Category Archives: Postsecondary Education

A Two-Generation Solution to Education Disparity

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Education tends to pay off. Higher educational attainment is associated with higher earnings, lower unemployment and better health. In the Future of Children, Neeraj Kaushal explains that education also influences important lifestyle decisions such as marriage, sex, childbearing, and substance use.

Importantly, parents’ education not only affects themselves, but also affects the wellbeing of their children. Better-educated parents often pass down the tradition of education to their children along with its benefits. The intergenerational payoffs of education are persistent and perhaps even underestimated.

While some families benefit immensely from education, other families face structural obstacles to advancing their socioeconomic status via further educational attainment. Racial and ethnic disparities are apparent by education, and children with less-educated parents are less likely to succeed in school. Furthermore, Kaushal points out, the U.S. education system reinforces socioeconomic inequality across generations by spending more money on educating richer children than poorer children.

These challenges lend support to the idea of targeting education-related interventions toward less-educated parents and their children. This might be done via a two-generation approach in which parents and children are served simultaneously. While the theoretical basis for these programs is strong, the empirical evidence is only emerging. What we do know is that investing in parents is likely to have a lasting effect on children’s health and development, which in turn increases their wellbeing as adults. There is also evidence that adult offspring’s educational attainment influences the health and life expectancy of the parents, even after accounting for parents’ socioeconomic resources. This may be due to children’s knowledge of health and technology they share with their parents and having more financial means to support them. It’s arguable that investing in programs that aim to increase parents’ education and skills at the same time as they invest in children’s development could go a long way to reduce intergenerational inequality.

For more information about two-generation programs, see the Future of Children volume Helping Parents, Helping Children: Two-Generation Mechanisms.

Examining For-Profit Colleges

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My graduate school curriculum, in clinical social work, consistently emphasized “self-awareness,” or being conscious of one’s feelings, beliefs, biases, and overall state of being. I suppose a benefit of this training is that I’ve developed a habit of trying to recognize and challenge my own biases.

One bias I’ve had since childhood concerns the role of for-profit colleges. It likely originates from peers who made fun of certain teachers at our elementary school because they had attended for-profit universities. Back then, I thought they were institutions where students bought an easy low-quality degree. More recently, I’ve considered them overpriced, insufficiently regulated, and limited in educational effectiveness. Now an article by David J. Deming, Claudia Goldin and Lawrence F. Katz in the Postsecondary Education issue of the Future of Children that has given me a more nuanced view.

They explain that for-profit colleges have seen a large increase in enrollment during the past fifteen years. Possible explanations for this include overcrowding at community colleges, aggressive marketing strategies, a more career-oriented curriculum, and the ability to quickly expand program capacity for high-demand occupations. Importantly, they enroll a disproportionately high share of disadvantaged and minority students, and those who are less prepared for college.

To me, this doesn’t sound too bad. It seems that they help meet the demand for higher education, especially among the disadvantaged, and might even be considered innovative. But there’s more to the story.

Graduates of for-profit schools tend to have higher loan balances and default rates than comparable students at nonprofit schools, have lower earnings on average, are less likely to be employed six years after initial enrollment, and are less likely to believe their education was worth the cost. Additionally, a very high portion of for-profit revenue (sometimes close to 90%) is drawn from students’ federal financial aid. Partially due to the high cost to taxpayers and students, the federal government recently proposed stricter “gainful employment” regulations that could put schools with poor outcomes at risk of losing federal aid eligibility. If the regulations are implemented, some schools will likely need to restructure their programing to stay in business.

Deming and colleagues come to several conclusions. First, for-profits schools seem necessary to help meet the growing demand for higher education. Second, for-profit colleges generally work best with short, well-defined programs that are occupation-oriented. Finally, since longer programs have the potential to amount to great costs to students, they need to be well regulated. The authors recommend requiring counseling by an independent third party to ensure that prospective students understand financial aid packages and accompanying obligations, and to restrain aggressive and misleading recruitment practices.

Bias confirmed? Partially, since for-profit colleges tend to be more expensive and seem to need more regulation to help prevent negative outcomes. However, it was unfair of me to believe these were all low-quality degrees, especially given the strengths of for-profit education.

College for Students with Disabilities

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Future of Children authors Sandy Baum, Charles Kurose, and Michael McPherson write that as postsecondary enrollment expands in the US, student demand for academic and personal support services is increasing. Academic support programs such as developmental or remediation courses help older, returning students or high school graduates who need additional training to reach college-entry level. Personal support programs may provide services such as child care or transportation. All of these programs seek to improve student experiences and college outcomes.

Students with learning disabilities are a rapidly growing population that has received relatively little attention in terms of college preparation and support. Many of these children participate in special education programs before finishing high school. Authors Laudan Aron and Pamela Loprest explain that the special education system has helped to increase their access to and participation in public education, but there is room for improvement. An often challenging point for these children is in the transition into adulthood. Janet Currie and Robert Kahn report that high schools offer services to help students make the transition but no one is required to monitor the effectiveness of services for adults once they enter the community.

As college enrollment among students with learning disabilities increases, demand for personal and academic support services should also increase. Thus, a growing number of traditional universities are seeking to improve resources for students with disabilities, including supplemental support programs. For the latest research and policy recommendations on this topic, see the Future of Children issues on Postsecondary Education and Children with Disabilities.

Obama’s Education Initiative

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President Obama recently proposed a set of measures to make college more affordable. Some experts have argued for more innovation to drive down education costs, and the President is suggesting drastic changes to how the federal government promotes postsecondary education. Pending Congressional approval, federal financial aid would be partly linked to college rankings on measures like tuition, graduation rates, the percentage of lower-income students attending, and how much money graduates make. Some of this information is already available through an online college scorecard released earlier this year. The motivation for this approach is to encourage institutional innovation and allow students attending highly ranked colleges to receive better financial aid.

The President has also proposed other ideas, including experimenting with competency-based degrees that reflect students’ knowledge more than the hours they’ve spent in the classroom, massive open online courses, three-year degree programs, performance-based financial aid, and more.

With changes likely coming to post-secondary education in the coming years, it is crucial to base policy decisions on the best research available. The Future of Children‘s issue on Postsecondary Education in the United States is a good place to start.

For example, while online learning is often believed to be an institutional cost-cutting measure, Bell and Federman explain that the evidence is inconclusive. There are significant start-up and recurrent technological support costs, yet implementation may result in savings in instructor compensation costs over time–particularly if institutions adopt more machine-guided courses. Research shows online learning can be effective for students, but we know little about how to do it right. One challenge colleges will likely face is a high dropout rate–especially among low income students without a fast Internet connection. In promoting innovation, the federal government will need to consider how to support technology delivery and use among disadvantaged students.

Obama has proposed performance-based financial aid. Dynarski and Scott-Clayton found that linking student financial aid to achievement can improve college performance and completion more than grants with no strings attached. This measure will likely be effective for enrolled students, but another issue is outreach to prospective students. For instance, many of them overestimate the cost of attending college by as much as three times, and a recent national survey of young adults found that fewer than three in ten individuals people without a college degree knew what the Free Application for Federal Student Aid (FAFSA) was. In revamping the financial aid program, policymakers should keep in mind that program complexity undermines aid’s effectiveness. Aid needs to have simple, easy-to-understand eligibility rules and application procedures. To find more research and policy recommendations see the Future of Children‘s issue on Postsecondary Education in the United States.

Reforming College Remediation Programs

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Despite the rising percentage of working-age adults with a college degree, low college completion rates are still a major problem in the US and will have to rise much more to meet the demands of the future workforce. One problem, especially as workers have been displaced following the economic crisis, is that many students are arriving or returning to college underprepared for college work. Future of Children author Eric P. Bettinger, Angela Boatman, and Bridget Terry Long report that the number of high school graduates who are ready for college-level material may be as low as one-third, with even lower levels among some nontraditional students.

Colleges have adjusted to the needs of incoming students by offering greater access to developmental or remedial courses, placing close to 40 percent of incoming freshmen into such courses. Structure and quality vary widely, and they have shown mixed results in their effectiveness. Some argue that too many students are placed in remedial courses unnecessarily, with high costs to institutions and the public. Evidence suggests that remedial courses may have positive effects for those who need them, but may actually have negative consequences for those who don’t.

Bettinger, Boatman, and Long say one way colleges might improve the effectiveness of such programs is to reexamine placement procedures. For example, some states have begun offering placement exams to high school sophomores and juniors, as opposed to waiting until their college freshman year, to give students the opportunity to consult with parents, advisors, and educators about areas to focus on as they prepare for college. Some institutions are also making efforts to redesign their developmental programs, stressing remediation not as a curricular roadblock but as a means to launch students on to college-level work and give them the skills they need to succeed in a college major. For the best evidence for what works, read the latest research on this topic in the Future of Children issue on Postsecondary Education in the United States.

Is College a Good Investment?

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Many of this year’s graduating high school seniors already have their eyes set on a specific university, but others wonder if pursuing a postsecondary degree is really worth the time and cost. The public continues to debate whether college is a good investment, but in a review of the latest research, Future of Children authors Philip Oreopoulos and Uros Petronijevic find truth somewhere in the middle. They suggest that college can be a good investment if students prepare well and plan their studies and occupational pursuits carefully.

About 19 percent of 2011 high school graduates who took the ACT and were considered academically ready never enrolled in college or didn’t return to college after the first year. Some of these students may have had better alternatives, but many may have been unprepared in nonacademic ways, such as lacking information about college expenses and financial aid. Andrea Venezia and Laura Jaeger write that many students may not know enough about themselves or their future goals to know which college would be best. In addition, students from low-income and disadvantaged backgrounds may feel obliged to attend a less-selective program that is closer to home, even though they qualify academically for more selective institutions. Evidence suggests that such students are less likely to graduate.

In helping students prepare for postsecondary education, educators and policymakers should move beyond an academic focus. Precollege programs across the country have begun to emphasize guiding students through the decision making process and other nonacademic preparation. College is a better investment when students are well informed about the expenses and financial aid options associated with specific programs at specific schools. For more on this topic, check out the Future of Children issue on Postsecondary Education in the United States.

From Prison to Postsecondary Education

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For every three people enrolled in a postsecondary institution, one person is under correctional supervision (incarcerated, on parole, or on probation). College has been part of the American Dream for decades, but prisoners and parolees have for the most part been ignored in discussions on improving college enrollment and completion rates.

Most high school students would like to achieve some sort of postsecondary education, but many leave high school unprepared for college work. This may be especially true for young adults involved with the criminal justice system, who are more likely to be from poor, racial-ethnic minority, or otherwise disadvantaged backgrounds. Indeed, education levels among the correctional population are much lower than among the general population. Some evidence suggests that increasing educational attainment among offenders may effectively reduce recidivism, but few studies have rigorously examined how postsecondary education affects the correctional population.

The Pathways from Prison to Postsecondary Education Project, recently launched by the Vera Institute of Justice, “seeks to demonstrate that access to postsecondary education, combined with supportive reentry services, can increase educational credentials, reduce recidivism, and increase employability and earnings.” The initiative will take place in three states over five years, and evaluations will be conducted by the RAND Corporation. At least one of the states, New Jersey, already has correctional postsecondary education programs in place, including Princeton University’s Prison Teaching Initiative.

The Future of Children issue on Postsecondary Education highlights the dramatic changes that are taking place in institutions of higher education and the students who attend them. As policymakers and educators make efforts to increase enrollment and improve program quality and completion, they should not forget the 7 million people under correctional supervision and what access to college for them might mean for their families and the nation as a whole.

Finding and Fixing Flaws in Financial Aid Policy

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Recent reports underscore what many argue are serious problems with current financial aid policy. Lawmakers debate about how to handle the soon-to-expire low interest rate on federal student loans. Meanwhile, public and private colleges and universities have awarded more merit-based than need-based scholarships in recent years, leaving low-income students to seek other options or saddle large amounts of debt. As noted by Susan Dynarski and Judith Scott-Clayton, important questions to ask in addressing such issues are how effective current policies are in increasing student enrollment, performance, and completion, and what influence financial aid has on students’ choices following graduation.

From their review of the research on financial aid, Dynarski and Scott-Clayton draw four important lessons for lawmakers, colleges, and universities. First, money matters. Financial aid increases student enrollment and may improve persistence and completion. Second, all aid programs are not equally effective. Studies show that personalized information and assistance in the financial aid process can increase college entry. Third, academic incentives are helpful. Achievement-based financial aid may increase college performance and completion rates. Finally, the design of student loans may be improved to be clearer about student risks and repayments upfront.

Financial aid had become increasingly important for college enrollment and completion. Lawmakers and college administrators should draw upon the best evidence as policy changes continue to develop. To review the latest evidence on postsecondary financial aid policy, see the newest issue of Future of Children, Postsecondary Education in the United States.

College at a Crossroads

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As the latest issue of the Future of Children reports, higher education in the US is changing dramatically. On the one hand, access to college has expanded at a remarkable rate. On the other hand, scores of students are finishing high school unprepared for college work. Meanwhile, today’s economy has left many public colleges and universities strapped for resources and unable to meet student demand. Thus, many students, particularly those from low-income families, are forced to either seek an alternative route or drop out.

One rapidly growing option for students is for-profit colleges. Also known as proprietary colleges, they often exist as large national chains led by online institutions. Future of Children authors David Deming, Claudia Goldin, and Lawrence Katz explain that for-profit colleges seem to be most helpful when they offer short, well-defined programs offering a clear path to a specific occupation. While these programs have grown to efficiently meet student demand as public institutions have struggled, their students carry higher levels of debt and are more likely to default on loans. Indeed, much of the revenue these institutions rely on comes from federal student aid. Moreover, the rate of return for these students is lower. Upon leaving school, they are more likely to be unemployed and have lower earnings than students at other institutions.

To keep up with student demand, many state systems and community colleges have sought to expand access to online learning programs. The Babson Survey Research Group estimates that by 2010, 31 percent of college and university students were enrolled in at least one online course. As Marketplace reports, more selective institutions may also begin offering more options for online learning. Examining the research, Bradford Bell and Jessica Federman find that online learning can be an effective tool in higher education, insofar as it creates conditions that are conducive to learning specific content. See the latest research on e-learning in the new issue of the Future of Children, Postsecondary Education in the United States.

Complex College Choices in a Changing Economic Climate

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In his first term, President Obama set a goal that the US would once again have the highest proportion of college graduates in the world by 2020. However, choosing whether to go to college, which school is best and how much college to peruse has become increasingly complex for students and families. In the newest issue of the Future of Children, authors Philip Oreopoulos and Uros Petronijevic write that in today’s economy, college tuition rates are higher than ever, student debt is larger than ever, and many students take longer than ever to graduate. Meanwhile, technology is changing the playing field at a rapid pace. Some have to choose between an elite school and a more affordable one, while others seek online flexibility as they juggle work and family.

The New York Times reports that parents often see top-tier universities as the way to give their children the best chance at success, but little evidence has demonstrated a link between college selectivity and later earnings. Oreopoulos and Petronijevic find that earnings potential varies with college major and is largest for those with post-graduate degrees. Moreover, community college programs may be best for students who don’t want to or can’t complete a four-year degree. They stress that students and their families need help to navigate the financial aid and college decision process, taking into account the likelihood of completion and expected costs and debts. “As difficult as it is, completing such an assessment before reaching a decision is key to making the most out of college.”

An increasingly relevant factor in college decisions is the availability of online education. The New York Times highlights the efforts of many institutions to provide online learning opportunities in order to address problems of limited seating due to state budget cuts, as well as a high demand for remedial coursework for new undergraduates. Future of Children authors Bradford Bell and Jessica Federman find that online college programs can be an effective alternative to traditional classroom teaching if they are rich in content and have a high level of interactivity. Experimental research should continue to investigate how these attributes influence different types of learning.

For more discussion on this topic, check out the latest issue of the Future of Children, Postsecondary Education in the United States. Also see the issues Opportunity in America, America’s High Schools and Transition to Adulthood.