Presentation on theme: "Private Sector College Update Sector in Transformation Future in Question 2011 Michael J. Cooney Chair, Wisconsin Educational Approval Board"— Presentation transcript:
Private Sector College Update Sector in Transformation Future in Question 2011 Michael J. Cooney Chair, Wisconsin Educational Approval Board
2011 – The Year of the Great Shake Up 2012 – The Year of the Great Shake Out
Current Issues: Tuition Cost Quality of Education Outcomes Transfer of Credit Validity of Programs Default Rates Regulatory Environment Gainful Employment Rule 90 / 10 Rule Rigorous Accreditation Standards Net Price Calculator State Attorneys General Investigations Continued Congressional investigations
Validity of Outcomes Reporting
Go to college – live the American Dream? live the American Dream? The Post-Secondary Education Value Proposition is under attack as never before
"Occupy the Ivory Tower "Too many [students] have paid too much and been taught little. They've been ripped off -- but not by the banks or the fat cats or any of the other stock villains so unwelcome these days in Zuccotti Park." The shortage of skills and knowledge necessary to compete in todays global economy is a real and foundational danger to America's present dominance and future growth. ACTA American C ouncil of Trustees and Alumni
College for All? Good for the country? Good for education? Good for students? Good for tax payers?
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What is the primary function of post-secondary education?
What is the primary function of post-secondary education? Intellectual Development …by nurturing in students the academic and civic virtues, and their related traits of character. Williams College Workforce Development …helping students like you achieve career success not just for that first job out of college, but for a lifetime. Johnson & Wales University
The three purposes of the University: sex To provide sex for the students, sports sports for the alumni, parking and parking for the faculty. Clark Kerr First Chancellor University of California, Berkeley
The Recession Changed Everything Enrollment boom Decline of public funding Value shift Strategy reassessment
Lack of Confidence in the future An uncertainty driven squarely by consumers and small-businesses who are worried about their short- term financial prospects. And it's been going on since well before Obama took up residence in the White House. These are enormous shifts," This kind of uncertainty -- a lack of consumer confidence -- can become a self- fulfilling prophecy. "We haven't seen stuff like this since the 1930s." Moebs Services founder & Chairman Mike Moebs
Lack of Confidence in Education People are just frozen or deferring, delaying decisions to go to school. The Average person in the U.S. has become much more risk-averse and cautious when it comes to spending or committing to anything. Its unrealistic for us to think that education would be immune from this. Daniel Hamburger, CEO DeVry Inc.
For-Profit Colleges' Most Recent Quarterly Enrollment and Revenue, 2011 vs Institution % Change in New Student Enrollment in Revenue American Public University System 53%35% Apollo Group-34% -11% Bridgepoint Education 27% 8% Capella Education-36% -3% Career Education Corp.-22%-18% Corinthian Colleges-23%-17% DeVry Inc.-12% -1% Education Management Corp. 2% 2% Grand Canyon Education, Inc. n/a 10% ITT Educational Services, Inc. -14% -10% Kaplan Higher Education -30% -33% Strayer Education, Inc. -15% -8% / Source: Stifel Nicolaus and SEC filings; most recent fiscal quarter
Down sizing/slowing enrollment Selectivity Free trial periods Commitment to Valid Outcomes Sector in Transformation: From voracious enrollment growth to stable, modest growth
To be competitive institutions will need to be: Cheaper Cheaper Faster Faster & Better & Better
The next generation of education comes down to personalized success plans – digital portfolios. The evidence of competency and certification will come from valid, real-world accomplishments rather than simply a degree… Rob Curtin Microsoft – U.S. Education Future Vision
Where the jobs are: Employment qualifications have become a process of seeking the perfect (check off all the boxes) employee. Employers have to believe in the potential of an employee.. Eric Winegardner Monster Worldwide
Validation of Outcomes Is higher education worth it? How do we know? Are metrics enough? Are metrics enough? The true test of an education is the five year graduate satisfaction rate. Johnson & Wales University
Validation of Outcomes Is higher education worth it? Service Learning-serves everyone. The job search / career development planning model puts the responsibility on the graduate. The placement model does serve either the Graduate or the institution.
Validation of Outcomes Is higher education worth it? Career Self Reliance for a dramatically changing economy for a dramatically changing economy