Transcript Career College Sector Report Accountability & Outcomes Michael J. Cooney Editor, Career Education Review.

Career College Sector Report
Accountability
& Outcomes
Michael J. Cooney
Editor, Career Education Review
The Career Educator’s Challenge
The Value Proposition in
Today’s Economy
Do your graduates get
jobs?
Higher Education Challenge 2009
3.3 Million High School Graduates – June 2009
1 Million College Graduates – June 2009
Career & Community College Enrollment up 20–30%
Many Workers Delaying Retirement if Possible
Unemployment Rate Continues to Rise to Near 10%
1.2 Million High School Dropouts Each Year
College for All (Pre-Recession)
90% of high school seniors expect to go to college
70% Expect to work in professional jobs
67% of high school seniors go on to college
50% Finish college in five or more years
Many with unproductive degrees
Thus 50% fail
No skills / no degree
Plus most all have student loans
The Curse of the Class of 2009
For College Grads Lucky Enough to Get Work
This Year, Low Wages are Likely to Haunt Them
for a Decade or More
Wall Street Journal 5/9/09
Major Trends in Employment:
College Graduates Now Facing Higher Unemployment,
U-6 Rate now at 14.8%, and 4.3 million jobs lost during
this Recession.
The rate for college graduates has doubled in one year meaning
that higher paying jobs are now falling in large numbers.
My Budget 360 3/09
New Level of Criticism of Higher
Education
The Four-year College Myth
It’s a path ingrained in us: Go to a University right after
High school and graduate in four years. But that couldn’t
Be further from reality. And until education leaders take
that into account, too many students will lose out.
Boston Globe 5/31/09
4-year colleges graduate 53% in 6 Years
And some are far below that average, study finds
USA Today
Universities will be “irrelevant” by 2020 BYU
Professor Says
Desert News 4/20/09
Broader U-6 Unemployment Rate Hits 17.5%
Wall Street Journal 11/6/09
At No Time in Post-World War II America
Has it Been More Difficult To Find a Job!
Huffington Post 11/9/09
MBA’s Confront a Savage Job Market
The MBA Class of 2009 was hit harder than expected by the recession. At some top
schools, 1 in 5 are jobless 3 months after graduation
Business Week 10/29/09
Student Loans Coming Due, Job or No Job
The Columbus Dispatch 11/9/09
Are Too Many Students Going to College?
The Chronicle of Higher Education 11/8/09
Two-Year Colleges, Swamped, No Longer Welcome All
New York Times 11/11/09
Career College Sector Under Increased Scrutiny
GAO Report
Stronger Department of Education Oversight Needed to
Help Ensure Only Eligible Students Receive Federal Student Aid
Congressional Hearings
Ensuring Student Eligibility Requirements for Federal Aid
Neg Reg II
Incentive Compensation, state authorization, gainful employment in a recognized
occupation,
definition of a credit hour, and satisfactory academic progress)
Negative Press
The Growing Student Debt Crisis at Career Colleges
Stephen Burd, Higher Ed Blog
“They” are looking like” us.”
“We” are looking like “them”
 Career focused programs
 ROI considerations
 Three year bachelor degrees
 No frills campuses
The Recessionary Student Market Boom
September 2009
9.1 million individuals 25 years and over were unemployed
And had not attained a bachelor’s degree or higher
Up from 5.5 million only a year ago.
“We expect aggregated enrollment growth to increase
about 23%, slightly below last quarter’s 25%…well
above the 3-year average of almost 12%.”
Stifel Nicholaus 10/21/09
Thus, the 2009–2010
Career College Graduate
Placement Challenge
Placement Challenge
What if, in your state, a highly regarded
career
college, after experiencing a 30% growth in
enrollment, then reported a 50% graduate
placement rate, which meant that they were
placing about the same number of graduates
that they were before the recession?
Would you:
1. Recognize them for outstanding work in a difficult
job market and helping advance the careers of half
their graduates?
2. Put them on show cause for failing to place half their
graduates who now have student loans to pay and
no job?
3. Both of the above?
4. Misplace their file?
Beware the
Wave!
IT IS THE BEST OF TIMES…
Nationally enrollment is up
20 - 30% or more at
Career & Community Colleges
Beware the Wave
The the challenge is to place 20 - 30% more graduates
in a job market with 10% (17%) unemployment.
Thus longer job search time and a growing pool of
graduates waiting to be placed in a very competitive
Job market.
Rising default rates for graduates than now exceeds
The rate for non-completers.
Beware the Wave
The the challenge is to place 20 - 30% more graduates
in a job market with 10% (17%) unemployment.
Recommendation:
Apply Admissions/Marketing type resources
to job search / placement activities to gain
sustained market credibility.
Beware the Wave
Have we accelerated the enrollment of our traditional market
And thus depleted the pool of prospects for the near future?
Thus to maintain current enrollment levels will colleges seek
to expand their enrollment efforts with either ATB students
Or the traditional “State U” student?
Plus competitive colleges (especially public companies) will
increase their marketing expenditures to maintain the current
level as the “new normal.”
Beware the Wave
Have we accelerated the enrollment of our traditional market
And thus depleted the pool of prospects for the near future?
Thus competitive pressures will increase in 2010
It’s the best of times…
And if we are going to survive as a sector then…
…it is all about
student outcomes!
A few Ideas:
• Employer engagement is vital.
• Brand your curriculum.
• Increase student services
• Move from a “placement” model to a “job search” model.
• Teach entrepreneurial skills.
• Creative a Culture of Innovation.