Higher Education in a Changing Political and Economic Environment MSCHE Annual Conference December 13, 2011 Mary Ellen Petrisko, Vice President

Or….

Fewer dollars…

…more concern

Who are these people?

What are these numbers? 236% 236% $175,000,000,000 $175,000,000,000 12%/26%/46% 12%/26%/46%

Senate HELP Committee March 10, 2011 Hearing: Bridgepoint Education, Inc.: A Case Study… June 7, 2011: Hearing: Drowning in Debt: Financial Outcomes for Students at For-Profit Colleges July 21, 2011 Roundtable Discussion: Improving For- Profit Higher Education

Bridgepoint Education, Inc. Purchased Mt. St. Clare College in 2005, now Ashford University Purchased Mt. St. Clare College in 2005, now Ashford University Enrollment growth: 300 to 78,000 students Enrollment growth: 300 to 78,000 students From $3M to $600M in federal funds annually From $3M to $600M in federal funds annually From $81M in profits 2009 to $216M 2010 From $81M in profits 2009 to $216M 2010 By 2010, 63% withdrawal at BA level, 84% at AA level of students enrolled 2008, 2009 By 2010, 63% withdrawal at BA level, 84% at AA level of students enrolled 2008, 2009

Bridgepoint Education, Inc. 30% of income to profit; 30% to recruitment; 40% to all else, including $36.7M to top five executives, with $20.5M to CEO (2009) 30% of income to profit; 30% to recruitment; 40% to all else, including $36.7M to top five executives, with $20.5M to CEO (2009) 1703 enrollment advisors; one job placement advisor 1703 enrollment advisors; one job placement advisor

Senate HELP Committee on for- profit education 236% growth in enrollments at for-profit institutions % growth in enrollments at for-profit institutions More than 25% of minority and low-income students attend for-profit institutions More than 25% of minority and low-income students attend for-profit institutions Median debt: $31K, four times that of publics, with 20% graduation rate Median debt: $31K, four times that of publics, with 20% graduation rate Statistics from Education Trust 12% of enrollment; 26% of federal funds, 46% of defaults on student loans 12% of enrollment; 26% of federal funds, 46% of defaults on student loans Statistics from U.S. Dept of Education

Are accreditors fulfilling their responsibilities in this new regime? Or…

How are accreditors ensuring quality and protecting the public interest?

U.S. Department of Education Mission: The U.S. Department of Education seeks to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Mission: The U.S. Department of Education seeks to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access.

U.S. Department of Education President Obama's vision is that by 2020, America will again have the best-educated, most competitive workforce in the world with the highest proportion of college graduates of any country. President Obama's vision is that by 2020, America will again have the best-educated, most competitive workforce in the world with the highest proportion of college graduates of any country.

National Advisory Committee on Institutional Quality and Integrity Established 1992, NACIQI provides recommendations to Secretary on: Established 1992, NACIQI provides recommendations to Secretary on: The establishment and enforcement of criteria for recognition of accrediting agencies or associations under the HEA. The establishment and enforcement of criteria for recognition of accrediting agencies or associations under the HEA. The recognition of specific accrediting agencies or associations or a specific State approval agency. The recognition of specific accrediting agencies or associations or a specific State approval agency. The relationship between (1) accreditation of institutions of higher education and the certification and eligibility of such institutions, and (2) state licensing responsibilities with respect to such institutions. The relationship between (1) accreditation of institutions of higher education and the certification and eligibility of such institutions, and (2) state licensing responsibilities with respect to such institutions.

Recent charge to NACIQI Secretary Duncan in December 2010 charge to NACIQI: Secretary Duncan in December 2010 charge to NACIQI: How well does the U.S. $150 billion [now $175B] investment in higher education serve us? How well does the U.S. $150 billion [now $175B] investment in higher education serve us? How well does accreditation protect the interests of the taxpayers who underwrite this investment? How well does accreditation protect the interests of the taxpayers who underwrite this investment? What is the relationship between quality assurance, continuous improvement, and compliance? What is the relationship between quality assurance, continuous improvement, and compliance? Should there be common standards for learning outcomes? Should there be common standards for learning outcomes?

NACIQI oversight At the request of Education Secretary Arne Duncan, a subcommittee of the departments advisory board on accreditation will develop a set of legislative recommendations for the 2013 renewal of the HEA…[T]he subcommittee...plans to consider how to alter the countrys decentralized system of accreditation, which has been under fire in recent years amid cries for more accountability…. At the request of Education Secretary Arne Duncan, a subcommittee of the departments advisory board on accreditation will develop a set of legislative recommendations for the 2013 renewal of the HEA…[T]he subcommittee...plans to consider how to alter the countrys decentralized system of accreditation, which has been under fire in recent years amid cries for more accountability….

NACIQI Discussion Draft 10/18/11 Linkage of accreditation and eligibility for Title IV funds Linkage of accreditation and eligibility for Title IV funds Option A: Retention of accreditation in the process Option A: Retention of accreditation in the process Option B: Separation of accreditation from the process Option B: Separation of accreditation from the process Option C: Modification of the linkage between accreditation and eligibility Option C: Modification of the linkage between accreditation and eligibility

If eligibility remains linked… Clarify responsibilities of the Triad Clarify responsibilities of the Triad Federal interest in finance AND quality assurance Federal interest in finance AND quality assurance Address inconsistency of state regulation Address inconsistency of state regulation Review role and scope of accreditors Review role and scope of accreditors Collect only useful data Collect only useful data Make data available to the public and consumers Make data available to the public and consumers Ensure usefulness of NACIQI as advisory body Ensure usefulness of NACIQI as advisory body

Concerns among accreditors Federalization of accreditation Federalization of accreditation HEOA of 2008 and subsequent regulations give the federal government authority over HEOA of 2008 and subsequent regulations give the federal government authority over Credit hours Credit hours Transfer of credit Transfer of credit Distance education (identity tracking; state authorization) Distance education (identity tracking; state authorization) Enrollment growth Enrollment growth Monitoring of Gainful Employment Monitoring of Gainful Employment

Criticisms of accreditation Commission on the Future of Higher Education (Spellings Commission) Commission on the Future of Higher Education (Spellings Commission) Education Sector Education Sector Center for College Affordability and Productivity Center for College Affordability and Productivity American Council of Trustees and Alumni American Council of Trustees and Alumni Inside Higher Ed discussions Inside Higher Ed discussions

Spellings Commission Strengthen public-private governance of accreditors Strengthen public-private governance of accreditors Develop national accreditation framework Develop national accreditation framework Set expectations and build capacity to measure student learning outcomes Set expectations and build capacity to measure student learning outcomes Promote greater transparency Promote greater transparency

Education Sector Have minimum standards Have aspirational standards Set the turnaround clock to something less than forever Adopt a targeted approach to defining learning outcomes Have a separate accrediting body for for-profits

Center for College Productivity and Affordability Focus on quality control, public disclosure of SLOs Focus on quality control, public disclosure of SLOs Eliminate yes/no system of accreditation Eliminate yes/no system of accreditation Eliminate conflict of interest: accreditors are also the accredited Eliminate conflict of interest: accreditors are also the accredited Replace rather than reform current system Replace rather than reform current system Minimize role of single regulatory authority Minimize role of single regulatory authority

American Council of Trustees and Alumni Sever the connection between eligibility for government student aid and accreditation Sever the connection between eligibility for government student aid and accreditation Trustees should become more active in the accreditation process Trustees should become more active in the accreditation process Bring needed competition to the field of accreditation by having states require that their colleges and universities solicit bids for accrediting services Bring needed competition to the field of accreditation by having states require that their colleges and universities solicit bids for accrediting services Accreditation associations should act more like business consultants than monopolies. Accreditation associations should act more like business consultants than monopolies.

Association of Public and Land- Grant Universities Keep accreditation as a collaborative self- improvement process Keep accreditation as a collaborative self- improvement process Make Department of Education accountable for making decisions on default rates as part of eligibility decisions Make Department of Education accountable for making decisions on default rates as part of eligibility decisions Change law to make eligibility decisions with more appropriate criteria and proportional penalties Change law to make eligibility decisions with more appropriate criteria and proportional penalties

Mend it; dont end it Doug Lederman, Inside Higher Ed