2U and USC to ‘wind down’ partnership

The online education company will part with USC on three degree programs.

By BENJAMIN GAMSON
USC was 2U’s first client in higher education and accounted for 15% of its revenue in 2019. (Wikimedia Commons)

USC and 2U, a for-profit digital learning platform, announced a mutual agreement to end their partnership for three of USC’s online graduate programs in a joint statement Thursday evening. 

2U’s services covered the Rossier School of Education, the Dworak-Peck School of Social Work and the Iovine and Young Academy. USC was 2U’s first client in higher education, but it now serves universities across the country, including Harvard University, Georgetown University and Vanderbilt University. USC made up 15% of 2U’s total revenue in 2019.


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2U will continue to service the University in hybrid online clinical programs within the USC Division of Biokinesiology and Physical Therapy program. 

“Over the next 15 months, 2U and USC will work together to effectively transition the delivery and administration of servicing these programs to the university,” the joint statement read. “We will ensure that students receive the same high standard of education and support they have come to expect.”

The move comes after three 2021 Rossier graduates filed a class action in December lawsuit alleging that USC and 2U misled students by knowingly advertising inflated school rankings and over-enrolling students into Rossier’s online programs to maximize profit.

USC and 2U faced other troubles with inflation. In June 2019, Dworak-Peck faced a budget crisis after hiring faculty and staff to accommodate the growth of its online master’s degree programs — run by 2U — from 900 students in 2010 to 3,500 in 2016. The school also admitted less qualified students in an attempt to fill classes and get more tuition money, 60% of which was paid to 2U.

In their joint statement, USC and 2U wrote that their partnership was “characterized by innovation, commitment, and a shared vision for quality education.”

“We are proud of the robust foundation that this relationship has helped to lay for these programs, which are well-poised for future success,” the statement read.

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