Graduation rates

A Federal Impediment to Quicker Degrees

In February 2009, at a meeting of the American Council on Education, I challenged a group of university presidents and other leaders of higher education to focus on the need for greater innovation in higher education. I encouraged those leaders to heed the lesson offered by George Romney to the auto industry in the 1970s to innovate or lose their advantage: “There is nothing more vulnerable than entrenched success,” he said. I followed up in October 2009 with an article in Newsweek entitled "The Three-Year Solution: How the reinvention of higher education benefits parents, students, and schools."

The response has been pleasantly surprising.

Over the past year and a half, a growing number of institutions of higher education came forward with proposals to offer three-year degrees to their students. Here are a few examples:

  • Grace College, in Winona Lake, Ind., is offering an accelerated three-year degree in each of its 50-plus major areas of study. Dr. Ronald Manahan, Grace's president, cites the cost of college as a driving force behind the decision. “We have listened to people’s concerns about [the cost of] higher education and we are answering them,” he said.
  • Chatham University, in Pittsburgh, Pa., is offering a three-year bachelor of interior architecture without summer classes, allowing students to get into the job market a year earlier. School officials have reconfigured the four-year degree by cutting Studio classes from 14 weeks to just seven, and when compared to similar programs, these students graduate two years earlier.
  • Texas Tech University, in Lubbock, Tex., is offering an accelerated three-year medical degree, rather than the usual four. The program is aimed at making it easier and more affordable for students to become family doctors.

As institutions of higher education look into the possibility of offering a three-year degree, some have run into federal policies that seem to interfere with their ability to innovate. For example, this May I received a letter from Jimmy Cheek, chancellor of the University of Tennessee-Knoxville, describing a potential obstacle to a three-year degree surrounding student loans.

Here’s the issue: Under the Higher Education Act, student loan limits are tightly set to prevent over-borrowing by students. Federal annual loan limits and lifetime loan limits establish a maximum amount one can borrow under the federal student loan program. The annual loan limits are designed to pay for two semesters per year (see chart below).

Example: Scheduled Academic Year

Academic Year Semesters

 

Loan Amount

 

 

Scheduled Academic Year 1

 

 

Fall 2010 and Spring 2011

 

 

$5,500

 

 

Scheduled Academic Year 2

 

 

Fall 2011 and Spring 2012

 

 

$6,600

 

 

Scheduled Academic Year 3

 

 

Fall 2012 and Spring 2013

 

 

$7,500

 

 

Scheduled Academic Year 4

 

 

Fall 2013 and Spring 2014

 

 

$7,500

 

 

 

 

 

Total

 

 

$27,000

 

 

For most institutions of higher education, and most students, this works and makes sense. But 3-year degree students often take a third semester’s worth of classes over the summer. The federal limits appear to prevent students from obtaining a loan to pay for those summer courses.

Fortunately, there is a solution. Working with the Congressional Research Service, and the staff of the U.S. Department of Education, my office has identified an option that exists under current regulations to give flexibility on these loan limits to institutions of higher education and students. Instead of following a standard “Scheduled Academic Year” as outlined above, an institution of higher education offering a three-year degree could award loans to students through a “Borrower-Based Academic Year," per the chart below:

Example: Borrower-Based Academic Year

Academic Year

 

Semesters

 

 

Loan Amount

 

 

Scheduled Academic Year 1

 

 

Fall 2010 and Spring 2011

 

 

$5,500

 

 

Scheduled Academic Year 2

 

 

Summer 2011 and Fall 2011

 

 

$6,600

 

 

Scheduled Academic Year 3

 

 

Spring 2012 and Summer 2012

 

 

$7,500

 

 

Scheduled Academic Year 4

 

 

Fall 2012 and Spring 2013

 

 

$7,500

 

 

 

 

 

Total

 

 

$27,000

 

 

This option would use the same annual loan limits and lifetime loan limits, but compress them to match the student’s academic schedule. Compared to the typical “Fall-Spring” academic year over each of the four years, a three-year degree program could use a “Fall-Spring, Summer-Fall, Spring-Summer” structure to allow for a compressed academic schedule.

I have been told that this “Borrower-Based Academic Year” option is currently not well used because it is administratively complicated for institutions to offer both “Scheduled Academic Year” and “Borrower-Based Academic Year” loan structures at the same time for individual students. But for an institution that offers a comprehensive three-year degree program involving a number of students, this seems to make sense as a way of helping students in that program afford the tuition and fees.

I have asked Chancellor Cheek to let me know if this option would work for the University of Tennessee, or if more flexibility needs to be added. When Congress last reauthorized the Higher Education Act in 2008, we made several changes to the Pell Grant program to allow that funding to be used on a year-round basis. There is no reason students should not have that same flexibility with their student loans.

It is my hope that more institutions will explore innovative ways to provide a high-quality postsecondary education. The three-year degree is one idea for some well-prepared students, but it is vital to our competitiveness as a nation that we develop other ideas to improve the efficiency of higher education and expand access to more Americans.

Institutions of higher education are rightly feeling pressure from parents, students, state and local leaders, the business community, Congress, and the Obama administration to do a better job of providing more Americans with a quality college education at an affordable price. That pressure will likely grow more intense every year as more jobs require higher education, advanced certificates, or technological skills from their applicants.

Some have asked whether all colleges and universities should be required to offer a three-year degree. My answer is a resounding no. Just as the hybrid car isn’t for everyone, all students and all institutions won’t want a three-year degree. The last thing we need is more federal mandates on higher education.

The strength of our higher education system is that we have 6,000 independent, autonomous institutions that compete in the marketplace for students. It is that marketplace that needs to develop the new ideas for the future -- and not become a victim of its own “entrenched success" -- so that our students, and our country, can continue to thrive.

Author/s: 
Senator Lamar Alexander
Author's email: 
doug.lederman@insidehighered.com

Sen. Lamar Alexander (R-Tenn.) is chairman of the Senate Republican Conference and a member of the Senate Committee on Health, Education, Labor and Pensions. He served as U.S. secretary of education under President George H.W. Bush and as president of the University of Tennessee.

An Alternative to Graduation Rates

When college presidents and other higher education leaders talk about federal policy these days, the most common theme is dismay at proposed new regulations from the Department of Education. But a close second is the inadequacy of data from the Education Department’s Integrated Postsecondary Education Data System (IPEDS) for evaluating anything.

This is a problem that has vexed us for years, and it's time for us to do something about it.

Every sector is affected. Colleges with many students transferring out to other colleges complain that even when those men and women graduate from the second institution, they still count as failures for their first college.

Universities with large numbers of entering transfer students know that even when they graduate they will not count as successes anywhere in IPEDS accounting. Juniors entering with degrees from community colleges will not help the statistics of their new university when they receive a B.A. or B.S.

Colleges with large percentages of part-time and commuter students know that they normally take longer than six years to graduate. Everyone reminds each other that a large percentage of Americans graduating from college now have credits from more than one institution, often more than two institutions. Many people taking courses at community colleges do not intend to complete degree programs.

Yet six-year graduation rates from the first point of entry are the only figures we seem to have for evaluating completion success. IPEDS data are not useful for management purposes, but they can be outright dangerous for policy making, particularly if leading to conclusions that whole segments of our country can be written off as not college-worthy. The figures are least reliable for low-income populations who do have to “stop out” some semesters, who are more likely to attend part time, more likely to need time for pre-college courses because of weak high schools, more likely to transfer, and more at risk.

So, rather than leaving this for the U.S. Department of Education to fix, I am challenging colleagues in higher education to design an alternative system that is more valid, reliable, and useful.

My institution, Heritage University, in the Yakima Valley of Washington, is one of the institutions fully committed to creating opportunities for a region’s underserved, low-income, largely minority and almost entirely first-generation-college population that, by and large, has not been well-prepared by local high schools. Until my arrival last summer, Heritage’s founding and only president, Kathleen Ross, had for 28 years been building an inspirational learning environment with thousands of success stories from that population. Many of those graduates are not only productive citizens but also leaders in the Pacific Northwest, reaching goals no one would have imagined possible for them before they came to Heritage.

Most Heritage students, to be sure, do need pre-college developmental work; almost all have to hold jobs; many have to “stop out” for a semester from time to time. Some 70 percent are women, many of them single parents determined to raise their families up out of poverty. Graduation figures in the IPEDS data for those who entered at the start of the last decade look miserable at first glance, something like 18 percent in six years. A certain portion of that deficiency derives from Heritage having had in its early years an enrollment policy a bit too close to open enrollment for a college with high standards.

The history of Heritage has been, in effect, a search to understand which students can be remediated to do rigorous college work and which, despite a high school diploma and a respectable grade point average, lack the academic skills and work ethic to succeed. As a consequence Heritage, now with much time-tested data at its disposal, is advising a number of applicants in other directions; is developing stronger pre-college modules for those with ability and commitment to succeed; and is investing in robust advising to complement academic rigor.

One might hope that Rich Vedder, who in a recent Forbes blog post suggested Heritage might best be shut down for wasting Pell Grant dollars, would reconsider that conclusion and decide that Heritage is actually a very good Pell investment in America’s future.

For if he and others study the data more closely, they'll also learn that of those students who actually matriculated as full-fledged freshmen between 2003 and 2005 -- that is, students who had completed any necessary remedial work -- the 8-year graduation rate was 41 percent, not including those who transferred to another college. Of those who successfully became sophomores at Heritage, the graduation rate was 81 percent. Of those who became juniors, as well as those who transferred in as juniors from community colleges, the graduation rate was 81 percent. In each of those last three data sets, Heritage University compares quite favorably with other colleges that have comparable populations. Hundreds of other colleges, moreover, have good stories to tell if they can use metrics that are truer to and more relevant to actual performance than are the IPEDS data.

So Heritage is now developing a metric to assign to every entering student -- based on credits transferred, remediation needed, and planned full-time or part-time schedule -- a predictive graduation date, a benchmark against which success can be measured, with a factor also to account for those known to have transferred to another college.

This is the time, however, to challenge all of us in higher education -- the presidential associations, those who oversee accreditation, and other higher education organizations -- to come together to propose an alternative to IPEDS, or at least a parallel system, that colleges and universities themselves find useful for management and that policy makers can trust.

It must account for transfer patterns, for differential rates of progress among low-income populations, for developmental needs of students, and for the wide array of kinds of institutions in American higher education. It is complex but it is doable. It will give all of us a better system for measuring completion success rates.

Author/s: 
John Bassett
Author's email: 
newsroom@insidehighered.com

John Bassett is president of Heritage University, in Yakima, Wash.

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