Gainful employment regulations aim to ensure that career programs don’t leave students jobless and in debt, writes the New America Foundation’s Ben Miller in Improving Gainful Employment. The Obama administration’s new proposal is simpler and stronger than the one invalidated by a judge in 2012, he writes. But it still has loopholes.
In addition to measuring students’ debt-to-earnings ratio, Miller suggests three performance tests. Students would have to pay down their loans, no more than a third of students could withdraw in a year and the average graduate would have to earn at least as much as a full-time minimum-wage worker.
Career programs that can’t meet these standards — or have graduates with too much debt compared to their incomes — would risk losing eligibility for federal student aid.
Career programs need to focus on all their students — dropouts as well as graduates — Miller argues.
Furthermore, it’s not enough for programs to show low student debt if students also have low earnings, he writes: “Students are also spending billions in federal grant aid and arguably an even more precious resource, their time. They should expect better than living in or near poverty after completing a postsecondary program.”
Community college students typically don’t borrow — or don’t borrow very much — to pursue a vocational credential. But some don’t earn much either. Community colleges also have high dropout rates.
Gainful employment rules will hit high-cost for-profit colleges the hardest, but they also apply to nonprofit colleges that provide job training.
President Obama’s plan to control college costs is heading in the wrong direction, writes Sara Goldrick-Rab on the Education Optimists. Education Secretary Arne Duncan has taken the lead on the planning, which means “yet another quasi-market solution that fails to grapple with the real problems.”
The current financial system hinges on the actions of students, prioritizing their consumer choice in the hopes that those choices will be well made. It assumes that any problems with schools will be resolved by students turning away from them. But this assumption is deeply flawed, not only because students do not (and cannot, and will not) make informed choices, but also because a segment of selective schools (and states) have manipulated aid policy for so long that the incentives are now distorted and they can do whatever they wish. And what they want is to maximize their own interests, which are rarely aligned with those of their students. So the problem, in other words, is really the behavior of schools and states. Yes, students and families are an issue too, but their lack of information is just a fraction of the overall college cost problem.
Creating a ratings system for colleges and universities won’t help, Goldrick-Rab writes. Student choice is limited by “finances, family and geography.” If a local community college is “bad,” most students have no choice but to attend anyhow. If it closes, they may be forced to try a high-price for-profit institution.
A college ratings system is a waste of money, she writes. The Scorecard and Navigator sites “aren’t used or demonstrably effective,” and this will be no better. (Both Scorecard and Navigator were shut down when federal government furloughed “nonessential” staff. You’d think they could run automatically.)
Tying Title IV financial aid to institutional performance makes sense, writes Goldrick-Rab. Instead of turning to Duncan, Obama should rely on “experts who’ve crafted nuanced accountability systems with anti-creaming provisions.”
We can’t afford to make every institution Title IV eligible, she argues. Private colleges should have to re-compete for eligibility:
(a) the selective, elite private non-profits whose admissions criteria mean they do not serve any kind of public good while they establish “standards” for college quality that are conflated with great expense, and
(b) the for-profit institutions that set their tuition according the availability of federal aid.
President Obama should put public funds into public institutions of higher education, Goldrick-Rab argues. Funding them well will decrease students’ time to degree and raise the quality of instruction.
Next, create accountability metrics intended to lower costs and open access at the private non-profits (else cut them out of Title IV), and to lower costs and increase completion rates at the for-profits (again, or else they’re out).
The community colleges will “do their jobs better by having a decent amount of money to spend,” Goldrick-Rab concludes.
Student loan default rates continue to rise, reports the U.S. Department of Education. After two years, 10 percent of former students are in default; that rises to 14.7 percent after three years.
“The growing number of students who have defaulted on their federal student loans is troubling,” U.S. Secretary of Education Arne Duncan said. The department will expand outreach to explain loan repayment options.
Community colleges have the highest two-year default rate — 15 percent — of any higher education sector. After three years, the community college default rate tops 20 percent, nearly as high as the rate for two-year for-profit programs.
The official default rate understates borrowers’ pain, says Rory O’Sullivan,policy and research director at Young Invincibles, a Washington nonprofit group. The rate, which includes graduates and dropouts, shows the share of borrowers who haven’t made required payments for at least 270 days. It doesn’t include borrowers who are putting off payments through “forbearance” and those on federal income-based repayment programs. “It’s financial disaster for borrowers,” said O’Sullivan. “Defaults can dramatically affect their credit rating and make it harder to borrow in the future.”
Nearly a half-million student borrowers are in default within two years and 600,000 within three years, notes the National Association of Student Financial Aid Administrators.
Eight institutions with high default rates could lose eligibility in federal student aid programs.
India hopes to establish 10,000 community colleges by 2030 to train 500 million young people in job skills. University of Mumbai delegates recently visited Hawaii Community College.
Private vocational training is taking off in India, reports the New York Times.
Ghaziabad, India — In a simple classroom above a storefront on a bustling street, four young men crowded around the colorful innards of an open computer hard drive while their teacher explained in Hindi how it all worked.
The computer repair course was among 25 offerings at Gras Academy, a private institution with 58 skills training centers across India, including this one in Ghaziabad, a city on the outskirts of New Delhi.
. . . Inderjeet Singh, 19, is a first-year student at a government college; but attendance there is not mandatory, giving him time to attend Gras’s computer repair class. His college tuition is about 5,000 rupees, or less than $90, per year, but he is willing to pay 22,000 rupees for the six-month Gras course. He thinks it will be worth it, because 70 percent to 75 percent of Gras’s graduates find jobs immediately, according to the academy.
Kanchan Sharma, 17, is studying accounting in a government college, but her correspondence course doesn’t teach the software most Indian companies use. So she’s also taking a six-month accounting course at Gras. “Here, classes are smaller and the quality of teachers is good,” she said of Gras. “Plus, what we are being taught is practical and linked to industry.”
Nearly 70 percent of Indian employers say they can’t find enough skilled workers. That’s especially true in telecommunications and retail, which are expanding rapidly.
Government vocational institutes are known for poor quality and outdated curricula.
Gras Academy has developed its own textbooks, manuals, training system and on-campus job placement services.
Teachers undergo 40 hours of training and must pass a test. There is also an incentive program: They get financial rewards if 70 percent of their students land jobs, plus extra recognition if 85 percent do.
Gram Tarang, another private training company, works with employers to place graduates. “We are currently swamped by demands from industry for semiskilled and skilled workers,” says Abhinav Madan, managing director.
For years, college officials have complained about the federal method for calculating gradution rates: Only full-time students who start and finish at the same institution are counted. That leaves out a lot of students, especially at community colleges.
The new Student Achievement Measure (SAM) shows the percentage of students who are still working toward a degree after six years and those who’ve transferred. Part-time community college students are included.
“This effort will show that higher education is performing better than many people think — even if graduating more students, particularly at community colleges, remains an imperative,” David Baime, senior vice president for government relations at the American Association of Community Colleges, tells Inside Higher Ed.
SAM’s associate’s and certificate program model will report on part-time as well as full-time students enrolling for the first time. It will show the percentage of students who have (1) graduated from the reporting institution, (2) are still enrolled at the reporting institutions, (3) transferred to a subsequent institution, or (4) whose enrollment or completion status is unknown.
The SAM Project is a joint initiative of the six national higher education presidential associations: the American Association of Community Colleges (AACC), the American Association of State Colleges and Universities (AASCU), the American Council on Education (ACE), the Association of American Universities (AAU), the Association of Public and Land-grant Universities (APLU), and the National Association of Independent Colleges and Universities (NAICU). The Gates Foundation provided the funding.
While elite and semi-elite college costs have soared, community colleges haven’t raised spending in the last 10 years, writes Matthew Yglesias, reprinting a chart from the Century Foundation’s new report on the higher education divide. “These institutions started off spending less to begin with” while serving students with the greatest needs.
Community colleges are worried about staying relevant “if massive open online courses (MOOCs) and other forms of online learning begin to offer students a high-quality, convenient, and low-cost pathway to a college degree,” writes Thomas Bailey, director of the Community College Research Center at Teachers’ College, Columbia, in CCRC Currents.
So far, however, community college students find it difficult to learn online, according to CCRC studies.
We found that in the majority of online courses, students had little meaningful interaction with their instructors. While the courses frequently required interaction with peers in online discussion boards or chat rooms, most students did not value this peer-to-peer interaction and said it felt both artificial and of little educational value.
Students told us that if they expected to struggle in a subject or really “wanted to learn something,” they preferred a face-to-face classroom where they had more contact with the professor. In online courses, they reported, they were more or less on their own.
Online instructors expected students to be independent learners “able to manage their time, take initiative, and generate their own
approach to mastering course material.”
In What We Know About Online Course Outcomes, the CCRC summarizes its research on community college students’ success in all-online courses, looks at how online courses can be improved and discusses how online instructors “might create a more robust presence in their courses in order to improve student engagement and retention.”
First Year Undergraduate Remedial Course Taking declined significantly from 1999–2000, but rose slightly from 2003–04 to 2007–08, according to the National Center for Education Statistics.
At two-year public colleges, 30.4 percent of first-year students report taking remedial courses in 1999-2000. That fell to 23.4 percent in 2003-04 and ticked up to 24 percent in 2007-08.
Percent of 1st-Year Undergraduates Reporting Remedial Coursetaking, by Institution Type
|For-profit 2-year or more||16.2||11.4||11.0|
The report relied on self-reporting by students not transcripts, notes Inside Higher Ed.
The proportion of students in developmental courses declined from 1999-2000 to 2007-8 for every type of institution and student trait, with the biggest drops seen for for-profit and public two-year institutions, students in certificate programs, Asian/Pacific Islander and Hispanic students, and students in their mid-20s and older.
Students often don’t realize they’re in developmental courses, other research has shown. And those who drop out quickly aren’t around to be surveyed.
College enrollments declined by 1.8 percent in fall 2012 — 3.1 percent at community colleges, according to the National Student Clearinghouse Research Center. For-profit colleges took the biggest hit with a drop of 7.2 percent. Enrollment fell by 0.6 percent at four-year public colleges and universities, and rose by half a percentage point at four-year private nonprofit colleges.
College enrollments typically rise and fall with the unemployment rate, notes Inside Higher Ed.
So the fact that the enrollment boom that colleges enjoyed as the economy tanked in 2008 and 2009 has begun to reverse itself is in many ways to be expected.
But that suggests that the philanthropic and government efforts to get significant numbers of adults to go to college (or to return there) to pursue President Obama’s goal of driving up the number of Americans with a postsecondary credential may not be bearing much fruit.
Enrollment declines were bigger for full-time students, compared to part-timers, and for those aged 24 and older (-3.4 percent) compared to traditional-aged students (-0.7 percent).
Did Texas Just Discover the Cure for Sky-High Tuition? asks Lara Seligman in The Atlantic. Not really, she concludes.
Texas universities are offering bachelor’s degrees for $10,000, including tuition, fees and textbooks, pushed by Gov. Rick Perry. Average tuition alone in Texas at a public four-year institution is $8,354 a year, close to the national average.
In the Lone Star State, 10 institutions have so far responded to the governor’s call with unique approaches, ranging from a five-year general-degree pipeline that combines high school, community college, and four-year university credits to a program that relies on competency-based assessments to enable students to complete a degree in organizational leadership in as little as 18 months.
Angelo State University has created a four-year interdisciplinary-studies program for an overall cost of $9,974.
The University of Texas (Arlington) will offer a low-cost bachelor’s to students who’ve earning dual-enrollment credits in high school and spent a year at a local community college.
Texas A&M University (San Antonio), has designed a new $10,000 degree in information technology and security which should help graduates find military and security jobs in the region.
Universities aren’t becoming more efficient, however, Seligman warns.
. . . most of these programs would only reduce the price tag for the student, not the cost to the institution of providing the degree. While select students might pay less overall, institutions must deliver the same faculty, facilities, time, and knowledge they provide to students paying full price for their degrees.
If universities don’t find ways to improve productivity, they’ll have trouble subsidizing low-cost degrees.