Holding Colleges Accountable EvisionsConference2013

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


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


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.

Your text here.

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.

Holding Colleges Accountable EvisionsConference2013

Education

Transcript of Holding Colleges Accountable EvisionsConference2013