President Jill Tiefenthaler

Myth #1 You no

longer need a college degree

to be successful.

 Forbes edition on The

Richest People in America, January, 2012 – “Think you need a

college degree to become a business star--think again.”

Despite the hype, 85% of those on the list

have at least a college degree.

College-to-High School Weekly Wage Premium, 1963–2008

SOURCE: The College Board, Trends in Higher Education 2010, Figure 1.7a

Myth #2

More than half of recent

college graduates are unemployed.

Unemployment Rates by Education Level, 1992–2009

SOURCE: The College Board, Education Pays 2010, Figure 1.10a

Unemployment rate for young college graduates, by gender, 1989–2012*

*Latest 12-month average: April 2011–March 2012.

SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure G

SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure I  

*Latest 12-month average: April 2011–March 2012.

Unemployment and underemployment rates for young college graduates, 1994–2012*

Unemployment and underemployment rates of young high school graduates, 1994–2012*

SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure D  

*Latest 12-month average: April 2011–March 2012.

College costs too much. It isn’t worth the

investment.

Myth #3

Estimated Cumulative Earnings Net of Loan Repayment for Tuition and Fees, by Education

SOURCE: The College Board, Education Pays 2010, Figure 1.3

Distribution of Full-Time Undergraduates at Four-Year Institutions by Tuition and Fees, 2012-2013

SOURCE: The College Board, Trends in College Pricing 2012, Figure 2

Increasing tuition has created a

student loan debt crisis. Students are

drowning in mounds of debt that they can’t

repay.

Myth #4

American Debt – Type 2011

Growth of Loan Dollars by type, Constant 2010 Dollars

SOURCE: The College Board, Trends in Student Aid 2011, Figure 4.!

Average Debt Bachelor’s Recipients, Public Schools, 2010 Dollars

SOURCE: The College Board, Trends in Student Aid 2011, Figure 10A.!

Average Debt Bachelor’s Recipients, Private Schools, 2010 Dollars

National Student Loan Default Rate

SOURCE: U.S. Department of Education, www2.ed.gov/offices/OSFAP/defaultmanagement/defaultrates.html.

Federal Student Loan Two-Year and Three-Year Cohort Default Rates by Sector

SOURCE:  Department  of  Educa6on  (studentaid.ed.gov/about/data-­‐center/student/default);  Table:  The  College  Board,  Trends  in  Student  Aid  2012,  Figure  9B.    

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For-profit colleges are more efficient than traditional

privates and publics and will

bring much needed competition to

higher education.

Myth #5

Four-year Graduation Rates, by sector

SOURCE: The Education Trust 2010; “For-profit Data Summary,” IPEDS First Look 2008-09, Table 5. Graduation rates at Title IV institutions, by race/ethnicity, level and control of institution, gender, and degree at the institution where the students started as full-time, first-time students: United States, cohort year 2002.

55  65  

22  

0  

20  

40  

60  

80  

4-­‐Year  

IPEDS  Gradua6on  Rate,  2008  

Public  

Private,    Non-­‐Profit  

For-­‐Profit  

Average Published Undergraduate Charges by Sector, 2012-13

SOURCE: The College Board, Trends in College Pricing 2012, Table 1A

Tui$on  and  Fees  

Sector   2012-­‐13   2011-­‐12   $  Change   %  Change  

Public  Two-­‐Year  In-­‐State  

 $3,131  

 $2,959  

 $172  

 5.8%  

Public  Four-­‐Year  In-­‐State  

 $8,655  

 

 $8,256  

 $399  

 4.8%  

Public  Four-­‐Year  Out-­‐of-­‐State  

 $21,706  

 $20,  823  

 $883  

 4.2%  

Private  Nonprofit  Four-­‐Year  

 $29,056  

 $27,883  

 $1,173  

 4.2%  

For-­‐Profit   $15,172   $14,737   $435   3.0%  

$7,960  

$17,040  

$31,190  

$0  

$5,000  

$10,000  

$15,000  

$20,000  

$25,000  

$30,000  

$35,000  

Public   Private,  non-­‐profit   For-­‐profit  

Median Debt of Bachelor's Degree Recipients, 2007-08

Median Debt, by sector

SOURCE: The Education Trust, Subprime Opportunity: The Unfulfilled Promise of For-profit Colleges and Universities (November 2010), Figure 3

SOURCE: The College Board, Trends in Student Aid 2012, Figure 11C

Cumulative Debt: Students Who Left without Completing a Degree by Sector and Length of Enrollment

Amount Borrowed by Students Who First Enrolled in 2003-04 and Left Without Completing a Degree or Certificate by 2009, by Institutional Sector and Length of Enrollment (with Percentages of Students in Each Sector Within Enrollment Category)

The whole industry is inefficient. Tuition keeps

going up because higher education

can’t control costs.

Myth #6

Average Annual Percentage Increase beyond Inflation,1981-82 to 2011-12

Source: The College Board, Annual Survey of Colleges; NCES, Integrated Postsecondary Education Data System (PEDS).

Inflation-Adjusted Published Tuition and Fees, 1981-82 to 2011-12

Source:  The  College  Board,  Annual  Survey  of  Colleges;  NCES,  Integrated  Postsecondary  EducaFon  Data  System  (PEDS).

Distribution of Undergraduate Enrollment by Sector, 2009-2010

Source: The College Board, Trends in College Pricing 2011

 TUITION  =    

COST/Student  –  SUBSIDY  

 

Annual Percentage Changes in State Appropriations per Full-Time Equivalent (FTE) and in T&Fs at Public Four-Year Institutions, Inflation Adjusted

Sources:  The  College  Board,  Annual  Survey  of  Colleges;  Illinois  State  University,  Grapevine  reports;  NCES,  Digest  of  EducaFon  StaFsFcs  2008,  Table  219.  

Resident Student’s Share of College Cost All Governing Boards

32%  

66%  

68%  

34%  

20%  

30%  

40%  

50%  

60%  

70%  

2000-­‐01   2001-­‐02   2002-­‐03   2003-­‐04   2004-­‐05   2005-­‐06   2006-­‐07   2007-­‐08   2008-­‐09   2009-­‐10   2010-­‐11   2011-­‐12  

Student  Share   State  Share  $6,523

$9,636 $9,154

SOURCE: NCHEMS, Colorado Commission on Higher Education, “Some Basic Facts about Colorado Higher Education”  

Colorado College’s Selectivity over Time

Even if the public tuition is increasing

faster in recent years, they are still more affordable

than private colleges.

Average Published Undergraduate Charges, by Carnegie Classification

SOURCE: The College Board, Trends in College Pricing 2012, Table 1B

Tui$on  and  Fees  

Carnegie  Classifica@on  

 2012-­‐13  

 2011-­‐12  

 $  Change  

 %  Change  

Public  Doctoral    In-­‐State  

 $9,539  

 $9,126  

 $413  

 4.5%  

Public  Master’s  In-­‐State  

 $7,606  

 $7,207  

 $399  

 5.5%  

Public  Bachelor’s  In-­‐State  

 $6,718  

 $6,433  

 $285  

 $4.4%  

Private  Doctoral    $35,660  

 $34,230  

 $1,430  

 4.2%  

Private  Master’s    $25,997  

 $24,903  

 $1,094  

 4.4%  

Private  Bachelor’s  

 $27,482  

 $26,427  

 $1,055  

 4.0%  

“Calculating the Cost of College”

SOURCE: New York Times, “Calculating the Cost of College,” http://www.nytimes.com/interactive/2013/01/16/education/calculating-the-cost-of-college.html

Family  A   Family  B   Family  C  

2011  Combined  Income   $50,000   $100,000   $150,000  

Home  Equity   75,000   150,000   225,000  

Savings/Investments   5,000   10,000   25,000  

2012-­‐13  Total  Price   Family  and  Student  Burden  

Colorado  College   $54,200   9,300   22,650   40,500  

U.C.  Berkeley  Resident  Out-­‐of-­‐State  

 $32,706  $55,584  

 11,110  33,768  

 23,500  46,378  

 32,706  55,184  

U.  of  Illinois,  Urbana  Resident  Out-­‐of-­‐State  

   

$33,922  $48,064  

   

26,277  41,356  

   

33,922  48,064  

   

33,922  48,064  

Online education is the disruptive

innovation that changes everything. It will lower costs,

increase accessibility and make traditional colleges irrelevant.

Liberal Arts colleges are irrelevant in this STEM

world.

The best and brightest

students attend our nation’s

elite institutions.

Percentage Growth in Mean Family Income by Quintile in Constant 2010 Dollars

Sources:  U.S.  Census  Bureau,  Current  PopulaFon  Survey,  Table  F-­‐1,  Table  F-­‐3,  and  FINC-­‐01;  calcula6ons  by  the  authors.