Minor Thoughts from me to you

Change.edu: Rebooting for the New Talent Economy by Andrew S. Rosen

My rating: 4 of 5 stars

Andrew Rosen is the CEO of Kaplan, Inc. Most people know of Kaplan through their SAT test preparation materials. Kaplan has been busy diversifying beyond test prep and is now also running Kaplan University, home to 50,000 online students. Andrew has written Change.Edu as an explanation of what he sees wrong with the traditional college experience and what he hopes to accomplish with Kaplan University. He also answers the most common criticisms of for-profit universities.

This is a book that I highly recommend, if you're interested in where higher education is going and how we can improve educational quality while increasing the number of college graduates, while dealing with bloated government budgets.

The book is clearly laid out, with six main ideas.

1. Harvard Envy. Rosen calls this the "Ivory Tower Playbook" and says that most universities feel that "the only permissible strategy is to climb the prestige ladder". Schools are competing with each other to gain prestige, not to deliver an education. This strategy makes sense for the schools but not for society.

   Schools spend ever larger amounts of money on buildings, on attracting faculty, and on building better sports teams. Schools also compete for the best and brightest students. The result is that the school itself becomes more prestigious but doesn't increase the number of students receiving an education and doesn't even necessarily increase the quality of the education that the lucky students receive.

   The end result is that most schools are competing for the best and the brightest students. But no one is competing for the poor student or for the middle-class student that just wants to learn something, without breaking the bank.

2. Club College. In many ways, this chapter is a continuation of the criticisms of the first chapter. Many universities are focusing their attention—and their budgets—on non-academic areas. In this chapter, Rosen examines the lavish lifestyle that many universities offer to students. From dining options, to living options, to fitness facilities, to sports teams and more, many universities are competing to offer incoming students the most entertaining 4 years possible.

   All of these expenditures have nothing to do with academics and everything to do with attracting the most desirable students. Then, after those students graduate, the school can bask in the glow of their famous and accomplished alumni. The alumni, in turn, will look back on their college years with favor, leading to donations, prestige, and word of mouth marketing.

   Rosen is careful to point out that there's nothing wrong with schools wanting to be prestigious or wanting to attract top students. The problem is that schools are spending large amounts of federal, state, and local tax dollars to do so. American taxpayers are paying hundreds of billions of dollars annual to subsidize expenses that have nothing to do with actual learning.

3. Community Colleges. Theoretically, community colleges are supposed to be the solution to status obsessed or entertainment obsessed schools. They're supposed to be a low-cost alternative for the masses. Unfortunately, Rosen concludes, they're failing in their mission.

   They run their institutions based on a very different set of conventions—one I think of as the All-Access Playbook: They see their mission as providing an opportunity for everyone.

   ... Part of the problem with community colleges is the wide variety of goals and missions they are attempting to tackle. “If you visit a four-year college, you can predict what sort of student you are going to bump into,” writes New York Times columnist David Brooks. “If you visit a community college, you have no idea. You might see an immigrant kid hoping eventually to get a PhD, or another kid who messed up in high school and is looking for a second chance. You might meet a 35-year-old former meth addict trying to get some job training or a 50-year-old taking classes for fun.”

   The problem is that community colleges are dependent on state and local funding. Often, when students most want access to classes, funding is limited. Many governments can't afford to increase funding and most community colleges are unable or unwilling to raise tuition to compensate. As a result, community colleges are unable to meet the demand and students are left without options. The "All Access Model" has noble goals but is often unable to meet them.

4. Private Universities. Rosen presents private, for-profit, universities as the answer to America's education dilemma. ("How do we educate a large segment of the population efficiently and without bankrupting the nation?") Private universities are often mocked, but it's clear that they meet a need for a large number of students.

   The largest of the private-sector schools, the University of Phoenix, counted more than four hundred thousand students in 2010, an enrollment larger than the undergraduate enrollment of the entire Big Ten.

   He talks about why these schools are popular with both students and employers.

   Private-sector schools tend to align their curriculum around those skills that are most needed in the workforce. Many of these institutions have advisory boards that consult with employers to get feedback on what employers want from prospective employees in a given area, and they regularly update their curricula to teach to those skills.

   If a school is giving students the knowledge that employers most want to see, employers benefit by having an appropriately skilled workforce available and students benefit by being able to quickly and easily find jobs that utilize their new skills.

   He points out that for-profit schools are not a new institution, driven by modern greed.

   “The earliest universities in late medieval times were profit-making corporate associations, and the black gowns that professors still wear at graduations and special events have deep pockets into which students in the thirteenth and fourteenth centuries deposited their fees,” writes George Keller, an educational historian.

   ... Viewed in this light, the surge of private-sector colleges over the last generation can be seen less as a new phenomenon taking hold, and more as a long-standing and successful educational model enjoying a renaissance—largely as a result of the unsustainable funding model relied upon by the public institutions that became dominant over the last century.

   He points out that for-profit schools receive all of their revenue from student tuition. The only way they can grow, thrive, and survive is to offer students a benefit that's worth the direct tuition cost. By contrast, "at public universities, where taxpayers bear most of the costs, money from students can account for only 13 percent of the revenue." As a result, private universities are very responsive to the direct needs of students while public universities can give the impression of being contemptuous of the needs of undergraduate students.

   He talks, at length, about the culture and characteristics of private universities. Example: they don't live on donations, so you'll never have to worry about being hassled for alumni donations. For another: they don't focus on the educational inputs (teachers, buildings, libraries, etc). Instead, they focus on the educational outputs (percentage of students who graduate, percentage of graduating students who find work in their major, etc). The result is a university that feels far more focused on education than most public universities do.

   He also talks about how the private universities work to standardize their curricula, to ensure that all students receive the same quality education. As a result, their able to identify which teachers need additional help, which teachers need to be fired, and which teachers need raises. They're also able to quickly identify which students need additional help and how they can best be helped. They can also see when the curriculum itself needs to be revised, in order to better meet the needs of the students and to teach the concepts more clearly.

   By standardizing the curriculum, it is possible to measure outcomes and make continuous improvements that will ensure that each term of students is getting a better learning experience than the term before it. Over time, the compounding effect of these steady improvements will be enormous.

5. Answering the Critics. This chapter was the main reason why I bought this book. Rosen offers an extremely compelling answer to all of the criticisms of for-profit education.

   Do for-profit schools waste taxpayer money by encouraging students to sign up for lots of financial aid dollars?

   Perhaps the biggest fallacy in the debate over proprietary schools is the argument that the private sector is “wasting” taxpayer money because most of its students make use of federal financial aid programs. In fact, the truth is precisely the reverse: analyses show that private-sector colleges use substantially fewer taxpayer dollars per student than traditional institutions, a gap that widens even further when you measure them apples to apples based on the number of demographically comparable students who actually make it through to graduation. Only by comparing use of federal Title IV student aid dollars in isolation, and ignoring all other governmental contributions to higher education, can one plausibly make the case that private-sector colleges over consume taxpayer dollars.

   Do for-profit schools suck up large amounts of taxpayer money?

   ... And when it comes to direct support—government money contributed directly to institutions, as opposed to student financial aid that is based on where an individual student goes to school—the difference is even starker. “For every $1 in direct support for private for-profit institutions, per student, at federal, state and local levels, private not-for-profit institutions receive $8.69 per student and public institutions receive $19.38 per student.”

   Do for-profit schools lead students to amass large debts and then default on them?

   ... [S]tudies have shown that nonprofit schools that also serve nontraditional student populations have nearly identical default rates, and that students’ socioeconomic level is by far the dominant driver of defaults. There is a very high (91 percent) correlation between institutional default rates and the percentage of low-income, Pell Grant students at an institution.

   Do for-profit schools sucker students into taking classes that they won't benefit from?

   At Kaplan, we’ve gone a step further by making the first weeks of school “risk free.” Kaplan assesses students during the first month of each program and determines whether they evidence the ability and rigor to succeed; if not, they are asked to withdraw, without any tuition owed or debt incurred. And any student who finds that the real experience during that period does not match his or her expectations for any reason can choose to withdraw, similarly without tuition obligation. A large percentage of those who drop out do so in the first term; the “Kaplan Commitment” leaves most of these students with no debt at all.

6. The Learning Playbook. Rosen concludes with a look at how standardized curricula, online learning, and the lack of prestigious campuses could transform the face of American education. More students could receive a better education, at a lower cost. If he's right, the future is very bright. And I think he's right.