Higher Education in a Changing Political and Economic Environment MSCHE Annual Conference December 13, 2011 Mary Ellen Petrisko, Vice President.

Higher Education Higher Education in a Changing in a Changing Political and Political and

Economic Economic EnvironmentEnvironmentMSCHE Annual ConferenceMSCHE Annual Conference

December 13, 2011December 13, 2011

Mary Ellen Petrisko, Vice Mary Ellen Petrisko, Vice PresidentPresident

Or….Or….

Fewer dollars…Fewer dollars…

……more concernmore concern

Who are these people?Who are these people?

What are these numbers?What are these numbers?

236%236%

$175,000,000,000$175,000,000,000

12%/26%/46%12%/26%/46%

Senate HELP CommitteeSenate HELP Committee

March 10, 2011 Hearing: March 10, 2011 Hearing: Bridgepoint Education, Bridgepoint Education, Inc.: A Case Study…Inc.: A Case Study…

June 7, 2011: Hearing: June 7, 2011: Hearing: Drowning in Debt: Drowning in Debt: Financial Outcomes for Financial Outcomes for Students at For-Profit Students at For-Profit CollegesColleges

July 21, 2011 Roundtable July 21, 2011 Roundtable Discussion: Improving Discussion: Improving For-Profit Higher For-Profit Higher EducationEducation

Bridgepoint Education, Bridgepoint Education, Inc.Inc.

Purchased Mt. St. Clare College in 2005, Purchased Mt. St. Clare College in 2005, now Ashford Universitynow Ashford University

Enrollment growth: 300 to 78,000 students Enrollment growth: 300 to 78,000 students From $3M to $600M in federal funds From $3M to $600M in federal funds

annuallyannually From $81M in profits 2009 to $216M 2010From $81M in profits 2009 to $216M 2010 By 2010, 63% withdrawal at BA level, 84% By 2010, 63% withdrawal at BA level, 84%

at AA level of students enrolled 2008, 2009at AA level of students enrolled 2008, 2009

Bridgepoint Education, Bridgepoint Education, Inc.Inc.

30% of income to profit; 30% to 30% of income to profit; 30% to recruitment; 40% to all else, recruitment; 40% to all else, including $36.7M to top five including $36.7M to top five executives, with $20.5M to CEO executives, with $20.5M to CEO (2009)(2009)

1703 enrollment advisors; one job 1703 enrollment advisors; one job placement advisorplacement advisor

Senate HELP Committee on Senate HELP Committee on for-profit educationfor-profit education

236% growth in enrollments at for-profit 236% growth in enrollments at for-profit institutions 1998-2008institutions 1998-2008

More than 25% of minority and low-More than 25% of minority and low-income students attend for-profit income students attend for-profit institutionsinstitutions

Median debt: $31K, four times that of Median debt: $31K, four times that of publics, with 20% graduation rate publics, with 20% graduation rate

Statistics from Education TrustStatistics from Education Trust

12% of enrollment; 26% of federal 12% of enrollment; 26% of federal funds, 46% of defaults on student loansfunds, 46% of defaults on student loans

Statistics from U.S. Dept of EducationStatistics from U.S. Dept of Education

Are accreditors Are accreditors fulfilling their fulfilling their

responsibilities in responsibilities in this new regime? this new regime?

Or…Or…

How are How are accreditors accreditors

ensuring quality ensuring quality and protecting the and protecting the

public interest?public interest?

U.S. Department of U.S. Department of EducationEducation

Mission: The U.S. Mission: The U.S. Department of Department of Education seeks to Education seeks to promote student promote student achievement and achievement and preparation for preparation for global global competitivenesscompetitiveness by by fostering educational fostering educational excellence and excellence and ensuring equal ensuring equal access.access.

U.S. Department of U.S. Department of EducationEducation

President Obama's vision is that by President Obama's vision is that by 2020, America will again have the 2020, America will again have the best-educated, best-educated, most competitive most competitive workforce in the worldworkforce in the world with the with the highest proportion of college highest proportion of college graduates of any country. graduates of any country. http://www2.ed.gov/about/overview/focus/goals.htmlhttp://www2.ed.gov/about/overview/focus/goals.html

National Advisory National Advisory Committee on Institutional Committee on Institutional

Quality and IntegrityQuality and Integrity Established 1992, NACIQI provides Established 1992, NACIQI provides

recommendations to Secretary on:recommendations to Secretary on: The establishment and enforcement of criteria The establishment and enforcement of criteria

for recognition of accrediting agencies or for recognition of accrediting agencies or associations under the HEA.associations under the HEA.

The recognition of specific accrediting The recognition of specific accrediting agencies or associations or a specific State agencies or associations or a specific State approval agency.approval agency.

The relationship between (1) accreditation of The relationship between (1) accreditation of institutions of higher education and the institutions of higher education and the certification and eligibility of such institutions, certification and eligibility of such institutions, and (2) state licensing responsibilities with and (2) state licensing responsibilities with respect to such institutions. respect to such institutions.

Recent charge to NACIQI Recent charge to NACIQI

Secretary Duncan in December 2010 charge to Secretary Duncan in December 2010 charge to NACIQI: NACIQI:

How well does the U.S.’ $150 billion [now How well does the U.S.’ $150 billion [now $175B] investment in higher education serve us?$175B] investment in higher education serve us?

How well does accreditation protect the How well does accreditation protect the interests of the taxpayers who underwrite this interests of the taxpayers who underwrite this investment?investment?

What is the relationship between quality What is the relationship between quality assurance, continuous improvement, and assurance, continuous improvement, and compliance?compliance?

Should there be common standards for learning Should there be common standards for learning outcomes?outcomes?

NACIQI oversightNACIQI oversight ““At the request of At the request of

Education Secretary Arne Education Secretary Arne Duncan, a subcommittee of Duncan, a subcommittee of the department’s advisory the department’s advisory board on accreditation board on accreditation will will develop a set of develop a set of legislative legislative recommendations for the recommendations for the 2013 renewal of the 2013 renewal of the HEAHEA…[T]he …[T]he subcommittee ...plans to subcommittee ...plans to consider consider how to alter the how to alter the country’s decentralized country’s decentralized system of accreditationsystem of accreditation,, which has been under fire which has been under fire in recent years amid cries in recent years amid cries for more accountability….”for more accountability….”

NACIQI Discussion Draft NACIQI Discussion Draft 10/18/1110/18/11

Linkage of accreditation and Linkage of accreditation and eligibility for Title IV fundseligibility for Title IV funds

Option A: Retention of accreditation Option A: Retention of accreditation in the processin the process

Option B: Separation of Option B: Separation of accreditation from the processaccreditation from the process

Option C: Modification of the linkage Option C: Modification of the linkage between accreditation and eligibilitybetween accreditation and eligibility

If eligibility remains If eligibility remains linked…linked…

Clarify responsibilities of the TriadClarify responsibilities of the Triad Federal interest in finance AND quality Federal interest in finance AND quality

assuranceassurance Address inconsistency of state regulationAddress inconsistency of state regulation Review role and scope of accreditorsReview role and scope of accreditors Collect only useful data Collect only useful data Make data available to the public and Make data available to the public and

consumersconsumers Ensure usefulness of NACIQI as advisory Ensure usefulness of NACIQI as advisory

bodybody

Concerns among Concerns among accreditorsaccreditors

““Federalization of accreditation”Federalization of accreditation” HEOA of 2008 and subsequent HEOA of 2008 and subsequent

regulations give the federal regulations give the federal government authority overgovernment authority over Credit hoursCredit hours Transfer of creditTransfer of credit Distance education (identity tracking; Distance education (identity tracking;

state authorization)state authorization) Enrollment growthEnrollment growth Monitoring of Gainful EmploymentMonitoring of Gainful Employment

Criticisms of Criticisms of accreditationaccreditation

Commission on the Future of Higher Commission on the Future of Higher Education (Spellings Commission)Education (Spellings Commission)

Education SectorEducation Sector Center for College Affordability and Center for College Affordability and

ProductivityProductivity American Council of Trustees and American Council of Trustees and

AlumniAlumni Inside Higher EdInside Higher Ed discussions discussions

Spellings CommissionSpellings Commission

Strengthen public-private Strengthen public-private governance of accreditorsgovernance of accreditors

Develop national accreditation Develop national accreditation frameworkframework

Set expectations and build capacity Set expectations and build capacity to measure student learning to measure student learning outcomesoutcomes

Promote greater transparencyPromote greater transparency

Education SectorEducation Sector Have minimum Have minimum

standardsstandards Have aspirational Have aspirational

standardsstandards Set the turnaround clock Set the turnaround clock

to something less than to something less than foreverforever

Adopt a targeted Adopt a targeted approach to defining approach to defining learning outcomeslearning outcomes

Have a separate Have a separate accrediting body for for-accrediting body for for-profitsprofits

Center for College Center for College Productivity and Productivity and

Affordability Affordability Focus on quality control, public disclosure Focus on quality control, public disclosure

of SLOsof SLOs Eliminate “yes/no” system of accreditationEliminate “yes/no” system of accreditation Eliminate conflict of interest: accreditors Eliminate conflict of interest: accreditors

are also the accreditedare also the accredited Replace rather than reform current Replace rather than reform current

systemsystem Minimize role of single regulatory Minimize role of single regulatory

authority authority

American Council of American Council of Trustees and AlumniTrustees and Alumni

Sever the connection between eligibility for Sever the connection between eligibility for government student aid and accreditationgovernment student aid and accreditation

Trustees should become more active in the Trustees should become more active in the accreditation process accreditation process

Bring needed competition to the field of Bring needed competition to the field of accreditation by having states require that accreditation by having states require that their colleges and universities solicit bids their colleges and universities solicit bids for accrediting services for accrediting services

Accreditation associations should act more Accreditation associations should act more like business consultants than monopolies.like business consultants than monopolies.

Association of Public and Association of Public and Land-Grant UniversitiesLand-Grant Universities

Keep accreditation as a collaborative Keep accreditation as a collaborative self-improvement processself-improvement process

Make Department of Education Make Department of Education accountable for making decisions on accountable for making decisions on default rates as part of eligibility default rates as part of eligibility decisionsdecisions

Change law to make eligibility Change law to make eligibility decisions with more appropriate decisions with more appropriate criteria and proportional penaltiescriteria and proportional penalties

““Mend it; don’t end Mend it; don’t end it”it”

Doug Lederman, Doug Lederman, Inside Higher EdInside Higher Ed