From Rejection to Revolution: How a Denied Dream Built an Education Empire

Kaplan, Inc.'s story is one of resilience, innovation, and social transformation, rooted in personal injustice and propelled by a vision of educational equity. Founded in 1938 by Stanley H. Kaplan in his parents’ Brooklyn basement, the company emerged from his own rejection from medical school due to anti-Semitic admissions policies. Denied his dream of becoming a doctor, Kaplan channeled his intellect into democratizing access to education through standardized test preparation, believing that merit—not background—should determine opportunity. His early work tutoring students for the SAT challenged the College Board’s claim that such tests measured innate ability, culminating in a pivotal 1975 Federal Trade Commission investigation that confirmed Kaplan’s methods could significantly improve scores. This validation legitimized the test prep industry and fueled rapid expansion. By 1984, The Washington Post Company acquired Kaplan, enabling national growth and diversification beyond test prep into English language training, professional certifications, and online higher education. A landmark moment came in 1998 with the launch of Concord Law School, the nation’s first fully online law school, positioning Kaplan as a pioneer in digital learning long before it became mainstream. Under Graham Holdings, Kaplan evolved into a global education services leader, operating in over 27 countries and serving more than 1.2 million students annually across test preparation, career training, and corporate education. The onset of the COVID-19 pandemic in 2020 disrupted traditional education models, forcing the closure of Kaplan’s physical learning centers and canceling key exams. Yet, due to its established infrastructure in online education, Kaplan rapidly pivoted to digital delivery, accelerating its transformation and offering free upskilling courses for those displaced by the crisis. Rather than retreating, the company reinforced its role in adaptive learning, remote proctoring, and personalized education technologies. In a strategic masterstroke in 2018, Graham Holdings transferred Kaplan University to Purdue University for $1, rebranding it as Purdue University Global while securing a 30-year contract for Kaplan to manage its online operations—enhancing credibility and access while maintaining economic benefit. Today, Kaplan continues to shape the future of education through acquisitions focused on digital teaching platforms, AI-driven learning, and career readiness solutions. Its legacy lies not only in creating the test prep industry but in advancing the principle of meritocracy, expanding access to underserved populations, and proving that education can be both scalable and equitable. From a basement tutor to a multi-billion-dollar enterprise, Kaplan’s journey reflects the enduring power of turning personal adversity into systemic change, ensuring that learning remains a lifelong, accessible journey for millions worldwide.

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