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Department of Ed Finalizes (and Softens) Gainful Employment Rule

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After much debate, public comment, intense lobbying, a lawsuit, and the threat of political action to block them, expansive new US Department of Education higher education are set to go into effect on July 1st.聽 While the Department has made revisions to and provided implementation guidance for most of the new rules, it had several times delayed finalizing the most controversial regulation, known as Gainful Employment, which was on June 2nd.

The rule聽 for loan repayment rates and debt to income ratios for graduates of for-profit and non-degree career oriented programs, with the ability to cut off federal financial aid funding for entities that do not meet the standards, among other penalties. The final rule was significantly revised from earlier versions, including a delayed implementation year, altered criteria and formulas making it more difficult to find an institution in violation of the rule, and a host of that are widely seen as having softened the rule in response to the by the for-profit industry and its political supporters.

Although the gainful employment rule is limited in scope and does not currently apply to degree programs at traditional institutions, as we have previously stated, and both and are reporting, the regulation is a watershed moment with important implications for federal regulation of higher education into the future.

Improved Job Prospects For Recent College Graduates

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As the in late May, hiring of recent college graduates is up five percent from last spring鈥攅ncouraging news for in a few days鈥� time. that this trend is followed in Washington State as well, with the unemployment rate falling from 9.2 percent in April to 9.1 percent in May. Seniors seem more confident and optimistic as local companies like and announce their intent to hire more professionals, particularly in the science and technology fields.

Unfortunately, the impact of the recession is still felt by many looking for jobs. Less than a third of college graduates have jobs lined up before graduation, and only 70 percent find one within six months. Some college graduates are forced to take jobs unrelated to their degree, and many鈥�鈥攖ake jobs that do not require degrees at all, which edges out high school graduates and teenagers looking for work. Finally, median salaries for college graduates have decreased from $30,000 in 2006/7 to $27,000 in 2009/10.

According to graduates the New York Times and the Seattle Times interviewed, the best way to land a job in tough economic times is networking鈥攎ost seniors with jobs lined up after graduation had found the position through an acquaintance or college job fair. Many students indicated they wished their schools had done more to prepare them for job hunting.

To see what the 91探花is doing to help students find jobs in the current economy, check out the website, which offers a wealth of job-related information and services, including r茅sum茅 building, networking opportunities, career fairs, and mock interviews. For more detailed information on official unemployment statistics, visit the website.

Importance of Need-Based Aid for Achieving Attainment Goals

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A recent proposed a new way to think about reaching of increasing the proportion of adults with a college degree to 60 percent by 2020. The Institute suggests that income inequality creates a two-tier educational system in which 25-34 year-olds in the top half of the income distribution have degree attainment rates of 58.8 percent, while individuals in the bottom half of the income distribution exhibit attainment rates of 12 percent. The Pell Institute claims that, by focusing on funding and supporting disadvantaged students, higher education can make progress towards achieving President Obama鈥檚 goal. 聽Specifically, the Institute recommends:

  • Improving access to four-year institutions for disadvantaged students
  • Provide data, disaggregated by family income or Pell receipt status, more readily and widely
  • Focus on changing the eligibility requirements for the Pell grant (such as GPA in high school or increased credit hour requirements), instead of cutting the maximum Pell amount
  • Bolster programs like TRIO and GEAR UP that support students academically and improve retention rates

The 91探花鈥檚 commitment to disadvantaged students, through and other forms of need-based aid, are key institutional efforts to provide access to quality higher education for low-income students. In light of potential double digit tuition increases for resident undergraduate students in 2011-12, Husky Promise, as well as the and federal are critical programs for our students.

Pew Survey of College Presidents Highlights Divergent Views from General Public

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Along with its , the Pew Center of 1,055 two- and four-year, public, private and for-profit college presidents, concerning the quality, accessibility, and affordability of higher education. The two surveys were conducted around the same time and asked similar questions.聽 However, there were notable differences between the opinions of college presidents and the general public on key issues in higher education. On the whole, college presidents were less concerned about affordability and access, and more concerned with student and academic program quality. Some highlights of the data include:

  • 38 percent of college presidents think higher education is moving in the wrong direction, with only 7 percent believing the US system will be the best in the world in 2021
  • 42 percent of presidents believe college is affordable for most families (compared with 22 percent of the general population)
  • 17 percent of presidents believe students get excellent value for their money (only five percent of the general population agrees)
  • The majority (58 percent) of college presidents believe students come to college less qualified than their counterparts ten years ago, and only seven percent think current students study more than students ten years ago

Interestingly, leaders of for-profit schools were most likely to be pessimistic about the affordability and direction of higher education and student preparation. Conversely, presidents of the most selective schools were most optimistic about those factors. Furthermore, the majority of college presidents think it is unlikely that the nation will meet by 2020. To find out more, check out the , our on the general public survey or the full Pew Center report .

No Surprises in (Nearly) Final State Operating & Capital Budgets

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While the House and Senate have yet to finish sine die today, both capital and operating budgets are close to final.

The UW’s operating budget cut is $207 million over the biennium. UW’s cuts are comprised of “higher education reductions” and a mandatory 3 percent, general fund state聽compensation reduction ($12 million per year). Compensation reductions, while mandatory, are not imposed on individual salaries at the colleges and universities but rather, are required compensation savings targets that the University must meet over each fiscal year.

The final operating budget includes a 16 percent resident undergraduate tuition rate cap but provisions from (tuition setting authority bill) are included. The 91探花Regents will meet June 9, 2011 to discuss tuition setting authority.

The capital budget provides $26.3 million in state bonds for projects like Odegaard Undergraduate Learning Center and minor capital repairs. Additionally, a separate capital budget bill appropriates $53.6 million in 91探花Building Fees for preventative maintenance and building repairs as well as minor capital repairs.

Please review the OPB’s which聽assumes that the operating and capital budgets are signed by the Speaker of the House and the President of the Senate in their current forms. We will notify campus of any major amendments once the Governor has reviewed the operating and capital budgets.

Open, Accessible Courseware Issue Gains Ground

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In an effort to lower instructional costs and increase the quality of class materials in community colleges, President Obama has started a program to promote the creation and use of open educational resources (OERs). OERs are defined as 鈥渉igh-quality鈥� educational materials, such as books, lectures, exams, study guides, and syllabi, which are published under a and can be freely accessed on the Web. The material can be presented as an entire course, or it can be broken up into individual lessons or tutorials.

The Department of Education has hired , a prominent journalist and community college trustee, to expand the prevalence and recognition of OERs worldwide with $2 billion of government funds.

and each pioneered open courseware programs a decade ago, in order to make their educational materials more accessible to those outside the university. Since then, new services like , a tutorial website, and, a collection of free lectures from prestigious institutions, have steadily gained recognition and importance.

Plotkin hopes that the additional funding for OERs will help community colleges offer courses and class materials at a lower cost and improve accessibility for non-traditional students. Federal support for OERs also focuses resources and attention on an e-learning system infrastructure. Plotkin intends to continue the growth and recognition of OERs in order to benefit thousands of interested learners.

The OER movement is gaining ground in Washington State, as well. The Bill & Melinda Gates Foundation Washington State Board for Community and Technical Colleges more than $6 million dollars to launch the . Part of this money will go towards creating an of over 80 high-demand introductory courses at Washington community and technical colleges intended to reduce educational materials costs and encourage free access to common course packs, online lectures, and library materials.

To read more about OERs and the specific program Plotkin manages, check out the and Plotkin鈥檚 own guidebook called

Recent Pew Survey on College Affordability and Quality Released

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The Pew Research Center recently conducted a of 2,142 Americans to gauge opinions about higher education quality, affordability, and importance. While many respondents reported anxiety about affordability, most valued a college education highly and reported a belief that it would provide career benefits in the future.聽 Some of the key findings of the survey included:

  • Only 22 percent of respondents believe most Americans could afford to pay the cost of college.
  • 48 percent think families should pay for the majority of the cost of a college education.
  • Of young adults who are not in college, 57% say they chose not to attend because they preferred to work and save money, and 48% claimed they cannot afford to go to college.
  • Average loan debt for students with bachelor鈥檚 degrees has hit an all-time high of $23,000, which respondents say has made it harder to make ends meet, buy a home, choose a career, and start a family.
  • Only five percent of the population thinks the higher education system is providing excellent value for money.

These results seemed to reflect a as well as the shift in the in covering educational costs. Nevertheless, among college graduates, 86 percent believed college had been a good investment for them. Of parents with children aged 17 and younger, fully 94 percent expected their children to go to college. Additionally, most respondents were aware of the large financial benefit of holding a college degree: showed that college graduates make about $650,000 more than high school graduates in their lifetimes. The survey seemed to reflect the belief that, while college is a valuable personal investment, affordability and quality persist as a significant concern.

Note that these results are consistent with other recent surveys we have reported on:

Update on Upheaval in Texas Higher Ed

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Two major developments have unfolded in the days since recent controversies gripping public higher education in Texas:

  • The UT system released a massive file of that was compiled at the request of a Task Force created by the Regents and subsequently subject to an open records request from a local newspaper. There are questions about the accuracy of the data, as well as concerns about how the information might be used out of context.
  • Meanwhile, controversial Texas A&M chancellor and former chief of staff for Governor Rick Perry, Mike McKinney, has on July 1 after five years in the job. E-mails obtained through open records requests show that McKinney was heavily criticized from multiple sides regarding the divisive reforms currently championed by a conservative think thank, the Governor and the Regents. The e-mails reveal that Chancellor McKinney not only faced criticism for doing the bidding of these external stakeholders at the expense of the institution, but was also assailed by the would-be reformers聽 for implementing the changes they are advocating neither strongly nor swiftly enough.

Legislature Authorizes Tuition Setting for WA Institutions

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As of today, has passed both the Washington State House and Senate by wide margins and is on its way to the . As outlined in our previous post, this bill gives Washington’s four year public institutions the ability to set resident undergraduate tuition rates, alongside new financial aid and accountability requirements, for a limited time.

Note that due to the ongoing state legislative special session, as well as the need for time to discuss the policy alternatives authorized in HB 1795, the will likely approve the FY 2012 91探花operating and capital budgets, including tuition rates for the 2011-12 academic year, at their July 21 meeting instead of in June.

In the meantime, Interim President Phyllis Wise will be holding two community conversations where she will discuss and answer questions about the budget and tuition-setting:

 

  • Friday, May 13, 2011
    Foege Auditorium,
    8:30听补.尘.听鈥撀�9:30听补.尘.
  • Wednesday, May 18, 2011
    Microsoft Atrium,
    12:00听辫.尘.听鈥撀�1:00听辫.尘.

We hope to see you there.

Tuition Setting

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Friday, the Seattle Times published an about a potential agreement between lawmakers to, given several years of steep funding cuts, allow Washington’s universities to set undergraduate resident tuition rates for a limited number of years and with new financial aid and accountability requirements.

News of this agreement comes as the Legislature is in the middle of a 30 day special session, and while a negotiated budget and resolution on tuition rates for resident undergraduate students is not yet final, a provides some national context for and information about tuition setting policy.