More than half of veterans using the GI Bill complete a certificate or degree in 10 years, according to the Million Records Project by Student Veterans of America. The report has a number of blind spots, writes Clare McCann on Ed Central.
The Million Records report isn’t comparable to other Education Department data because it gives students more time to complete a credential and includes job certificates.
Recent veterans, who are more likely to have served in combat, aren’t distinguished from older veterans, writes McCann. “It’s not clear from the SVA report how the added obstacles that more recent veterans may face are affecting student veterans’ academic progress.”
The data on for-profit colleges may be misleading, because National Student Clearinghouse, which provided much of the information, doesn’t include all for-profit colleges. The clearinghouse “will not publish data at the institutional level, especially if that information might make particular schools look bad – like veterans’ graduation rates by institution.”
A national student unit record system as proposed in College Blackout could make better use of the data scattered across institutions and the government” and help veterans succeed in higher education, McCann concludes.
Some career-focused students choose a for-profit college over a much cheaper community college, writes Sophie Quinton on National Journal.
In Virginia Beach, 27-year-old Darius Mitchell was “really tired of making $9 an hour.” After years working retail jobs, he consolidated previous student loans and took out more to enroll at ECPI University. He’ll graduate in May with an associate degree in network security and a job at Canon Information Technology Services.
At about $14,000 a year, tuition at ECPI is more than triple that of an in-state student at nearby Tidewater Community College. But low-income students are willing to cough up the money because programs are shorter, graduation rates are higher, and 85 percent of students move into jobs in their field of study — usually health care or technology — soon after graduation.
. . . Students are drawn here because, unlike at a community college, they can start classes every five weeks and attend on nights and weekends. Course material is also accelerated, so an associate’s degree can take just a year and a half to complete and a bachelor’s can take two and a half. Students don’t have to load up on courses to meet broad requirements; they only take classes relevant to the credential they want.
ECPI also offers job placement help. The career-services team helped Matthew Bailey, 43, find a job in tech support for InMotion Hosting. He’s working on a software development degree.
ECPI’s graduation rate of 40 percent for first-time college students is twice the graduation rate at the local community college, notes Quinton. ”In 2011, ECPI awarded more computer science associate’s degrees to African-Americans like Mitchell than all the public community colleges in Virginia combined.”
“Of the for-profit gainful employment programs that our department could analyze, and which could be affected by our actions today, the majority — the significant majority, 72 percent — produce graduates who on average earned less than high school dropouts.” So said Education Secretary Arne Duncan at a White House news conference on March 14. That earned two “Pinocchios” for lying from the Washington Post’s fact-checker.
Essentially, Duncan compares apples to oranges — with a few lemons thrown in — to make for-profit colleges look bad.
The Education Department estimates that high school dropouts average $24,492 year. The Labor Department puts the median annual wage at $18,580 to $22,860. A Census estimate is $20,241.
Then, Duncan compares employed dropouts’ earnings to all recent for-profit graduates. Comparing all dropouts to all for-profit graduates — or employed dropouts to employed graduates — would show a very different picture.
Comparing dropouts of all ages, including many with job experience, to less-experienced for-profit graduates also skews the results.
Duncan’s number looks at the number of programs that produce low-earning graduates, not at the number of graduates. “The Education Department does not have individual student data, so it could well be that most graduates do fine, especially from the larger programs,” reports the Post.
A third of community college programs’ graduates earn less than high school dropouts, by the Department’s measure, observes the Post. ”Graduates of 57 percent of private institutions — a list that includes Harvard’s Dental School but also child-care training programs — earn less than high school dropouts.”
For-profit colleges enroll many low-income, minority and adult students, who are the least likely to succeed in college. Tuition is higher, since the for-profits aren’t subsidized by taxpayers. Students depend heavily on federal loans and default rates are high.
Community college students averaged $2,300 in tuition in 2009-10 compared to $15,000 for students at for-profit two-year colleges, according to one study. However, 62.4 percent of students at for-profit two-year colleges complete a credential in six years, compared to 39.9 percent of community college students, according to the National Student Clearinghouse.
The new “gainful employment” rules are “awful,” ”unfair and discriminatory,” writes Richard Vedder on Minding the Campus. An Ohio University economist, Vedder directs the Center for College Affordability and Productivity.
The gainful employment rules apply to vocational programs at career colleges (primarily for-profit) and community colleges. If the goal is to stop wasting government money,”why not scrutinize students majoring in, for example, sociology, from Wayne State University?” asks Vedder. “Only 10 percent of students graduate in four years at Wayne State, and over twice as many default on loans as graduate in that time span.”
Moreover, while dropouts and loan defaults are high at many for-profits, when one corrects for the socioeconomic and academic characteristics of the students, the findings are decidedly more mixed. For example, the for-profits have roughly double the proportion of African-American students as do other institutions, and black students disproportionately come from low-income homes with high incidence of college attrition.
. . . I happen to disagree fundamentally with the “college for all” approach of the Obama Administration, but if you are going to pursue it, why attack the very providers who most aggressively are trying to help meet your goals? The for-profits disproportionately enroll poor first-generation students, and who are members of minorities. Moreover, accounted for properly (including state subsidies for public schools, taxes paid by for-profits, etc.), the for-profits use fewer of society’s resources per student.
The six-year completion rate for students at two-year for-profit colleges is 62.4 percent, the National Student Clearinghouse reports. At community colleges, which also enroll many disadvantaged students, the completion rate is 39.9 percent.
Finally, the “gainful employment” regulations say a borrower shouldn’t have to spend more than 12 percent of total income (20 to 30 percent of so-called discretionary income) to repay student loans. A person earning $35,000 a year with $4,800 annual loan repayments would not be considered gainfully employed. “If the individual in question went from a $20,000 job before going to school to a $35,000 job with a $4,800 loan commitment, that person has advanced considerably,” Vedder argues.
Repeal the Higher Education Act and “radically rethink federal provision of aid to students,” he concludes.
Students at a community college in rural Texas may lose all access to federal aid, including Pell Grants, because of a new regulation on defaults, reports Inside Higher Ed.
Gainful employment regulations are baaaaaaaack. The Obama administration will try again to regulate career training programs — primarily at for-profit colleges — that leave students in debt they don’t earn enough to repay.
The draft “includes standards for debt-to-earnings rates and other language that could generate significant debate,” reports the Washington Post. The Education Department estimates that 9 percent of career training programs could fail to meet the new standards.
The White House push is too narrow, argues Reihan Salam on Reuters.
The Department of Education plans to identify vocational programs that leave their average graduate paying a high share of their earnings in loan payments (8 percent or more of total earnings, 20 percent or more of discretionary earnings) as well as those with a high average loan default rate (of 30 percent or more). Programs that cross these red lines in two out of three years will lose the right to offer their students federal financial aid.
Curbing the abuses of this sector could do some good. But career training programs represent a small subset of the higher education universe. If we take a somewhat wider view, it seems pretty puzzling that, say, business or engineering majors at four-year colleges and universities aren’t being treated as enrollees in vocational programs.
Many recent college graduates are underemployed and unable to pay back student loans, Salam argues. Most thought their degree would lead to a good job.
“If the regulation were applied to all of higher education, programs like a bachelor’s degree in journalism from Northwestern University, a law degree from George Washington University Law School and a bachelor’s degree in social work from Virginia Commonwealth University, would all be penalized,” complains Steve Gunderson, president of the Association of Private Sector Colleges and Universities, the for-profits’ trade association.
Why not “protect consumers from the least effective post-secondary programs” in all branches of higher education?, asks Salam. Whether it’s overpriced paralegal training at a career college or an overpriced bachelor’s in film studies from a private nonprofit college, the borrower is likely to default.
Gainful employment regulations should give a pass to low-cost programs with few borrowers, argues the Association of Community College Trustees (ACCT). Most community and technical college programs are in the “low cost, low risk” category. Only 9 percent of students seeking a vocational certificate go into debt, according to the ACCT statement.
ACCT strongly encourages the Administration to reconsider the “low-cost, low-risk” proposal that was offered by the community college negotiators during the 2013 negotiated rulemaking sessions.
The Administration’s utilization of the program-level cohort default rate (CDR) is problematic for community colleges. We have always believed that metrics focusing solely on borrowers alone are improper measures of institutional or program quality. The “pCDR” judges whether a significant number of students who borrow are defaulting on their federal loans even if a very small number of overall participants borrowed any such loans. Under the pCDR, a handful of borrowers could negatively impact the ability of a much larger group of students to benefit from federal aid.
Since for-profit colleges aren’t subsidized by state and local taxpayers, students pay much higher tuition, often funded by federal grants and loans. Those who don’t find good jobs are at high risk of defaulting on their loans.
Current and former for-profit college students like their school’s quality, but not the high costs, reports Public Agenda. Alumni aren’t certain their degree was worth it.
Students and alumni “agree that their schools have caring instructors, keep class sizes small, and give effective guidance (though alumni are slightly less enthusiastic),” according to the survey. Current students say they’re making good progress in their course of study.
However, students and alumni say their schools are expensive, and nearly half of current students say they worry “a lot” about taking on too much debt.
A third of alumni say their degree “really wasn’t worth it.” Another 30 percent say their degree’s value “remains to be seen” and 37 percent say their degree was “well worth it.”
About half of the employers surveyed see few differences between for-profit and not-for-profit colleges. The rest see public institutions as superior. However, many employers aren’t clear about which colleges are for-profit or non-profit.
Many students don’t realize they’re attending a “for-profit” school.
Like community colleges, for-profit colleges draw many low-income students, notes Public Agenda. These “economically vulnerable” students are not “comparative shoppers.” Just 39 percent of for-profit undergraduates and 32 percent of for-profit alumni had considered more than one school before they enrolled at their current institutions. Even fewer considered a non-profit alternative. Community college students show similar patterns.
For-profit career colleges have much higher graduation rates than community colleges, writes Matt Reed, who’s worked in both sectors. Here’s how for-profits get more students to completion.
It starts with minimal or no remediation, writes Reed. At DeVry, very few students started in remedial courses. When he moved to County College of Morris in New Jersey, he was surprised to see a majority of students placed in remediation.
Since I taught freshman comp at DeVry for a while, I can attest that the placements weren’t because the students were all fully polished upon arrival. They were not. 101 was a punishing course to teach, since you had to try to meet students where they were.
Math was a different issue, but even there, there was a premium on putting students in the highest level class they could conceivably pass.
For-profit colleges take the eat-dessert-first approach, writes Reed. Students don’t have to wait to start training for jobs.
Students at for-profits are there to get jobs. . . . And since many students have had checkered academic pasts, they’re sensitive to revisiting scenes of earlier failures.
Most traditional colleges force students to eat their vegetables — basic math, English, and the usual distribution requirements — before getting to what the students recognize as the reason they’re there.
. . . DeVry, and apparently other for-profits . . . offered a lot of A.A.S. degrees — associate’s of applied science, as opposed to associate of science or associate of arts — to reduce the amount of gen ed. And the gen ed courses it did require were spread evenly through the program, or even backloaded. Students started with dessert, and only got to the veggies at the end.
DeVry required a “college success” course, like many traditional colleges. It also required a “career development” course that covered how to write a resume, how to handle an interview and how to dress on the job. Those were things most students didn’t already know.
At Holyoke Community College where Reed is vice president for academic affairs, “eat dessert first” means linking developmental math to students’ intended major. ”We’ve moved career advising to the first semester, to help students identify goals before they choose majors,” Reed writes. “And we’re looking at ways to help students get through developmental coursework more quickly, so they don’t just throw up their hands in frustration and walk away.”
New America Foundation’s Ben Miller is liveblogging the gainful employment negotiations at the U.S. Education Department. Sessions are expected to run through Wednesday.
Miller has more reporting on the proposed regulations, which will affect career programs at for-profit and community colleges.
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.