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Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by: David Longanecker President, Western Interstate Commission for Higher Education (WICHE) American Higher Education Today & Tomorrow (From A WICHE Perspective)
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Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

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Page 1: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

Crisis or OpportunityCrisis or Opportunity

Spring Convention:National Council of Higher Education Loan Programs (NCHELP)

Broomfield, ColoradoMay 15, 2012 Presentation by:David LonganeckerPresident, Western Interstate Commission for Higher Education (WICHE)

Spring Convention:National Council of Higher Education Loan Programs (NCHELP)

Broomfield, ColoradoMay 15, 2012 Presentation by:David LonganeckerPresident, Western Interstate Commission for Higher Education (WICHE)

American Higher Education Today & Tomorrow

(From A WICHE Perspective)

Page 2: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:
Page 3: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Crisis or Opportunity: Common Lore:

Weiji/Crisis Danger Opportunity

True Linguistic Interpretation: Bad times, plan and simple

Page 4: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Demographic Situation

Young AdultsNot A simple story

Page 5: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Projections of High School GradsWICHE Projections of High School Grads

Source: WICHE, Knocking at the College Door: Projections of High School Graduates by State and Race/Ethnicity 1992-2022. 2008.

Page 6: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Projections of High School GradsWICHE Projections of High School Grads

Source: WICHE, Knocking at the College Door: Projections of High School Graduates by State and Race/Ethnicity 1992-2022. 2008.

Page 7: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Demographic Situation

Young AdultsNot A simple storyBut one common thread – growth is all

Hispanic

Page 8: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Projections of High School GradsWICHE Projections of High School Grads

Source: WICHE, Knocking at the College Door: Projections of High School Graduates by State and Race/Ethnicity 1992-2022. 2008.

Page 9: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Projections of High School GradsWICHE Projections of High School Grads

Source: WICHE, Knocking at the College Door: Projections of High School Graduates by State and Race/Ethnicity 1992-2022. 2008.

Page 10: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

College-Going Rates – First-Time Freshmen Directly Out of High School as a Percent of Recent High School Graduates, 2006

College-Going Rates – First-Time Freshmen Directly Out of High School as a Percent of Recent High School Graduates, 2006

0

25

50

75

Mississip

pi

New

Yo

rk

No

rth D

akota

So

uth D

akota

Massach

usetts

New

Mexico

Co

nn

ecticut

New

Jersey

Min

neso

ta

Geo

rgia

Virg

inia

Kan

sas

Marylan

d

No

rth C

arolina

Louisian

a

Mich

igan

New

Ham

psh

ire

Main

e

Nebraska

Delaw

are

So

uth C

arolin

a

Ten

nessee

Ind

iana

Co

lorado

Alabam

a

Pen

nsylvania

Natio

n

Ken

tucky

Wisco

nsin

Iow

a

Illino

is

Flo

rida

Oh

io

Haw

aii

Oklah

om

a

Mo

ntan

a

Wyo

min

g

West V

irgin

ia

Misso

uri

Arkan

sas

Califo

rnia

Texas

Verm

on

t

Rh

od

e Island

Nevad

a

Wash

ington

Oreg

on

Utah

Alaska

Idah

o

Arizo

na

Source: Tom Mortenson, Postsecondary Opportunity Via NCHEMS

Page 11: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Demographic Situation Young Adults

Not A simple storyBut one common thread – growth is all

HispanicDilemma – Trends are divisive

Some want sustaining support/others want support for growth

Race still matters

Page 12: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Demographic Situation

Older Adults 40 million with some college, no degree New starts – not much prospect for success Dilemma

Limited resources Americans can’t stand triage

Page 13: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Economic Situation

Where we stand in global competition

Page 14: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

Differences in College Attainment (Associate and Higher) Between Younger and Older Adults - U.S. and OECD Countries, 2005

Differences in College Attainment (Associate and Higher) Between Younger and Older Adults - U.S. and OECD Countries, 2005

Source: Organisation for Economic Co-operation and Development (OECD), Education at a Glance 2007

Page 15: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

0

20

40

60

Korea

Canada

JapanIrelandN

orway

New

Zealand

United K

ingdomA

ustraliaD

enmark

Luxembourg

France

IsraelB

elgiumS

weden

United S

tatesN

etherlandsS

witzerland

Finland

Spain

Estonia

IcelandP

olandC

hileS

loveniaG

reeceG

ermany

Hungary

Portugal

Austria

Slovak R

epublicC

zech Republic

Mexico

ItalyT

urkey

25 to 34

45 to 54

Differences in College Attainment (Associate & Higher) Between Younger & Older Adults—U.S. & OECD Countries, 2009

Differences in College Attainment (Associate & Higher) Between Younger & Older Adults—U.S. & OECD Countries, 2009

Source: Organisation for Economic Co-operation and Development (OECD), Education at a Glance 2011

Page 16: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

Differences in College Attainment (Associate and Higher) Between Younger and Older Adults - U.S., 2005

Differences in College Attainment (Associate and Higher) Between Younger and Older Adults - U.S., 2005

Source: U.S. Census Bureau, 2005 ACS

Page 17: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Economic Situation

Where we stand in global competition Is this really Important?

Page 18: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

Relationship Between Educational Attainment, Personal Income, and Economic Strength

Relationship Between Educational Attainment, Personal Income, and Economic Strength

Source: NCHEMS

AL

AZ

AR

CA

CO

CT

DE IL

IN

IA

KY

LA

MDMA

MS

NJ

NY

NDOK

OR

SC

SD

UT

VA

WAMN

NH

TN TX

WV

WI

WY

$15,000

$20,000

$25,000

$30,000

15% 20% 25% 30% 35% 40%

Pers

onal In

com

e P

er

Capit

a,

20

00

Percent of Adults Age 25-64 with a Bachelor’s Degree or Higher

MT

HI

AK

GA

KS

ME NE

NV

NC

OH PAVT

ID

MI

MO

NM

RIFL US

Low Income, High Educational AttainmentLow Income, Low Educational Attainment

High Income, High Educational AttainmentHigh Income, Low Educational Attainment

State New Economy Index (2002)

Top Tier

Middle Tier

Low Tier

Page 19: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Economic SituationWhere we stand in global competition Is this really Important? YESThe Public Policy Response

The Completion Agenda President Obama – First Again: Lumina: The Big Goal:

And Rhetoric won’t be enough

Page 20: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Economic Situation Past Tricks Won’t Get Us There

Immigration Migration New Enemy – emigration

Educational Attainment Is The Key The Dilemma – It’s Quite a Leap

Page 21: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

Closing the Gap: Annual Percent Increase in Credential Production Needed to get to 60% by 2025

Closing the Gap: Annual Percent Increase in Credential Production Needed to get to 60% by 2025

Nor

th D

akot

a

Page 22: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Economic Situation Past Tricks Won’t Get Us There

Immigration Migration New Enemy – emigration

Educational Attainment Is The Key The Dilemma – It’s Quite a Leap

The Imperative – The Trifecta More of everything/Particularly More Hispanics/ Many

More Adults

Page 23: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Finance Situation

Higher Education has been wacked hard, and not evenly

Page 24: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

Educational Appropriations per FTEPercent Change by State, Fiscal 2006-2011(SHEEO SHEF 2011)

Educational Appropriations per FTEPercent Change by State, Fiscal 2006-2011(SHEEO SHEF 2011)

Page 25: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

Total Educational Revenue per FTEPercent Change by State, Fiscal 2006-2011(SHEEO SHEF 2011)

Total Educational Revenue per FTEPercent Change by State, Fiscal 2006-2011(SHEEO SHEF 2011)

Page 26: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

Public FTE Enrollment and Educational Appropriations per FTE, U.S., Fiscal 1986-2011(SHEEO SHEF 2011)

Public FTE Enrollment and Educational Appropriations per FTE, U.S., Fiscal 1986-2011(SHEEO SHEF 2011)

Page 27: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Finance Situation

Higher Education has been wacked hard, and not evenly Result: Unbelievable tuition increases

Page 28: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Do we face a Crisis, Bad times, plain & simple?

The Finance Situation

Higher Education has been wacked hard, and not evenly Result: Unbelievable tuition increases The Dilemma for Financial Aid Professionals

State Grants Can’t Keep Up Pell Increases Are Not Sustainable

Page 29: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Or, Do we face Zhwanji – an Opportunity?“Don’t Let A Crisis Go To Waste”

WICHE’s Mission: . . . Through interstate cooperation, innovation, resource sharing, and sound public policy . . .

Programming Examples: Student Exchange State Authorization Reciprocity Agreement

Networking Examples CACG Network and Collaborative Adult College Completion Network WICHE Cooperative for Educational Technologies (WCET)

Policy Analysis & Research Knocking On The College Door– Projections of High School Graduates Multi-state Data Exchange

Page 30: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Or, Do we face Zhwanji – an Opportunity?“Don’t Let A Crisis Go To Waste”

Our MantraWe Can Do This

We have better information from which to manage than ever before State Unit Record Data Bases—blending education & workforce The National Student Clearinghouse Measurement of Student Learning Outcomes Predictive Analytics (data mining)

And we have a new mentality to use this information – evidence based practice and decision-making

As a result,

Page 31: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Or, Do we face Zhwanji – an Opportunity?“Don’t Let A Crisis Go To Waste”

We can do this better Students can learn more

Technology enhanced (hybrid) learning Reinvented Remediation Reducing meandering– recognizing choice as the enemy for

many More students can learn

Use technology to expand reach Capture the spirit of “access to success” Use smart incentives in financing structures

Incentives for institutions Incentives for students -- young and not so young

Page 32: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Or, Do we face Zhwanji – an Opportunity?“Don’t Let A Crisis Go To Waste”

We can do this cheaper Technology can reduce costs Disruptive innovation (and innovators) are

reducing costs The magic of marginal costs can save

resources Improving based on evidence

Page 33: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

Or, Do we face Zhwanji – an Opportunity?“Don’t Let A Crisis Go To Waste”

We can do this faster Recognize time as the enemy (Complete

College America’s message) Reduce clutter in the curriculum Reduce degree creep Recognize the value of high value certificates

and applied associate degrees Believe our own research

Page 34: Crisis or Opportunity Spring Convention: National Council of Higher Education Loan Programs (NCHELP) Broomfield, Colorado May 15, 2012 Presentation by:

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

WICHE Mission“. . . to expand educational access and excellence for all citizens of the West.”

So, Why Should We Do This?

from WICHE’s perspective: It’s not for the sake of higher education Higher education is just the means to an end The end goal: . . . To strengthen higher education’s

contributions to the social, economic, and civic life of the West.

Enough, already!

Or, Do we face Zhwanji – an Opportunity?“Don’t Let A Crisis Go To Waste”