Higher Education: Leaking Money, Credit, and Potential
On April 24th, Secretary of Education Arne Duncan deepened the administration’s attempt to spend student loan money more effectively while increasing student persistence in higher education. Right now, the debate is focused on the lending institutions and the best way to get money to learners. However you feel about the issue of who “sources” the loans, however, the goal of spending the money more effectively and driving higher student persistence and success are not debatable. Exhibit A on the extent of the problem: recently, the Gates Foundation report released a finding that more than half of the financial aid spent every year in post-secondary education went to people who did not complete their program of study successfully - a multi-billion annual leakage. Consider the following.
1. If we want to increase learners’ success, census data tells us that more than 40 million people are currently walking around with “some college” credit, but no degree - an enormous human asset waiting to be tapped. Let’s start with them, find them, and re-enroll them in talent-friendly programs.
2. Let’s maximize the ratio between money spent and learning recognized and achieved by launching a new commitment to assess life and work experience for academic credit, using industry and higher education standards and processes. This would convert the human capacity displayed every day at work and at home by millions of citizens into recognized learning, further expediting the achievement of Americans who want, need, and deserve further academic recognition. If life generates legitimate and validated learning, why should colleges duplicate that learning, incurring additional cost for all?
3. Stop the “transfer tax”. In an increasingly mobile society, more than 80% of all college learners are attending more than one college. Fewer than 20% of all learners finish in four years from the college they first enrolled in. And the average graduate attends more than two different institutions. Here’s the crusher. Every time a learner switches institutions, s/he is likely to lose ground towards the degree they are seeking, having to repeat courses already taken. It is estimated that, for every transfer, the time-to-degree can increase by as much as a year! This costs everyone time and money, not to mention good will. The inability of learners to transfer their credit among institutions without penalty is a significant barrier to access, success, and opportunity.
It is the sad case that millions of perfectly capable learners come and go in higher education every year, without ever getting the prize they sought. Even sadder, they and others stop trying because of the way higher education does business, excluding the value of their life experience as well as much of their previous accredited learning.
So the investment that they represent, money and time already spent to support their education, is compromised because of the obstacles thrown up by institutions. Some sources estimate this cost, the price of redundancy and duplication for no good reason, to be more than $15 billion each year. And this does not include the cost of additional time-to-degree for those who persist or the lost earning potential for all who are caught in this trap.
Secretary Duncan, as a former member of Congress and of the Education and Labor Committee of the House of Representatives, I applaud what you are doing. We need to make the flow of money to those who need it more effective and efficient, at the lowest possible cost. And we need to improve our instruction and support once people are admitted.
But there is significant gain to be had by mainstreaming practices that are legitimate and well-documented (the assessment of experiential learning), while ending practices (credit reductions when changing colleges) that constitute a “transfer tax” on millions of learners every year while requiring the state and local governments involved to pay the bill twice.
If the objective is to use limited public funds more effectively while generating a huge increase in value, these steps are low hanging fruit.
We will do a lot better if we change these practices.
17 Responses to “Higher Education: Leaking Money, Credit, and Potential”
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Peter,
This is right on the money, no pun intended.
I see calls to “shorten” bachelor’s degree programs to 3 years as a way to improve graduation rates and reduce costs. That makes sense if the degree represents only three-fourths of the learning that it has represented for our lifetimes, when they were generally stated as four-year programs.
Some students could complete the degree faster (e.g., by credit overloads or AP credits imported) and others would do it at a slower pace. But the B.A. and B.S. were thought of as a four-year courses of study.
How much sense does it make to reduce our expectations of what the degree means, rather than attacking the matter in some or all of the ways you propose, which keeps our standards high but spends our money more wisely, and more equitably as well.
Barry
I extremely agree that many persons may drop out because of the way business is conducted.
Many well stated comments were made. Many would be successors would manifest if it were not for extortioner who hold these positions only for employment. Where is the compassion ?
yes we will cause change if we put a stop to the poor practices, It is obsurd!
I am a freshman student at the age of 66. I believe that learning via internet will be the most successful education for all of us. We will be able to “carry” our classroom with us no matter where we have to relocate, or to find the academic programs to gain our degrees. Better funding is essential.
Mhum another problem that needs a solution. I have had many classmates of mine drop like flies, transfer from one college to the next, pay a truck load of cash and the end result not all of your credits transfer so you have to take the material that YOU ALREADY KNOW for what? I am currently attending Kaplan Online for A.S.S in Medical Office Management and I want to transfer to a “campus” school when I graduate and they told me that I have to take certain classes over at ANOTHER college because they require that I take them in a class setting. Because of this, I now have to pick between choosing another B.A program or waste my money and more importantly my time. I mean if it’s money that they want figure out some other way to scam it out of us but time we cannot afford to waste.
Hello, I have to agree. I think that most students find that is cost more money and time then they expected to put into a degree. I attend Kaplan online, and I am getting my AA in Education. I want to get my teaching certificate for the state of NC. To do so I will have to attend a NC school. I want to stay with Kaplan, can some one tell me how I can do this.
I went to my first college when I was 16, I went to that same college over 5 times, each time coming within 2 months of graduation. The school even changed it’s name 3 times. Later in life I attended 3 more colleges, and one university. Something would always stop me, MONEY! The last school I attended was Talladega College in Talladega Alabama; it was a 4 year liberal arts college. My grades were excellent the first simmester in the fall of 2005, the next simmester was in the spring of 2006. I did not get my money for books and living expensives until 2 days before the simmister was over. I studied pre-LAW/pre-MED. My grades were excelent the first simmister, the second one I coould not buy or find the books I needed to study. Many students were there on a court order I found out from my law professor. I took 2 art courses, Art History,drawing, music, collegd Algebra, but many students had not even finished H S & made it difficult for other students to learn for they acted like 3 RD graders. I had to take the school twice to get my money, and decided it wasn’t for me. I would have graduated in the spring of this year. I’m a 55 year old whitee male, and I consider myself the invisable minorty because I don’t ssee any schoolarships or grants for me. I want to eventually become a pharmacist, doctor, or lawyer. I can read and comprehend 12 or more hours a day. I must start asap and never give up. I look half my age and feel 18. Where do I start?
I agree, Barry. Find a solution to the funding without watering down the ‘quality’ of the education. Personally, I often have found myself wondering about the quality of the education received at some schools. I have worked with many a person, who unlike me, possess a degree, but whose shortcomings at writing or creating reports, or problem-solving are disheartening. I would do the work for them. It just has disgusted me all along.
It’s a great thing to promote higher education, but the response has to be from the student themselves, cause you can lead a horse to water, but you can’t makethem drink .Also it is always resourceful to have a backup plan .
Education should have no price or price limitaions on obtaining a higher education on the individual. Who is trying to obtian the goal of higher learning ,monetary means should’nt hinder an individual whos striving to obtain his educational goal. (we spend more money on weapons than education)
I have been desperately trying to find money, any money be it loans or Grants to go to school for about a year. So the Administrations efforts are greatly appreciated. However if they could done one more thing and remove all the red tape such as gender or age requirements that usually mire such great efforts I would appreciate it. I am a male over the age of 40. If you want to find out how things are try and get a federal job or financial aid to do anything at that age. You will be unpleasantly surprised.
Education at public schools in this country needs to stop being a “business first” proposition. I mean let the private schools do what they want but we shouldn’t support institutions that are in turn tying up programs in knots and getting in the way of learning. These universities, programs, instituitons need to die their natural death, denied funding so they can stop choking off genuine places of learning. Everyone that is thirsty for knowledge should be allowed the classroom time to do so. There should also be serve-to-study programs just like other countries. I mean we invented the damn things how can we let other countries leave us behind to mollify the bean counters.
This is a great article and something that really needs to be addressed. Even Kaplan suffers from a poor policy regarding transfer of credit. Only allowing students to complete the transfer of credit within the first 10 weeks of their degree plan set me back by 18 months in progress towards a degree as I was not able to meet that requirement due to issues at my old community college. Aside from this I think Kaplan has a great program and really works with students to make sure they are successful.
I THINK SOME OF THE PROBLEM WITH WASTED FUNDS & INCOMPLETE COURSES IS THE LACK OF GUIDANCE AND HELP OFFERED BY EDUCATION INSTITUTIONS ONCE STUDENTS HAVE GRADUATED.WE GO TO SCHOOL TO OBTAIN A HIGHER EDUCATION TO OBTAIN HIGHER PAYING MORE SUCCESSFUL CAREERS BUT INTURN ARE STUCK WITH PAYING OFF LOANS,GETTING OUT OF DEBT,AND SEARCHING ENDLESSLY FOR THAT DREAM
CAREER.I THINK EDUCATION INSTITUTIONS NEED TO CREATE A DEPT.
DESIGNED STRICTLY FOR JOB PLACEMENT.INVEST IN THIS IDEA AND STUDENTS WONT BECOME WORRIED AND DISCOURAGED ABOUT WHATS TO COME AFTER GRADUATION.THERE WILL BE LESS DROPOUTS MORE ACCOMPLISHMENTS FOR THE STUDENTS THE SCHOOLS AND THE CAREER WORLD.EDUCATION INSTITUTIONS NEED TO GET MORE INVOLVED WITH THE COMPLETE PURPOSE OF CONTINUING EDUCATION,LEARNING AND SUCCESS..THANK YOU
Your article is excellent. I’m considering returning to school for my B.S. after earning my associates many years ago. The money involved is a problem since I’m helping my daughter pay some of her student loans. She also transferred from a community college to a state university and had to repeat several classes. I know of several students in the same situation and this is one area that needs change.
I like the fact that attention is given to previous students who earned credits in the past from a college institutions. Giving the student a restart is great. But more credits should be accredited so that they may receive the dilopma sooner. Hope not to run in to obstacles down the road were I would have to get more edcuation and have to pay deeply.