1. What is the Purpose of Higher Education? Mark Schneider President, College Measures Vice President and Institute Fellow, AIR February 17, 2014

3. Can You Self-Actualize While Living in Your Mother’s Basement?

4. Purpose v. Value? Is it about money or broader outcomes? How to measure value (even if we restrict ourselves to labor market outcomes): – Institution vs. Program Level – Time frame: Wage data: first year? 5 years? 10? Other data? Rolling averages? Comparisons – Criterion based – Norm based – Individually driven Who should assess value? – Government? – Others (not for profits vs. for profit companies)?

5. Programs with Bachelor’s Graduates Having Lowest and Highest First-Year Earnings, by States StateLowest First-Year EarningsHighest First-Year Earnings ArkansasMusic Performance $19,808 Engineering $56,655 ColoradoDieticians $24,876 Chemical Engineering $90,099 FloridaDrama$19,548Fire Science$69,756 TennesseePhotography $28,743 Systems Engineering $54,346 TexasHealth Services $15,053 Petroleum Engineering $117,177 VirginiaPhilosophy $20,442 Petroleum Engineering $61,517 Common Theme in lowest first year earnings: Liberal Arts Common theme in highest first-year earnings: Engineering

6. Average Wages after Year 1 and after Year 10: Graduates from Popular Bachelor’s Degree Programs in Texas Area of Study Time To Degree Wages Year 1Wages Year 10Years 1-10 growth Biology, General5.30$23,243$81,484251% Psychology, General5.24$23,729$54,128128% Criminal Justice and Corrections5.56$28,184$55,02595% Health and Physical Education/Fitness5.64$28,818$58,109102% Marketing5.05$30,776$78,133154% State wide university bachelors average 5.36$31,016$69,055123% Business Administration, Management and Operations 5.48$31,816$70,911123% Multi-/Interdisciplinary Studies, Other5.63$32,133$49,31553% Accounting and Related Services5.70$34,331$76,236122% Finance and Financial Management Services 5.17$34,392$95,920179% Management Information Systems and Services 5.57$34,813$80,176130% For most majors: start low, end low; start high, end high

7. Debt Servicing as Example of Why Labor Market Outcomes Matter Criterion based: – Rule of Thumb: Debt should not exceed first year earnings – At that level about 11% of gross first year earnings will go to service debt at current 3.9% rate

8. Institution nameloanYear 1 WagesYear 10 WagesMonthly payment Percent year 1 wages Percent year 10 wages Prairie View A&M University$36,218$35,890$62,835$36512%7% The University of Texas at Austin$37,522$38,713$98,976$37812%5% Texas Tech University$30,146$31,937$75,477$30411%5% Texas A&M University- Corpus Christi$30,240$32,489$61,279$30511%6% Texas A&M University$32,234$35,230$93,682$32511%4% Texas A&M University- Kingsville$29,101$31,904$62,185$29311%6% Statewide Summary for Universities$28,103$35,456$74,142$28310%5% The University of Texas of the Permian Basin$18,533$30,042$58,599$1877%4% The University of Texas at Arlington$23,032$37,563$72,491$2327%4% The University of Texas at El Paso$20,432$33,794$62,674$2067%4% The University of Texas at Brownsville$18,265$32,908$54,536$1847%4% The University of Texas- Pan American$17,882$35,275$59,598$1806%4% Sul Ross State University Rio Grande College$13,012$30,413$45,901$1315%3% Texas A&M University- Texarkana$13,241$35,578$67,714$1335%2% Student Loans vs. Wages: Institution Level

9. Norm Based Compare to Overall State Performance

10. Institution nameloanYear 1 WagesYear 10 WagesMonthly payment Percent year 1 wages Percent year 10 wages Prairie View A&M University$36,218$35,890$62,835$36512%7% The University of Texas at Austin$37,522$38,713$98,976$37812%5% Texas Tech University$30,146$31,937$75,477$30411%5% Texas A&M University- Corpus Christi$30,240$32,489$61,279$30511%6% Texas A&M University$32,234$35,230$93,682$32511%4% Texas A&M University- Kingsville$29,101$31,904$62,185$29311%6% Statewide Summary for Universities$28,103$35,456$74,142$28310%5% The University of Texas of the Permian Basin$18,533$30,042$58,599$1877%4% The University of Texas at Arlington$23,032$37,563$72,491$2327%4% The University of Texas at El Paso$20,432$33,794$62,674$2067%4% The University of Texas at Brownsville$18,265$32,908$54,536$1847%4% The University of Texas- Pan American$17,882$35,275$59,598$1806%4% Sul Ross State University Rio Grande College$13,012$30,413$45,901$1315%3% Texas A&M University- Texarkana$13,241$35,578$67,714$1335%2% Compared to Overall State Performance Level

11. What about Time?

12. Area of study loanWages Year 1Wages Year 10Monthly payment percent first year montly for debt percent year 10 montly for debt Microbiological Sciences and Immunology $61,818$23,285$74,482$71137%11% Statistics $52,808$20,276$78,845$60836%9% Medical Basic Sciences $63,546$26,990$217,651$73133%4% Archeology $55,028$24,095$61,956$63332%12% Germanic Languages, Literatures, and Linguistics $42,156$22,264$55,862$48526%10% Biology, General $43,770$23,248$75,911$50426%8% Classics and Classical Languages, Literatures, and Linguistics $44,186$23,633$50,916$50826%12% Counseling Psychology $45,280$25,091$42,719$52125%15% Communications Technology/Technician $38,544$22,291$90,800$44424%6% Philosophy $38,692$23,476$54,900$44523%10% Anthropology $32,295$19,929$44,198$37222%10% Health/Medical Preparatory Programs $45,486$28,873$105,567$52322%6% Political Science and Government $35,888$23,859$63,214$41321%8% Disciplinary Focus: What a difference a decade makes

13. Institution is the wrong level of analysis: Program level differences

14. Institution nameloanYear 1 WagesYear 10 WagesMonthly payment Percent of first year wages Percent of Year 10 Wages Texas Tech University$36,036$12,438$52,863$36335%8% The University of Texas at San Antonio$39,052$13,804$43,870$39434%11% The University of Texas at El Paso$30,025$11,373$31,592$30332%11% Texas A&M University$41,312$16,939$38,315$41629%13% University of Houston-Clear Lake$52,332$25,461$50,675$52725%12% The University of Texas at Austin$38,561$21,554$51,201$38922%9% University of North Texas$35,646$21,043$47,408$35920%9% Statewide for Universities$33,136$21,166$46,328$33419%9% Texas State University$28,483$23,196$44,312$28715%8% The University of Texas at Arlington$22,660$28,999$38,689$2289%7% University of Houston$20,595$26,397$52,953$2089%5% The University of Texas-Pan American$10,542$18,014$34,298$1067%4% Program Level: Anthropology

15. Institution nameArea of StudyloanYear 1 WagesYear 10 Wages Monthly payment Percent of first year wages Percent of Year 10 Wages Statewide Summary for UniversitiesAnthropology$33,136$21,166$46,328$33419%9% The University of Texas at AustinEconomics$38,914$33,437$110,406$39214%4% Texas Tech UniversityEconomics$30,725$26,461$96,431$31014%4% The University of Texas at DallasEconomics$35,553$34,489$72,557$35812%6% The University of Texas at ArlingtonEconomics$30,431$30,762$68,591$30712%5% Statewide Summary for UniversitiesEconomics$27,035$31,016$69,055$27211%5% University of North TexasEconomics$26,367$30,411$72,285$26610%4% Texas A&M UniversityEconomics$22,523$30,525$112,496$2279%2% Texas A&M University- CommerceEconomics$22,786$31,547$93,437$2309%3% University of HoustonEconomics$25,394$39,033$84,796$2568%4% The University of Texas-Pan AmericanEconomics$11,303$51,348$46,507$1143% Anthropology vs. Economics

16. Individual “Ratings”

17. Individual Weighting?

18. What is the Role of Intermediaries?

19. Government Role in Assessing the Value of Higher Education Federal Government vs. State Accountability vs. Consumer Choice