Showing posts sorted by date for query Department of Labor. Sort by relevance Show all posts
Showing posts sorted by date for query Department of Labor. Sort by relevance Show all posts

Monday, November 18, 2024

Guild Education Board Member Johny C. Taylor Jr. Short-Listed for Secretary of Labor

Johny C. Taylor Jr, President of the Society for Human Resource Management (SHRM), has been short-listed for the position of US Secretary of Labor

HEI is covering this story because Mr. Taylor is also a board member of Guild, an edtech company we have been covering since 2021. Moving forward, we are also interested in following any decisions he could make affecting labor in higher education. American labor itself is under attack as Amazon and SpaceX are challenging the constitutionality of the National Labor Relations Board.

According to his bio at SHRM, Johny C. Taylor Jr. has held senior and chief executive roles at IAC/InteractiveCorp, Viacom's Paramount Pictures, Blockbuster Entertainment Group, the McGuireWoods law firm, and Compass Group USA. Most recently, Mr. Taylor was President and Chief Executive Officer of the Thurgood Marshall College Fund. He previously served on the White House American Workforce Policy Advisory Board and as chairman of the President's Advisory Board on Historically Black Colleges and Universities during the Trump Administration.

An African American man whose salary at SHRM is greater than $1.3 million a year, Taylor has been a proponent of Diversity, Equity, and Inclusion in the workplace. But as the chief executive of SHRM, he would be an opponent of unions.

Guild, formerly known as Guild Education, works for Fortune 500 companies like Walmart, Disney, JP Morgan Chase, and Chipotle to train and retrain workers as the workforce is systematically reduced through technology. Guild has been in financial decline after being lauded by Forbes and other business media.

If he is selected for the Department of Labor or any other government post, we'll have to see if Mr. Taylor's work at SHRM, Guild, or his other board seats affects management decisions, especially if the organization he manages is forced to downsize.  

Friday, November 15, 2024

Seeking Whistleblowers in Higher Education

The Higher Education Inquirer is seeking whistleblowers who can tell us what is happening in higher education as the Trump Administration takes control over the federal government. The information needs to be reliable and credible. Leads are fine, but verifiable documents are better. 

We are particularly interested in obtaining information related to the US Department of Education, Department of Homeland SecurityDepartment of Veterans Affairs, Department of Defense, Department of Labor, the Federal Trade Commission, and other agencies related to higher education and employment. 

We are also interested in those involved in higher education administration and finance, particularly at elite universities and state flagship universities. With a few exceptions, we expect university presidents at elite universities to stay quiet, clamp down further on dissent and fall in line with any new policies, as the threat to tax them at higher rates becomes a concern. 

In the past we have relied heavily on Freedom of Information Act requests, which often take months, and multiple efforts, to obtain important data. Sometimes the information is delayed for years or never comes. And right now, we can't afford to wait.  

Since 2016, HEI has recruited a number of courageous people for inside information about for-profit colleges.  This has included informants from the University of Phoenix, Ashford University (aka University of Arizona Global), and Kaplan University (aka Purdue University Global) and the lead generators they schools have hired. 

We have also communicated with people associated with online program managers, such as 2U and Academic Partnerships.  

All of this information has been helpful in exposing the back rooms of the higher education business

Now, more than ever, we need information that folks won't find anytime soon in other news outlets.  News that workers, consumers, and their families can use to make better decisions about their life choices. 

Friday, November 8, 2024

Chancellor Martin: Public Means Public (Neil Kraus)

Recently, Chancellor Mike Martin laid out his views on UWRF (the University of Wisconsin River Falls) and higher education in the Student Voice.  I’d like to offer a very different perspective on public higher education.  But given his stated belief in the importance of making the case that higher education is a public good, I believe that Chancellor Martin would agree with my argument.

Chancellor Martin correctly stated that: “In an attempt to appeal to students, we told students, if you get a degree, here’s what your lifelong income is going to be. We made it a private good. When it’s a private good, and then asking the public to pay for it, you’ve got to disconnect, right?”  He then went on to say that: “And I think we need to return not just in Wisconsin, but across public higher education, to the argument that what we have is also a very powerful public good.”

I agree completely.  For many decades, higher education has been made into a private good.  This resulted from the unquestioned dominance of human capital theory, which, as an economist, Chancellor Martin is certainly well-versed in.  In brief, human capital theory promulgates the notion that one’s income is – and should be – tied to one’s education and training levels.

Politically, of course, this framing set up education to fail, which explains our current predicament.  The education system cannot change the jobs that exist or wage levels.  The education system educates.

Yet education is very intentionally and incorrectly held responsible for a predominately low wage, low education labor market.  As a result, decades ago it became politically acceptable to cut public higher education spending perpetually, even during the current period of fiscal prosperity.

This is just politics.  Business and the wealthy want to talk solely about education as the path to economic opportunity because it is in their self-interests to do so.  Because when we’re talking about education, we’re not talking about an economy that has been intentionally constructed for owners and shareholders while it leaves a significant majority of workers behind.

Yet Chancellor Martin inadequately addressed the role that the legislature plays in our public institution when he states: “But if the legislature isn’t going to solve it for you, you better damn well solve it for yourself….But the bottom line, it comes back to what can this institution do innovatively.”

When Chancellor Martin refers to “change in the wind,” he fails to mention who’s in charge of the wind machine.  He seems to be arguing in favor of a fully privatized UWRF, a campus funded by donors, corporations, and foundations, which will necessarily reflect their narrow economic interests.  Private funders have no interest in training students for the larger labor market let alone to be well informed, democratic citizens.

Chancellor Martin’s analysis implies our defunded public institution will never receive any funding increases in the future, which would effectively make it a public institution in name only.  This is the narrative we’ve been hearing from all our administrators since last school year, and it appears to be coming directly from the UW System.

But it is a hopeless narrative, and particularly demoralizing and utterly incomprehensible at a time when the state is drowning in money and the UW System continues to spend tens of millions on software and consultants as our campuses shed faculty, staff, and academic programs.

Is this even real?

The word “public” means something very specific: if a good is public, it means it is paid for with tax dollars, not with private dollars.  The military, the local police department, city park, and school district are public institutions.  Public higher education, on the other hand, has been largely privatized because of decisions made by elected officials.

But we can’t be public and rely on private funds.  That’s not what public means.

Private funders – which represent a miniscule slice of the population -- have their own interests.  They’re primarily interested in getting workers for their narrow industries.

And the question of priorities hangs over the Chancellor’s interview.  The UW System has made its priorities clear – we will continue to purchase, without question, more and more expensive software (most of which we don’t need), as we get rid of faculty, staff, and academic programs.

For all the talk of budget cuts on campus, I’ve yet to hear anyone in front of the room say: “You know, I’m sorry, but we just can’t afford [fill in expensive tech product here] anymore.”  Our leaders only tell us they can’t afford employees.

And Chancellor Martin asserts, yet provides no evidence for, the claim that the campus has surplus capacity. I’ve been at UWRF since 2005, and it’s common knowledge that we have far fewer tenured and tenure track faculty positions now in the College of Arts and Sciences than we had several years ago.

But I’m all for data analysis, so let’s make data-informed decisions.

I’ll say again that Chancellor Martin is correct when he states that public higher education is “a very powerful public good.”  But making this case while moving full steam ahead for a privatized UWRF is a massive contradiction in terms.

The public wants affordable, quality, comprehensive, in-person, public higher education.  And in this state, the only way to get this is by attending a UW institution.  Corporate interests want the opposite of all these things.  They want to not pay taxes and make as much money as possible.  This isn’t complicated.

If we go further down the path of privatization – which is clearly the path sought by the UW System -- we directly undermine the notion that higher education is a public good.  More importantly, we will be providing our students with an inferior, expensive, tech-heavy, narrowed educational experience.  We will be walking away entirely from the Wisconsin Idea.

Public means public.  I ask Chancellor Martin to stand with AFT-Wisconsin for comprehensive, in-person, public higher education that prioritizes students and the public over corporations and the wealthy.


Neil Kraus is a Professor of Political Science at the University of Wisconsin, River Falls since 2005, President of United Falcons, the local chapter of AFT-Wisconsin, and author of three books, including The Fantasy Economy: Neoliberalism, Inequality, and the Education Reform Movement (Temple University Press, 2023).

This article first appeared in the UWRF Student Voice

Thursday, October 31, 2024

Why the Higher Education Inquirer Continues to Gain Popularity

The Higher Education Inquirer (HEI) continues to grow, with no revenues, no advertising, and no SEO help. And for good reason. HEI fills a niche for student/consumers and workers and their allies. It provides valuable information about how the US higher education system works and what folks can do to navigate that system. 


We cover layoffs and union organizing and strikes in higher education, and we expose predators with some degree of risk-risk that other outlets often won't take. We take a stand on holding big business accountable and we side with struggling student debtors and their families. We question and interrogate higher ducation technology and credentialsAnd we dispel myths, disinformation, and hype. 

We research documents of all sorts, including information from the US Department of Education, Securities and Exchange Commission, Department of Veterans Affairs, Department of Defense, Department of Labor, and Federal Election Commission

The Higher Education Inquirer provides trustworthy information and expert opinions and analysis. Our list of authors is diverse and impressive, for many reasons. HEI treats our readers with respect. It gives students and workers a voice, accepting information and evidence from whistleblowers. And it allows for comments (including anonymous comments), comments that we value. 

When others do accept our research, we appreciate it. HEI has been a background source for the NY Times, Bloomberg, Chronicle of Higher Education, ProPublica, Forbes, Military Times, the American Prospect, and several other outlets. We strive to be ahead of the learned herd.  


Wednesday, October 2, 2024

What would a second Trump administration mean for higher education? Summing up Project 2025 (Bryan Alexander)

[Editor's Note: This article first appeared at BryanAlexander.org.]

What happens to higher education if Trump wins November’s election?

We’ve been exploring this question over the past year, including months of reading, analysis, reflection, and conversation about Project 2025 might mean for higher education. Today I’d like to sum up what we found.

The book, Mandate for Leadership, addresses academia directly on multiple levels. I’ll break them down here. The implications for the broader society within which colleges and universities exist – that’s a subject for another post.

I’ve organized the various ideas and threads into several headers: the Department of Education, higher education economics, international education and research, research supported and opposed, military connections, sex education, and anti-intellectualism.

Higher education and the Department of Education Many accounts of Project 2025’s educational impact draw attention to its attack on the Department of Education, which makes sense, since this is where the document focuses its academic attention. to begin with, Mandate for Leadership wants to break up the DoE and distribute its functions to other federal units. For example, the work the Office for Postsecondary Education (OPE) does would move to the Department of Labor, while “programs deemed important to our national security interests [shift] to the Department of State.” (327).

It would revise the student loan system to a degree. “Federal loans would be assigned directly to the Treasury Department, which would manage collections and defaults.” (327-330) Income-based repayment schemes would continue, but with restrictions. (337-8) Project 2025 would end the Biden team’s Public Service Loan Forgiveness program, along with “time-based and occupation-based student loan forgiveness” plans. (361) More ambitiously, the new government could just privatize loans. (353)

The chapter’s author also calls for “rejecting gender ideology and critical race theory” in the department or through its successor units. (322) This might also proceed via changes to one law, as a new secretary would “[w]ork with Congress to amend Title IX to include due process requirements; define “sex” under Title IX to mean only biological sex recognized at birth; and strengthen protections for faith-based educational institutions, programs, and activities.” (333) This culture war move could have another legal feature, given the call to amend FERPA in order to make it easier for college students to sue the government for privacy violations, in response to school support of transgender and nonbinary students. (344-346)

The obverse of these moves is having the new DoE or its replacements “promulgat[ing] a new regulation to require the Secretary of Education to allocate at least 40 percent of funding to international business programs that teach about free markets and economics.” Additionally, the government would “require institutions, faculty, and fellowship recipients to certify that they intend to further the stated statutory goals of serving American interests,” although it’s unclear what that would mean in practice. (356)

This section’s author, Lindsay Burke, also wants the next administration to change its relationship with post-secondary accreditors. She supports Florida’s new policy of requiring public universities to cycle through accrediting agencies. (332) Burke also wants to encourage new accreditors to start up. (355) Her chapter further calls for a new administration to prevent accreditation agencies from advocating for diversity, equity, and inclusion (DEI) work on campuses. (352)

The economics of higher education The Department of Education chapter would see a revamped Department of Education or its successors “[r]equir[ing]… ‘skin in the game’ from colleges to help hold them accountable for loan repayment.” (341) I can’t see how this would work in detail. Her new federal administration would also reduce funding to academic research by cutting reimbursement for indirect costs. (355)

That section also wants to reduce the labor market’s demand for post-secondary degrees. Under the header “Minimize bachelor’s degree requirements” we find: “The President should issue an executive order stating that a college degree shall not be required for any federal job unless the requirements of the job specifically demand it.” (357). Later on in the book, the Department of Labor section section also calls on Congress to end college degree requirements for federal positions. (597) That chapter wants to boost apprenticeships, mostly likely in competition with college and university study. (594-5)

International research and education. Cutting down immigration is a major Project 2025 theme, and the book does connect this to academia. It calls out international students like so:
ICE should end its current cozy deference to educational institutions and remove security risks from the program. This requires working with the Department of State to eliminate or significantly reduce the number of visas issued to foreign students from enemy nations. (141)

First, this would impact many would-be students’ careers. Second, implementing such a policy would likely depress international student interest.

Project 2025 consistently focuses on China as America’s enemy, and this means it wants United States higher education to decouple from that adversary or else face consequences. For example, the introduction warns that “[u]niversities taking money from the CCP should lose their accreditation, charters, and eligibility for federal funds.” Later in the text is some language about the government and universities supporting American but not Chinese research and development. (100) Another section sees “research institutions and academia” playing a role in Cold War 2.0:
Corporate America, technology companies, research institutions, and academia must be willing, educated partners in this generational fight to protect our national security interests, economic interests, national sovereignty, and intellectual property as well as the broader rules-based order—all while avoiding the tendency to cave to the left-wing activists and investors who ignore the China threat and increasingly dominate the corporate world. (emphases added; 218)

Later on, the Department of Justice discussion offers this recommendation:

key goals for the China Initiative that included development of an enforcement strategy concerning researchers in labs and universities who were being coopted into stealing critical U.S. technologies, identification of opportunities to address supply-chain threats more effectively, and education of colleges and universities about potential threats from Chinese influence efforts on campus. (556)

This seems to describe increased DoJ scrutiny over colleges and universities. I’m not sure what “education… about potential threats” means, although I suspect it might include pressure on academics.

The Department of Commerce section wants to “[t]ighten… the definition of ‘fundamental research’ to address exploitation of the open U.S. university system by authoritarian governments through funding, students and researchers, and recruitment” (673) More succinctly, that chapter calls for strategic decoupling from China (670, 674). We can imagine a new federal administration – along with, perhaps, state governments, businesses, nonprofits, and foundations – asking academia to play its role in that great separation. One of the trade policy chapters broods about how “more than 300,000 Communist Chinese nationals attend U.S. universities” and it’s hard not to see this as a call for reducing that number. (785)

That chapter’s author, Peter Navarro, condemns one leading American university for allegedly enabling Chinese power:

Huawei, well-known within the American intelligence community as an instrument of Chinese military espionage, has partnered with the University of California–Berkeley on research that focuses on artificial intelligence and related areas such as deep learning, reinforcement learning, machine learning, natural language processing, and computer vision, all of which have important future military applications.28 In this way, UC–Berkeley, whether unwittingly or wittingly, helps to boost Communist China’s capabilities and quest for military dominance. (785-6)

I can’t help but read this as a call for federal scrutiny of academic international partnerships, with sanctions in the wings.

Project 2025 looks at other regions of the globe and wants higher education to help. For example, the State Department chapter calls on American campuses to assist its African policy: “The U.S. should support capable African military and security operations through the State Department and other federal agencies responsible for granting foreign military education, training, and security assistance.” (187)

Other federal units come in for transformation which impacts colleges and universities. One chapter calls for “reinstituti[ng] the National Security Higher Education Advisory Board.” (Wikipedia; 218) The USAID chapter would cut some post-secondary support, based on the argument that “[w]e must admit that USAID’s investments in the education sector, for example, serve no other purpose than to subsidize corrupt, incompetent, and hostile regimes.” (275)

Support for and opposition to research Project 2025 consistently calls for research and development, at least in certain fields. The Department of Energy chapter enthusiastically promotes science. That chapter also tends to pair research with security, so we might infer increased security requirements for academic energy work. Alternative energy and decarbonization research would likely not receive federal support from McNamee’s departments, as he might see them as a “threat to the grid.” (373)

The document also calls for transparency many times, which might benefit academics as it could (should it occur) give greater access to more documentation. One passage actually uses the language of open source code: “True transparency will be a defining characteristic of a conservative EPA. This will be reflected in all agency work, including the establishment of opensource [sic] science, to build not only transparency and awareness among the public, but also trust.” (417)

On the flip side, Project 2025 opposes climate research throughout. For a sample of the intensity of this belief,

Mischaracterizing the state of our environment generally and the actual harms reasonably attributable to climate change specifically is a favored tool that the Left uses to scare the American public into accepting their ineffective, liberty-crushing regulations, diminished private property rights, and exorbitant costs. (419)

That passage exists in the Environmental Protection Agency chapter, and fits into its author’s desire to cut back the EPA in general, but particularly to end its support for academic research. There are specific examples, such as “[r]epeal[ing] Inflation Reduction Act programs providing grants for environmental science activities” (440). This is also where we see a sign of Project 2025’s desire to get more political appointees into federal positions. There would be “a Science Adviser reporting directly to the Administrator in addition to a substantial investment (no fewer than six senior political appointees) charged with overseeing and reforming EPA research and science activities.” (436) That would have further negative effects on academic work.

Later on, the Department of Transportation chapter calls for shutting down the National Oceanographic and Atmospheric Administration (NOAA). Why? NOAA is “one of the main drivers of the climate change alarm industry and, as such, is harmful to future U.S. prosperity.” (675) Faculty, staff, and students who rely on NOAA would lose out.

Military and civilian higher education There are many connections here, reflecting a view that all of academia can contribute in an instrumental way to American military and foreign policy goals, while also being reformed by a new administration. For example, the text calls for reforming post-secondary military education, asking a new government to “[a]udit the course offerings at military academies to remove Marxist indoctrination, eliminate tenure for academic professionals, and apply the same rules to instructors that are applied to other DOD contracting personnel.” (104)

There’s also an idea for creating a new military academy, a Space Force Academy:
to attract top aero–astro students, engineers, and scientists and develop astronauts. The academy could be attached initially to a large existing research university like the California Institute of Technology or MIT, share faculty and funding, and eventually be built separately to be on par with the other service academies. (119)

Related to this, a later discussion calls for the creation of a new academic institution dedicated to financial warfare:

Treasury should examine creating a school of financial warfare jointly with DOD. If the U.S. is to rely on financial weapons, tools, and strategies to prosecute international defensive and offensive objectives, it must create a specially trained group of experts dedicated to the study, training, testing, and preparedness of these deterrents. (704)

Earlier in the book there’s some discussion of reforming the Pentagon’s purchasing systems calls for spreading some Defense Acquisition University (DAU) functions to “include accreditation of non-DOD institutions” – i.e., potentially some civilian institutions. (98)

Project 2025 would reverse certain Biden- and Obama-era human rights provisions for military academies’ faculty, staff, and students. It calls for “individuals… with gender dysphoria [to] be expelled from military service…” (103)

Sex education, research, support for student life All of this appears under threat. Here’s the relevant passage from the introduction, a shocking response to pornography: “Educators and public librarians who purvey [pornography] should be classed as registered sex offenders. And telecommunications and technology firms that facilitate its spread should be shuttered.” (5) This seems aimed at K-12 schools, where so much culture war battling has occurred, but we shouldn’t assume higher education would escape. Remember that it’s a common strategy for critics to label sex education and research materials as porn.

Anti-intellectualism Project 2025 respects knowledge and skills insofar as they assist with making a new administration succeed, but is at the same time very skeptical of their role in broader society, when formally recognized. It wants universities to develop new technologies, but not to advance DEI. For a clear sense of what I’m talking about, here’s the introduction’s take on credentials:

Intellectual sophistication, advanced degrees, financial success, and all other markers of elite status have no bearing on a person’s knowledge of the one thing most necessary for governance: what it means to live well. That knowledge is available to each of us, no matter how humble our backgrounds or how unpretentious our attainments. It is open to us to read in the book of human nature, to which we are all offered the key just by merit of our shared humanity. (10)

One could respond that most of the book’s authors possess intellectual sophistication and/or advanced degrees and/or financial success, but that’s part of the conservative populist paradigm.

Summing up, Project 2025 presents multiple challenges, threats, and dangers to American higher education. Proposed policies strike at academic teaching, research, finances, autonomy, and some of the most vulnerable in our community. It outlines routes for expanded governmental surveillance of and action upon colleges and universities, not to mention other parts of the academic ecosystem, such as accreditors and public research entities.

Keep in mind that Project 2025 isn’t necessarily a total guide to a potential Trump administration. The candidate has denounced it and led the publication of another platform. I’d like to explore that document next. We should also track Trump’s various pronouncements, such as his consistent desire to deport millions of people. For that alone we should expect a major impact on higher education.

Yet Project 2025 draws deeply on Republican politicians and office holders, not to mention conservative thinking. It seems fair to expect a new administration to try realizing at least a chunk of it, if not more.

What do you think of this sketch of a potential Trump administration?

Thursday, July 25, 2024

2U Declares Chapter 11 Bankruptcy. Will Anyone Else Name All The Elite Universities That Were Complicit?

2U declared Chapter 11 bankruptcy today and the company is now valued at less than $5M. That's a small shadow of the $5.4B perceived value it had in mid-2018.

As a company that will be owned and operated by vulture capitalists (VCs), 2U (TWOU) and its subsidiary edX will fall below the radar. But that won't stop the company from ensnaring more students for overpriced "elite" and "brand name" degrees and certificates--as it tries to survive. In fact, it might make it easier. The visible economic market and its media won't care anymore. 

According to Higher Education Dive, backers of the latest scheme include three vulture capital firms: Mudrick Capital Management (Madison Avenue in NYC), Greenvale Capital (London) and Bayside Capital (Miami/London). 

Somehow, these VC firms will try to extract value from the bankruptcy deal. But how they do that is a mystery. C-suite executives have already gotten some of their bonuses, leaving little else for workers. Reducing labor costs (firing people) will be essential. Not paying their bills is another. Continuing to deceive consumers would be difficult to change. Even after the deal, 2U will still be laden with more than $400M in debt.

Since 2019, we have tried to expose 2U and its business practices, as well as the role of elite university partners in enabling the sale of advanced degrees and edtech certificates that led to few good jobs and lots of consumer debt.  When they acquired edX from Harvard and MIT for $800M, we doubled down.

The Higher Education Inquirer has been the only outlet to name the elite schools that were complicit in this scheme that took money away from consumers just trying to get ahead. Not just USC, but Harvard and MIT, and Yale, and Cal Berkeley, and the University of North Carolina, and Syracuse, and Pepperdine, and many others. Check out the links below to learn more about how this higher ed scheme developed and collapsed. And how this is just the latest wave of edugrift. 

 


Related links:

HurricaneTWOU.com: Digital Protest Exposes Syracuse, USC, Pepperdine, and University of North Carolina in 2U edX Edugrift (2024)

2U-edX crash exposes the latest wave of edugrift (2023)

2U Virus Expands College Meltdown to Elite Universities (2019)

Buyer Beware: Servicemembers, Veterans, and Families Need to Be On Guard with College and Career Choices (2021)

College Meltdown 2.1 (2022)

EdTech Meltdown (2023)  

Erica Gallagher Speaks Out About 2U's Shady Practices at Department of Education Virtual Listening Meeting (2023)

Wednesday, February 21, 2024

Trump 2024 and the Student Loan Portfolio

The US Department of Education (ED) handles the student loans of about 40 million US citizens, holding on to about $1.6 Trillion in debt--which is considered an asset to the US government.  And ED-FSA (Federal Student Aid) hires tens of thousands of workers, mostly contractors, to service the debt. But that could change in a few years. If Donald Trump is elected President.  

Under President Trump, debtors might expect that their loans to be transferred over to large corporations--at some point--with the sale being used to reduce the federal deficit, and to cut labor at ED. This would aid in the effort to eliminate the US Department of Education, as Trump has promised on the campaign trail.

Selling off the student loan debt portfolio may or may not require approval from anyone outside of the President. At least one study, by McKinsey & Company, has already been conducted regarding this possibility. 

In 2019, the Trump administration hired McKinsey to analyze the $1.5 trillion federal student loan portfolio. This analysis was part of a broader effort to explore options for managing the portfolio, including potentially selling off some of the debt. Results were never published. The analysis was conducted alongside a study by FI Consulting, which focused on the economic value of the portfolio, noting that the valuation could vary depending on future default rates, prepayment rates, and economic conditions.

The new owners of the sold off debt would most likely be big banks and other large companies, both domestic and foreign, that find value in the debt. There would be political and social resistance.  And many questions would need to be answered, in detail.

Would large banks or other large corporations be better stewards of the debt?

Would the bidding be transparent?  

Would consumers be able to challenge loan repayments or ask for forgiveness?  

What would happen to the contracts of the existing debt servicers?  

Will this expand the existing Student Loan Asset-Backed Securities market? 


Related link:

The Student Loan Mess Updated: Debt as a Form of Social Control and Political Action

Wednesday, February 7, 2024

Robocollege Update

 


Robocolleges are a mix of for-profit and non-profit online colleges, both secular and Christian.  Their focus is on automation and reduced costs, particularly labor costs:

Instruction is delivered through automated Learning Management Systems (LMS) and online platforms, relying less on professors and more on pre-recorded lectures and automated grading. Even support staff are being replaced by chatbots.  

While some qualified individuals might be involved, educational content is often developed by large teams with varying expertise, potentially sacrificing quality for cost-effectiveness.

Marketing and advertising continue to be costly. But targeting marketing (e.g. targeting military service members and veterans, teachers, nurses, and government workers in low-income neighborhoods) can improve cost efficiency. 

Robocolleges offer degrees with a wide range of value to consumers (return on investment versus debt).  For people who need a degree (or an advanced degree) to play the game in government and medicine, these credentials may have value. 

Competency-based education and credits for life experience reduce the number of courses some students need to graduate.  Servicemembers going to Purdue Global, for example, can get an AA with as few as five college courses and a BS with as little as seven additional courses.

Cheating is probably easier for online students who are so inclined and whether these companies care is not really known.  

Southern New Hampshire (SNHU) continues to be the growth and efficiency leader, with the highest enrollment, more than 160,000 students. SNHU is also experimenting with artificial intelligence to reduce labor costs. In addition, SNHU works with Guild (aka Guild Education), which recruits workers from Walmart, Target, Waste Management, and other large employers.  

Grand Canyon (for-profit) and Liberty University (non-profit) target Christians for online credentials.  But oppressive debt is a concern with some of their programs. Social mobility for students is subpar.  

Purdue University Global and University of Arizona, Global Campus are two former for-profit colleges now owned by state universities. Information about their financial status is sketchy. Like SNHU, Purdue Global works with Guild to recruit working folks.  Purdue Global owes its online program manager. Kaplan Education, about $128 million.  Arizona Global has had financial difficulties which have affected the University of Arizona's bottom line.  

The University of Phoenix has returned to profitability by reducing instruction and student services by $100 million a year and legal costs by $50 million a year.  Consumers continue to file fraud complaints by the tens of thousands.  And debt is an enormous problem with former students.  It's not apparent whether Phoenix can maintain such enormous profits, but its future as a non-profit affiliated with the University of Idaho may reduce its tax burden and legal liabilities. 

Here are the most recent numbers from the US Department of Education College Navigator:

American Intercontinental University: 89 full-time instructors for 14,333 students.
American Public University System has 332 F/T instructors for 48,688 students.
Aspen University has 27 F/T instructors for 7,386 students.
Capella University: 180 F/T for 39,727 students.
Colorado State University Global: 40 F/T instructors for 9,565 students.
Colorado Technical University: 55 F/T instructors for 24,808 students.
Devry University online: 61 F/T instructors for 26,384 students.
Grand Canyon University has 550 F/T instructors for 101,816 students.*
Liberty University: 735 F/T for 96,709 students.*
Purdue University Global: 337 F/T instructors for 45,125 students.
South University: 41 F/T instructors for 7,707 students.
Southern New Hampshire University: 130 F/T for 164,091 students.
University of Arizona Global Campus: 122 F/T instructors for 34,190 students.
University of Maryland Global: 177 F/T instructors for 55,838 students.
University of Phoenix: 80 F/T instructors for 88,891 students.
Walden University: 235 F/T for 42,312 students.

*Most F/T faculty serve the ground campuses that profit from the online schools. 

 

Related links:


Robocolleges, Artificial Intelligence, and the Dehumanization of Higher Education (2023)

 

 

 

 

Tuesday, January 16, 2024

My 2024 Higher Education Finance Reading List (Robert Kelchen)

[Editor's note: This article first appeared at the Kelchen on Education blog.]

As a department head, I typically only teach one class per year. This spring, I get to teach my PhD class in higher education finance again—the eighth time that I have taught it in my eleven-year faculty career. Each time, I have updated the readings considerably as the field is moving quickly and I figure out what works best for the students. I use articles, working papers, news coverage, and other online resources to provide a current look at the state of higher education finance.

The format that I have taught the class using has also changed frequently over time due to what works best for the program and other events of the past several years. Here are reading lists from previous years and how I have taught the class:

Summer 2023: Accelerated five-week format, mix of asynchronous and online synchronous

Spring 2022: Online synchronous, meeting one evening per week

Spring 2020: Met one Saturday per month, started out in person but moved to Zoom halfway through due to the pandemic

Fall 2017: In person, meeting one evening per week

This spring, I am back to teaching the class in person one evening per week for the first time in nearly seven years. Here is the reading list I am assigning my students for the course. I link to the final versions of the articles whenever possible, but those without access to an academic library should note that earlier versions of many of these articles are available online via a quick Google search.

The higher education finance landscape and data sources

Chetty, R., Friedman, J. N., Saez, E., Turner, N., & Yagan, D. (2017). Mobility report cards: The role of colleges in intergenerational mobility. Working paper. (link)

Schanzenbach, D. W., Bauer, L., & Breitwieser, A. (2017). Eight economic facts on higher education. The Hamilton Project. (link)

Webber, D. A. (2021). A growing divide: The promise and pitfalls of higher education for the working class. The ANNALS of the American Academy of Political and Social Science, 695, 94-106. (link)

Recommended data sources:

College Scorecard: https://collegescorecard.ed.gov/ (underlying data at https://collegescorecard.ed.gov/data/)

Equality of Opportunity Project: http://www.equality-of-opportunity.org/college

IPEDS: https://nces.ed.gov/ipeds/use-the-data

NCES Data Lab: https://nces.ed.gov/datalab/index.aspx

Postsecondary Value Commission’s Equitable Value Explorer: https://www.postsecondaryvalue.org/equitable-value-explorer/

ProPublica’s Nonprofit Explorer: https://projects.propublica.org/nonprofits/

Urban Institute’s Data Explorer: https://educationdata.urban.org/data-explorer/colleges/

Institutional budgeting

Barr, M.J., & McClellan, G.S. (2010). Understanding budgets. In Budgets and financial management in higher education (pp. 55-85). Jossey-Bass. (link)

Jaquette, O., Kramer II, D. A., & Curs, B. R. (2018). Growing the pie? The effect of responsibility center management on tuition revenue. The Journal of Higher Education, 89(5), 637-676. (link)

Rutherford, A., & Rabovsky, T. (2018). Does the motivation for market-based reform matter? The case of responsibility-centered management. Public Administration Review, 78(4), 626-639. (link)

University of Tennessee System’s FY2024 budget: https://finance.tennessee.edu/budget/documents/

University of Tennessee System’s FY2022 annual financial report: https://treasurer.tennessee.edu/reports/

UTK’s Budget Allocation Model (responsibility center management) website: https://budget.utk.edu/budget-allocation-model/

Higher education expenditures


Archibald, R. B., & Feldman, D. H. (2018). Drivers of the rising price of a college education. Midwestern Higher Education Compact. (link)

Commonfund Institute (2023). 2023 higher education price index. (link)

Griffith, A. L., & Rask, K. N. (2016). The effect of institutional expenditures on employment outcomes and earnings. Economic Inquiry, 54(4), 1931-1945. (link)

Hemelt, S. W., Stange, K. M., Furquim, F., Simon, A., & Sawyer, J. E. (2021). Why is math cheaper than English? Understanding cost differences in higher education. Journal of Labor Economics, 39(2), 397-435. (link)

Korn, M., Fuller, A., & Forsyth, J. S. (2023, August 10). Colleges spend like there’s no tomorrow. ‘These places are just devouring money.’ The Wall Street Journal. (link)

The financial viability of higher education

Britton, T., Rall, R. M., & Commodore, F. (2023). The keys to endurance: An investigation of the institutional factors relating to the persistence of Historically Black Colleges and Universities. The Journal of Higher Education, 94(3), 310-332. (link)

Ducoff, N. (2019, December 9). Students pay the price if a college fails. So why are we protecting failing institutions? The Hechinger Report. (link)

Jesse, D., & Bauman, D. (2023, November 13). This small college was out of options. Will its creditors give it a break? The Chronicle of Higher Education. (link)

Massachusetts Board of Higher Education (2019). Final report & recommendations. Transitions in higher education: Safeguarding the interest of students (THESIS). (link)

Sullivan, G. W., & Stergios, J. (2019). A risky proposal for private colleges: Ten reasons why the Board of Higher Education must rethink its plan. Pioneer Institute. (link)

Tarrant, M., Bray, N., & Katsinas, S. (2018). The invisible colleges revisited: An empirical review. The Journal of Higher Education, 89(3), 341-367. (link)

State and sources of revenue

Chakrabarti, R., Gorton, N., & Lovenheim, M. F. (2020). State investment in higher education: Effects on human capital formation, student debt, and long-term financial outcomes of students. National Bureau of Economic Research Working Paper 27885. (link)

Gándara, D. (2023). “One of the weakest budget players in the state”: State funding of higher education at the onset of the COVID-19 pandemic. Educational Evaluation and Policy Analysis. (link)

Kelchen, R., Ortagus, J. C., Rosinger, K. O., Baker, D., & Lingo, M. (2023). The relationships between state higher education funding strategies and college access and success. Educational Researcher. (link)

Kunkle, K., & Laderman, S. (2023). State higher education finance: FY 2022. State Higher Education Executive Officers Association. (link)

Ortagus, J. C., Kelchen, R., Rosinger, K. O., & Voorhees, N. (2020). Performance-based funding in American higher education: A systematic synthesis of the intended and unintended consequences. Educational Evaluation and Policy Analysis, 42(4), 520-550. (link)

Tennessee’s outcomes-based funding formula: https://www.tn.gov/thec/bureaus/ppr/fiscal-policy/outcomes-based-funding-formula-resources/2020-25-obf.html

Federal sources of revenue

Bergman, P., Denning, J. T., & Manoli, D. (2019). Is information enough? The effect of information about education tax benefits on student outcomes. Journal of Policy Analysis and Management, 38(3), 706-731. (link)

Black, S. E., Turner, L. J., & Denning, J. T. (2023). PLUS or minus? The effect of graduate school loans on access, attainment, and prices. National Bureau of Economic Research Working Paper 31291. (link)

Graddy-Reed, A., Feldman, M., Bercovitz, J., & Langford, W. S. (2021). The distribution of indirect cost recovery in academic research. Science and Public Policy, 48(3), 364-386. (link)

Kelchen, R., & Liu, Z. (2022). Did gainful employment regulations result in college and program closures? Education Finance and Policy, 17(3), 454-478. (link)

Ward, J. D. (2019). Intended and unintended consequences of for-profit college regulation: Examining the 90/10 rule. Journal of Student Financial Aid, 48(3), Article 4. (link)

College pricing, tuition revenue, and endowments

Baker, D. J. (2020). “Name and shame”: An effective strategy for college tuition accountability? Educational Evaluation and Policy Analysis, 42(3), 1-24. (link)

Baum, S., & Lee, V. (2018). Understanding endowments. Urban Institute. (link)

Delaney, T., & Marcotte, D. E. (2023). The cost of public higher education and college enrollment. The Journal of Higher Education. (link)

Kelchen, R., & Pingel, S. (2023). Examining the effects of tuition controls on student enrollment. Research in Higher Education. (link)

Knox, L. (2023, December 4). Seeking an enrollment Hail Mary, small colleges look to athletics. Inside Higher Ed. (link)

Ma, J., & Pender, M. (2023). Trends in college pricing and student aid 2023. (link)

Webber, D. A. (2017). State divestment and tuition at public institutions. Economics of Education Review, 60, 1-4. (link)

Financial aid policies, practices, and impacts

Anderson, D. M., Broton, K. M., Goldrick-Rab, S., & Kelchen, R. (2020). Experimental evidence on the impacts of need-based financial aid: Longitudinal assessment of the Wisconsin Scholars Grant. Journal of Policy Analysis and Management, 39(3), 720-739. (link)

Billings, M. S., Clayton, A. B., & Worsham, R. (2022). FAFSA and beyond: How advisers manage their administrative burden in the financial aid process. Journal of Student Financial Aid, 51(2), Article 2. (link)

Dynarski, S., Page, L. C., & Scott-Clayton, J. (2022). College costs, financial aid, and student decisions. National Bureau of Economic Research Working Paper 30275. (link)

LaSota, R. R., Polanin, J. R., Perna, L. W., Austin, M. J., Steingut, R. R., & Rodgers, M. A. (2022). The effects of losing postsecondary student grant aid: Results from a systematic review. Educational Researcher, 51(2), 160-168. (link)

Page, L. C., Sacerdote, B. I, Goldrick-Rab, S., & Castleman, B. L. (2023). Financial aid nudges: A national experiment with informational interventions. Educational Evaluation and Policy Analysis, 45(2), 195-219. (link)

Student debt and financing college

Baker, D. J. (2019). When average is not enough: A case study examining the variation in the influences on undergraduate debt burden. AERA Open, 5(2), 1-26. (link)

Black, S. E., Denning, J. T., Dettling, L. J., Goodman, S., & Turner, L. (2020). Taking it to the limit: Effects of increased student loan availability on attainment, earnings, and financial well-being. American Economic Review, 113(12), 3357-3400. (link)

Boatman, A., Evans, B. J., & Soliz, A. (2017). Understanding loan aversion in education: Evidence from high school seniors, community college students, and adults. AERA Open, 3(1), 1-16. (link)

Dinerstein, M., Yannelis, C., & Chen, C. (2023). Debt moratoria: Evidence from student loan forbearance. National Bureau of Economic Research Working Paper 31247. (link)

Levine, P. B., & Ritter, D. (2023). The racial wealth gap, financial aid, and college access. Journal of Policy Analysis and Management. (link)

Free college/college promise programs

Carruthers, C. K., Fox, W. F., & Jepsen, C. (2023). What Knox achieved: Estimated effects of tuition-free community college on attainment and earnings. The Journal of Human Resources. (link)

Gándara, D., & Li, A. Y. (2020). Promise for whom? “Free-college” programs and enrollments by race and gender classifications at public, 2-year colleges. Educational Evaluation and Policy Analysis, 42(4), 603-627. (link)

Monaghan, D. B. (2023). How well do students understand “free community college”? Promise programs as informational interventions. AERA Open, 9(1), 1-13. (link)

Murphy, R., Scott-Clayton, J., & Wyness, G. (2017). Lessons from the end of free college in England. Washington, DC: The Brookings Institution. (link)

Perna, L. W., Leigh, E. W., & Carroll, S. (2018). “Free college:” A new and improved state approach to increasing educational attainment? American Behavioral Scientist, 61(14), 1740-1756. (link)

Map of college promise/free college programs (Penn AHEAD) (link)

Returns to education

Conzelmann, J. G., Hemelt, S. W., Hershbein, B. J., Martin, S., Simon, A., & Stange, K. M. (2023). Grads on the go: Measuring college-specific labor markets for graduates. Journal of Policy Analysis and Management. (link)

Darity, Jr., W. A., & Underwood, M. (2021). Reconsidering the relationship between higher education, earnings, and productivity. Postsecondary Value Commission. (link)

Deterding, N. M., & Pedulla, D. S. (2016). Educational authority in the “open door” marketplace: Labor market consequences of for-profit, nonprofit, and fictional educational credentials. Sociology of Education, 89(3), 155-170. (link)

Ma, J., & Pender, M. (2023). Education pays 2023: The benefits of higher education for individuals and society. The College Board. (link)

Webber, D. A. (2016). Are college costs worth it? How ability, major, and debt affect the returns to schooling. Economics of Education Review, 53, 296-310. (link)