Office of Planning and Budgeting

Here’s a quick roundup of some of this week’s headlines in higher ed news.

Report Argues Gainful Employment Rules Could Hurt For-Profits’ Students 

According to a study commissioned by the Association of Private Sector Colleges and Universities, up to 44 percent of students at for-profit colleges could lose access to federal financial aid under the latest “gainful employment” proposal. The authors of the report—Jonathan Guryan, an economist at Northwestern University, and Matthew Thompson of Charles River Associates, a consulting firm—argue that since for-profits tend to serve students who have fewer financial resources and less academic preparation, the proposed rules would leave students without other options. Additionally, the report asserts that the rules should not be based on short-term measures of earnings and student debt, as such metrics tell an incomplete story. The Department of Education released the proposed rules in March. The window for public commenting closed on Tuesday.  This report was part of a final lobbying campaign by both sides.

Startups Playing Matchmaker with Students and Employers

Several startups have begun serving as matchmakers between community college students and employers. One of the startups, called WorkAmerica, states that it will provide students with a legally binding job offer before they enroll at one of the startup’s partner colleges. WorkAmerica has already started placing students into trucking programs, and plans to expand to other “high churn” employers, such as those that hire welders, IT technicians, and medical assistants.  Another similar startup, called Workforce IO, connects employers with “trainers”—which can include community colleges, in addition to nonprofits and other mentoring agencies. The company uses a library of 275 job-skills “badges” to vouch for its workers’ skills. In an era when students are increasingly concerned with their post-graduation employment opportunities, it’s possible that such a model could be applied to some programs at four-year institutions.

Data Say College is Worth More Than Ever

Research shows that not only is a college degree is worth the time and money it takes to earn one; it’s worth more than ever.  According to analysis of Labor Department statistics by the Economic Policy Institute, the pay gap between college graduates and those who either never went to college or never graduated from college, reached a record high last year. The NY Times article summarizes, “Americans with four-year college degrees made 98 percent more an hour on average in 2013 than people without a degree. That’s up from 89 percent five years earlier, 85 percent a decade earlier and 64 percent in the early 1980s.”

In an effort to boost international student retention, a new survey by the NAFSA: Association of International Educators seeks to understand why international students drop out or transfer before earning a degree. The survey asked 517 international undergraduate students, of which 110 had either transferred or were planning to transfer, about their college experience and their reasons for changing schools.  In a parallel survey, about 500 international education professionals were asked why they thought international students transferred.

The students who participated in the study cited financial factors as the top reasons for their dissatisfaction:

  • Limited access to jobs and internships (37 percent)
  • Affordability (36 percent)
  • Dearth of scholarship opportunities (34 percent)
  • Meal plans (26 percent)
  • Quality of housing (17 percent)

Interestingly, the factors that educators believe are hurting international student retention are quite different. Although nearly two-thirds of international education professionals named “financial problems” as a primary cause of attrition, the other top reasons they listed focused more on academic preparedness and fit:

  • Finding a “better fit” institution (67 percent)
  • Financial problems (64 percent)
  • Academic difficulties (62 percent)
  • Inadequate English language skills (40 percent)
  • Dissatisfaction with location (34 percent)

The findings suggest that there is a disconnect between the expectations of international undergraduates and those of college administrators. Inside Higher Ed quotes Rahul Choudaha, the report’s principal investigator, as saying, “Students may be underestimating the academic preparation expected to be on a campus and they are overestimating the availability of jobs, availability of scholarships, availability of financial aid and so on.” College recruiters, thus, should help manage international students’ expectations by recognizing and being upfront about the availability of job and scholarship opportunities on their campus. In addition, as international students may be underestimating the level of academic and language preparedness necessary to succeed at American universities, special tutoring and academic advising services may be required to help them succeed and stay. Together, these approaches could help boost retention and clarify expectations, so both administrators and students have a better experience.

To read the NAFSA findings, click here. Or, check out the Chronicle or Inside Higher Ed articles on the issue.

The College Board recently released a new report, entitled “Redesigning the Pell Grant Program to Boost Access and Completion,” which provides numerous recommendations for improving the Pell Grant. The report is part of the Bill and Melinda Gates Foundation’s push to research financial aid improvements prior to the reauthorization of the Higher Education Act. The main recommendations involve making the eligibility process simpler by streamlining the FAFSA. The report claims that limiting the necessary financial information to Adjusted Gross Income (AGI) and family size (two measures that are easily obtained from a tax return) would boost completion of the FAFSA and improve access to college. Such an approach would also allow colleges to report average net price for students within given AGI and exemption ranges on their websites, making it easier for students and their families to plan for the future.

The College Board also recommends basing eligibility on “prior-prior year tax data,”[1] meaning families would not need to update their financial information each the spring. This change would help prevent low-income families from missing financial aid priority deadlines which often fall before the current year’s tax data are available. Furthermore, students whose parents did not need to file a tax return in the prior year would automatically be awarded the maximum Pell Grant without needing to enter financial information.

One of the more ambitious proposals in the report is the creation of government-funded savings accounts for families whose income would qualify them for the Pell Grant. Given that many studies find that early communication and college savings are crucial to increasing the number of low-income students enrolled in college, this program would seek to engage students and their parents at a young age. Under the proposal, low-income children around the ages of 11-12 would receive federal education accounts in which the government would deposit up to 10 percent of the maximum Pell Grant each year. The account would earn interest until the child turned 18, at which time he or she could begin to withdraw 25 percent of the balance per year (if enrolled in a four-year degree program). Any unused funds would be returned to the treasury when the student turned 24. The report estimates such a proposal would cost $3.5 billion to implement.

Washington State has long recognized that early communication and engagement are key to expanding college access. The state’s College Bound Scholarship program is a means-tested program that promises four years of free tuition and a book allowance to any Washington State student who is in foster care, whose family is low-income, or who qualifies for free and reduced-priced lunch in middle school. In 8th grade, students sign a pledge to graduate high school with a 2.0 GPA or better, to not commit a felony, and to submit a FAFSA.  The program has been hugely successful, with ever-increasing numbers of students applying for and using their College Bound Scholarships each year.

To read more about the College Board’s proposal, check out the full report here.


[1] Data from the year before the year currently used to determine federal aid eligibility

Temple University recently created a new partnership between students and the university to help students graduate on time and limit the amount of debt they accrue. Under the program, called “Fly in 4,” if an undergraduate student fulfills a set of requirements aimed at promoting on-time completion, but is still unable to graduate within four years, the university will pay for any remaining coursework (tuition and fees).  Additionally, in each incoming class, 500 students with financial need will receive “Fly in 4 grants” of $4,000 per year to help reduce the hours they must put toward employment and increase those they can devote to studying. [1]

“What we’ve found is that students from low- and middle-income backgrounds tend to take longer to complete their degrees, in part because they spend a lot of time working,” Temple President Neil D. Theobald is quoted as saying.

Starting in Fall 2014, all incoming freshmen and all incoming transfer students who enter on track to graduate on time are eligible for the program; however, only those with demonstrated financial need are eligible for the $4,000 grants. To remain eligible for the grants and/or for Temple to pay for any remaining coursework, students must:

  • Meet with an academic advisor each semester;
  • Register for classes during priority registration;
  • Advance annually in class standing; and
  • Complete a graduation review at or prior to completing 90 credits.[2]

President Theobald made six commitments to the Temple community in his October inaugural address, the first of which was to reduce student expenses. Fly in 4 is a part of that commitment.

“For nearly 50 years, researchers have shown that college students employed more than 15 hours per week during the school year earn much lower grades than do those working fewer hours for pay,” Theobald said. “In addition, time-to-graduation has become the primary determinant of student debt.”

To help fulfill its commitment and ensure students graduate on time, Temple has also invested heavily in advising (hiring 60 new full-time advisors since 2006, including 10 this year), created four-year graduation maps for every major, and trained faculty members to assist students with academic and career planning.



[1] For context, Temple’s 2013-14 undergraduate tuition rates were approximately $14,100 for residents and $23,400 for non-residents (depending on program and year of study).

[2] Contrary to a number of media reports, it does not appear that students are required to commit to working 10 hours per week or less in order to be eligible for the Fly in 4 grants. Temple University’s website makes no such statement.

In April 2013, UW President Michael K. Young convened a Task Force to study how the UW could better respond to and prevent sexual assault on campus. The Task Force, which included leaders from the Counseling Center, HR, Athletics, Academic Units, Student Government, Housing and Food Services, UWPD, Harborview, and Bothell and Tacoma campuses, put out a comprehensive report on its findings in October 2013. Given the current national attention focused on the issue of sexual assault on college campuses, and the need for a comprehensive response, the UW’s report can be seen as a blueprint for creating a successful sexual assault prevention and response program.

Here are the eight major goals for any sexual assault prevention and response program, as outlined by the report:

  1. Have a visible, robust, easily-accessible, collaborative network of response and intervention services for students in need
  2. Educate all students about sexual assault
  3. Create a community that knows how to respond and provide support
  4. Provide an investigation and disciplinary process appropriate for sexual assault
  5. Demonstrate compliance with all applicable federal and state laws, regulations, and guidance
  6. Generate data, metrics and reporting that allow for sound decision making
  7. Establish policies and procedures that set direction, clarify intent, and guide coordinated work
  8. Provide effective oversight and following guiding principles to ensure common direction

The Task Force also included 18 concrete and specific recommendations, including  hiring a Sexual Assault Nurse Examiner at the UW Medical Center, providing better sexual assault prevention training to students and staff at orientation, and revising UW policies related to sexual assault, to ensure that these goals are met. It also gave a list of funding priorities, such as hiring a consultant to overhaul the Student Conduct Code, funding the UWPD Victim Advocate and a Sexual Assault Investigator, and funding training and materials. The group will convene again in October to give a status update to the President, and will have periodic meeting after that to measure progress and define new goals and recommendations.

To read the Task Force’s full report, please click here.

 

Accenture recently released the results from their annual college graduate employment survey. The survey polls more than 2,000 students, including recent graduates and prospective graduates. Similar to last year’s findings, the 2014 report claims that on average, prospective college graduates are overly optimistic when it comes to their opportunities for training and prospective level of compensation.

  • While 80 percent of recent grads expect to receive formalized training from their employer, just 48 percent of 2012/13 grads received such training.
  • 43 percent of 2014 survey respondents expect to earn more than $40,000 at their first job, but only 21 percent of employed 2012/13 grads are actually earning that much.
  • 46 percent of 2012/13 grads feel that they are significantly underemployed, compared to 41 percent last year.

Despite their optimism, it seems college students have also become more practical when it comes to choice of major. Seventy-five percent of students graduating in 2014 claim they took job prospects into account when they chose their major, up from 65 percent in 2012. Furthermore, nearly three-quarters are willing to move out-of-state in order to land a job.

Accenture recommends that employers reassess their hiring strategies in light of these results. Instead of searching for the perfect candidate for an entry-level position, the company should invest in training and education programs that will help retain the employee and help them grow. Furthermore, given the willingness of recent grads to relocate, companies should consider advertising for their positions outside of their local area in order to attract the best talent.

To read our post about last year’s report, please click here. Or, check out the full 2014 Accenture report.

On Tuesday, Stanford’s Board of Trustees announced it “will not directly invest in approximately 100 publicly traded companies for which coal extraction is the primary business, and will divest of any current direct holdings in such companies.” Furthermore, Stanford stated it would encourage its external investment managers to avoid investments in such companies.

The decision was made at the recommendation of the university’s Advisory Panel on Investment Responsibility and Licensing (APIRL), which had spent several months analyzing a petition by a student group called Fossil Free Stanford. After conducting an extensive research-based review of the issues, APRIL concluded that sufficient coal alternatives exist and that divestment “provides leadership on a critical matter facing our world and is an appropriate application of the university’s investment responsibility policy.”

This issue has arisen several times at the UW, which (like Stanford) is a leader in environmental stewardship and sustainability. Stanford’s decision may set a precedent for other universities, including the UW, that have grappled with this issue.

The U.S. Department of Education recently released a list of 55 colleges and universities that are being investigated for possible violations of Title IX, particularly in regards to their handling of sexual assault investigations. Title IX is a federal gender-equity law that applies to all institutions receiving federal funds. Recently, several universities have come under scrutiny for alleged mishandlings of sexual assault cases and investigations.

The list comes on the heels of the Obama administration’s recent unveiling of new, tougher guidelines for handling sexual assault on college campuses. The report encourages universities to:

  • create “climate surveys” designed to measure the prevalence of sexual assault on college campuses;
  • better train college officials in responding to survivors of sexual assault;
  • change certain confidentiality provisions in order to facilitate reporting; and
  • amend campus disciplinary policies to be closer aligned to those put out by the Department of Education.

The administration has also signaled that it will step up its enforcement of Title IX provisions. Student activists seemed encouraged by the news, those some claimed the administration did not go far enough to ensure that colleges are punished for Title IX violations.  

To see the list of institutions facing Title IX investigations, click here. To read more analysis about the inquiry, check out this article in the New York Times.