South University Bets on Legal Veteran to Navigate Financial and Accreditation Challenges

Columbia, SC – November 10, 2025 – South University has appointed Benjamin J. DeGweck as its new Chief Executive Officer and Chancellor, effective immediately. The move comes at a pivotal moment for the for-profit institution, which has recently secured reaffirmation of its accreditation but continues to grapple with financial pressures, including a significant upcoming debt payment.

DeGweck brings a wealth of legal experience to the role, most recently serving as Vice President and General Counsel for Education Affiliates, Inc. (EAI). While his appointment signals a commitment to strong governance, it also raises questions about navigating a complex legacy of regulatory challenges that have plagued both South University and his former employer.

A Rocky Past, Reaffirmed Accreditation

South University has faced considerable turbulence in recent years. The institution was previously owned by Education Management Corporation (EDMC), which settled allegations of fraudulent practices related to federal student aid for $95.5 million. While South University has since separated from EDMC, the shadow of that past continues to loom.

Just this year, the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) reaffirmed South University’s accreditation after a period of monitoring and probation. The institution had been under scrutiny due to financial instability linked to its former parent company. While this reaffirmation is a significant victory, SACSCOC has requested a monitoring report within six months, signaling continued oversight.

The biggest near-term financial hurdle facing South University is a $36 million balloon payment due in December 2025 on a $50 million Main Street Loan. This payment has been identified as a key concern by SACSCOC, and addressing it will be paramount for the new leadership.

A Legal Strategist Takes the Helm

DeGweck’s background as a legal professional is seen by many as a strategic move by the university’s Board of Trustees. “Mr. DeGweck brings a deep understanding of the regulatory landscape that impacts higher education,” said a member of the Board who spoke on the condition of anonymity. “His experience will be invaluable as we navigate ongoing compliance requirements and work to build a sustainable future for the university.”

However, DeGweck’s tenure at EAI is not without its own complexities. EAI was previously embroiled in legal battles related to the False Claims Act, stemming from allegations of fraudulent practices in its own schools. While DeGweck was not personally implicated, his role as General Counsel means he was central to the company’s legal strategy during this period.

“Bringing in someone with that background sends a message,” said an education policy analyst who wished to remain anonymous. “It suggests a focus on risk management and compliance, which are certainly needed at South University. But it also raises questions about whether the institution is truly committed to addressing the systemic issues that led to these past problems.”

Navigating a Complex Landscape

South University operates in a highly competitive and often scrutinized sector of higher education. For-profit institutions, in particular, have faced increased regulatory pressure in recent years, due to concerns about student debt, graduation rates, and job placement outcomes.

According to data from the College Scorecard, South University’s graduation rate is around 50%, which is better than the national average, but still lags behind many traditional universities. The institution also faces challenges in retaining students, with retention rates varying between on-ground and online programs.

“The key for South University will be to demonstrate value to students,” said an enrollment management consultant who requested anonymity. “They need to show that they are providing a quality education that leads to meaningful career opportunities. That’s going to require a renewed focus on student support, academic rigor, and career services.”

A Balancing Act

DeGweck’s appointment suggests a deliberate attempt to balance the need for strong governance with the challenges of operating a financially vulnerable institution. His legal expertise will be crucial in navigating the complex regulatory landscape and addressing the university’s outstanding financial obligations.

However, the success of his leadership will ultimately depend on his ability to foster a culture of transparency, accountability, and student-centeredness. South University must not only comply with regulations but also demonstrate a genuine commitment to providing a high-quality education that prepares students for success.

“This is a critical moment for South University,” said a former SACSCOC evaluator who wished to remain anonymous. “The institution has overcome significant challenges, but it still has a long way to go. Mr. DeGweck’s leadership will be instrumental in shaping its future.”

As DeGweck steps into his new role, all eyes will be on South University to see if it can navigate the complex challenges ahead and build a sustainable future for its students and stakeholders. The coming months will be crucial in determining whether this institution can truly turn a new page and emerge as a leader in the ever-evolving landscape of higher education.