Reducing the Costs of Higher Ed

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Limiting For-Profit Institutions from Circumventing the 90/10 Rule

As higher education becomes a necessary part of life, many new institutions are appealing to the less fortunate student. These schools are categorized as for-profit and market their programs to attract anyone willing to listen. They operate by cutting costs and by obtaining money given to students through federal financial aid. Because less fortunate students receive more financial aid for-profit schools attempt to attract this demographic group. The government has a law to limit the amount of money that a university can receive through federal financial aid. Called the 90/10 rule it “requires for-profit colleges to receive 10 percent of their revenue from nonfederal sources to be eligible to receive [up to 90% from] federal student aid.”

However, there are critical flaws to the 90/10 rule. Post 9-11 GI Bill benefits are not counted as federal revenue. As a result, many for-profit schools prey on military veterans. This gap in the law can cause some institutions to receive almost 100% of revenue from the federal government. Opponents argue that for-profit institutions increase tuition when Congress increases federal student aid funding in order to fulfill the rule.

Another loophole involves enrolling international students. Some top for-profit schools, such as EDMC, have Canadian campuses. The Canadian students are not qualified for US financial aid, consequently the tuition they pay is added into the  “10” percent, allow the schools to circumvent the law.

H.R. 340, Protecting Aid for Students and Taxpayers Act, would prevent for-profit institutions from using federal education assistance for advertising, marketing, and recruiting students. This would solve many of the problems with the 90/10 rule and close many of the loopholes.

The critical question then becomes the prioritization of funds: What’s more important, success and resources available to the students or the wad of cash that goes in the pocket of the institution? This may seem drastic, but it seems post-secondary institutions, especially those dedicated to the generation of profit, have become more of a business then a center of learning and growth. Although it’s not a perfect solution, reforming these policies will take our nation a step closer to providing students with more than a paper, a promise, and a plethora of debt when they graduate.

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The College Board’s Nudge to High Schoolers

by Lauren Robson

It seems like in today’s day and age high school students need a little nudge to go to college. Parents or teachers or friends pushing them through the process of applying and enrolling. It seems like going to college is just another thing we’re all supposed to do. It’s time for these students to learn a little information that might just push them along, and The College Board may have found the answer.

In their efforts to persuade high school students to pursue college degrees, The College Board has released articles titled “Education Pays 2013: The Benefits of Higher Education for Individuals and Society” and “How College Shapes Lives: Understanding the Issues.” These reports state that individuals who graduate from higher education end up winning in the long run. Not only do they receive larger paychecks, but they also are more likely to get a job post-graduation. College graduates also display a better well-being; they are more civically involved and are less likely to be obese. The report also expresses how a college education is even more beneficial to racial and ethnic minorities. With scholarships and grants, higher education is affordable to even the lower class that believes that they cannot afford attending a college or university. College Board is taking the next step to educate high school students and insure them that going to college “has an enormous impact in creating better lives for the people, for themselves, and for society.”

 

http://www.benningtonbanner.com/localnews/ci_24269304/college-board-local-institutions-hail-higher-education

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The Pros & Cons of Community College

by Michael Ciavarelli

In Report: Community College Attendance Up, But Graduation Rates Remain Low, Jason Koebler argues that while community colleges have had increased attendance they continue to have lackluster graduation rates. Community colleges are an affordable way for students who may not be financially able to pay for a traditional four year college or university to get a higher education. Their focus is to get students to graduate and  transfer into schools that have four year programs and ultimately get these students into the work force.

The number of students attending community college has increased dramatically in the past decade. In the year 2000, there were approximately 5.5 million students attending community colleges but in 2011 there were over 8 million. Even though there is a focus in quality and graduation and attendance has increased dramatically, not even half of the students that go to a community college graduate or transfer out to a 4 year school within 6 years. The increase in attendance may be due to the suffering economy because community colleges cost an average of less than $3000 per year compared to the over $8000 it costs at a four year college. The increase in attendance has lead to a rise in the percentage of the American workforce that has an associate degree, rising from 12% in 1973 to 27% in 2007.

Although there is an increase in attendance and community colleges are an affordable way to get an education there has to be major improvements made to make sure these incoming students graduate and move on to other programs to make the knowledge that they gain from these community colleges to pay off.

 

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The Honeymoon’s Over: Why MOOC’s Will Never Replace Classrooms

by Michael Pacitti

Over the past few years, massive open online courses, or “MOOC’s” have seen a large increase in enrollment. Since 2010, enrollment has increased by 29% in all online courses while the enrollment in traditional colleges and universities has been in decline. The increase is due in large part to the easily-accessible content that higher education businesses like edX and Coursera have provided (combined they have 6 million registered users). Despite these growing numbers, it appears as if the bandwagon is slowing down.

Even though MOOC’s are in the earliest stages of development and implementation, they have already begun to show a lack of positive results. A Columbia University study found that “nearly twice as many students dropped out than their counterparts who took the same courses in conventional classrooms. The online students also got lower grades and were less likely to ultimately graduate.” With negative results already showing this early in the process, MOOC’s may end up being a passing fad.

Trying to replace the classroom learning experience with a computer screen is a mistake. Technological advances are meant to enhance the learning experience, not overtake it. Staring at a computer screen and watching someone give a lecture is not the same experience as sitting in a room and being able to interact with the teacher right then and there. Although it may seem more efficient to simply archive class lectures and ask students to watch them it takes away from the feeling that a student has invested in their education. This is not to say that MOOC’s do not have their benefits- the fact that it has spurred a discussion in the higher education community on reform is a great bonus. However, the notion that MOOC’s can effectively replace the experience in a classroom is just not practical.

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A 21st Century Model for Higher Education?

by Zachary Hill

While many higher education institutions are struggling with budgets due to economic uncertainty, Liberty University is undertaking a $400 million spending spree over four years. Located in Lynchburg, Virginia, Liberty University is currently building high-rise dorms, an expanded football stadium, and a library in which books will be retrieved by robots. How is this relatively unknown school able to afford such costly renovations?

A private, non-profit college, Liberty University offers a competitive tuition rate of $20,768 and has an endowment over $1 billion. While enrolling only 13,000 on-campus students, the university’s online program boasts 92,500 students. This online division accounts for 66% of the university’s revenue, but it only requires 44% of expenses. The surplus is used for appealing campus upgrades. In addition, the only faculty members who earn tenure are law faculty. These factors and excellent customer service are earning praise from financial analysts and interest from students across the globe.

Liberty University also claims to offer a quality education. Offering a Christian heritage, it is ranked by Young America’s Foundation as one the nation’s top 10 conservative colleges. It offers a 25-to-1 student-faculty ratio and a multitude of degree and certificate programs.

In today’s increasingly technological society, is Liberty University the new model for colleges across the nation? Are massive online programs the solution to financial difficulties in higher education? A senior analyst from Moody’s Investors Service, a credit-rating agency, observes that Liberty is “continuing to see robust revenue growth, a stark contrast in what we’re seeing in a majority of our universities.”  Liberty University’s innovative financial structure deserves greater attention from other colleges.

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Veterans Fighting for College Credit

by Kelly Compell

Many veterans who are returning from serving in the military in Iraq and Afghanistan realize that they need a plan to earn enough money to support themselves. A large amount of them went into the military straight from high school, so they don’t have any college credits built up in order to earn a degree. Many colleges take this into effect and make up for it by providing the veterans with credits for the skills that they learned while serving for the country.

However, many of the veterans are reporting that the credits they are being given are inadequate for the amount of knowledge and skills learned while in the military. According to the article, “Credit for Service,” written by Paul Frain, seven states in the Midwest are trying to resolve this current problem. Their resolution consists of grouping together to make sure that all of the veterans are given all of the credits that they deserve based on what they have learned through the military.

Colleges should make sure that veterans are receiving an adequate amount of credits for the knowledge and skills they have already learned. It would be a waste of money and time to force them into re-learning information that they already know.

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Study Finds Adjuncts Are Better Instructors Than Tenured Faculty

by Marie Herb

On September 9, an article was published that described a study performed at Northwestern University from 2001 to 2008. In the study, over 15,000 students were analyzed for performance during classes. They found that when students took an introductory course they were likelier to perform better when an adjunct – a part-time teacher – was teaching the class over a tenured professor. In addition, the students were also more likely to take the follow-up course the next semester and perform better when taught by an adjunct. However, this study has some restraining factors. These factors include that Northwestern University is a very prestigious school, Northwestern was the only school used in the experiment, most of the adjuncts at the school have some connection with the university, and most of the adjuncts have been teaching at the school for an extended amount of time.

While this study is very limited in some respects, it is at least an interesting thought that is not commonly presented. Usually, a student would want a renowned professor teaching his class rather than someone else. Colleges and universities should look at the way their tenure system works and think about how it can be better improved. The topic of teacher-effectiveness is one that should be pursued, especially within the upcoming years as the view of higher education is changing.

 

http://chronicle.com/article/Ad-juncts-Are-Bet-ter/141523/

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Three Views on President Obama’s Higher Education Reform Proposals

Obama’s Plan Aims to Lower Cost of College

by Marie Herb

As colleges across the nation begin another new school year, President Obama recently proposed to help students make college more affordable. He suggested that by the beginning of the 2015-2016 school year colleges will be “ranked” according to a few different principles including: the costs to attend the school, the percentage of students from lower-income families, the percentage of students who graduate, the amount that students accrue in debt after graduation, and students’ the post-graduation income. All of these factors will be used to “rate” the colleges and apply it to financial aid for students across the country by the year 2018. It is anticipated that this will make school more affordable for many students and their parents. In the current system, the government disperses aid based on the size of the school rather than other factors. Under this plan, the schools with the highest ratings – regardless of private or public – would receive the most financial aid from the federal government.

In general, this proposal has a concrete purpose and goal. If Congress approves this proposal, it will be interesting to see the execution of this idea. While this system of “rating” colleges could be useful, there would need to be different factors regarding the type of school which the student attends and the significance of each of the criteria. If Congress is able to agree on an improved system of financial aid, students across the United States will ultimately benefit, and thus, the rest of the nation.

To view the original article in the New York Times Click Here!

NCLB for Higher Ed?

by Jessica Dembeck

President Obama recently spoke about the need for reform, as the cost of college tuition continues to rise. What’s his solution? The President proposed to tie federal funding to students’ performance and to create a ranking system for universities that rates them according to affordability, graduation rates, successful loan repayment, etc. That sounds incredibly familiar…

The No Child Left Behind Act (2005) did exactly the same thing at the elementary level, linking funding to students’ performances on the state assessment and whether or not they attain adequate yearly progress. As a future teacher, I’ve observed the results of this policy in full effect. Teachers are now only teaching their students how to pass the state assessment, and now, subject areas like science and social studies are being put to the side and barely addressed in the classroom. Of course, this isn’t happening everywhere, but the fact is that it’s still happening.

Similar to NCLB, Obama’s proposal seems like a great idea in theory, but the actual execution of the proposed policy doesn’t sit too well with me. The rating system doesn’t take into consideration all of the qualitative information that is crucial to education, just like NCLB. A university can have all of the right quantitative information, but if the quality of instruction is poor, then what? With how many colleges and universities there are in the United States, how can the government ever know exactly what they are funding?

The Cost of College

Leyette Moll

President Obama stated that “…if a higher education is still the best ticket to upward mobility in America — and it is — then we’ve got to make sure it’s within reach.”  While the president has supported initiatives to ease the pains of college costs such as the “Pay as you Earn” program, a program that caps loans at 10 percent of what a student’s income is and which few people are eligible for, he has also stated that he is planning to install 3 governmental changes to increase college accessibility to the middle and lower class American: “[1] Increasing value, making sure that young people and their parents know what they’re getting when they go to college; [2] encouraging innovation so that more colleges are giving better value; [3] and then helping people responsibly manage their debt” are the keys to accessible higher education, says President Obama.

All of the president’s ideas appear to be magical solutions to a growing problem, but are they fast acting solutions? Unfortunately these changes, even if they were ready to be enacted tomorrow, would have little affect for those attending college at the moment. Going to a school that has better bang for its buck and changing a school’s innovative tactics are ideas lost on those already attending a 4 year institution. Managing debt is also a great idea, but what if manageable debt was exceeded after one year of college for those who are now sophomores or further along in their college years? Good luck next time? There is not a next time or a re-do for those who have already begun college, and where preventative measures should not be discouraged, perhaps more immediate results would be welcome in regards to putting a dent on college costs.

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Stats Show AP Courses May Not Be the Answer to Less Student Debt

Student debt levels have been rising and have recently reached $1.2 trillion in outstanding loans. One solution to helping students reduce their debt is to have them graduate in four years or even a semester early since student loans tend to really add up beginning in the fifth year of college. Passing Advanced Placement (AP) courses in high school allows students to get college credit before they arrive on campus,  giving them a leg up on graduating on time. AP courses have also been touted as an opportunity for students to experience the rigors of university courses – thus preparing them for better success in their freshman year.

An analysis by Politico shows that AP courses haven’t been making the grade. They state that

Enrollment in AP classes has soared. But data analyzed by POLITICO shows that the number of kids who bomb the AP exams is growing even more rapidly. The class of 2012, for instance, failed nearly 1.3 million AP exams during their high school careers. That’s a lot of time and money down the drain; research shows that students don’t reap any measurable benefit from AP classes unless they do well enough to pass the $89 end-of-course exam.

In its annual reports, the nonprofit College Board, which runs the Advanced Placement program, emphasizes the positive: The percentage of students who pass at least one AP exam during high school has been rising steadily. Because so many students now take more than one AP class, however, the overall pass rate dropped from 61 percent for the class of 2002 to 57 percent for the class of 2012.

Even more striking: The share of exams that earned the lowest possible score jumped from 14 percent to 22 percent, according to College Board data.

Further,

Advanced Placement classes, available in 34 subjects from art history to calculus, are supposed to be taught at a college level. The exams are graded on a scale of 1 to 5. The College Board considers 3 a passing grade, though fully a third of the universities that grant college credit for AP require a score of 4 or 5. Dartmouth College, questioning the program’s rigor, has announced it will soon stop accepting any AP scores for credit.

 

Advocates often argue that students benefit from being exposed to the high expectations of an AP class, even if they don’t pass the test. Yet there’s no proof that’s true.

 

In fact, taking an AP class does not lead to better grades in college, higher college graduation rates, or any other tangible benefit — unless the student does well enough to pass the AP test, said Trevor Packer, a senior vice president at the College Board.

For access the Politico article, please click here.