Last week, President Obama signed the bipartisan Workforce Innovation and Opportunity Act , which reauthorizes federal job training legislation. He also announced executive actions to implement a review of job training programs released by Vice President Joe Biden. The report calls for working more closely with employers and presents a “job-driven training checklist” to ensure programs lead to jobs.
The president and vice president have been talking up job training in visits to community colleges, reports Community College Daily.
President Obama said the Department of Labor no longer will give waivers for a requirement that federally funded training programs make public how many of their graduates find jobs and how much they are paid, reports Inside Higher Ed. “That means workers, as they’re shopping around for what’s available, they’ll know in advance if they can expect a good return on their investment,” Obama said.
Community colleges may not have access to employment and earnings data for former students, said James Hermes, associate vice president for government relations at the American Association of Community Colleges. “It’s not a question of them not wanting to be accountable,” he said. “It’s a question of them not getting the data in the first place.”
The administration also announced a $25 million competitive grant to create an “Online Skills Academy” that would help students earn credentials from accredited institutions.
President Obama endorsed bipartisan job training legislation in his weekly address. He plans to visit a Los Angeles community college that’s retraining workers for health-care jobs this week. Vice President Biden will release a report on creating a “job-driven training system.”
Rate colleges on “social responsibility,” said the departing chair of the National Association of Student Financial Aid Administrators at the group’s annual conference. Instead of President Obama’s proposed ratings system, colleges should be recognized for educating low-income students, said Craig Munier, who directs financial aid at the University of Nebraska at Lincoln.
The plan, which is modeled on the LEED ratings of green buildings, would assign institutions ratings of silver, gold, or platinum based on a calculation that would take the percentage of a college’s undergraduate students who are eligible for Pell Grants, multiply the number by a ratio of credit hours earned to credit hours attempted, and divide it by the institution’s cohort-default rate.
Part of the goal, Mr. Munier said, “is to create a little public embarrassment” for institutions that are not fulfilling their duty to educate needy students. He jokingly called the plan “Craig’s LEED certification on social responsibility.”
Panelist Marcus D. Szymanoski, manager of regulatory affairs at DeVry University, argued for multiple metrics that would recognize that different students have different priorities.
President Obama’s student loan plan, which limits repayment to 10 percent of the borrower’s disposable income, closes the barn door after the horse is gone, says Anthony Carnevale, director of Georgetown’s Center on Education and the Workforce, on NPR. The fundamental question about college debt is whether students are “getting value for money,” says Carnevale.
Are we helping people cope with debts they never should have taken on in the first place?
Students and their parents don’t always think through what they’re spending for college and what they’re likely to get for it, says host Michel Martin. If students know they’ll only have to pay 10 percent of their income — with the unpaid balance forgiven in 10 to 20 years — might they be tempted to think “it’s not going to be that big of a deal?”
That’s a risk, says Carnevale. If the system isn’t linking loans to long-term earnings, it will continue to be ineffecient.
Ultimately, the taxpayer pays for that as do many of the students who find these loans still overwhelming. That is, it’s not as helpful if you’ve built the loan and it’s going to burden you for a number of years. Just have somebody help you with the burden. The real issue is ensuring that you minimize the burden in the first place by linking value — economic value — to the loan.
The loan policy will help some people, he says. More fundamentally, we need to “ensure the young people know what they’re getting into when they borrow and make sure they’re not borrowing trouble down the road.”
Stop telling 18-year-olds to follow their “passion” — and run up huge debts, writes economist Peter Morici in the Baltimore Sun.
Easy access credit has pushed up college tuition far faster than inflation generally and even health care costs. University presidents are happy to pad bureaucracies and indulge faculty who would rather undertake research than teach, if students can borrow money to pay for it all.
College primarily “is about acquiring skills that have value in the marketplace,” writes Morici.
President Obama’s executive order expanding Pay As You Earn (PAYE) will provide some debt relief to some borrowers, writes Diana Carew, director of the Young American Prosperity Project at the Progressive Policy Institute. But it also will boost subsidies for a “broken higher-education financing model” and reinforce the idea that college attendance is the only postsecondary option.
While everyone needs some form of post-secondary education to earn a living, not everyone needs a bachelor’s degree, writes Carew.
The wage premium for college graduates is growing not because the degree is worth so much more, but because high school diplomas as worth so much less. In fact, real earnings for recent college graduates have been falling over the last decade, and underemployment remains at record highs.
. . . Moreover, the new tools of digital learning — such as online courses — should be driving education costs down, yet tuition continues to climb. That suggests the entire financing model for higher education needs reform. And because there are too few viable pathways into the workforce after high school, our $100 billion per year federal student aid system is channeling people into four-year colleges who may be better suited for less expensive options.
Expanding PAYE may help some borrowers now, but it almost certainly “will exacerbate the burden on the federal student aid system in the long run, argues Carew. “Borrowers have less incentive to make smart borrowing decisions, or complete in a timely manner. And schools have less incentive to control costs.”
Expanding PAYE “won’t do much to make college more affordable,” writes Clare McCann on The Hill. It will affect only people who’ve left college and already are eligible for income-based repayment. They must be Direct Loan borrowers — but most pre-2007 borrowers used the now-defunct Federal Family Education Loan program instead.
Few borrowers have opted for income-based repayment so far because the plans are so complex, she writes. “Gimmicks like this one don’t help much — in fact, they make the system even more complex.”
Another five million people with student loans will be able to limit payments to 10 percent of their discretionary incomes. Loans will be forgiven in 20 years — or 10 years if they take public-service (government) jobs.
President Obama issued an executive order Monday extending generous repayment terms to more debtors. He also urged Congress to approve a bill to let 25 million borrowers refinance student loans at lower rates.
The biggest winners will be people who took on debt to pay for graduate school, notes the Christian Science Monitor.
All student borrowers – including those 5 million likely to be affected by this change – already had access to some form of income-based repayment, notes Jason Delisle, director of the New America Foundation’s Federal Education Budget Project. Under the previous terms, those who didn’t have access to PAYE (Pay As You Earn) could still do income-based repayment where they paid 15 percent of their incomes, after a $17,500 exemption, and had their debt forgiven after 25 years. In many ways, he says, those terms made much more sense, and were more fair, especially for students borrowing large sums of money to go to grad school, who are very unlikely to be able to pay off their loans in 10 or 20 years even with high incomes.
“Income-based repayment is vital, and it’s important we have it, but it’s very important we get the terms right,” says Mr. Delisle. “The payments are too low and the terms are too short for someone who’s borrowed to go to grad school.”
Burdened with student loan debt, young people can’t buy their first home, Obama said.
That’s saying “we need to help [student loan debtors] with debt so they can go into even more debt” with a mortgage, Delisle said. Student loans already helped these borrowers consume beyond their means, he said.
Encouraging students to borrow more for college also enables colleges to keep raising tuition. “It’s dealing with the symptoms and not the disease,” says Richard Vedder, director of the Center for College Affordability.
Some low-income, minority and first-generation students think their loans will be forgiven, reports Sophie Quinton on National Journal.
“A lot of students will take out loans because they hear that if you’re in a certain job it gets paid off. That’s not always the case,” says Lauren Ellcessor, 28, a counselor at the Educational Opportunity Center in Norfolk, Va.
. . . “I get the quote: ‘I’m here to get Obama’s plan to get rid of my student loans,’ ” Ellcessor says. It’s not that easy, she tells clients.
Loan forgiveness should be eliminated, argue Brookings’ researchers Beth Akers and Matthew Chingos. It encourages students to borrow more and stick the taxpayers with the bill. Frugality is not rewarded.
Nationwide, student loan debt tops $1 trillion.
“Building a skilled solar workforce” will be a priority, said President Obama in a speech last month. The Department of Energy’s Solar Instructor Training Network (SITN) “will support training programs at community colleges across the country that will assist 50,000 workers to enter the solar industry by 2020.”
However, solar energy graduates are having trouble finding work, reports the Denver Post.
Hundreds of students intent on finding work in the solar energy industry have graduated from four-month and two-year programs at Red Rocks Community College since 2008.
But finding a permanent job today in the rapidly changing, competitive industry that is heavily influenced by public policy, may require grads to start their own businesses or even look for jobs in other energy businesses.
Most solar companies have only a few employees, said Troy Wanek, who leads Red Rocks’ renewable energy technology department.
“Graduates have found jobs manufacturing solar panels and are also prepared to work as installers,” says Clark Mozer, who directs the Electro-Mechanical and Energy Technology Program at Front Range Community College’s Fort Collins campus. Students learn a “tool box of electrical and mechanical skills.”
Dreams of millions of “green-collar jobs” haven’t come true notes the Wall Street Journal. “Solar employment stood at about 93,000 in 2010. Two years—and a ninefold increase in solar power—later, solar employment had increased just 28%.” Wind power doubled but cut the number of workers.
President Obama’s college rating system has “rattled” college presidents, reports the New York Times. They were “appalled” when a top education official said it would be as easy as evaluating a kitchen appliance.
“It’s like rating a blender,” Jamienne Studley, a deputy under secretary at the Education Department, said to the college presidents after a meeting in the department’s Washington headquarters in November, according to several who were present. “This is not so hard to get your mind around.”
The rating system is in fact a radical new effort by the federal government to hold America’s 7,000 colleges and universities accountable by injecting the executive branch into the business of helping prospective students weigh collegiate pros and cons.
The “entire higher education system from elite private institutions to large state universities to community colleges” is worried the ratings will be simplistic and misleading, reports the Times. President Obama wants Congress to use the ratings to allocate the billions in federal student loans and grants.
Community colleges, which admit many poorly prepared students, are very afraid their challenges will be ignored. Federal data doesn’t track part-time and returning students. Students who transfer to a university before earning an associate degree may be counted as dropouts. College leaders “predicted that institutions that serve minority and low-income students, many of whom come from underfunded schools and have had less college preparation, would rank lowest in a new rating system, hurting the very populations the president says he wants to help,” reports the Times.
“Applying a sledgehammer to the whole system isn’t going to work,” said Robert G. Templin Jr., the president of Northern Virginia Community College. “They think their vision of higher education is the only one.”
Colleges and universities will be rated based on factors such as “how many of their students graduate, how much debt their students accumulate and how much money their students earn after graduating.”
Liberal arts colleges may do poorly compared with engineering schools. Colleges with “large numbers of students who major in programs like theater arts, social work or education, disciplines that do not typically lead to lucrative jobs” may rate poorly.
The system will “thoughtfully measure indicators like earnings, to avoid overemphasizing income or first jobs, penalizing relatively lower paid and public service careers, or minimizing the less tangible benefits of a college education,” wrote Studley in blog post on the Education Department website.
Apprenticeships are hot, but not all lead to middle-class jobs, writes Mark Schneider on The Quick and the Ed.
Last month, President Obama announced a $100 million fund to support apprenticeship programs in fields such as information technology, health care and advanced manufacturing. For all the praise of apprenticeships, the number enrolled is much lower than 10 years ago. Completions are down from 52,000 in 2002 to 44,000 today.
The White House says that 87 percent of apprentices find jobs that average more than $50,000 a year in pay. This is an exaggeration, according to Florida data. The median wage is $37,252 for registered apprentices, who typically study at a community or technical college.
Graduates with an associate degree in science earn the most, with the associate in applied science coming second and apprentices a close third. Graduates with a bachelor’s degree start at only $33,652.
Starting wages are much higher for apprentices in jobs that “keep things working” than for those in cooking and early childhood education. Elevator construction mechanics start at $67,565.
“The best training is on-the-job training,” says Linda Poage, program manager at the Apprenticeship and Journeyman Training Center at Spokane Community College. Community College Daily looks at existing college-linked apprenticeship programs and plans for expansion with new federal dollars.
President Obama’s “rhetorical support for vocational training” hasn’t been matched with money, writes Avi Yashchin, CEO of CleanEdison, a vocational education company. In 2012 the federal government spent more than $166 billion on aid and $14 billion on tax benefits, but only $1 billion on vocational education.
Rejuvenating vocational education and skill-specific certificate programs would do more for students than subsidizing bachelor’s degrees, Yashchin writes. But vocational education still has a stigma.
There is a perceived distinction between preparing students to be career-ready, with employable skills, and preparing them to be global, well-rounded citizens, with critical thinking skills — but the two are not actually mutually exclusive. We must convey to both rising students and displaced workers that, to the contrary, many vocational training programs lead to sophisticated work, rather than dirty, mind-numbing labor, as was the case 30 years ago. Today’s technical jobs require not only hands-on skills, but also the ability to troubleshoot, adapt, innovate, synthesize data, and communicate effectively.
The career-apprenticeship model lets students divide their time between the classroom and the workforce. They learn theoretical and practical skills.
Studies have shown that high school students who graduate from these programs earn, on average, 11 percent more than their counterparts who end up in the same field.
Apprenticeships work with industry-recognized certification to make young people highly employable.
Government must provide funding to allow schools to purchase state-of-the art equipment, writes Yashchin. Businesses must hire and train apprentices. “And finally, parents and society at large must recognize that the jobs that vocational education lead to today are both well-paying and rewarding.”