That college you have your eye on for your teenager? It may be going out of business. Your alma mater, too.
Here’s why: we keep seeing reports that the financial model undergirding much of higher education is weak and getting weaker. The way colleges are financed is out of date with the demands of a much larger student population. Few people outside higher education are aware of this, but college and university leaders are deeply concerned.
As director of the Postsecondary Success Strategy at the Bill & Melinda Gates Foundation, I have spent the last year talking with chancellors, provosts, faculty, policy makers, and education technologists. Pretty much all of them recognize that higher education is at a tipping point, and that it will soon look nothing like it does today, except perhaps at a few ivy-covered, well-endowed institutions.
This is not hyperbole.
Bain & Co. looked at hundreds of colleges and universities and found that about one in three is on an unsustainable financial track. “A growing percentage of our colleges and universities are in real financial trouble. And if the current trends continue, we will see a higher education system that will no longer be able to meet the diverse needs of the U.S. student population in 20 years.”
The report found that, at a time when college revenues and cash reserves are down, too many institutions face bigger debt service bills and ever-increasing expenses. Colleges were once able to make ends meet with annual tuition hikes, new fees and by securing more government support. Those days, though, are gone. Too many students now must borrow heavily just to keep pace with tuition increases, and government coffers are bare.
Last summer Inside Higher Ed and Gallup surveyed campus chief financial officers on their thoughts on the sustainability of their higher education institutions. Only 27 percent of them expressed strong confidence in their institution's financial model over the next five years. When asked to consider a 10-year window, the number expressing strong confidence in the financial health of their institutions dropped to 13 percent.
Improvement is needed on the academic side, as well. Data shows that our higher education system currently serves only about a third of students well, any most of those come from generally well-off families. Institutions of all types–two-year, four-year, public, private and online–need to adapt to the realities of today’s students even as they grapple with shrinking resources and increasing demand.
Only one student in four graduates from high school ready to succeed in a postsecondary program. Too many of the rest end up stuck in remedial programs that drain their resources and don’t prepare them to successfully complete postsecondary coursework.
Many of these students are from low-income families, or they are older, juggling life, jobs, and family as they pursue their educations. They are often first-generation college-goers who lack the support and guidance crucial to navigating the thicket that is higher education. As a result, too many students end up leaving college with a lot of debt but no degree.
We used to call these students “nontraditional.” Now they are the “new majority.” And their struggles were highlighted recently in data released by the Organization for Economic Cooperation and Development that showed U.S. adults have below average literacy, math and problem solving skills when compared to their peers in the world’s richest countries. We have to make the system better for these students — but how?
Technology is often looked at as an answer. Yet, it has to be more than just bolting new technology on an antiquated platform. Technology-driven innovation has the potential to help colleges and universities address some of these challenges while helping faculty do their jobs by helping them offer students more personalized instruction and academic support. Done thoughtfully and well, technology can help faculty provide a more personalized learning experience for their students and ease some of the financial pressure on colleges and universities.
Today’s students need highly personalized coaching, mentoring, and other supports tailored to their individual needs and goals. Technology holds huge promise for making this kind of personalization possible by enabling colleges to effectively target the most costly and most important aspect of any education – the interactions with instructors and advisors.
Too often, we are debating the wrong things about technology and higher education. For example, we can’t just compare online or in-person classes. We need new business models that include technology and allow colleges and universities to put scarce dollars where they matter most. For today’s student, what can make a big, positive difference is access to an education tailored to their needs, their learning styles, and their goals, with appropriate coaching and advising.
Look at the State University of New York, which plans to add 100,000 new students over the next three years through its Open SUNY initiative. It will make online classes at each of its 64 campuses available to all of the system’s 468,000 students. Personalization will be an important part of the initiative, combining on-site and online academic support. Arizona State University, for its part, combines face-to-face learning, hybrid classes, and online instruction to increase enrollments, even as it faces severe physical space limits.
The cause is urgent. For higher education to fulfill its historic role as an engine of social mobility and economic growth, we must continue to seek big technology breakthroughs. This means thinking creatively about how to serve students as individuals, while also ensuring that many more students get the learning opportunities they deserve.
This might sound paradoxical, but investments in education technology will be increasingly crucial to humanizing and improving the student experience. And it might just keep your alma mater – or your child’s future alma mater – in business, and more purposeful and student-centered than ever.
Dan Greenstein is the director of postsecondary success at the Bill & Melinda Gates Foundation. Follow him on Twitter: @dan_greenstein.
Those five simple words should stand at the center of all conversations about higher education; participants in such conversations should recite them on a regular basis. Instead, I hear the drumbeat language of “disruption” — new models of higher education will do to “legacy” colleges and universities what the steamboat did to the sailing vessel, or more recently, what Amazon did to Borders. The disruption gurus see a new business model on the horizon, approaching fast and preparing to vanquish all postsecondary institutions that do not embrace a particular kind of innovation. Those institutions will decline because they cannot compete.
The disruptive steamroller now bearing down on higher education is a product strategy known as “unbundling.” Just as iTunes has driven the album out of the market by enabling consumers to purchase their music one song at a time, students are increasingly able to purchase their degrees, one or two courses at a time, from different providers. “Like steam,” proclaims one Harvard Business School professor together with the executive director of an “Institute for Disruptive Innovation,” “online education is a disruptive innovation — one that introduces more convenient and affordable products or services that over time transform sectors.”
The argument goes something like this. Skyrocketing tuitions have put college out of the reach of millions of Americans (not to mention millions more around the world with access to a computer but not a campus). In a market economy, when a product becomes too expensive for consumers, innovators who can satisfy demand more efficiently will drive existing businesses to the margins — in this case, to the kind of luxury market that prefers a CD to an MP3. Here, the avatars of disruption don’t completely agree: some, like the keynote speaker at the recent Ithaka Sustainable Scholarship Conference, readily admit that “traditional” institutions generally provide a superior education, given the virtues of face-to-face interaction and the multidimensionality of student life; others insist that consumers of such educational Cadillacs are mere chumps, spending thousands of dollars on prestige, along with a “student life” consisting mostly of parties that would be more cheaply and safely held at home.
Given these excessive costs — generally attributed to inefficiency, salaries paid to professors more interested in research than in teaching, and a broken business model that federal financial aid subsidies keep insulated from market forces — consumers will increasingly choose cheaper degrees that do a better job of preparing them for the workplace. These new degrees use technology more efficiently, reward competence over time in a classroom, and liberate students to take courses where they are available, rather than suffer from the corporeal implications of how many bodies can fit into a single classroom, or how often a given course appears on the schedule. Statistics 101 is full at your university? No big deal; just take the MOOC and get credit in the same way your university gave credit for that Advanced Placement course you took in high school.
Liberated from such luxuries as student counseling (academic and otherwise), full-time faculty, sports, dormitories (fancy and otherwise), meadows and plazas, orchestras, offices of community relations that actually provide services rather than public relations, subsidized clinics, and various other luxuries unnecessary to a student’s first job (as opposed to a career), the new-model colleges can indeed do it cheaper. And this is not a bad thing: millions of people across the planet hunger for knowledge and ought to have the access that online education can provide.
It is a grim reality of many large (mostly public) universities that students unable to get a spot in required courses cannot graduate in four, even five years.
The history major who can’t take the entry-level requirement until junior year has a problem that “unbundling” can solve, whether through a MOOC or some other online venue. I would love to see the American Historical Association participate in any innovation able to address this problem. I also appreciate how a degree earned through a set of courses taken at various places, online and otherwise, makes good sense to people unable or unwilling to pay for a “traditional” college education. Those of us who consider humanities and social science essential to career preparation should dedicate ourselves to ensuring that such degrees include high-quality history education, provided by professionals who are properly compensated for their time and expertise. We should be similarly committed to widening access to higher education of all kinds, and to the kinds of lifelong learning that can be facilitated by distance educational resources.
But education is not music. I don’t care whether everyone in my city is willing to sacrifice sound quality, and the artistry involved in constructing the content of a CD, for the convenience and cost of an MP3. Nor do I care if “legacy” airlines are pushed aside by the disruptive innovations of creative entrepreneurs. The big corporations, analogous to 19th-century shipping magnates, can fall victim to “disruption” and we will have traded very little for new efficiencies. The same cannot be said for education, which is not merely a consumer purchase but a public good. Part of the reason for a seemingly failing financial model in public postsecondary education is found not on the cost side, but rather in a decline in public funding. At non-flagship public universities and community colleges, the cost per student (as opposed to what students actually pay) is generally not increasing. Students cannot get into courses in part because public colleges and universities do not have adequate public funds. It is incumbent on us to make a better argument for such funding, but we should not assume that the market can do the job better. More efficiently, maybe. But not better.
Moreover, we will all lose if we allow markets to determine the institutional framework of higher education. The self-described disruptors claim to be doing what scholars do: competing in a marketplace of ideas, with the same imperative to think outside the box, explore new models, and reward creativity. But, in my field, history, we know that the best new scholarship builds upon the old, rather than casting it to the scrap heap. We learn from our predecessors; they spare us the inefficiency of having to reinvent the wheel. We are not out to destroy them in the way of the business world to which the disruptors look for models of change.
Let us make room, then, for the innovations that broaden access, while participating in the conversations that will shape and deploy those innovations. Markets ought not be considered the arbiters of quality education. To allocate public resources based on how much an education costs, and whether it can provide minimal competencies, is a strategy to impoverish public culture. Education is not just a tool for individual advancement; it is also a public instrument to promote democratic citizenship. The system works better for all of us if more people can recognize a logical fallacy, read a data table, understand the text and context of the Constitution, and decipher debates surrounding the causes of the Great Depression. An unbundled degree offers a better education compared to no degree at all (something to be taken seriously), but it is a narrow and often isolated experience compared to the liberal education that is available in the hundreds of institutions across the nation that offer curriculums, rather than courses.
We need to determine what, precisely, is being disrupted by new business models, ensuring that as we transform higher education with digital tools, we also conserve essential elements of the best system of higher education in the world, measured by the number of people from around the globe who either flock to our institutions or try to replicate them back home (often with strong public backing), having grasped the fact that education, after all, is a public good.
Many of the elements we treasure in a “traditional” education are somewhat intangible, or difficult to explain without sounding either elitist or archaic, but they are benefits nonetheless, and public funds should subsidize the financial aid necessary to keep them accessible to those determined to reap their benefits but unable to afford their cost. I encourage our colleagues to figure out how to participate in and adapt new forms of instruction. But I also challenge the entrepreneurs who profit from those new forms to join American traditions of philanthropic citizenship and support the infrastructure of “bricks and mortar” education for those who desire it — not only those who can afford it.
James Grossman is the executive director of the American Historical Association.
More evidence that all that texting you see isn't about academics? Researchers at Kent State University tracked how much time students spend on their phones, and their grades. More use of phones is negatively related to grades, but positively related to anxiety. The research appears in the journal Computers in Human Behavior.
Submitted by Paul Fain on December 9, 2013 - 3:00am
Four more institutions will participate in the University of Wisconsin System's competency-based education program, which is dubbed the UW Flexible Option. System officials said the new offerings will be certificate programs aimed at adult and nontraditional students. They will include certificates in sales, geographic information systems and alcohol and drug abuse counseling, among others. Some will be non-credit programs, while others may soon be linked to "stackable" bachelor's degree tracks.
Nichole Wilson, a psychology professor at Yavapai College, is having one of the best semesters ever in terms of student attendance and interaction. More than two-thirds of students have perfect attendance and there were only 12 absences over all over 30 class meeting dates. She attributes the change to a new approach she took this semester to explaining class expectations -- an approach she adopted after seeing a video of a flight attendant using a nontraditional approach to giving the safety instructions. Here is a video of Wilson's class introduction this semester (and likely next semester too, given how well it worked).
Professors at Davidson College, working through the MOOC provider edX and the College Board, are going to start to prepare online tutorials in select topics in the Advanced Placement program, The New York Times reported. The goal is to create units covering specific topics within AP courses that may be tripping up students. The effort will start with AP courses in calculus, physics and macroeconomics.
The Obama administration is moving ahead with plans to waive certain federal student aid rules for a limited number of colleges that want to experiment with competency-based education and other innovative forms of higher education.
Officials are soliciting suggestions on what those experiments should look like, according to a notice set to be published in the Federal Register this week. The Education Department said it is “particularly interested in experiments that are designed to improve student persistence and academic success, result in shorter time to degree, including by allowing students to advance through educational courses and programs at their own pace by demonstrating academic achievement, and reduce reliance on student loans.”
The department gave three examples of the types of innovations it may approve: competency-based education, dual enrollment of high school students in higher education, and prior learning assessment.
Education Secretary Arne Duncan said in remarks at a student aid conference Wednesday that the experiments will allow colleges to “pursue responsible innovations to increase college value and affordability.”
The Obama administration first announced in August that it wanted to use its “experimental sites” authority to pilot higher education innovations aimed at lowering costs while maintain quality.
President Obama said in a speech on the economy Wednesday that his administration was “pursuing an aggressive strategy to promote innovation that reins in tuition costs.”
The push for federal funding for higher education innovations has been aggressive elsewhere in Washington as well. Several education foundations and think tanks have embraced alternative models of higher education, and the issue is attracting attention from a growingnumber of lawmakers on Capitol Hill.
The Education Department said it wants to hear experiment proposals from colleges, businesses, philanthropies and state agencies. The suggestions are due by January 31 of next year.
Submitted by Paul Fain on December 5, 2013 - 3:00am
Next month the GED Testing Service will launch a revamped version of the GED, which will be fully computerized and more expensive and include the assessment of college readiness. This week the testing service, which is owned jointly by Pearson and the American Council on Education, rolled out the test's new website. It includes a registration portal, study guides and information about applying for college, as well as other resources.
The most frequently awarded grade for undergraduates at Harvard University is an A, and the median grade is A-. University officials released those facts Tuesday at a meeting of arts and sciences faculty members, and a Harvard spokesman confirmed the information Tuesday night. The spokesman cautioned in an email against too much emphasis on the grade data. "We believe that learning is the most important thing that happens in our classrooms and throughout our system of residential education. The faculty are focused on creating positive and lasting learning outcomes for our undergraduates," he said. "We watch and review trends in grading across Harvard College, but we are most interested in helping our students learn and learn well."
Some Harvard faculty members are concerned, however, about grade inflation. Harvey Mansfield, who has repeatedly raised the issue, was the one who brought it up with questions at Tuesday's meeting. He told The Boston Globe that he thought grading patterns were "really indefensible."