An Inverse Relationship

Living with Truth, Transparency, and Trauma

 Approximately 70 % of U.S. high school students graduate on time with a regular diploma and about 1.2 million students drop out annually.  Barely 25% of community college students complete any degree within six years.complete any degree within six years  Less than 60 % of students entering four-year institutions earn a bachelor’s degree.  United States now ranks 10th in college attainment for its 25 to 34- year-old population.  Lumina’s big goal: To increase the proportion of Americans with high- quality degrees and credentials to 60 % by the year 2025  Moving from the current 39 % of Americans with postsecondary education, to 60 % by This suggests an increase of more than 300,000 credentials conferred per year. This will require systemic change of cultural norms, postsecondary systems, public policy and regulatory oversight.suggests an increase of more than 300,000 credentials conferred per year.

 For Profit vs. Not for Profit Institutions  Consumer Protection vs. Protectionism  Regulation vs. Restriction  Reciprocity vs. Closed Borders  Restraint of Trade vs. Consumer Choice

 From A Few Institutions to All Institutions  Internet Without Physical Boundaries +  Few Students to Millions +  Few Courses to Unlimited Choice of Programs and Providers +  Traditional Institutions, New E-Colleges, and Non- conventional Providers = Perceived Threats and Regulatory Fervor

 Money Needs  Time Needs  Integration of Students with Diverse Backgrounds  Problems of Poverty  Limited Resources  Shorten Time to Degree  Diversity  Social Mobility

“Only a post secondary degree granting institution having more than 50% of its degree programs consisting of resident-based instruction may be established or operate in this commonwealth.” From Title 22, PA. Code Section 31.1 (e)

 Students that enroll in an unauthorized online program (institution has no physical presence within the state) have the right to recover all of the tuition paid regardless of the benefit received (credential).  Out-of-state institutions are subject to regulation if it advertises in “local media” within the state (internet advertisements included).  Contracting with an in-state institution to provide services (i.e. Library or counseling).  Approval only by demonstration of un-met in-state needs (in- state sector vote).

 Proposed that an institution offering an online program must be authorized by every state where it enrolls students, regardless of degree of presence or contact.  As a condition to participate in federal financial aid programs, the Higher Education Act of 1965 requires proprietary and vocational colleges (other than those designated as liberal arts and vocational programs not designed to lead to a degree) to provide “an eligible program of training to prepare students for gainful employment in a recognized occupation.”  The U.S. Department of Education is considering requiring that a program’s students do not take on loan payments that exceed 8% of graduates’ earnings based on a 10-year repayment plan and Bureau of Labor Statistics earnings data. The rule would apply to proprietary colleges and any institution with programs less than 2 years in length.

“No innovative institution can survive without political power! … We could not have been successful without our 40 state and 14 federal lobbyists.” Dr. John Sperling Founder of the University of Phoenix

 (-) Scenario 1: Peripheral. Tops out; value proposition fails to gain additional clarity/persuasiveness; outcomes data remains limited/confusing/sub par; regulatory/media doubt resurfaces; contribution remains vague and peripheral.  (-) Scenario 2: Decline. Enrollment falters and starts to decline in the wake of regulatory/media scrutiny and poor outcomes data. Skeptics are “proven right.”  (-) Scenario 3: Loss of Focus. Growth/maturity of sector fails to offer sufficient immunity from loss of innovation. Unfocused growth. New ventures step into the breach.  (+) Scenario 4: Mainstream. Leveraging increasingly clear value proposition based on compelling pedagogy/outcomes and tangible benefits of scale/focus; growing appeal to more students; gains new coherence and visibility, shaping/fulfilling rather than reacting to state and/or national policy direction.

The G.I. Bill marked the first wave of the democratization of higher education … Our dialogue today may mark the beginning of a second wave to preserve the access to learning that we need and value.