On August 22, 2013, President Obama outlined a plan to increase college affordability options, particularly for the middle class. Overall, I’m in favor and the plan itself is a laudable start to addressing issues in college affordability. Between the lines one can envision an environment that encourages savvy student-consumers and a more cohesive network of institutions, payors and employers. Like most initiatives (and rosy-painted pictures, for that matter), collaboration from these aforementioned players will be necessary to create lasting success; specifically:
- Cooperation/increased capacity from higher ed to provide/start to assess the information needed compile the proposed new college ratings
- Recognition of prior learning and tech-based offerings by employers during hiring decisions
- Cooperation from the financial sector in private student loans, as restricted private credit for students is also a factor in college affordability.
I’ve highlighted some of the major initiatives below. (If you’d like some more or alternative thoughts, please see articles in US News and World Report, The Chronicle of Higher Education, USA Today and feel free to suggest more in the comments below.)
Through the plan, the administration intends to address college affordability with three general areas:
- Paying for College Performance
- Promoting Innovation and Competition
- Ensuring Student Debt is Affordable
Pay for Performance
Pay for Performance
Pay-for-Performance measures tend to raise concern within the educational sector. Such initiatives have been successful in other countries, particularly in the United Kingdom. In the U.S. however, pay-for-performance efforts in higher education have historically faced heavy backlash, though interest in tying funding to return on investment has gained traction among state governments. Many state measures are promising; Tennessee offers funding for accomplishing metrics such as credit/degree completion for low-income and adult students. Other provisions in the plan will have to drive colleges to provide the effective support students need to succeed, rather than tipping the scale by restricting admission to those they consider most likely to finish school quickly in the first place.
New Ratings System
The College Affordability Plan would also establish a new, more robust ratings system to report on college performance to help parents and students make informed decisions on which college to choose. The ratings system would include data on access, tuition affordability and retention graduation rates, to be included on The White House College Scorecard.
Promote Innovation and Competition
The Innovation and Competition area of the College Affordability Plan outlined a few areas of interest specifically to folks in the OER and blended learning spheres.
A Shift Away from the Credit-Hour
Awarding credits based on learning outcomes and competencies may be the death knell for the century-old credit-hour. Change seems to be in the air for recognizing outcome-based learning, though there will continue to be a debate surrounding the credit-hour as the “currency” of higher education.
Endorsement of Online/Tech-based Learning
Endorsement of online and tech-based institutions such as Western Governors University, Carnegie Mellon University’s Open Learning Initiative, and Southern New Hampshire University is a huge step toward acceptance of degree programs that serve adult learners. What may be missing is an effort to help/encourage employers recognize these institutions as well.
Recognition of Prior Learning/ Encouraging Access to Dual-enrollment Programs
With about a third of college students transferring at least once before graduating, encouraging colleges to be more supportive of transfer students by accepting previous credit is essential. Assisting the transfer student population will go a long way toward improving college completion rates. Dual enrollment programs may help the conversation along, however credit acceptance agreements are usually limited in scope and disparities in access to such programs are documented.
Ensuring Student Debt is Affordable
Let’s talk turkey. With the average student debt by graduation at $26,000 per pupil in the United States, student loan debt will continue to be a priority issue in education and economics. The College Affordability Plan would expand Pay-As-You-Earn to invite students who borrowed before 2008 or after 2011 to cap loan repayments at 10 percent of monthly income. The Department of Education and Department of Treasury would partner to recruit borrowers who have a large debt load to participate.
• What does college affordability mean to you?
• What should success look like?
• How does the U.S. conversation on higher education costs compare to the debates (or lack thereof) in your country?