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Friday, February 7, 2025

Community College Meltdown: Can It Get Worse?

The National Center for Education Statistics (NCES) has documented the decline in community college enrollment for more than a decade. And the Higher Education Inquirer has been reporting on the decline for much of that time.

The question we are asking now is, where is the floor for the community college meltdown? The answer, from what we gather, is not clear. Folks should not assume the bottom has already been felt, even if there are signs of a rebound.

The downward path for community colleges is likely the result of several factors related to economics (including the economics of individual states and counties), demographics, and consumer choices. And we do not see these variables, in general, improving in the near future. Especially in states with declining youth and young adult populations.

If state-level austerity lies ahead for many states, the floor could be lowered, even though these community colleges provide job training at a fraction of the cost of state universities. Working class folks, in particular, would have to change the way they think about themselves and their perceptions of community colleges. And community colleges would need to provide stronger returns on investment for those who attend.

There are some bright spots, including the use of College Promise (low-cost college) in many states and proposed increases in funding in California. Community colleges have also shored up these declines with dual enrollment (high school students taking courses).

Public enrollment of schools that offer programs of 2 years but less than 4 years.

(Source: US Department of Education, IPEDS)

Wednesday, January 29, 2025

Raw Deals in Higher Education

In a 2022 interview with Gary Stocker of College Vialbility App, we discussed the idea of bad deals in higher education. And as the College Meltdown advances, we expect many more bad deals to occur, both for institutions and consumers.

Already, in early 2025, we have seen documentation of the collapse of St. Augustine University, a 146-year old HBCU in North Carolina. We expect many more collapses and closures like this, and difficult mergers, to occur in the coming years. The immense greed we saw in for-profit higher education a decade ago we'll see in public and non-profit private education.

HEI will attempt to document these events not merely as news, but as part of a larger pattern of criminality in US higher education, not just at the institutional level, but at the state and federal level, and with predatory banks and other investors who are working on these deals behind the scenes. We also plan to explain how this predatory behavior damages communities. Communities with people.

Wednesday, January 15, 2025

Austerity in California

Ben Unglesbee at Higher Ed Dive this week wrote about the coming budget cuts to the University of California System and the Cal State University System. Something that EdSource, a California-based media outlet, has been reporting on for months.

Those devastating cuts, amounting to $650 million, are part of a long and important history of US higher education and austerity, beginning with Ronald Reagan when he was Governor of California. Those ideas, at least in part, continued under other administrations, as they reduced higher education for working-class citizens, especially African Americans, while giving greater opportunities to foreigners, including elite noncitizens.

These policies and other regressive actions drove millions of folks out of California. And those policies have spread to other states, making higher education less accessible and less responsive to working-class Americans. It's no wonder that so many have become cynical about the higher education system.

For now, the UC System can absorb these funding losses, but the Cal State System and the people who are served by that system, will not be as resilient. On a small scale, this is another symptom of the decline of US democracy and the slow decline of the American Empire, something few folks in higher education will admit, or even discuss.

State Universities and the College Meltdown

A People's History of Higher Education in the US

Higher Education and the American Empire

Monday, January 6, 2025

HEI Resources 2025

[Editor's Note: Please let us know of any additions or corrections.]

Books

Alexander, Bryan (2020). Academia Next: The Futures of Higher Education. Johns Hopkins Press.
Alexander, Bryan (2023). Universities on Fire. Johns Hopkins Press.
Angulo, A. (2016). Diploma Mills: How For-profit Colleges Stiffed Students, Taxpayers, and the American Dream. Johns Hopkins University Press.
Archibald, R. and Feldman, D. (2017). The Road Ahead for America's Colleges & Universities. Oxford University Press.
Armstrong, E. and Hamilton, L. (2015). Paying for the Party: How College Maintains Inequality. Harvard University Press.
Arum, R. and Roksa, J. (2011). Academically Adrift: Limited Learning on College Campuses. University of Chicago Press.
Baldwin, Davarian (2021). In the Shadow of the Ivory Tower: How Universities Are Plundering Our Cities. Bold Type Books.
Bennett, W. and Wilezol, D. (2013). Is College Worth It?: A Former United States Secretary of Education and a Liberal Arts Graduate Expose the Broken Promise of Higher Education. Thomas Nelson.
Berg, I. (1970). "The Great Training Robbery: Education and Jobs." Praeger.
Berman, Elizabeth P. (2012). Creating the Market University. Princeton University Press.
Berry, J. (2005). Reclaiming the Ivory Tower: Organizing Adjuncts to Change Higher Education. Monthly Review Press.
Best, J. and Best, E. (2014) The Student Loan Mess: How Good Intentions Created a Trillion-Dollar Problem. Atkinson Family Foundation.

Bledstein, Burton J. (1976). The Culture of Professionalism: The Middle Class and the Development of Higher Education in America. Norton.

Bogue, E. Grady and Aper, Jeffrey. (2000). Exploring the Heritage of American Higher Education: The Evolution of Philosophy and Policy.
Bok, D. (2003). Universities in the Marketplace : The Commercialization of Higher Education. Princeton University Press.
Bousquet, M. (2008). How the University Works: Higher Education and the Low Wage Nation. NYU Press.
Brennan, J & Magness, P. (2019). Cracks in the Ivory Tower. Oxford University Press.
Brint, S., & Karabel, J. The Diverted Dream: Community colleges and the promise of educational opportunity in America, 1900–1985. Oxford University Press. (1989).
Cabrera, Nolan L. (2024) Whiteness in the Ivory Tower: Why Don't We Notice the White Students Sitting Together in the Quad? Teachers College Press.
Cabrera, Nolan L. (2018). White Guys on Campus: Racism, White Immunity, and the Myth of "Post-Racial" Higher Education. Rutgers University Press.
Caplan, B. (2018). The Case Against Education: Why the Education System Is a Waste of Time and Money. Princeton University Press.
Cappelli, P. (2015). Will College Pay Off?: A Guide to the Most Important Financial Decision You'll Ever Make. Public Affairs.
Carney, Cary Michael (1999). Native American Higher Education in the United States. Transaction.
Childress, H. (2019). The Adjunct Underclass: How America's Colleges Betrayed Their Faculty, Their Students, and Their Mission University of Chicago Press.
Cohen, Arthur M. (1998). The Shaping of American Higher Education: Emergence and Growth of the Contemporary System. San Francisco: Jossey-Bass.
Collins, Randall. (1979/2019) The Credential Society. Academic Press. Columbia University Press.
Cottom, T. (2016). Lower Ed: How For-profit Colleges Deepen Inequality in America
Domhoff, G. William (2021). Who Rules America? 8th Edition. Routledge.
Donoghue, F. (2008). The Last Professors: The Corporate University and the Fate of the Humanities.
Dorn, Charles. (2017) For the Common Good: A New History of Higher Education in America Cornell University Press.
Eaton, Charlie. (2022) Bankers in the Ivory Tower: The Troubling Rise of Financiers in US Higher Education. University of Chicago Press.
Eisenmann, Linda. (2006) Higher Education for Women in Postwar America, 1945–1965. Johns Hopkins U. Press.
Espenshade, T., Walton Radford, A.(2009). No Longer Separate, Not Yet Equal: Race and Class in Elite College Admission and Campus Life. Princeton University Press.
Faragher, John Mack and Howe, Florence, ed. (1988). Women and Higher Education in American History. Norton.
Farber, Jerry (1972). The University of Tomorrowland. Pocket Books.
Freeman, Richard B. (1976). The Overeducated American. Academic Press.
Gaston, P. (2014). Higher Education Accreditation. Stylus.
Ginsberg, B. (2013). The Fall of the Faculty: The Rise of the All Administrative University and Why It Matters
Gleason, Philip. Contending with Modernity: Catholic Higher Education in the Twentieth Century. Oxford U. Press, 1995.
Golden, D. (2006). The Price of Admission: How America's Ruling Class Buys its Way into Elite Colleges — and Who Gets Left Outside the Gates.
Goldrick-Rab, S. (2016). Paying the Price: College Costs, Financial Aid, and the Betrayal of the American Dream.
Graeber, David (2018) Bullshit Jobs: A Theory. Simon and Schuster.

Groeger, Cristina Viviana (2021). The Education Trap: Schools and the Remaking of Inequality in Boston. Harvard Press.

Hamilton, Laura T. and Kelly Nielson (2021) Broke: The Racial Consequences of Underfunding Public Universities
Johnson, B. et al. (2003). Steal This University: The Rise of the Corporate University and the Academic Labor Movement
Keats, John (1965) The Sheepskin Psychosis. Lippincott.
Kelchen, R. (2018). Higher Education Accountability. Johns Hopkins University Press.
Kezar, A., DePaola, T, and Scott, D. The Gig Academy: Mapping Labor in the Neoliberal University. Johns Hopkins Press.
Kinser, K. (2006). From Main Street to Wall Street: The Transformation of For-profit Higher Education
Kozol, Jonathan (2006). The Shame of the Nation: The Restoration of Apartheid Schooling in America. Crown.
Kozol, Jonathan (1992). Savage Inequalities: Children in America's Schools. Harper Perennial.
Labaree, David F. (2017). A Perfect Mess: The Unlikely Ascendancy of American Higher Education. Chicago: University of Chicago Press.
Labaree, David (1997) How to Succeed in School without Really Learning: The Credentials Race in American Education, Yale University Press.
Lafer, Gordon (2004). The Job Training Charade. Cornell University Press.
Loehen, James (1995). Lies My Teacher Told Me. The New Press.
Lohse, Andrew (2014). Confessions of an Ivy League Frat Boy: A Memoir. Thomas Dunne Books.
Lucas, C.J. American higher education: A history. (1994).
Lukianoff, Greg and Jonathan Haidt (2018). The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure. Penguin Press.
Maire, Quentin (2021). Credential Market. Springer.
Mandery, Evan (2022) . Poison Ivy: How Elite Colleges Divide Us. New Press.
Marti, Eduardo (2016). America's Broken Promise: Bridging the Community College Achievement Gap. Excelsior College Press.
Mettler, Suzanne 'Degrees of Inequality: How the Politics of Higher Education Sabotaged the American Dream. Basic Books. (2014)
Newfeld, C. (2011). Unmaking the Public University.
Newfeld, C. (2016). The Great Mistake: How We Wrecked Public Universities and How We Can Fix Them.
Paulsen, M. and J.C. Smart (2001). The Finance of Higher Education: Theory, Research, Policy & Practice. Agathon Press.
Rosen, A.S. (2011). Change.edu. Kaplan Publishing.
Reynolds, G. (2012). The Higher Education Bubble. Encounter Books.
Roth, G. (2019) The Educated Underclass: Students and the Promise of Social Mobility. Pluto Press
Ruben, Julie. The Making of the Modern University: Intellectual Transformation and the Marginalization of Morality. University Of Chicago Press. (1996).
Rudolph, F. (1991) The American College and University: A History.
Rushdoony, R. (1972). The Messianic Character of American Education. The Craig Press.
Selingo, J. (2013). College Unbound: The Future of Higher Education and What It Means for Students.
Shelton, Jon (2023). The Education Myth: How Human Capital Trumped Social Democracy. Cornell University Press.
Simpson, Christopher (1999). Universities and Empire: Money and Politics in the Social Sciences During the Cold War. New Press.
Sinclair, U. (1923). The Goose-Step: A Study of American Education.
Stein, Sharon (2022). Unsettling the University: Confronting the Colonial Foundations of US Higher Education, Johns Hopkins Press.
Stevens, Mitchell L. (2009). Creating a Class: College Admissions and the Education of Elites. Harvard University Press.
Stodghill, R. (2015). Where Everybody Looks Like Me: At the Crossroads of America's Black Colleges and Culture.
Tamanaha, B. (2012). Failing Law Schools. The University of Chicago Press.
Tatum, Beverly (1997). Why Are All the Black Kids Sitting Together in the Cafeteria. Basic Books
Taylor, Barret J. and Brendan Cantwell (2019). Unequal Higher Education: Wealth, Status and Student Opportunity. Rutgers University Press.
Thelin, John R. (2019) A History of American Higher Education. Johns Hopkins U. Press.
Tolley, K. (2018). Professors in the Gig Economy: Unionizing Adjunct Faculty in America. Johns Hopkins University Press.
Twitchell, James B. (2005). Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld. Simon and Schuster.
Vedder, R. (2004). Going Broke By Degree: Why College Costs Too Much.
Veysey Lawrence R. (1965).The emergence of the American university.
Washburn, J. (2006). University Inc.: The Corporate Corruption of Higher Education
Washington, Harriet A. (2008). Medical Apartheid: The Dark History of Medical Experimentation on Black Americans from Colonial Times to the Present. Anchor.
Whitman, David (2021). The Profits of Failure: For-Profit Colleges and the Closing of the Conservative Mind. Cypress House.
Wilder, C.D. (2013). Ebony and Ivy: Race, Slavery, and the Troubled History of America's Universities.
Winks, Robin (1996). Cloak and Gown:Scholars in the Secret War, 1939-1961. Yale University Press.
Woodson, Carter D. (1933). The Mis-Education of the Negro.
Zaloom, Caitlin (2019). Indebted: How Families Make College Work at Any Cost. Princeton University Press.
Zemsky, Robert, Susan Shaman, and Susan Campbell Baldridge (2020). The College Stress Test:Tracking Institutional Futures across a Crowded Market. Johns Hopkins University Press.

Activists, Coalitions, Innovators, and Alternative Voices

College Choice and Career Planning Tools

Innovation and Reform

Higher Education Policy

Data Sources

Trade publications

Friday, December 13, 2024

University of Wisconsin System Spends Millions on Consultants (Sara Gabler, WORT News Department)

$51 million dollars. That’s how much money the UW System paid Chicago-based Huron Consulting Group between 2019 and 2023.

Neil Kraus says that number is “astronomical.” Kraus is a professor of political science at UW-River Falls and President of United Falcons, the campus branch of AFT-Wisconsin. He tracks the Universities of Wisconsin budget cuts, technology spending, and austerity measures.

He co-wrote a piece with Jon Shelton for the Cap Times about technology spending.

Listen to the rest of the story at WORT, FM 89.9

State Universities and the College Meltdown

"20-20": Many US States Have Seen Enrollment Drops of More Than 20 Percent

On the 8th Anniversary of the College Meltdown

We started this blog eight years ago, in 2016, to highlight rampant greed and corruption in US higher education, and to raise awareness of this system to students-consumers-workers and their families. Before that, we spent years in the ruthless higher ed business: seeing folks like ourselves struggling with underemployment, and juggling jobs, family obligations, and student loan debt.

On December 12, 2016, the College Meltdown blog (now known as the Higher Education Inquirer) was born. Our first article was "When college choice is a fraud." That article presented the argument that higher education for the working class was often a choice between predatory for-profit colleges and community colleges that were indifferent to their students.

While some things have changed on the higher education terrain, like the closing of some predatory for-profit schools, there is still a large degree of truth to the original premise. And much of the public has caught on: working class folks increasingly see college choice as a fraud. To worsen matters, college is increasingly considered a fraud by the middle-class, who see themselves and others underemployed and laden with debt. While a college mania for elite schools still exists, skepticism has turned to cynicism, with higher education in general.

Bright Spots

One positive change has been for the growth of College Promise programs. These programs, available in many states, have made community college more affordable by providing tuition free or at a low cost. College Promise programs have shored up community college enrollment. Community college enrollment began declining in 2010, but has shown some resilience as it also enrolls high school students for dual-enrollment.

More Cynicism Ahead

The rest of US higher education for the working class and much of the middle-class, is less promising. For-profit colleges faced increased scrutiny, and some closed down, but others morphed into state-owned robocolleges that were still of questionable value. Remaining for-profit colleges also rebounded as they closed physical campuses and became exclusively online.

While many state flagship universities continue to thrive, lesser know state universities have seen dramatic enrollment losses, even as they develop an online presence.

Online Program Managers, third-party vendors for universities, gained scrutiny in the 2020s, but ultimately there was little oversight. Even without oversight, OPMs began to fold because they were not offering the value they promised, even with degrees and certificates from elite universities like Harvard, Yale, and MIT.

Student loan debt has continued to rise, despite public outcries. But Republicans have blocked efforts for debt forgiveness in court, making college choice increasingly seen, and now known, as a bad bet by tens of millions of Americans.

In 2021, we changed our name to the Higher Education Inquirer to reflect a more objective stance. But the College Meltdown, as a social phenomenon, continues.

Wednesday, December 4, 2024

More Layoffs at 2U, the Online Program Manager for Elite Universities

2U, the parent company of edX, has announced more layoffs today. The layoffs were announced to staff and it's not known yet whether they will be publicly reported. It appears that many of the cuts will come from edX bootcamps which may be closing by June 2025.

2U filed for bankruptcy earlier this year and the bankruptcy was approved by the U.S. Bankruptcy Court for the Southern District of New York on September 9th. Mudrick Capital Management is currently involved in the turnaround plan.

According to David Halperin, the edtech company may also be the subject of investigations by the Federal Trade Commission and California Attorney General.

2U is the online program manager for a number of elite universities, including Harvard, Yale, MIT, and the University of California. Some of the programs have been the subject of public scorn by consumers who claim they were defrauded. HEI has been investigating 2U since 2019. The Wall Street Journal has also investigated 2U and written several critical stories.

edX promises career support to people who sign up for bootcamps. But what happens when the bootcamps close?

Workers at 2U expect more layoffs in 2024

2U Collapse Puts Sallie Mae and SLABS Back on the Radar (Glen McGhee)

2U Suspended from NASDAQ. Help for USC and UNC Student Loan Debtors.

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

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

2U-edX crash exposes the latest wave of edugrift

2U Virus Expands College Meltdown to Elite Universities

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

EdTech Meltdown

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

Sunday, November 24, 2024

Will College Pay Off in 2025?

Will college pay off for you, the student/consumer/worker? This is a question that folks have been asking for years. The short but honest answer is that it depends on who you are and what you do with the resources you have. And it depends on what you consider success.

In 2017, we co-authored a video called the College Meltdown. At the time, it may have been considered hyperbolic and cynical. But times have changed dramatically in the last seven years.

College and Underemployment

A study from Georgetown University found that nearly a third of colleges and universities leave students worse off financially 10 years after graduation compared to those with just a high school diploma. A February 2024 report by the Burning Glass Institute and the Strada Institute for the Future of Work found that 52% of recent four-year college graduates are underemployed within a year of graduating. According to the Strada Institute for the Future of Work, individuals who start out underemployed are 3.5 times more likely to be underemployed a decade after graduation.

Who Am I?

For elites, college can be helpful as a status symbol and a signal to others for business partnerships and marriage. For ambitious immigrants and children of immigrants, it can be the ticket to an important credential in a competitive international labor market. In some professions, it's difficult finding good work without an elite degree.

Will it pay off for you if you don't fall into those categories? If you are working class person who is not an immigrant or the child of an immigrant, the answer may be "no" as often as it is "yes." Race and class discrimination is still a social reality and a notable credential may be helpful to defy negative stereotypes. Whether college works for you depends on a number of factors: choosing the right major at the right time, a willingness to work long hours, and meeting the right people at school and in your internships. In some cases, there may be better options, to include higher-paying union jobs and vocational education in lucrative fields.

Even for middle-class folks college can be a questionable option, leading to anxiety, depression, and regret. This is especially true if an individual chooses the the wrong school and the wrong major in combination with other life choices such as substance abuse (which often starts in college), early marriage, early parenthood, and living in the wrong geographic area.

Winning Majors (For Now)

STEM (science, technology, engineering, and mathematics), health, and business majors are the highest paying, leading to average annual wages of $37,000 or more at the entry level and an average of $65,000 or more annually over the course of a recipient’s career. This is only and average, and other factors may contribute to a better or worse outcome. Some majors may be lucrative, but unforeseen circumstances can make them less valuable.

Risky Majors (in the Material World)

The 10 majors with the lowest median earnings are: early childhood education ($39,000); human services and community organization ($41,000); studio arts, social work, teacher education, and visual and performing arts ($42,000); theology and religious vocations, and elementary education ($43,000); drama and theater arts and family and community service ($45,000). People who value things other than material success (like children and families, religion, and communities) may still find these jobs worthwhile. Or they may find imaginative ways to make their major and other life experience, work for them financially.

Wednesday, November 13, 2024

What's happening with higher education enrollment? (Bryan Alexander with Doug Shapiro)

This week, Bryan Alexander (Future Trends Forum) spoke with Doug Shapiro, Vice President for Research and Executive Director of the Research Center at the National Student Clearinghouse, to explore the latest college enrollment numbers.

Tuesday, November 12, 2024

College Mania!, College Meltdown, and the other "C" Words

What are we seeing in US higher education and American society today? Lower college enrollments (for some colleges), high student loan debt (for some consumers) and upward mobility and increasing wealth for others. Many of us hope to be the fortunate ones, through hard work and persistence.

Culture and society (including myths, marketing and advertising, and media) tell folks that higher education is essential and elite education is necessary for upward social mobility. Others see higher education, especially borrowing money to go to school, as a road to nowhere: of untold debt and unhappiness. What people are seeing would seem to be confusing, but it shouldn't be if we understand our system and how it works.

Capitalism (also known as neoliberalism) is the underlying program or structure that guides behavior in the US. We are immersed in it. It also guides other values that we may hold about family, religion, government, and the economy. Under this system, the differences between the rich and poor have been increasing for more than a half century and life expectancy and fertility rates are stagnant.

Consumers are bombarded with stories that reflect how we should perceive higher education. The stories that we see and hear may vary and may appear contradictory if we are willing to look at all sides. Some of the stories are myths, others are downright lies. Targeted marketing means that we may not get the same messages as others.

Class is how the program of capitalism works, with elites at the top, small business owners and managers in the middle, and workers who do the labor necessary to keep society running. These distinctions may be small in some places and enormous in others, and there may even be overlap in wealth and income. Social mobility is possible, but in the US social mobility is stagnant for many non-immigrants. Workers are sometimes appreciated but often unappreciated and even scapegoated.

Communities are diverse and cut across class boundaries and even geography. Groups seen as homogeneous are rarely that. And stereotypes are used (and misused) as a short hand for understanding other people or even ourselves.

Civics is a formal understanding how the program/system works and typically how to be a good citizen. The idea of what makes a good citizen varies. Civics can be used as a tool of social control or a tool of reform and innovation.

Conflict consists of opposing thoughts and actions. It can exist inside of us as well as outside, causing cognitive dissonance for those who are mindful. Some degree of conflict is necessary for society to be healthy. Too much conflict can destroy the fabric of society.

Monday, November 4, 2024

Can the newly formed PA Board of Higher Education do much for the People?

In 2024, Pennsylvania has formed a state Board of Higher Education. Can the organization create value for all its citizens and improve the Quality of Life for Pennsylvanians, or is it just another layer of bureaucracy whose major role is to maintain the status quo?

The Pennsylvania Board of Higher Education is composed of 21 members, representing postsecondary education, government, business, labor and students. Some schools like Penn State, Pitt, and Temple each have a representative. Other institutions, like the state's 15 community colleges and 10 PASSHE schools are represented by one person.

The University of Pennsylvania ($20.9 billion endowment and 1,085 acres of urban property), Carnegie-Mellon University ($2.7 billion and 157 acres of urban property), and other elite private schools are not represented and stand apart from the oversight.

What's the Mission?

There is no mention about how this new Board can make a difference. No progressive ideas or policies have been introduced other than that the organization seeks to ensure that there is no undue competition among the schools.

Wealth and Want in PA Higher Education

Pennsylvania has more than 150 colleges, universities, and technical schools. They are all connected by a harsh economic system that promotes increasing wealth and want. Pennsylvania's immense wealth is illustrated in a handful of elite and brand name colleges and universities primarily in and around its two major urban areas: Philadelphia and Pittsburgh. And wealth is demonstrated in their endowments and real estate holdings.

University of Pennsylvania: $20.9 billion and 1,085 acres of urban property

Pennsylvania State University: $4.44 billion and 22,484 acres of property statewide

Carnegie-Mellon: $2.7 billion and 157 acres of urban property

Thomas Jefferson University: $2.3 billion and 100 acres of urban property

Swarthmore: $2.2 billion and 425 acres of suburban property

Lehigh University: $1.8 billion and 2350 acres of suburban property

Bryn Mawr College: $1.6 billion and 135 acres of suburban property

Villanova University $1.5 billion and 408 acres of suburban property

University of Pittsburgh: $1.1 billion and 132 acres of suburban property

Drexel University: $1.1 billion and 96 acres of urban property

Lafayette College: $1 billion and 340 acres of suburban property

Bucknell: $1 billion and 450 acres of suburban property

Duquesne University: $1 billion and 50 acres of urban property

Temple University: $750 million and 115 acres of urban property

Haverford University: $643 million and 216 acres of suburban property.

Washington and Jefferson: $380 million and 60 acres of small-town property

Widener University: $90 million and 216 acres of urban property

The differences between life outside of Penn, Temple, and Drexel and other parts of Philadelphia (North and West Philly) are stark. And the Philadelphia suburbs that include some of the elite schools are reflective of wealth, power, and prestige. Scenes of wealth and want are also apparent in and around Pittsburgh.

State universities outside of these urban and suburban areas, aside from College Park, have been declining for more than a decade. The Community College of Philadelphia, a career lifeline for the working class, has one of the lowest graduation rates in the US. The same goes for Harrisburg Area Community College. Pennsylvania also has Lincoln University and Cheyney University of Pennsylvania: two Historically Black Colleges and Universities that have been historically underfunded and serve as lasting symbols of resistance against white supremacy, an ideology still deeply embedded in Pennsylvania's society and economy.

PA Economy: Growing Inequality and Rural Decline

Pennsylvania's economy is diverse yet unsustainable. It consists of traditional industries such as manufacturing and agriculture as well as healthcare, energy, technology, and education. Healthcare (reactive medicine) and energy (fossil fuels), in particular, are expensive for the state and expensive the planet.

The problems in Pennsylvania's higher education system extend beyond the schools represented in the new Board. These economic and social problems are persistent and worsening for the working class. Pennsylvania's population is stagnant, increasing slightly in urban areas and declining in rural areas.

There is also a demographic cliff with Baby Boomers reaching their 80s (and greater disability) and fewer children being born in the Commonwealth. Children living with Asset Limited, Income Constrained, Employed (ALICE) families is 41 percent.

Savage Inequalities in K-12 Education

Pennsylvania has some of the widest education gaps in the country. A national study found Pennsylvania at the bottom of all states in school funding fairness. Among the 50 states, Pennsylvania ranked 49th in the Black-white opportunity gap, 50th in the Hispanic-white opportunity gap, and 49th in the gap between students from low-income families and their wealthier peers.

Unequal Wealth Distribution

Pennsylvania is one of the most unequal states in the country, with the top 1% of earners making 21.7 times more than the bottom 99%.

The richest people in Pennsylvania are Jeff Yass ($29B), Michael Rubin ($11.5B), Victoria Mars ($9.7B), Arthur Dantchik ($7.3B), Thomas Hagen ($5.2B), Jeff Lurie ($4.9B), Maggie Hardy ($4.1B), Mary Alice Dorrance Malone ($3.7B), John Middleton ($3.7B), and Thomas Tull ($2.9B).

The average income of the top 1% is $1,100,962, compared to $50,830 for the rest of the state. Income inequality in Pennsylvania has been worsening since the 1970s. The richest 5% of households have incomes that are 11.7 times larger than the bottom 20%.

Over half of Pennsylvania's wealth is concentrated in six counties: Montgomery, Allegheny, Bucks, Chester, Delaware, and Philadelphia. The wealthiest county is Chester, with a median household income of $104,161 in 2020.

Regressive Tax Structure

Pennsylvania has a flat tax rate of 3 percent, and its corporate tax rate is a flat 8.49 percent and falling. The combined state personal income tax and local earned income tax led to Pennsylvania having the 18th highest income tax burden. Pennsylvania ranked 25th for its total per capita property tax burden. New Jersey, New York, and Maryland had a higher tax burden in both comparisons.

Mass Incarceration for Social Control, Deaths of Despair

Pennsylvania has the highest incarceration rate in the Northeast and the second highest rate in the country when including people on probation or parole. And its correctional system spends nearly $3 billion annually. Black adults make up 46% of Pennsylvania's prison population, even though they only make up 11% of the state's population. The flip side of the coin, deaths of despair (suicide, drug overdoses) are common among the working class in rural and urban areas.

Saturday, October 5, 2024

Lies, Damn Lies, and Projections: Higher Ed Business and the Enrollment Cliff

While nothing is for sure, we at the Higher Education Inquirer believe higher education enrollment is going to continue on a slow downward slope for the foreseeable future, and that it could get worse. Looking at the numbers we see, it's difficult to imagine anyone arguing this. But today there is a debate between those who believe in the enrollment cliff and those who do not.

The Debate

Carleton College Professor Nathan Grawe has used the term "enrollment cliff" to describe the decline that is projected to come to a number of states within the next two years and with a trend that will last for a number of years. He uses information from a number of sources, including the Western Interstate Commission for Higher Education (WICHE) to make these estimates. These projected declines are the result of a decline in births during and after the Great Recession. US fertility and birth rates have been declining for generations, but enrollment has been shored up by in-migration and higher rates of high school graduation. These rates could increase as abortions are criminalized.

US Department of Education enrollment projections are fueling the debate for enrollment cliff deniers. But HEI has observed that ED has been wrong in its projections for years and has largely maintained its faulty formula. Presumably the enrollment cliff deniers also don't believe in the projections by WICHE which predicts modest declines in the number of high school graduates. For the record, these deniers are not uniform in their beliefs, values, or their intentions.

University of Wisconsin-River Falls Professor Neil Kraus, author of the Fantasy Economy: Neoliberalism, Inequality, and the Education Reform Movement, believes that "in the aggregate, higher ed enrollments are fairly constant over time, and if you go back decades, have gradually gone up." Kraus has a point. Relatively stable birth rates would seemingly keep enrollments stable, but there are other social, economic, and political factors in the equation.

It's a Racket on Both Sides

Some enrollment deniers may not be so sincere. Many in the education business, including the Department of Education, have vested interests in believing everything is OK. But it's not OK. And while funding is important, it's not the entire answer, especially when the money goes into the wrong (greedy) hands, as it frequently does.

Higher education has become a racket that has garnered increasing public skepticism about its value. That does not mean that parents won't continue to buy into the college mania and encourage all their children to go to a college regardless of the costs, and the potential debt.

Some who believe in the enrollment cliff, and pitch it to others, may also be insincere. The President of the University of Idaho, for example, has used the enrollment cliff to rationalize their purchase of the University of Phoenix to shore up their revenues, even though Idaho is not likely to feel dramtic looses in enrollment. There are undoubtedly many others who are using this phenomenon to scare people into buying and selling their products and services.

Coming to a Consensus?

Perhaps the term "enrollment cliff" needs to be defined or the term to define the enrollment decline needs to be renamed. No one can deny that US higher education has seen an enrollment peak and a slow steady decline since 2011. There are also estimates that population declines will occur in many states, as a result of out-migration patterns that have been ongoing. There are other states that will continue to see enrollment gains, especially in the South and West. Maybe enrollment cliff is too harsh a term, but reduced enrollment cannot be ignored.

State Budgets Are Downsizing (Pew)

College Meltdown 3.0 Could Start Earlier (And End Worse) Than Planned

Baby Boomers Turning 80: The Flip Side of the 2026 Enrollment Cliff

State Universities and the College Meltdown

"20-20": Many US States Have Seen Enrollment Drops of More Than 20 Percent

US Department of Education Fails to Recognize College Meltdown

Forecasting the US College Meltdown

Monday, September 30, 2024

"White Labeling" in Online Higher Education: Simplilearn

Yesterday the NY Times published an article titled "Students Paid Thousands for a Caltech Boot Camp. Caltech Didn’t Teach It." The scandal is likely larger than this NYT article and the small, but important, bits of information in it. Simplilearn, the edtech company involved in the scheme, but not named in the title, is a growing for-profit business with offices in Bengaluru, India and San Francisco.

What makes the story interesting for consumers and consumer advocates is that like 2U-edX, we find another online program manager, Simplilearn, peddling elite university certificates that may not work out for those seeking better work opportunities. What makes the story doubly interesting is that Blackstone, a company with a trillion dollars in assets under management, holds a controlling interest in Simplilearn.

What makes it triply interesting (and not noted by the NY Times) is that GSV Ventures has also been involved in Simplilearn. GSV Ventures includes a number of high-profile names in education, business, and edtech, including Arne Duncan, Johny C. Taylor, Jr., Michael Moe, and Michael Horn.

Simplilearn also markets online certificates with other elite, brand names, including Purdue University, University of Massachusetts, Brown University, and UC San Diego. In June, Simplilearn stated that it was growing dramatically in revenue (35-45%) and becoming profitable. Consumers on Reddit, however, have made critical remarks about Simplilearn bootcamps.

Students can use Splitit, ClimbCredit or Klarna for buy now, pay later financing.

"White Labeling" in Edtech

According to edtech innovator and pioneer John Katzman (Noodle), "White labeling is done everywhere; your GE microwave is not made by GE, and Walgreens doesn't make ibuprofen. And note that these are non-credit, non-accredited programs. Still, I wouldn't put my university's name on other peoples' programs without clear disclosure. Tech and marketing are one thing; teaching and academic advisement are at the core of what a university does."

HEI Values Your Feedback

If there is anyone who has attended one of these bootcamps, please let us know how you financed the program and whether it has resulted in a positive or negative return on investment.

Related links:
Edtech Meltdown

2U Collapse Puts Sallie Mae and SLABS Back on the Radar (Glen McGhee)
OPM Market Landscape And Dynamics: Spring 2023 Updates (Phil Hill)
2U Expands College Meltdown to Elite Universities

Sunday, September 29, 2024

Layoffs in Higher Education

The Layoff.com is a "simple discussion board" for workers who would like to learn more about the rumors or possibility of job cuts in their organization. It's also been helpful for us to understand what has been happening behind the scenes in the US Higher Education business.

We have been observing and participating on this website for more than a dozen years, watching the fall of Corinthian Colleges (Everest College, Wyotech, and Heald), ITT Tech, Education Management Corporation (the Art Institutes and South University), the partial collapse of Apollo Group (University of Phoenix), Perdoceo (formerly Career Education Corporation), and Laureate International, and the transformation of Kaplan University to Purdue University Global and Bridgepoint Education (Ashford University) to University of Arizona Global.

As the College Meltdown has advanced, we have also observed a number of private schools collapse and public colleges and universities struggle. As enrollments continue to drop, we can expect more layoffs to occur and for education related businesses to struggle more.

The contents of this article are updated periodically, to illustrate trends in the College Meltdown. The most recent update was published October 29, 2024. 2U, the online program manager for elite university certificates has been the poster child in 2024, but there are many other companies and institutions in peril.

2U and edX

Adtalem Global Education

Albright College

Baldwin-Wallace University

Barnes and Noble College Booksellers

Cengage

Chegg

Concordia University, Ann Arbor

Coursera

Delta State University

DeVry University

Emerson College