and other schools now offer programs that are 100 percent online.  

 

State universities have joined for-profit colleges in the television advertising space. 

Despite marketing and enrollment appeals like this, we believe the financial situation could worsen at non-flagship state universities when austerity is reemployed--something likely to happen during the next economic downturn

While state flagship universities have multiple revenue streams, they are often unaffordable for working families.  Elite state universities, also known as the Public Ivies, have increasingly shut out state residents--in favor of people from out of state and outside the US--who are willing to pay more in tuition. 

Aaron Klein at the Brookings Institution calls this significant (and dysfunctional) out-of-state enrollment pattern as The Great Student Swap.  

State Universities with more than 4000 foreign students include UC San Diego, University of Illinois, UC Irvine, University of Washington, Arizona State University, Purdue University, Ohio State University, Michigan State University, and UC Berkeley. 

People fortunate enough to attend large state universities as undergrads may feel alienated by large and impersonal classrooms led by graduate assistants and other adjuncts.  There are also significant and often under-addressed social problems related to larger universities, including hunger, substance abuse, sexually transmitted diseases, hazing and sexual assault.  

Online only versions of flagship schools may not be of the same quality as their brick and mortar counterparts. Purdue University Global and University of Arizona Global Campus, for example, are open enrollment schools for working adults which produce questionable student outcomes.  These "robocollege" schools hire few full-time instructors and often spend a great deal of their resources on marketing and advertising.  


EducationDynamics is a lead generator for "robocolleges" such as Purdue University Global and University of Arizona, Global Campus.  

 

                    Purdue University Global has used questionable marketing and advertising.

The Higher Education Inquirer has already noticed the following schools in the Summer and Fall 2022 that received media scrutiny for lower enrollment, financial problems, or labor issues:

 
 
 
 
 

More schools will be added as information comes in. 
 
Related link: College Meltdown 2.0 



Wednesday, May 31, 2023

Robocolleges, Artificial Intelligence, and the Dehumanization of Higher Education

In 2019, the Higher Education Inquirer began writing about the ruthless automation of academic work. We were looking for information on how the ideas of Frederick Taylor and his intellectual progeny (e.g. Harvard Business School's Clayton Christensen) resulted in an academic assembly line for low-grade higher education.  A subprime education for the masses. 

It was obvious that large for-profit colleges had been divesting in academic labor for decades, replacing full-time instructors with adjunct faculty. And they eventually replaced thousands of physical learning sites with exclusively online learning. Over time, content creators and other ghost workers replaced adjuncts. And the remaining adjuncts worked as deskilled labor. Shareholder profits, and branding, advertising, and enrollment numbers were more important than student outcomes. 

Two years later we used the terms "robocollege" and "robostudent" to acknowledge the extent of dehumanization in higher education. We noted that this process was taking place not only at for-profit colleges, but shadow for-profits, mid-rung state-run schools--and even at more elite schools who were looking for increased profits. 

Community colleges continue to dehumanize significant portions of their adjunct workforces with low pay and precarity. Online education makes it more alienating but more convenient for working folks. 

Expensive public and private universities continue to use grad assistants, lecturers, and other adjunct instructors in high-tech lecture halls. Classes almost as alienating and unproductive as online instruction.     

Over the last four decades, thousands of satellite campuses have closed across the US, making local connections less possible. Night schools at the local high school are a thing of the past.

For-profit Online Program Managers (OPMs) like Academic Partnerships and 2U recruit students for regional and elite state universities and private schools--hoping to profit from the growth of online education. But learning outcomes, completion rates, and debt-to-earnings ratios may be riskier bets for consumers choosing to take the more convenient and seemingly cheaper online route.  

Studies indicate that medical school students in face-to-face programs fall short in empathy.  So what can we expect from online instruction in education, nursing, psychology, social work, and other professions where empathy is necessary?   

Where does the process of dehumanization stop in US higher education?  It's difficult to believe that an extension of all this automation, artificial intelligence, will make human existence more humane for the masses--not under our current political economy that values greed and excess.  

It doesn't appear that accreditors, government agencies, labor unions, the media, or higher ed institutions themselves are deeply interested in countering these technological trends--or even in understanding its consequences.  It could be argued that this new wave of education serves US elites well by delivering subprime outcomes: making the "educated underclass" easier to control and less able to compete. 

Academic labor has had a few recent wins at a few brand name public universities but this seems less likely to occur where the labor supply is less valued. 

The numbers of full-time faculty continue to drop at robocolleges.  And where there are already few full-time faculty, US workers at Southern New Hampshire University and Purdue Global are being replaced by cheap academic labor working remotely from India.  This itself may only be a stop gap as artificial intelligence replaces intellectual labor.  

How about other private and state run schools in decline?  Will they follow the same desperate path of dehumanization to stem the bleeding?

What lies ahead for online students?  If student-consumers are merely present to acquire or upgrade credentials, why won't they use AI and other methods to escalate levels of intellectual dishonesty?  For those who are unemployed or underemployed, is returning to online education worth the financial risk and the time away from work, friends, and family?  Will their educational work be obsolete before they can put it to good use?  

Related links: 

The Higher Education Assembly Line

The Growth of "RoboColleges" and "Robostudents"

College Meltdown 2.2: Who’s Minding the Store?

State Universities and the College Meltdown

Sharing a Dataset of Program-Level Debt and Earnings Outcomes (Robert Kelchen) 

OPM Market Landscape And Dynamics: Spring 2023 Updates (Phil Hill)

Cheating Giant Chegg, Shrinks (Derek Newton)