Washington, D.C. — This morning, the largest online program management (OPM) provider in higher education, 2U, announced that it is filing for bankruptcy. As of earlier this year, more than 67,000 students were enrolled in 2U programs, including more than 43,000 pursuing degrees at programs in partnership with brand-name public and private colleges.
In response, Stephanie Hall, senior director for Higher Education Policy at the Center for American Progress, issued the following statement:
2U is not an outlier here. This is not an instance of market forces resolving issues in consumer protection. Instead, this bankruptcy filing provides a lifeline to 2U so that it can continue raking in federal funds with no accountability. For more than a decade, colleges and universities have exploited a loophole in federal law intended to protect students from high-pressure and misleading recruitment practices, as well as to safeguard public investment in federal student aid, by contracting with companies such as 2U.
For years, advocates have been pushing the U.S. Department of Education to close this dangerous loophole and guarantee clearer oversight over OPMs like 2U. This lack of oversight puts students at significant risk—as we’ve seen today—and the Department of Education needs to act immediately to reduce further harm.
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For more information or to speak with an expert, please contact Mishka Espey at [email protected].