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Higher education: New models for the future

by Jeffrey Bradfield, Tiffany Fishman, Dave Noone
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    07 February 2018

    Higher education: New models for the future The State Policy Road Map: Solutions for the Journey Ahead

    07 February 2018
    • Jeffrey Bradfield United States
    • Tiffany Fishman United States
    • Dave Noone United States
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    College tuition has risen by 538 percent since 1985. States can influence the higher education landscape to better serve students and employers by evaluating how they can integrate the student experience in such areas as performance metrics, financial aid, and job placement.

    What is the issue?

    To maintain economic prosperity, a state needs well-educated citizens. State governments can help to influence the higher education landscape so that it better serves the needs of students, employers, and the population as a whole. Both directly through state institutions and indirectly through economic development initiatives, loans, and other programs, state leaders can have considerable influence on the higher education.

    Higher education has changed considerably over the years, shaped by several macro-level trends:

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    • Student demographics: Compared with traditional college students who arrive straight from high school, attend college full-time, and graduate in four years, many students today are older, have lower incomes, and carry more adult responsibilities. Often, they’re the first in their families to go to college. A good number speak English as a second language. These individuals often need very different kinds of support than students in the past.
    • Workforce needs: According to ManpowerGroup, 46 percent of employers report being unable to find skilled workers to fill open jobs.1 To acquire skills that match employers’ needs, many students today are looking beyond traditional higher education to alternatives such as “nanodegrees” powered by massive open online courses (MOOCs), or short-term, immersive boot camps to provide just-in-time workplace skills.
    • Pressure on institutions: The cost of college tuition has risen by 538 percent since 1985, compared with an increase of just 121 percent in the consumer price index during that period.2 According to one Pew Research Center survey, the millennial generation (defined by Pew as Americans aged 18 to 33) is dealing with higher levels of student loan debt, poverty, and unemployment, and lower levels of wealth and personal income, than the two preceding generations at the same age.3 Many colleges and universities are under pressure to reduce costs and to document the return on investment they provide.

    Issue by the numbers: Higher education

    • Today, 44 percent of college and university students are 24 years of age or older. Thirty percent attend class part-time, 26 percent work full-time while enrolled, and 28 percent take care of children or other dependents while pursuing their postsecondary studies.4
    • On top of that, 52 percent of college and university students are the first in their families to seek higher education, 42 percent come from communities of color, and 18 percent are non-native English speakers.5
    • The “sticker” price tag for a traditional four-year residential degree program has almost doubled in the last decade. The cost of tuition, fees, and room and board at out-of-state public universities now averages just over $35,000 per year; for private nonprofit universities, the average cost is more than $45,000 per year.6
    • The cost of college tuition has risen by 538 percent since 1985, superseding household income gains (figure 5).7

    College tuition growth has vastly outpaced income gains

    • On average, states spent $1,448 (16 percent) less per student in 2017 than in 2008.8 Nearly every state has shifted the cost to students in the last 25 years (figure 6).9

    Students are funding a larger share of education after recessions

    • States spent about 10 percent of their general funds on higher education in fiscal year 2015, compared with 11.5 percent in the postrecession period (fiscal year 2009).10

    How can state leadership tackle the issue?

    Be thoughtful about coordinating assistance to nontraditional students

    Financial aid programs that help with tuition and academic costs are as important as ever. But nontraditional students could also need other support, such as help paying for child care, transportation, and food. States should consider aligning public assistance programs with the needs of adults who attend schools and making public benefits easily accessible for those students who qualify.

    Think more broadly about financial aid

    In the future, students will consume education in many different ways—in the classroom, online, in full semesters, in short bursts, on the job, and through one-on-one mentoring, to name just a few. Most likely, these learning experiences will continue throughout a person’s career. Given that reality, state financial aid programs should consider making a wider variety of educational experiences eligible for aid.

    Encourage state university systems to explore new options for instruction

    Many institutions of higher learning today are experimenting with a broad range of new approaches, such as blended learning, adaptive learning, and competency-based education. New strategies for keeping nontraditional students on target to succeed are emerging as well. These include data-driven systems for detecting when a student needs extra help, tutoring and coaching programs to provide that help, and class schedules that make attending school easier for students who also hold down jobs, manage families, and rely on public transportation. State university systems should promote experimentation to find new solutions.

    Reimagining higher education
    Read more about how state university systems can explore different models of instruction in Reimagining higher education.

    Focus on the student

    Every year across the United States, a significant number of students fail to complete their college degrees. “While it is true that retention programs abound on our campuses, most institutions have not taken student retention seriously,” noted Vincent Tinto, distinguished university professor emeritus in the School of Education at Syracuse University.11 Colleges and universities should adapt to the needs of a diverse, dynamic, and changing student population by providing flexible services and a greater sense of connection.

    Steps can be taken to deploy new learning methods, develop comprehensive support services, streamline student-facing operations, and pursue strategic partnerships with employers and other entities. These efforts would help the state to train the workforce of tomorrow, reduce the time to graduation, and decrease the dropout rate.

    Success by design
    Read more about how state university systems can effectively support their students in Success by design.

    Strengthen the pathways from education to employment

    Early college or dual enrollment programs can provide a bridge for high-school students who want to get a jump on their higher education, including students who need some extra help to prepare for college-level work. Public institutions can smooth students’ progress by agreeing on common course numbering systems and providing clear transfer pathways between two- and four-year colleges. And while students work toward their undergraduate degrees, co-op, internship, and apprenticeship programs can provide opportunities to earn money while honing skills that could make them attractive to employers in their chosen fields.

    You don’t need to look too far for inspiration

    Course Signals at Purdue

    At Purdue University, some courses employ Course Signals, a software platform that uses data analytics to calculate and track student progress and provide early warnings to both students and faculty. Students receive notifications about how they are performing in a course as they progress through it. Faculty who receive this performance data are able to identify students who may need additional assistance to succeed and can target interventions to ensure that at-risk students stay on track. Students enrolled in Course Signals classes at Purdue have a 21 percent higher graduation rate than those enrolled in courses that don’t use the software.12

    Low-cost computer science at Georgia Institute of Technology

    Rather than trying to be all things to all people, some universities are beginning to carve out niches in the market for higher education, shedding unnecessary costs and better differentiating themselves from their peers.13 Georgia Institute of Technology, for example, has focused on providing the lowest-cost options in fields undergoing a rapid growth in demand. MOOC provider Udacity, in collaboration with AT&T, is powering Georgia Tech’s first accredited online master’s program in computer science with a price tag of just $7,000.14

    Adaptive learning at Arizona State

    To help new students who were not college-ready in mathematics, Arizona State University launched a math readiness program in the fall of 2011. This program uses adaptive learning technology to let students work through the program at their own pace, aided by an instructor.15 The program’s initial results showed improved outcomes, with fewer student dropouts, increased pass rates, and lower course completion times.16

    Building bridges to college in Ohio

    In the Appalachian region of Ohio, Zane State College and the Zanesville City Schools have created a program to help high-school seniors who have grade point averages of 3.0 or higher, but whose tests show them to be unprepared for college. The program includes career exploration, tutoring, mentoring, and a one-semester class on college success taught at the high school by college faculty. Participants also take college math and English courses for dual credit, and each student goes to the college to take a course specific to his or her major.17

    Authors

    Jeff Bradfield leads Deloitte’s Higher Education Consulting practice. He is based in Chicago.

    Tiffany Fishman Tiffany is a senior manager with the Deloitte Center for Government Insights. She is based in Arlington, US.

    David Noone Dave is a senior manager in the Research and Insights group of Deloitte Services LP. He is based in New York.

    Acknowledgments

    This article benefited greatly from the contributions of Purva Singh of Deloitte Services India Pvt. Ltd.

    Endnotes
      1. “2016/2017 talent shortage survey,” ManpowerGroup, accessed January 11, 2018. View in article

      2. Michelle Jamrisko and Ilan Kolet, “College costs surge 500% in US since 1985: Chart of the day,” Bloomberg, August 26, 2013. View in article

      3. “Millennials in adulthood: Detached from institutions, networked with friends,” Pew Research Center, March 7, 2014. View in article

      4. Tia Brown McNair et al., Becoming a Student-Ready College: A New Culture of Leadership for Student Success (Hoboken, NJ: Jossey-Bass, 2016). View in article

      5. Ibid. View in article

      6. Sandy Baum et al., “Trends in college pricing 2016,” College Board, 2016. View in article

      7. Michael Mitchell, Michael Leachman, and Kathleen Masterson, A lost decade in higher education funding, Center on Budget and Policy Priorities, August 23, 2017. View in article

      8. Ibid. View in article

      9. Ibid. View in article

      10. National Association of State Budget Officers, State expenditure report 2009–11 and State expenditure report 2014–16. View in article

      11. Vincent Tinto, “Taking student retention seriously,” Syracuse University, accessed January 11, 2018. View in article

      12. Steve Tally, “Purdue software boosts graduation rates 21 percent,” Purdue University, press release, September 25, 2013. View in article

      13. Clayton Christensen, Michael Horn, Louis Soares, and Louis Caldera, Disrupting college: How disruptive innovation can deliver quality and affordability to postsecondary education, Center for American Progress, February 8, 2011. View in article

      14. Ry Rivard, “Massive (but not open),” Inside Higher Ed, May 14, 2013. View in article

      15. Tanya Roscorla, “Arizona State University adopts adaptive learning technology,” Converge, Center for Digital Education, January 14, 2011. View in article

      16. “Arizona State University,” Knewton, accessed February 2, 2017. View in article

      17. Sydney Johnson, “Why one college is going back to high school to help students succeed,” EdSurge, April 27, 2017. View in article

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    Topics in this article

    Public Sector , State Government , Education

    Deloitte Center for Government Insights

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    Jeffrey Bradfield

    Jeffrey Bradfield

    Government & Public Services Human Capital Leader

    Jeff leads the Human Capital Consulting practice for Government & Public Services. With more than 22 years of experience, Jeff has served a range of clients in the Federal, State, and Local Government markets as well as an assortment of Health Care and Higher Education clients. Jeff leads large multi-functional transformational projects that encompass a wide-range of services including technology, strategy and operations, and human capital.

    • jbradfield@deloitte.com
    • +1 312 486 5230
    Tiffany Fishman

    Tiffany Fishman

    Senior Manager | Deloitte Services LP

    Tiffany is a senior manager with the Deloitte Center for Government Insights. Her research and client work focuses on how emerging issues in technology, business, and society will impact organizations. She has written extensively on a wide range of public policy and management issues, from health and human services reform to the future of transportation and the transformation of higher education. Her work has appeared in a number of publications, including Public CIO, Governing, and EducationWeek.

    • tfishman@deloitte.com
    • +1 571 882 6247
    Dave Noone

    Dave Noone

    Senior Manager | Research and Insights Group

    Dave is a senior manager in the Research and Insights group of Deloitte Services LP. He works with governments and universities to better understand and implement emerging technologies and business models that can address their most pressing challenges. Prior to this role, he spent nine years with Deloitte Consulting LLP leading organizational assessment and transformation projects.

    • dnoone@deloitte.com
    • +1 212 313 1757

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