Jeremy Bauer-Wolf
Investigations Manager
Bryanna Bailey had just been kicked out of college.
It was early June, and the 34-year-old had settled down in the room she shares with her young son in her parents鈥 Florida home. When she logged onto her online courses that day, she found the links to her lessons were grayed out and inaccessible. Panicked, Bailey pulled up a chatbot that the college set up for students to report problems. She had wrapped up all of the lessons she could in her AI software engineering program. But per the college鈥檚 policy, she still needed to participate in some form of academic work weekly to stay enrolled.听
Bailey didn鈥檛 understand she had violated this policy at first. Over and over, she asked the chatbot to talk to a real person. 鈥淚t鈥檚 a personal issue and I鈥檇 like to speak to a human,鈥 she wrote.
The chatbot refused repeatedly, and informed her she had been withdrawn. It did offer her a URL where she could reapply to the college.听
It鈥檚 a personal issue and I鈥檇 like to speak to a human.
Bailey has never spoken to any employee of Maestro College. To her knowledge, nor have her classmates. No faculty give lessons at Maestro. No employee database is readily available, so students often don鈥檛 know who handles crucial services for the college, like financial aid. Absent such a list, some students don鈥檛 think those staff members exist.
Maestro markets itself as a free, accredited college, where students can embark on online degree programs at their own pace, spearheaded by an AI instructor. At the school, which at one point last year was advertising itself on TikTok as 鈥渢he AI University,鈥 a chatbot 鈥渢eacher鈥 will walk through lessons, ask students questions, and guide their examinations. It鈥檚 a tempting prospect for students who may be cash-strapped or feel mismatched with a more traditional college.
In practice, I found through months of public records requests, interviews, and research, Maestro is a hasty rebrand of a brick-and-mortar for-profit college that was floundering financially. It is also not free. Its business model appears structured to maximize Pell Grant revenue from students. This pot of financial aid benefits the country鈥檚 poorest households鈥攁nd is paid for by taxpayers.
This financial aid scheme may be illegal, as it鈥檚 structured like a that was closed down. Adding to these concerns, one of Maestro鈥檚 owners has led another for-profit college accused of engaging in systemic fraud, ATI Enterprises.
Maestro鈥檚 instructional model features an AI 鈥渋nstructor鈥 that substitutes for human interaction. A faculty member whom I spoke with, and granted anonymity to, said he has never communicated one-on-one with students, and only makes contact with them on online discussion boards that, until recently, were optional. Maestro officials disputed this characterization of instruction to me, arguing the faculty members have an active role in monitoring and teaching students.听
Hello future, goodbye tuition bills! #theaiuniversity #becomeanything #learning #futureoflearning #career #ai
Source: @maestro_ai_university, TikTok video, June 19, 2025.
There are other digital barriers. When students need help, for instance, with disability accommodations, they typically send their requests through an online portal, where it鈥檚 not guaranteed a human will respond to them. Those answers can come from nameless email addresses.
Such a laissez-faire approach might anger students, but most of them feel they鈥檙e getting a Maestro credential for free. The college is a new sort of education, it is working out all of the kinks, students told me. And if they鈥檙e not paying out of pocket, the stakes seem lower.听
Most students don鈥檛 understand the fine print of federal aid, though. Pell money is finite. Once students have exhausted their individual lifetime financial aid limits, they can鈥檛 tap the grants to help pay for college down the line. They might not be able to afford college ever again. Maestro students who deplete Pell aid on a chatbot-delivered degree may only discover this fact when they try to land at another college.听
Maestro鈥檚 owners built the college in a way that has so far allowed them to dodge oversight from regulators, like its accreditor, which helps judge whether the institution should qualify for federal aid. As it has come online, Maestro seemingly has run afoul of not just accreditor rules, but likely also federal laws and regulations.
Still, Maestro has seen success, which reflects the realities and anxieties that define U.S. higher education today.
Like on cost. The institution鈥檚 pitch, a 鈥渇ree鈥 credential, has proven alluring, juicing its enrollment, reaching 7,000 to 8,000 students, according to Maestro officials, when its previous fall enrollment often didn鈥檛 reach 100 students at its primary campus. Many Americans still view their postsecondary dreams as too expensive to pursue, even with the upward social mobility a degree promises.听
Students I talked to were cynical about that promise, though. Those who attended college before Maestro told me they were adrift and alienated at more traditional campuses. They said instructors couldn鈥檛 (or wouldn鈥檛) assist them if they didn鈥檛 grasp the work. That they didn鈥檛 feel they could ask classroom questions without drawing the eyes and judgments of their peers. An AI teacher, however flawed, can devote as much time to students as they wish. It can rewrite questions to a context that fits their lives.听 It doesn鈥檛 make them feel dumb, students told me. Using AI has created a sense of belonging in a space that Maestro students have perceived as excluding them.听
That often overrides their concerns about the quality of Maestro鈥檚 education, including that the AI chatbot can make mistakes. A couple of students told me the AI 鈥渋nstructor鈥 has marked answers wrong on an exam when they are correct.听
Colleges, too, are anxious about AI use, as it floods every corner of society. Financial and cultural strains鈥 from the Great Recession and against colleges, among them鈥攈ave already constricted institutions. AI appeals to students. Colleges must acknowledge this. They are well-positioned to help incorporate the technology into the classroom and beyond, especially since government regulations have not yet kept pace with AI.
Maestro College may be a fleeting venture. Its accreditor鈥攊n response to my team at 麻豆果冻传媒 flagging Maestro鈥檚 potential policy and legal violations earlier this year鈥攕uspended enrollment to the college in June. But AI is not temporary. If Maestro is any indication, higher education鈥檚 regulatory and policy machinery is not yet equipped to meet the challenge.
Whether students spend months hunting for the right school, or they know right away they want to attend their local community college, actually enrolling can be daunting. Students and families may talk to staff and administrators on multiple occasions as they mull over programs and try to parse the quirks of each college鈥檚 financial aid packages. The unease around this process has only heightened as the public has grown mistrustful of the value of college鈥and institutions in general.
At Maestro College, no adviser sits across a desk, or on the phone, to walk applicants through their choices of academic major or financial aid options. Enrollment is self-serve. Maestro students apply, enroll, and generally have to figure the rest out themselves. Without those clear points of contact, students seek answers in all sorts of places: with the college鈥檚 online portal, which may never put them in touch with a human, , whom they鈥檝e never met.
The college functions online, rebranded from an existing for-profit school in Texas (more on that later) and focuses on certificates and associate degrees. One of Maestro College’s owners also converted a second for-profit school, in Utah, into Maestro University, and have been attempting to assemble an academic pipeline where students can move from an associate鈥檚 degree at the college straight into a bachelor鈥檚 program there.听
To apply, students only have to share basic information about themselves on a school webpage鈥攆or example, whether they attended college previously, and their income. They typically receive an admissions decision within a couple of weeks, students told me.
Students accepted to degree programs and who make under $100,000 a year receive what the college has labeled its 鈥減ro scholarship.鈥 Every student enrolled at Maestro receives this scholarship, according to the college. This makes the entire education free, Maestro claims.听
Not quite. The college has developed a pricing strategy that follows the traditional for-profit college playbook.
Federal aid is the lifeblood of American colleges. Most rely on Pell Grants and student loans to grow and stay in business. Predatory for-profit colleges , targeting and enrolling as many low-income students as possible and, in doing so, reap gobs of federal money.
Maestro鈥檚 scholarship is 鈥渓ast dollar,鈥 meaning it covers all tuition costs鈥攂ut after students apply all of their other financial aid, like Pell. Students can take out federal loans, too, for living expenses.听
Maestro president Shakeitha Sims initially told me in an interview that between 5 percent to 6 percent of students do not receive any federal financial aid. But she wrote in an email later that she misunderstood my question and that actually, about 62 percent of students do not get any federal aid.
I reviewed the financial aid offers of five Maestro students, and found four of them received the maximum amount of Pell possible per academic year, $7,395. Maestro is hoovering up all of it, as well as the $3,698 in Pell each student would normally spend on summer classes. The 鈥渟cholarship鈥 covers the rest of tuition, but essentially, most of the students I interviewed are burning through three years鈥 worth of Pell dollars for a two-year associate degree. And this degree has been outsourced to an AI chatbot, rather than professors.
I explained this to one of the Maestro students I spoke with. Lucy King, who is 42, signed up for Maestro because her diabetes had progressed to the point that she couldn鈥檛 stand for long periods. She had to give up her full-time work as a human resources professional and wanted to test out a new career path. (Lucy King is a pseudonym; she asked to remain anonymous for privacy considerations.)
When I talked with her in June, King told me that even though she had some concerns about the school, she appreciated Maestro because she felt judged in a conventional college classroom 鈥渇or not knowing anything.鈥澛
After I walked through with her that the college wasn鈥檛 actually free, and how the Pell aid she was expending on the program was limited, she had a different reaction. 鈥淣ow that鈥檚 a problem,鈥 King said. 鈥淏ecause at this point, that鈥檚 my financial aid. I鈥檓 well over the age for having considered my parents鈥 income. So the fact they鈥檙e taking money that is money that is mine for my education, I could have gone to my local community college鈥︹ She trailed off.
As my colleagues and I wrote last year, access to federal aid was decisive in pulling one of the most prominent for-profit cosmetology chains in the country back from the brink of financial ruin decades ago. In the 1970s, Empire Beauty School was losing students, fast. Becoming eligible for federal aid at that time swelled enrollment鈥攁nd the chain鈥檚 budget. It was a financial lifeline the college needed, even though its graduates weren鈥檛 consistently finding jobs, or paying off their debts. Today, Empire has more than 70 campuses nationwide and in 2024, raked in $65 million in federal aid.听
Maestro鈥檚 gambit achieved similar results, and its student numbers skyrocketed. But sudden jumps in enrollment are often a hallmark of a for-profit college looking to take as much financial aid as it can, Denise Morelli, a former U.S. Department of Education attorney of more than 30 years, told me. Denise worked to enforce colleges鈥 compliance with financial aid programs, known as Title IV, and helped with high-profile cases, including one of the worst-known cases of cosmetology fraud, the Marinello School of Beauty.听
Major enrollment spikes are 鈥渁 red flag that there are likely serious Title IV compliance issues, if not fraudulent activity, at an institution, especially in the for-profit sector where in many cases more bodies mean more profit,鈥 Denise said.
And Maestro was after more bodies. For instance, Maestro projected an aggressive enrollment uptake in its associate of applied science in business administration program, from 120 students in the first month to more than 1,000 by the end of the first year of the program, according to public records.听
students enrolled in the first month of the program
enrolled in the program by the end of the first year
Its financial aid ploy in particular is an urgent matter for regulators. It mirrors an aid program that the Education Department in . An Ohio community college maintained a scholarship, like Maestro, and charged Pell students the exact amount of what their grants covered. It zeroed out the bills of non-Pell students, too, labeling the reduction a 鈥渟cholarship,鈥 but the Education Department determined that the scholarships weren鈥檛 backed by real accounting, and the school was actually shifting Pell money to subsidize those who weren鈥檛 eligible for the grants.
鈥淓ssentially, under this program, students who receive Pell funding are being charged for the program, but students not receiving Pell are not,鈥 the Education Department wrote in a letter to the institution, Eastern Gateway Community College, which .
Maestro may be carrying out the same scheme. Students鈥 scholarship agreements outline how the school will 鈥渃over any remaining tuition after eligible federal or state aid鈥 (emphasis added)鈥斺渆ven for scholars who don鈥檛 qualify for any federal or state grants.鈥澛
Sims also said during our interview that the school is “essentially” zeroing out tuition bills.” I asked Denise Morelli, who worked on the Eastern Gateway case, to review Maestro鈥檚 enrollment agreements to confirm that arrangement appears the same as that used by the community college. It does. If Maestro Pell recipients are charged a different rate than those without the grants, the college would be in violation of federal financial aid rules.
Student onboarding at Maestro resembles no typical college.听Once they enroll and secure any financial aid they鈥檙e eligible for, students are encouraged to register for a Reddit account. Maestro has dedicated a Reddit page for students to talk with one another, and college officials can post updates about the school. about everything from financial aid to explaining punishments by its accreditor.
Reddit may have been intended to replace a Maestro email address, which students didn鈥檛 have for months .听
One of Maestro鈥檚 selling points, which several students mentioned to me, was that the college sends them a free laptop鈥攖hough that perk has lost a bit of its luster. Students told me Maestro used to distribute the laptops right away, but now they must wait until they finish their first term. The laptop itself changed, too: Maestro recently switched from the MacBook Air to a cheaper model, the MacBook Neo, which has the same processor as the iPhone. Students in my conversations criticized the Neo for not being powerful enough to handle the coding work they would learn.
For some students, the new laptop was a necessity, not a bonus, and the turbulence around getting one undercut their studies. Corey Smart signed up for Maestro last year, tapping into her Pell Grants. She qualified for the maximum amount. Then, the college was still distributing laptops immediately, Smart said, but hers did not arrive on time. The Floridian, who has dyslexia, had to try to master coding on her cracked, outdated iPhone screen.
She said she reached out to Maestro a couple of times to sort out the laptop issue and the fact that she was falling behind on her work. She didn鈥檛 hear back. In December, she was hospitalized for about 10 days with pneumonia and couldn鈥檛 follow up with the school. By the time she was home, Maestro had ejected her from the program. Smart told me she could have just dropped out, but the college then presented her different degree options that had become available, and she reenrolled.听
鈥淚 don’t think I really could have caught up,鈥 Smart said of her coding program.
Maestro students progressively unlock multi-lesson courses once they enroll. They can advance through those classes at their own pace, but Maestro doesn鈥檛 give access to all of them at once, so students can鈥檛 blow through an entire term in a week or two. Once students wrap up those lessons with the AI bot, a final review opens, and they have a set amount of time to work through it.听
They will never have to communicate with a real-life instructor in order to finish a class, several students and one adjunct faculty member told me.听
That faculty member, Kody Jones, found Maestro on LinkedIn and started his job in January. (Kody Jones is a pseudonym, since he asked to remain anonymous to avoid retaliation.)
Jones said he has never talked with any students. He said the college pays him $1 for every post he makes on the discussion board for students, and $4 for each final review he checks.
Maestro officials told Jones he could use AI to generate replies on the discussion boards, he said. And ostensibly, Jones was hired to teach one particular subject, which I am not disclosing to avoid identifying him. But he weighs in on the discussion board on topics of all sorts, like basic psychology.听
鈥淚 can鈥檛 say I鈥檓 very knowledgeable about that,鈥 he admits.
Verifying final reviews is part of his job because sometimes the AI will mark a student鈥檚 answer wrong, even if it鈥檚 correct, Jones told me. Whenever students take lessons, there鈥檚 a disclaimer in small print at the bottom of the college鈥檚 interface: 鈥淢aestro can make mistakes. Check important information.鈥
Jones said he can鈥檛 see the identity of the students whose exams he鈥檚 reviewing. But he鈥檚 noticed that students will post on the discussion boards, asking for help, asking to speak to a teacher.
鈥淚 have no means of resolving that or reaching out to the student,鈥 Jones said. 鈥淎t this point, I don鈥檛 even know what I鈥檓 doing. That鈥檚 not how academia is.鈥
that students have regular, substantive contact with their instructors. The penalty for failing to provide this kind of meaningful instruction across an entire college would be removing its Pell Grant eligibility.
When I interviewed Maestro officials in June, they took exception with that faculty member鈥檚 description of the instruction. They were eager for me to talk to other faculty鈥攚ho they picked. I had told them my deadline was in a couple of days, and so, on that same day I interviewed Maestro鈥檚 leaders, they speedily set up another call with me and three faculty members. The president, Shakeitha Sims, also sat in on the call.
The call was clearly engineered so Maestro officials could dispel the idea that faculty weren鈥檛 interacting with students. It did not. Those on the call confirmed with me that until recently, the discussion boards were optional.听 They also outlined how faculty draft curriculum, and have access to students鈥 progress so they can reach out if a student is flailing academically. One faculty member claimed that staff members regularly call students to check on them when that鈥檚 the case.
When I asked, though, where the mandatory interactions between students and instructors occur during lessons, one faculty member, Emerald Artist, said: 鈥淚 don鈥檛 know that there were many opportunities for that.鈥
鈥淚 actually think that鈥檚 a very beautiful thing 鈥. and we are able to initiate our interactions with students who have deeper questions,鈥 Artist said on the call. 鈥淏y lessening the mandatory interactions, we鈥檙e seeing more engaging interactions, if that makes sense.鈥
Immediately after Artist gave that answer, Sims ended our interview.听
I asked Maestro for a response to what Artist had said, and it provided a statement, which I am publishing here in full.听
鈥淎ll programs include Regular and Substantive Interaction (RSI), delivered by a team of more聽than 140 faculty members. Maestro has always met this standard through required faculty聽grading, feedback on coursework, and faculty responses to academic questions within 48 hours,聽often the same day,鈥 it reads in part.
Maestro officials did acknowledge they鈥檙e in violation of its accreditor鈥檚 policies for the classroom. The Council on Occupational Education, or COE, demands at least a quarter of a college’s students鈥攎easured in full-time equivalents鈥攖ake classes face-to-face. COE wrote to Maestro in June, noting that with the leaps in enrollment, the school was flouting that policy.听
Maestro leaders told me in June they planned to comply with the 25-percent requirement.
Like COE, I had also suspected that this AI college wasn鈥檛 really using the physical address listed in some of its documents online. I decided to check.听
A course catalog for Maestro online indicates that some of its day classes occur for several hours on Mondays through Wednesdays weekly. I sent a Dallas local to the main Maestro campus in mid-June during that time, and the college鈥檚 suite was dark and empty.听
No staff or students present, and there was a sign advertising the institution under its old name affixed to a suite door.听
In its June letter, COE noted the incorrect signage, which Maestro officials told me has since been fixed. The accreditor investigated four complaints it had fielded over the last several months, it wrote, including allegations of 鈥渓imited or no direct human interaction with institutional personnel鈥 and 鈥渙ver-reliance on artificial intelligence.鈥 The accreditor issued the school a 鈥渟how cause鈥 order, which forces Maestro to explain why it shouldn鈥檛 lose accreditation. It also blocked the college from enrolling new students, effective immediately. Maestro now must submit a plan for what happens if COE revokes accreditation, and students want to transfer.
Maestro was once Peloton College, a Texas-based, for-profit institution with a lot of problems.听
Peloton had opened as a modest legal training school, but it began to resemble the institution it is today in 2009, when it gained access to federal aid.听
To qualify for that money, Peloton needed accreditation. It secured it with one of the most notoriously passive accreditors in American history.听
The Accrediting Council for Independent Colleges, or ACICS, would become known for rubber-stamping some of the worst for-profit operations. Among these, Corinthian Colleges and ITT Tech are the most notable. of both of the chains a decade ago exposed to the public the profound failures inherent in some for-profit operations: the anemic quality of their programs, their relentless recruitment tactics.
ACICS was so toothless as a watchdog that the federal government in 2022 took the exceedingly as a financial aid gatekeeper, and it folded after.听聽
But even with ACICS鈥 reputation for leniency, it rescinded Peloton鈥檚 accreditation in 2018 because so few of the school鈥檚 graduates were finding work. Peloton jumped to COE, its current accreditor, that year, escaping ACICS鈥 sanction. But the school鈥檚 financial burdens were still mounting.
The school鈥檚 headcount was never gargantuan. But by fall 2024, enrollment on the Dallas campus had sunk to 60 or so students, plummeting from roughly 170 students just a few years prior, in fall 2019, according to federal data. Diminishing enrollment drags on the bottom line. Last year, COE put the college鈥檚 accreditation on probation over financial concerns.听
The institution was so short on cash that early this year, according to emails, it was not eligible to participate in a national reciprocity agreement allowing colleges to enroll online students across most state lines. That would mean it couldn鈥檛 accept out-of-state students into online programs, which could further threaten its finances. The college ultimately rejoined the pact when it submitted updated documents showing the health of its budget had improved鈥攎arginally.
It needed financial salvation. It found it with an Israeli company called Masterschool.
Peloton was on life support for years, but Masterschool was awash with investor capital, a . At the time, Masterschool wooed investors with its business around income-share agreements. With an ISA, students don鈥檛 front college tuition themselves but pay it back in installments once they land a job. Income-share agreements have so far not been commonplace in the United States, in part because the government ramped up ISA scrutiny. In 2021, the Biden administration are a type of private loan, subject to more stringent lending laws.
Masterschool specializes in coding and other tech programs, where students can tap government vouchers called Bildungsgutschein to pay for them, similar to Pell Grants. Online student reviews of .
Masterschool connected with Peloton after college officials noticed its in-person enrollment waning, they told me. In a letter in April 2025, COE confirmed the new ownership structure with school officials: Masterschool had bought up a 20 percent stake.听
It only claimed a small share in the venture, but its involvement ushered in the wholesale abandonment of Peloton鈥檚 model. A 鈥渂eta鈥 version of Maestro鈥檚 website had sprung up by that April, .
Masterschool taking a minority ownership position dodged closer COE scrutiny. The accreditor operates two tiers of review鈥攐ne for more routine changes at a college, which only requires it be notified, and one for more substantive developments, which sends staff to a campus and triggers a vote from the accreditor鈥檚 governing body. That more extensive assessment would have caught the absence of real faculty at Maestro. But COE only applies it to changes of ownership when 50 percent or more of an institution鈥檚 assets shift to another person, according to its policies.
Other evidence that Maestro rushed the transformation from Peloton, perhaps to project legitimacy to regulators, abounds.
For instance, students who complained have sometimes been forwarded to a real person: Sims, the president.听
While a president often serves as a public face for a campus, it is unusual for one to become involved in the minutiae of individual student cases and their financial aid. But Sims has done so continually, according to documents I reviewed. The college has publicly urged negative reviewers on Google to reach out to Sims directly, and posted her email address.听
When I questioned Sims about her role, she said she served as both a campus president and the financial aid director, a remnant from when Maestro was a smaller operation as Peloton. She said there are about 19 staff members in student services.
In one email I reviewed, Sims told a student she was the correct point of contact not just for financial aid, but also for questions on 鈥渢ranscripts, enrollment verification, and academic records鈥 and for 鈥淎DA accommodations, exam adjustments, and related support.鈥 These assignments would typically not fall to a campus president.
Large sections of two Maestro catalogs also appear lifted verbatim from one from Peloton鈥攊mporting policies designed for the brick-and-mortar institution that make little sense for a college now operating seemingly entirely online.
Peloton鈥檚 catalog, dated January 2025, and Maestro鈥檚, from October 2025, both specify that students must attend an informational interview and tour a school facility before they鈥檙e admitted, unless they鈥檙e taking seminar courses. None of the students I spoke with had ever done that. A newer version of Maestro鈥檚 catalog, from January 2026, exempts students from the admissions tour and interview if they鈥檙e enrolled in fully online classes.听
It鈥檚 not unusual for colleges to update these kinds of materials over time. But students I spoke with had been handed outdated catalogs, or they had unearthed other versions of it using AI search tools.听
Each layer of that operation students try to make sense of independently compounds their confusion.听
On one occasion, when Bryanna Bailey was trying to figure out who to contact for exam accommodations, she stumbled upon , which remains active. She said she had no idea if she should try to reach out to any of the contacts she found there. 鈥淚 didn鈥檛 know who I was supposed to talk to,鈥 Bailey said. 鈥淣o one was being helpful.鈥
While a skeleton staff absorbs student complaints, Maestro鈥檚 actual owners remain out of their view. They include Larry Jobe, who was a founder of Peloton, according to public records. He also is for Mannatech, a multilevel marketing outfit that hawks supplements that the customers could cure cancer and Down Syndrome.
I connected personally with another owner, Carlos Strength, who goes by Carli, in March, when he called my cell phone. I had filed a public records request in Texas, and the agency I was working with wasn鈥檛 sure whether it could legally release certain documents. It sought advice from the state鈥檚 attorney general, and in doing so, notified the college鈥檚 leadership that I was asking for records.
Strength wanted to know who I was, if I was writing about Maestro. I told him I likely was. As we were speaking, I pulled up Strength鈥檚 LinkedIn, and asked if this was his first foray into higher education. He said no, that he also had worked at ITT Tech. That wasn鈥檛 listed on his profile.
Later in the conversation, I told him that I would welcome talking to him again, that my aim was to ensure students aren鈥檛 exploited, and that this was a goal that I鈥檓 sure he shared.
Strength agreed with that sentiment. But after researching him, I had more questions. Strength worked at ITT Tech, the ill-famed for-profit chain, as an admissions director in the 1990s, he later told me in a June interview. During that chat, he vocally objected to the idea that I would frame his employment with ITT Tech as part of a pattern that he was a bad actor in the for-profit space. That鈥檚 fair. But Strength was also once chief executive of ATI Enterprises, a collection of for-profit schools accused of defrauding students.听
Strength was at ATI鈥檚 helm 15 years ago, when it had found that it misrepresented how successful its graduates were finding jobs. Strength left the organization in 2011. Two years later, ATI settled a case with the U.S. Department of Justice . It had accused the schools of not only fraudulent job placement rates, but also illegally trying to 鈥渋nduce students to enroll.鈥
鈥淭his falsely increased the schools鈥 enrollment numbers, and consequently, the amount of federal dollars they received at the expense of taxpayers and students, who incurred long-term debt,鈥 the Justice Department said at the time.听
Strength, Larry Jobe, and two other Peloton officials鈥擫arry Van Loon, one of the owners, and Arthur Rodriguez, its former chief administrative officer鈥 by three whistleblowers, former employees, in 2019.听The trio, one of whom was a former Peloton president, alleged the college鈥檚 leadership would fraudulently alter student records, in part to avoid having to refund financial aid. They also accused the Peloton officials of providing its accreditor and a Texas agency with falsified documents, and illegally paying employees bonuses to aggressively recruit students.听聽
The whistleblowers dropped most of the central claims against Peloton and its owners after the federal government declined to intervene in the case.听
Strength, in his conversations with me, emphasized the fact that the government didn鈥檛 take up the case, calling the lawsuit 鈥渂aseless.鈥澛
However, there鈥檚 any number of reasons the government wouldn鈥檛 pursue False Claims Act litigation, and not just because it didn鈥檛 see merit in the accusations, said Ren茅e Brooker, the former civil frauds assistant director at the U.S. Department of Justice, and who specializes in such cases. 鈥淚 liken it to, someone murders their spouse, the government says, we can鈥檛 pursue the guy right now, we need proof, we can鈥檛 find specific intent to kill,鈥 Brooker said. 鈥淚t doesn鈥檛 mean they cleared the guy.鈥
A federal judge dismissed the remainder of the case in 2021 because two of the whistleblowers had signed agreements with Peloton that they would arbitrate legal claims they brought against the school. No one ever ruled on their actual accusations.
Strength told me he is a minority owner of Maestro. Some public documents I received also list him as Maestro鈥檚 CEO, but he said later in Education Department records that he is chief financial officer, and formerly chief information officer. Sims, the president, told me in an email she serves as chief executive for the Education Department鈥檚 purposes. Strength is 鈥渟trategic CEO for Maestro College,鈥 Sims wrote in an email.
Strength also called himself CEO, up until recently. I captured a screenshot of his LinkedIn profile on June 23, 2026, where he listed himself as Maestro鈥檚 chief executive.
Strength and Peloton鈥檚 other owners do not appear to have any stake in what was known as Bottega University, the Utah-based for-profit campus that Masterschool took full control of and rebranded as Maestro University, according to a November 2025 letter from the institution鈥檚 accreditor, the Distance Education Accrediting Commission, DEAC.
Bottega hasn鈥檛 historically been eligible for or accepted federal financial aid, so Masterschool has been trying to lock down various approvals, so it can carry students from an associate to a bachelor鈥檚 degree, according to posts on the . DEAC approved the ownership change late last year, and intended to follow up six months after the sale to Masterschool closed, which was in December 2025, according to the institution鈥檚 catalog.听
DEAC is still reviewing Maestro University鈥檚 applications for 鈥渟ubstantive changes鈥 the school is attempting to make, the commission鈥檚 executive director, Leah Matthews, wrote in an email. Matthews wrote that the sanction against Maestro College 鈥渋s also an important factor鈥 in DEAC鈥檚 review.听
Tim Harrington, the president of Bottega, now Maestro University, did not provide a comment by publication time. He .
Maestro should be shut down. Its owners have seemingly concocted an operation where they fund the barest minimum of services that colleges normally maintain. That in turn would enable them to maximize the amount of financial aid鈥攖axpayer money鈥攖hey rake in.
The college has emerged as an early example of the type of scheme possible in an AI-saturated society. It will not be the last, and college regulators must react accordingly. This will entail a long, significant policy overhaul among accreditors, and state and federal governments. Maestro should reconsider the following policies:
Whenever any private college changes owners, its accreditor should treat this as what鈥檚 known as a 鈥渟ubstantive change,鈥 which would prompt a thorough review of the institution鈥檚 finances and instructional model.听
COE, which already has a reputation for being hands-off, missed glaringly obvious signs that Maestro wasn鈥檛 above board. Had it kicked off its deeper review process and visited the campus after it was reconstituted, Maestro may not have even been able to launch. COE is itself up for review by a key advisory body to the Education Department this summer. Its failings with Maestro warrant further investigation.
Accreditors should also examine whether their policies on faculty-student contact and teaching are comprehensive enough to capture problems with AI-delivered instruction. Existing accreditor standards were written assuming a human was teaching, so they wouldn鈥檛 define 鈥渋nstruction鈥 for when a professor is actually a chatbot. Accreditors should define minimum thresholds for human faculty interaction, as well as establish boundaries for what AI cannot substitute for in instruction.听
When a college adds a program that鈥檚 AI-centered, or when an institution鈥檚 classroom model relies mostly on artificial intelligence, accreditors should demand evidence that human faculty are meaningfully involved in designing courses and assessing students.
At the federal level, the regulation governing how often students and faculty must interact in online programs should be strengthened for an AI age. The current regulatory language, cemented in 2021, is so loose that even infrequent classroom touch bases can count as 鈥渞egular and substantive.鈥 The Trump administration鈥檚 Education Department responsible for policing fraud prevention, however, which poses a problem if AI scams proliferate.
Accrediting agencies, if not the Education Department, should define faculty members as credentialed human beings. Regulations should also mandate that students be told precisely how much of their instruction will be delivered by AI.听
Finally, the Education Department should construct policy scaffolding that will help protect students (and taxpayer money) from fraud broadly.
The Trump administration walked back a Biden-era rule requiring the main owner of a for-profit college to sign an agreement with the federal government that sets out the policies they must follow to receive federal aid. This was a hook in case the school or its owner broke laws and left students in the lurch and taxpayers holding the bag. The Education Department should redouble its efforts to enforce this regulation, especially when those owners have already come under fire for defrauding students at other colleges. It could also extend liability to parent companies and foreign ownership structures, a gap the original rule didn鈥檛 address.
A more philosophical challenge is lurking for higher education, too, and the entities that oversee it: Many students appreciate the idea of leveraging AI for learning鈥攁 concept that energizes them more than the traditional college pathway. That became evident to me as I talked to multiple students who shared why Maestro was exciting for them.
There was Bruce Allen and his wife, Caitlin, who enrolled in Maestro together. He and his wife enjoyed the lessons, they told me on a Zoom call in May. (Both of their names are pseudonyms.) The AI instructor will repeat itself as many times as they ask, rewording questions and tailoring lessons. Caitlin Allen wants to cultivate a small bodyworks business鈥攃andles, bath bombs, and the like. She can ask the Maestro bot to reframe abstract business concepts just for her, like asking about her own products and margins.听
Zachary Taylor, 58, joined Maestro because he wanted specifically to learn coding taught by AI. He had been diagnosed with Parkinson鈥檚, which affected his thinking, and so he liked the personalized attention from his AI teacher. (Zachary Taylor is also a pseudonym; he requested anonymity.) That overshadowed the grievances that Taylor had about Maestro: the fact that three years鈥 worth of his Pell was being burned up on a two-year program, for one. 鈥淚 do think it’s worth my Pell Grant,鈥 he said.
Not every Maestro student shares that feeling.
Bryanna Bailey, the student who had been removed from her program for not completing her weekly check-in, ended up asking to reenroll. She told me she had already drained her Pell Grants on Maestro, and if she walked away now, 鈥渨hat was the point?鈥
She got word from Maestro in late June that her withdrawal from the program was in error鈥攖he school said it had failed to remind students that they were inactive, so it restored her enrollment.
That was a Friday, and the next morning Bailey received a notice that she鈥檇 been removed again. She has 鈥渘o clue鈥 why.
鈥淭hey鈥檙e just getting away with this,鈥 she said, pausing. Bailey had once found her way out of an abusive relationship, she said, and she 鈥渞efused鈥 for Maestro to make her feel like she was to blame. 鈥淭his is wrong, and I am allowed to be the victim,鈥 she said.