career college sector report career college sector reportaccountability & outcomes michael j....
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Career College Sector ReportCareer College Sector Report
Accountability Accountability & Outcomes& Outcomes
Michael J. Cooney Editor, Career Education Review
The Career Educator’s Challenge
Do your graduates get
jobs?jobs?
The Value Proposition in The Value Proposition in Today’s EconomyToday’s Economy
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 yearsMany with unproductive degrees
Thus 50% failNo skills / no degree
Plus most all have student loans
The Curse of the Class of 2009For College Grads Lucky Enough to Get WorkThis Year, Low Wages are Likely to Haunt Themfor a Decade or MoreWall 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 duringthis 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 MythIt’s a path ingrained in us: Go to a University right afterHigh school and graduate in four years. But that couldn’tBe further from reality. And until education leaders takethat into account, too many students will lose out.Boston Globe 5/31/09
4-year colleges graduate 53% in 6 YearsAnd some are far below that average, study findsUSA Today
Universities will be “irrelevant” by 2020 BYU Professor SaysDesert 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 AmericaHas it Been More Difficult To Find a Job!Huffington Post 11/9/09
MBA’s Confront a Savage Job MarketThe MBA Class of 2009 was hit harder than expected by the recession. At some top schools, 1 in 5 are jobless 3 months after graduationBusiness Week 10/29/09
Student Loans Coming Due, Job or No JobThe 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 AllNew York Times 11/11/09
Career College Sector Under Increased Scrutiny
GAO ReportStronger Department of Education Oversight Needed toHelp Ensure Only Eligible Students Receive Federal Student Aid
Congressional HearingsEnsuring Student Eligibility Requirements for Federal Aid
Neg Reg IIIncentive 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 CollegesStephen 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 unemployedAnd had not attained a bachelor’s degree or higher
Up from 5.5 million only a year ago.
Stifel Nicholaus 10/21/09
“We expect aggregated enrollment growth to increaseabout 23%, slightly below last quarter’s 25%…wellabove the 3-year average of almost 12%.”
Thus, the 2009–2010
Career College Graduate Placement Challenge
Placement Challenge
What if, in your state, a highly regarded careercollege, after experiencing a 30% growth inenrollment, then reported a 50% graduateplacement rate, which meant that they wereplacing about the same number of graduatesthat 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?
• Both of the above?
• Misplace their file?
Beware theBeware the
Wave!Wave!
Nationally enrollment is upNationally enrollment is up20 - 30% or more at20 - 30% or more at
Career & Community CollegesCareer & Community Colleges
IT IS THE BEST OF TIMES…
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 competitiveJob market.
Rising default rates for graduates than now exceedsThe 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 acceleratedaccelerated the enrollment of our traditional market And thus depleteddepleted the pool of prospects for the near future?
Thus to maintain current enrollment levels will colleges seekto expand their enrollment efforts with either ATBATB studentsOr the traditional “State U”“State U” student?
Plus competitive colleges (especially public companies) will increase their marketing expenditures to maintain the currentlevel as the “new normal.”
Beware the Wave
Have we acceleratedaccelerated the enrollment of our traditional market And thus depleteddepleted the pool of prospects for the near future?
Thus competitive pressures will increase in 2010
It’s the best of times…
…it is all about student outcomes!
And if we are going to survive as a sector then…
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.