Transcript Myth #1 - Colorado College

President Jill Tiefenthaler
Myth #1
You no
longer need a
college degree
to be
successful.
Forbes edition on The
Richest People in
America, January, 2012
– “Think you need a
college degree to
become a business
star--think again.”
Despite the hype, 85%
of those on the list
have at least a college
degree.
College-to-High School Weekly Wage
Premium, 1963–2008
SOURCE: The College Board, Trends in Higher Education 2010, Figure 1.7a
Myth #2
More than
half of recent
college
graduates are
unemployed.
Unemployment Rates by Education Level,
1992–2009
SOURCE: The College Board, Education Pays 2010, Figure 1.10a
Unemployment rate for young college graduates, by gender, 1989–2012*
*Latest 12-month average: April 2011–March 2012.
SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure G
Unemployment and underemployment rates for young college graduates, 1994–2012*
*Latest 12-month average: April 2011–March 2012.
SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure I
Unemployment and underemployment rates of young high school graduates, 1994–2012*
*Latest 12-month average: April 2011–March 2012.
SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure D
Myth #3
College costs
too much. It
isn’t worth the
investment.
Estimated Cumulative Earnings Net of Loan
Repayment for Tuition and Fees, by Education
SOURCE: The College Board, Education Pays 2010, Figure 1.3
Distribution of Full-Time Undergraduates at Four-Year
Institutions by Tuition and Fees, 2012-2013
SOURCE: The College Board, Trends in College Pricing 2012, Figure 2
Myth #4
Increasing tuition
has created a
student loan debt
crisis. Students are
drowning in
mounds of debt
that they can’t
repay.
American Debt – Type 2011
Growth of Loan Dollars by type,
Constant 2010 Dollars
SOURCE: The College Board, Trends in Student Aid 2011, Figure 4.
Average Debt Bachelor’s Recipients,
Public Schools, 2010 Dollars
SOURCE: The College Board, Trends in Student Aid 2011, Figure 10A.
Average Debt Bachelor’s Recipients,
Private Schools, 2010 Dollars
National Student Loan Default Rate
SOURCE: U.S. Department of Education,
www2.ed.gov/offices/OSFAP/defaultmanagement/defaultrates.html.
Federal Student Loan Two-Year and Three-Year
Cohort Default Rates by Sector
SOURCE: Department of Education (studentaid.ed.gov/about/data-center/student/default); Table: The College Board, Trends in Student Aid 2012, Figure 9B.
Myth #5
For-profit colleges
are more efficient
than traditional
privates and
publics and will
bring much needed
competition to
higher education.
Your text here.
Four-year Graduation Rates, by sector
IPEDS Graduation Rate, 2008
80
60
Public
40
55
Private,
Non-Profit
65
For-Profit
20
22
0
4-Year
SOURCE: The Education Trust 2010; “For-profit Data Summary,” IPEDS First Look 2008-09, Table 5. Graduation rates at
Title IV institutions, by race/ethnicity, level and control of institution, gender, and degree at the institution where the students
started as full-time, first-time students: United States, cohort year 2002.
Average Published Undergraduate
Charges by Sector, 2012-13
Tuition and Fees
Sector
2012-13
2011-12
$ Change
% Change
Public
Two-Year
In-State
$3,131
$2,959
$172
5.8%
Public
Four-Year
In-State
$8,655
$8,256
$399
4.8%
$21,706
$20, 823
$883
4.2%
Private
Nonprofit
Four-Year
$29,056
$27,883
$1,173
4.2%
For-Profit
$15,172
$14,737
$435
3.0%
Public
Four-Year
Out-ofState
SOURCE: The College Board, Trends in College Pricing 2012, Table 1A
Median Debt, by sector
Median Debt of Bachelor's Degree Recipients,
2007-08
$35,000
$30,000
$25,000
$20,000
$31,190
$15,000
$10,000
$5,000
$17,040
$7,960
$0
Public
Private, non-profit
For-profit
SOURCE: The Education Trust, Subprime Opportunity: The Unfulfilled Promise of For-profit Colleges and Universities (November 2010), Figure 3
Cumulative Debt: Students Who Left without Completing a
Degree by Sector and Length of Enrollment
Amount Borrowed by Students Who First Enrolled in 2003-04 and Left Without Completing a Degree or Certificate by 2009, by
Institutional Sector and Length of Enrollment (with Percentages of Students in Each Sector Within Enrollment Category)
SOURCE: The College Board, Trends in Student Aid 2012, Figure 11C
Myth #6
The whole industry
is inefficient.
Tuition keeps
going up because
higher education
can’t control
costs.
Average Annual Percentage Increase beyond
Inflation,1981-82 to 2011-12
Source: The College Board, Annual Survey of Colleges; NCES, Integrated Postsecondary Education Data System (PEDS).
Inflation-Adjusted Published Tuition and Fees,
1981-82 to 2011-12
Source: The College Board, Annual Survey of Colleges; NCES, Integrated Postsecondary Education Data System (PEDS).
Distribution of Undergraduate Enrollment
by Sector, 2009-2010
Source: The College Board, Trends in College Pricing 2011
TUITION =
COST/Student
– SUBSIDY
Annual Percentage Changes in State Appropriations per Full-Time
Equivalent (FTE) and in T&Fs at Public
Four-Year Institutions, Inflation Adjusted
Sources: The College Board, Annual Survey of Colleges; Illinois State University, Grapevine reports; NCES, Digest of Education Statistics 2008, Table 219.
Resident Student’s Share of College Cost
All Governing Boards
70%
$9,636
68%
$9,154
$6,523
66%
Student Share
State Share
60%
50%
40%
34%
30%
32%
20%
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
SOURCE: NCHEMS, Colorado Commission on Higher Education, “Some Basic Facts about Colorado Higher Education”
2010-11
2011-12
Colorado College’s Selectivity over Time
Even if the public
tuition is increasing
faster in recent
years, they are still
more affordable
than private
colleges.
Tuition and Fees
Carnegie
Classification
2012-13
2011-12
$ Change
% Change
Public Doctoral
In-State
$9,539
$9,126
$413
4.5%
Public Master’s
In-State
$7,606
$7,207
$399
5.5%
$6,718
$6,433
$285
$4.4%
$35,660
$34,230
$1,430
4.2%
$25,997
$24,903
$1,094
4.4%
$27,482
$26,427
$1,055
4.0%
Public
Bachelor’s
In-State
Private Doctoral
Private Master’s
Private
Bachelor’s
Average Published Undergraduate Charges, by
Carnegie Classification
SOURCE: The College Board, Trends in College Pricing 2012, Table 1B
“Calculating the Cost
of College”
Family A
Family B
Family C
2011 Combined Income
$50,000
$100,000
$150,000
Home Equity
75,000
150,000
225,000
Savings/Investments
5,000
10,000
25,000
2012-13 Total Price
Family and Student Burden
Colorado College
$54,200
9,300
22,650
40,500
U.C. Berkeley
Resident
Out-of-State
$32,706
$55,584
11,110
33,768
23,500
46,378
32,706
55,184
U. of Illinois,
Urbana
Resident
Out-of-State
$33,922
$48,064
26,277
41,356
33,922
48,064
33,922
48,064
SOURCE: New York Times, “Calculating the Cost of College,” http://www.nytimes.com/interactive/2013/01/16/education/calculating-the-cost-of-college.html
Online education is
the disruptive
innovation that
changes everything.
It will lower costs,
increase accessibility
and make traditional
colleges irrelevant.
Liberal Arts
colleges are
irrelevant in
this STEM
world.
The best and
brightest
students attend
our nation’s
elite
institutions.
Percentage Growth in Mean Family Income
by Quintile in Constant 2010 Dollars
Sources: U.S. Census Bureau, Current Population Survey, Table F-1, Table F-3, and FINC-01; calculations by the authors.