2U, Once a Giant in Online Education, Files for Chapter 11 Bankruptcy (wsj.com) 16
Online education company 2U filed for Chapter 11 bankruptcy protection and is being taken private in a deal that will wipe out more than half of its $945 million debt [non-paywalled link]. From a report: 2U was a pioneer in the online education space, joining with schools including the University of Southern California, Georgetown University and the University of North Carolina at Chapel Hill to design and operate online courses in fields including nursing and social work. But it struggled in recent years amid new competition and changing regulations. It also had a highly leveraged balance sheet with looming loan-repayment deadlines. 2U closed Wednesday with a market value of about $11.5 million, down from more than $5 billion in 2018. In 2021, 2U bought edX, an online platform for classes that was founded by Harvard University and the Massachusetts Institute of Technology. The debt from that $800 million deal for edX proved debilitating to 2U, WSJ reports.
they get Chapter 11 but students can't use that to (Score:3)
they get Chapter 11 but students can't use that to get our of there loans!
Re: (Score:3)
Re: (Score:2)
they get Chapter 11 but students can't use that to get our of there loans!
Not to shit on a currently popular topic, but someone crying about their student loans accepted the loan with the understanding that they will take their education now and pay it back after. They have already received the services they financed, not much leg to stand on considering you can't exactly repossess or resell their knowledge. Defaulting on a student loan after you've received the credential is basically stealing job training.
I have limited sympathy, I only have my associate's degree because I ran
Re: (Score:3)
Nice what-aboutism: 2U is also failing to pay for the EdX property it bought but for some reason, you think that isn't important. Which is precisely the GP's point.
You decided to avoid the common practice of 'leveraging' your assets (in this case, promised future income) but most young people decide they can do it too. That results in educational institutions committing fraud, on multiple levels. For some reason, a conspiracy to commit crime, isn't important.
Re: (Score:2)
Nice what-aboutism: 2U is also failing to pay for the EdX property it bought but for some reason, you think that isn't important. Which is precisely the GP's point.
You decided to avoid the common practice of 'leveraging' your assets (in this case, promised future income) but most young people decide they can do it too. That results in educational institutions committing fraud, on multiple levels. For some reason, a conspiracy to commit crime, isn't important.
Incorrect, I think that both things are true at the same time. You cannot let companies abandon their financial responsibilities any more than you should let individuals abandon them. The principals at 2U should face financial consequences personally for their failures in the same way that someone taking an extremely ill-advised loan should.
For the principals of a large company like that, the consequences should come in the form of reduced chances to secure funding for their future ventures and the professi
Re: (Score:2)
Every student is free to apply for a loan that can be dismissed in bankruptcy.
However, it will likely be much, much harder to get and may require collateral and/or a cosigner.
The "no discharge in bankruptcy" is because taxpayers are guaranteeing the loan which transfers the risk from the entity making the loan to people who have no say in making the loan.
If a student doesn't want a loan that is can't be discharged in bankruptcy there is a simple solution -- don't take out such a loan.
Re: (Score:2)
Re: they get Chapter 11 but students can't use tha (Score:1)
Student loans are not loans, they are taxes which you have received temporarily. If you want a better, cheaper college experience, take government out of the education system completely, go for private loans and prove that your degree will pay the bank back on time.
MIT/Harvard sold edX for how much? (Score:3)
These universities sold edX, a non-profit, for $800 million. MIT and Harvard screwed the on-line students of their non-profit and probably the content producers too.
These universities are working for money, they literally care about nothing else. They pretend to be about education for the tax breaks, That's why on-line freely available education is so important.
Paywalls Suck (Score:2)
OP link to somewhere that isn't paywalled :(
Re: (Score:1)
Re: (Score:2)
Thanks ... but I feel like Slashdot should have a no-paywalled-article policy.
Keep it around, 'cause ... (Score:2)
2U filed for Chapter 11 bankruptcy protection and is being taken private
I heard that Nothing Compares ... [wikipedia.org]
and it doesn't take up much rack space, only ...
(well, you get it) :-)
So (Score:2)