A new report from Third Way, a public policy and advocacy organization, makes urgent the need for an effective and affordable higher education system – stating that higher education “is now a necessity, not a luxury.” State of American Higher Education Outcomes by Michael Itzkowitz (July 2017) illustrates that achieving better postsecondary outcomes must be a priority for policymakers. The report measures how the American higher education system is performing based on three baseline metrics crucial for student success: 1) college completion, 2) post-enrollment earnings, and 3) loan repayment. These outcomes pertain to four-year, two-year, and certificate-granting institutions, as well as across the institutional sectors of public, private non-profit, and for-profit schools. The report also looks at negative trends across multiple measures in order to tell a more complete story.
by Michael Itzkowitz (July 2017) illustrates that achieving better postsecondary outcomes must be a priority for policymakers. The report measures how the American higher education system is performing based on three baseline metrics crucial for student success: 1) college completion, 2) post-enrollment earnings, and 3) loan repayment. These outcomes pertain to four-year, two-year, and certificate-granting institutions, as well as across the institutional sectors of public, private non-profit, and for-profit schools. The report also looks at negative trends across multiple measures in order to tell a more complete story.
Among the findings:
- Completion: While the majority of four-year institutions graduate more than half of their first-time, full-time students, 45 percent still graduate less than half.
- Loan Repayment: Twenty-four percent of four-year institutions leave more than half of their students unable to pay down at least $1 of their loan principal three years later.
- Earnings: The majority of two-year institutions still struggle to prepare their students for a well-paying job. At 59 percent of two-year institutions, most students are earning less than $25,000 per year six years after they entered.
- Loan Repayment: With many former students earning so little, it’s no surprise that 79 percent of two-year institutions leave the majority of their students unable to start paying down loans three years after attending.
The report points out that each institution of higher education has its own unique mission, serving different types of students and preparing them for diverse post-collegiate experiences with varying time and effort requirements for graduation – and many institutions can claim success with these missions. However, examining outcomes using multiple measures “tells a more complete story.” Institutions that graduate most of their students, lead them to earn more than the average high school graduate, and equip them to repay their loans still fail to meet the mark when outcomes are measured across the three metrics of college completion, post-enrollment earnings, and loan repayment. In particular, only 19 percent of public institutions and 5 percent of for-profits hit these benchmarks on all three outcomes. Private non-profits demonstrated the strongest outcomes with a majority of their institutions hitting this three-part benchmark.
The author concludes by pointing out the stakes involved in the American higher education system. Overall, the federal government provides $130 billion to institutions of higher education every year. “It’s imperative that we understand how this money is being used and the outcomes that federal-funded institutions produce.” In order to complete globally and provide economic opportunities, much more work is needed to improve the quality of our higher education system.
Although the topic of transfer is not examined in this report, it figures heavily into the metric of completion. According to the National Student Clearinghouse, nationally 37.2 percent of students transfer, and 14.6 percent of those students cross state lines. Whether or not all of those students complete a degree takes into account many factors – if a student starts at a two-year or four-year school, if an associate degree is earned before transfer, if the student is part-time or full-time, and – as the Interstate Passport seeks to preclude – if the student loses credits and/or has to repeat learning already achieved. Good outcomes depend on good inputs, so institutions must continue to improve their processes and policies to achieve their goals.