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    A Path Forward

    Game-Changing Reforms in Higher Education and

    the Implications for Business and Financing Models

    By David A. Bergeron December 2013

    WWW.AMERICANPROGRESS.O

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    A Path ForwardGame-Changing Reforms in Higher Education and

    the Implications for Business and Financing Models

    By David A. Bergeron December 2013

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    1 Introduction and summary

    3 Urgent need for change versus slow pace of change

    7 Innovative reform models

    14 Implications for business and financing models

    18 Policy recommendations

    22 Conclusion

    23 About the author

    24 Endnotes

    Contents

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    1 Center for American Progress | A Path Forward

    Introduction and summary

    A a recen convening o he Alliance o Saes, Complee College America, a

    naional nonprofi dedicaed o growing he pool o American college graduaes,

    advocaed or he adopion o five o wha i calls game-changer sraegies ha

    could dramaically increase he number o sudens who successully complee

    college.1Well-reasoned and arully explained, one is lef o wonder why any

    insiuion or sae sysem would no immediaely adop all five sraegies. Indeed,

    i is clear rom he evidence presened by Complee College America ha imple-

    mening hese game changers would resul in more degrees and oher educa-ional credenials being awarded while closing atainmen gaps or radiionally

    underrepresened populaions. Also, significanly, no changes in ederal policy are

    necessary o drive orward wih he reorms, alhough some ederal policy changes

    could undoubedly help quicken he pace o adopion.

    One o he game changersGuided Pahways o Success, or GPSaddresses

    wha is perhaps he mos longsanding problem plaguing he American possec-

    ondary educaion sysem: he lack o clear pahways or sudens o ake hem

    hrough possecondary educaion o a career. Under he GPS model, sudens

    sar in a limied number o mea-majorsa se o courses o mee academic

    requiremens across a range o disciplines and programsand ulimaely com-

    plee a specific major hrough a highly srucured degree plan. Under hese degree

    plans, every semeser o he program would be ighly srucured o assure ha

    sudens have access o key milesone courses when hey need hem. echnology

    would be in place o warn advisors when sudens all behind so ha hey can

    offer imely and effecive inervenion.2One quesion lef unanswered, however, is

    wheher he degree atained a he end o he GPS process will mee he workorce

    needs o employers.

    In his repor, we describe ways ha reorm models such as hose idenified as

    game changers by Complee College America, along wih sackable credenials

    and compeency-based credenials, ha i aken o scale, can dramaically change

    he oucomes o possecondary educaion in he Unied Saes. As used in higher

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    2 Center for American Progress | A Path Forward

    educaion in he Unied Saes oday, sackable credenials are a sequence o

    credenials ha accumulae over ime o build up an individuals qualificaions

    and help hem move along a career pahway or up a career ladder o differen and

    poenially higher-paying jobs.3

    We discuss how he curren echnological and human sysems along wih busi-ness and financing models in possecondary educaion impede he developmen

    o needed reorms and how he adopion o he mos promising reorms could

    significanly increase he produciviy o he naions possecondary educaion

    sysem. oday, ar oo ew sudens complee cerificaes and degrees, having

    aken on oo much deb. Furhermore, when sudens do complee a cerificae

    or a degree program, hey hear employers say hey do no have he righ skills

    or he jobs ha are available.

    We also propose policy soluions ha do no require congressional acion ha

    could accelerae he pace and accepance o reorms wih clear and significanimplicaions or sudens, employers, and ulimaely, axpayers. Specifically, we

    call on he U.S. secreary o educaion o design and implemen experimens

    auhorized under ederal suden-aid programs and urge he adopion o qual-

    iy merics agains which innovaive sraegies can be assessed. Finally, we urge

    greaer sakeholderorganized labor, employers, and philanhropic organiza-

    ionsinvolvemen in higher-educaion innovaion.

    Now, les examine in greaer deail some o he more promising reorms ha seek

    o improve and srenghen he connecion beween higher-educaion sysems and

    employers, and have he poenial o solve many o he mos pressing problems

    plaguing boh.

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    3 Center for American Progress | A Path Forward

    Urgent need for change versus

    slow pace of change

    Higher educaion in he Unied Saes is slow o change. Our higher-educaion

    sysem is deeply rooed in he 19h cenury, wih rigid norms and inrasrucure.

    U.S. colleges and universiieswih heir ivy-covered buildings, 30-week aca-

    demic year, and courses nealy arranged in hree- or our-credi incremens or

    easy division ino he 120 credis needed o earn a bachelors degreeconinue o

    deliver educaion beyond high school much as hey did in he lae 1800s.

    Federal, sae, and academic policies reinorce he exising norms and srucures oU.S. higher educaion. ake, or insance, he Higher Educaion Ac o 1965, which,

    as amended, enshrines he 30-week academic year, he general educaion diploma,

    or GED, as an alernaive o a regular high school diploma, and he raioning o

    college financial aid based on a ull-ime academic workload o 12 credis. 4Indeed,

    suden financial aid policies were largely writen o accommodae radiional modes

    o educaional delivery wih sudens siting in college classrooms or an hour and a

    hal o an hour, wo or hree days per week. Wheher or no sudens were learning,

    or graduaing or ha mater, has largely been irrelevan.

    Among he policies ha are mos seeped in he 19h cenury is accrediaion

    he process by which higher-educaion insiuions are deemed o be o sufficien

    qualiy o gain public rus and have heir degrees valued. Accrediaion, which

    is a process o peer review, despie some recen effors a reorm, remains largely

    unchanged wih sandards addressing he qualiy o he insiuion or program

    by key inpus such as curricula, aculy, aciliies, equipmen, and supplies.

    Accrediors also assess each insiuion based on he record o suden complains

    received by he accrediing agency and compliance wih program responsibili-

    ies under he ederal suden-aid programs. Noably, in only one area are rue

    oucomes assessed, ha area being success wih respec o suden achievemenin relaion o an insiuions mission. Such an assessmen o suden-learning

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    4 Center for American Progress | A Path Forward

    oucomes may include consideraion o course compleion, sae licensing exami-

    naion resuls, and job-placemen raes. By law, however, differen insiuions or

    programs can have differen sandards, and hese sandards, alhough subjec o

    review by he accrediing agency, are esablished by he individual insiuions.

    Te resul o his ype o qualiy-assurance sysem is poor oucomes, as evidenced,

    or example, by on-ime graduaion raes, which are unaccepably low a manyinsiuions o higher learning.

    Despie he long reliance in he Unied Saes on accrediaion

    as he mechanism or assuring qualiy in higher educaion, a

    recen repor by he Organisaion or Economic Co-operaion

    and Developmen, or OECD, serves as a reminder ha we need

    o be looking o he uure raher han he pas. In is repor,

    ime or he U.S. o Reskill? Wha he Survey o Adul Skills

    Says, he OECD recommends ha he Unied Saes ake seps

    o srenghen he qualiy-assurance sysem in higher educaion,paricularly because o accrediaions link o he primary orm

    o financial suppor o higher-educaion insiuions: ederal aid

    o sudens.5Tis recommendaion is consisen wih Presiden

    Barack Obamas call or Congress o consider adding value,

    affordabiliy, and suden oucomes o wha accrediors consider

    when deermining which colleges and universiies have access o

    ederal suden aid.6

    Enhancing he value, affordabiliy, and suden oucomes o our higher-educaion

    sysem ulimaely requires srenghening connecions beween higher educaion

    and employers. An essay published by Inside Higher Ed, penned by he auhor

    o his repor, describes how srenghening hose connecions could be accom-

    plished wihin he curren accrediaion sysem.7

    As poorly aligned as he qualiy-assurance sysem in higher educaion is o our

    workorce needs, he pah o possecondary educaion and careers is even less

    clearly marked. In he 19h cenury, higher educaion prepared sudens or a lim-

    ied number o proessions. As a resul, he limied range o degrees awarded me

    he expecaions and demands o sociey a ha ime.

    Public two-year college Public four-year colle

    FIGURE 1

    Median on-time graduation rates fo

    students enrolling at public college

    25%

    20%

    15%

    10%

    5%

    2004 2005 2006 2007 2008 2009 2010 2

    0

    Source: CAP analysis of the Integrated Postsecondary Education DatSystem, or IPEDS, data from the National Center for EducationStatistics, IPEDS Data Center, available at http://nces.ed.gov/ipeds/

    datacenter/ (last accessed November 2013).

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    5 Center for American Progress | A Path Forward

    oday, employers recognize ha hey need workers wih specific knowledge, skills,

    and abiliies ha can be obained hrough higher educaion. Moreover, employers

    primarily look or graduaes wih a specific major ha reflecs he subjec-mater

    area bes aligned wih he required work as evidenced by he differences in saring

    salaries by college major.8Bu employers also consisenly ideniy a se o key

    skills or compeencies such as criical hinking, complex problem solving, writenand oral communicaion, and applied knowledge in real-world setings ha do

    no necessarily align wih a specific major.9By limiing consideraion o poen-

    ial employees o only hose wih a degree in a specific major, employers may be

    excluding rom consideraion poenial employees who may acually have beter

    skills han hose hey ulimaely employ. Psychology majors, or example, are ofen

    among he mos in-demand social science majors because a degree in psychology

    is seeped in he sudy o how people inerac wih ohers, which is a he core o

    he criical skills ha employers are seeking.10

    Employers are ofen unsure abou he compeencies an employee possesses andhave litle clue o how well a new employee will acually perorm in he job. Tis

    realiy has given rise o he pracice o employers providing inernships, ofen

    unpaid, o es-drive poenial employees.11Providing employers wih inormaion

    abou a graduaes demonsraed knowledge, skills, and abiliies hrough a poro-

    lio or compeency-based ranscrip could make he human-capial sysem operae

    more efficienly.

    While he benefis o employers are apparen, he benefis o axpayers o a more

    effecive human-capial sysem are also significan. Firs, governmens a every

    level are employers, and as such, will see he same benefis as oher employ-

    ersspecifically, greaer success in hiring highly producive employees. Second, a

    more effecive human-capial sysem could generae higher levels o produciviy

    and poenial earnings similar o hose achieved wih increased levels o educa-

    ional atainmen. Increases in earnings or profis ulimaely would ranslae ino

    increased ax revenue.12Finally, ederal and sae invesmen in higher educaion

    would have greaer impac by producing graduaes who are career ready.

    Recen developmens in possecondary educaion such as guided pahways,

    sackable credenials, and compeency-based learning hold significan promise orimproving he naions human-capial sysem. Ofenimes, hese innovaions are

    viewed separaely bu hese developmens, aken ogeher, show promise in improv-

    ing he alignmen beween a sudens program o sudy and heir evenual career.

    1. Strengthen quality asurance in postseconda

    education and its link to

    IV student aid

    2. Establish a quality st

    for industry credentials

    3. Develop workplace t

    ing as a standard eleme

    postsecondary career an

    technical programs

    4. Develop and suppor

    learning assessments

    5. Ensure that postseco

    ary students have suffic

    information and guidan

    Source: Organisation for EconomicCo-operation and Development, Ti

    U.S. to Reskill? What the Survey of Ad

    Says (2013), available at http://skillsSurvey_of_Adult_Skills_US.pdf.

    Key OECD recomme

    tions on postsecond

    career and technica

    education

    http://skills.oecd.org/Survey_of_Adult_Skills_US.pdfhttp://skills.oecd.org/Survey_of_Adult_Skills_US.pdfhttp://skills.oecd.org/Survey_of_Adult_Skills_US.pdfhttp://skills.oecd.org/Survey_of_Adult_Skills_US.pdf
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    6 Center for American Progress | A Path Forward

    Over he pas several years, we have seen higher-educaion insiuions beginning

    o embrace reorms. Wesern Governors Universiy, or WGU, or insance, along

    wih oher insiuions ha paricipaed in he Deparmen o Educaions disance

    educaion demonsraion program, showed ha echnology could be employed

    o make higher educaion more accessible. WGU, Capella Universiy, and more

    recenly, Souhern New Hampshire Universiys College or America haveembraced compeency-based mehods or access learning. Bu, given he magni-

    ude o he changes ha are necessary, he pace o change is oo slow.

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    7 Center for American Progress | A Path Forward

    Innovative reform models

    Guided Pathways to Success

    For mos young people, he pah o possecondary educaion and a career begins

    during heir junior year o high school. Unless hese young people are served

    by one o he ederal RIO or GEAR UP programs, or a similar sae, local, or

    privae program ha are designed o moivae and suppor disadvanaged sudens

    seeking higher-educaion opporuniies, sudens are offered litle assisance in

    deciding on a choice o career, higher-educaion insiuion, or program o sudy.According o a College Board repor, each secondary school counselor in he

    Unied Saes was responsible or helping 454 sudens on average in 2010.13In

    programs such as alen Search and Upward Bound, wo o he ederal RIO pro-

    grams, paricipans receive suppor in career exploraion and apiude assessmens

    as well as assisance in applying o colleges and choosing high school and college

    courses. By conras, sudens in Canadas Quebec province finish high school

    afer compleion o he 11h grade and begin heir pos-high school program a an

    insiuion where hey receive assisance in choosing beween a vocaional or aca-

    demic program o sudy. Afer compleing a year a a general or vocaional college,

    some sudens go on o pursue a bachelors degree. Bu as a resul o enering he

    pos-high school program, bachelors degree candidaes are required o sudy or

    only hree years insead o he cusomary our years while oher sudens complee

    a vocaional degree in an even shorer period o ime.14

    In he absence o a significan increase in secondary school counselors suppored

    by ederal programs such as alen Search, Upward Bound, or GEAR UP, or a rev-

    oluion in he way ha American sudens ransiion rom high school o college,

    sraegies ha move sudens ino a broad se o mea-majorsa se o courses o

    mee academic requiremens across a range o disciplines and programshavesignifican promise. Similar o he model used in Quebec, U.S. sudens could

    begin possecondary educaion wih he broades se o possibiliies in mind.

    Tose possibiliies could be refined and narrowed over ime as he suden pro-

    gresses hrough his or her educaion wih he goal o compleing a degree on ime.

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    8 Center for American Progress | A Path Forward

    Under he GPS approach, sudens are provided a limied se o broad mea-

    majors in science, echnology, engineering, and mahemaics, or SEM, healh

    sciences, social sciences, educaion, business, and he liberal ars. A sudens

    perormance in high school and oher measures is used o recommend broad

    academic pahways. Wihin each mea-major, sudens are given wha are ermed

    deaul choices ha are aligned o his or her educaional goals wih a semeser-by-semeser academic map o sequenial and prescripive schedule o classes.

    Sudens are provided inormaion abou career opions and assised in narrowing

    heir sudy o a paricular major.

    Among he insiuions ha have adoped he GPS model is Georgia Sae

    Universiy, or GSU, which has implemened degreeor academicmaps and

    inrusive advising, where advisors use heir knowledge and experience o anici-

    pae suden needs and connec hem o appropriae resources as early as possible

    in heir possecondary educaion experience, as sraegies o improve he univer-

    siys on-ime graduaion rae. Tese approaches have yielded significan improve-mens or he universiy, including increasing is graduaion rae by 20 percen

    over he pas 10 years and he awarding o more bachelors degrees o Arican

    Americans han any oher public or privae nonprofi U.S. universiy.15GSU con-

    erred 1,389 bachelors degrees o Arican Americans during he 2011-12 school

    year.16GSUs graduaion rae or low-income sudens receiving a Pell Gran53

    percenwas higher han he insiuions overall graduaion rae.17Likewise, he

    universiys graduaion rae or Arican American sudens57 percenand

    or Hispanic sudens66 percenwere equally impressive.18Anoher insiu-

    ion ha has successully implemened he Guided Pahways o Success model is

    Florida Sae Universiy, or FSU, which has cu he number o sudens graduaing

    wih excess credis in hal while raising is overall graduaion rae o 74 percen.

    Arican American sudens a FSU graduae a a rae o 77 percen while Hispanic

    sudens graduae a a rae o more han 70 percen.19

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    9 Center for American Progress | A Path Forward

    Stackable credentials

    Anoher innovaion ha has been adoped principally by communiy colleges

    and sae workorce developmen and welare agencies, which have been working

    o find ways o move aduls rom he basic educaion sysem o he workorce, is

    somehing known as sackable credenials. Creaing a clear pah rom remedialprograms o cerificaes and, ulimaely, degrees, a sackable credenial is a cerifi-

    cae, degree, or oher ormal educaion award ha is one o a sequence o creden-

    ials. Te benefi o sackable credenials is ha hey can be accumulaed over ime

    o build up an individuals qualificaions and help him or her move along a career

    pah o differen and poenially higher-paying jobs.

    Sackable credenials carve educaion up ino small incremens ha are more man-

    ageable or an adul learner. Any necessary remediaion or basic adul educaion

    is he botom o he sack. A one-year, specialized possecondary cerificae is

    added o he sacko provide he working adul wih specific job skills. I desired,an applied associaes degree can be added o he sack.

    Nursing is an example o how sackable credenials work concep-

    ually because he field is srucured in a way ha would allow or

    academic and career progression.

    o develop a clear se o sackable credenials requires common

    agreemen among employers abou wha is required a each level

    o responsibiliy or perormance wihin an occupaion. In some

    occupaions, his common agreemen does exis. In nursing, or

    example, here are clear ses o expecaions or nursing assisans,

    licensed pracical nurses, or LPNs, and regisered nurses, or RNs.

    Te pah a person akes ino nursing ollows several discree

    racks ha may or may no build upon each oher. A suden can

    enroll in a shor, narrowly defined nursing assisan program and

    ge a job as a nursing assisan. A nursing assisan has a relaively

    low level o responsibiliy and is subjec o considerable oversigh

    and supervision.

    Applied associate's degree

    Postsecondary certificate

    Adult basic education or

    remedial coursework

    FIGURE 2

    Stackable credential

    Master's degree in nursing

    RN certificate

    (often combined with a

    bachelor's degree in nursing)

    LPN certificate

    (often combined with

    an associate's degree

    in nursing)

    Nursing

    assistant

    certificate

    FIGURE 3

    An example: Nursing

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    10 Center for American Progress | A Path Forward

    Afer several years on he job, a nursing assisan who wishes o have increased

    responsibiliyand earn more moneyshould be able o ranser he knowledge

    and skills gained in pracice or in school o an LPN program or an RN program.

    Bu because o academic residency and oher requiremens a many higher-educa-

    ion insiuions, hese sudens mus repea some o he raining hey previously

    received in order o become a nursing assisan, which can be a significan barrieror many working aduls. Te same is rue or an LPN who wishes o become an

    RN. Sackable credenial models are specifically designed o address his issue

    because i makes i possible o develop an inegraed se o nursing credenials ha

    build upon he ones a suden has already atained. Tereore, a suden wishing o

    become an RN would no need o reake he maerial learned o become an LPN.

    o some exen, his sysem already exiss a some nursing educaion insiu-

    ions, bu he sysem is largely dependen on he confidence ha one educaion

    provider has in anoher when a suden changes providers beween programs.

    Tis confidence can be enhanced i he provider and he programs are accrediedby he same accredior. In nursing, bu in ew oher disciplines, he sysem is also

    reinorced by proessional licensing requiremens a he sae level. Regardless, he

    curren sysem is ar rom perec.

    Since he lae 2000s, he Ohio Board o Regens has been working o esablish a

    saewide sysem o sackable cerificaes. Te goal o his sysem is o provide sack-

    able cerificaes ha can be earned hrough adul career ceners, higher-educaion

    insiuions, and employers. Such a sysem mus be well ariculaed o ensure he

    mos effecive inerconnecion o compeencies offered in specialized raining

    programs. Te Universiy Sysem o Ohio, he saes public universiy sysem, will

    esablish sandards or he awarding o college credi or sackable cerificaes. I is

    noable ha under he Ohio model, he sackable cerificaes are no awarded based

    on sea ime bu raher hrough he demonsraion o compeencies.20

    While here are clear benefis o sackable credenials, here are some significan

    problems wih he approach as i has been implemened. Ofenimes, sackable

    credenials are viewed as a way o help aduls who have paricular gaps in heir aca-

    demic preparaion, which resuls in hem needing significan remediaion. For he

    sudens who need addiional preparaion, sackable credenials help by meeingsudens where hey are academically. Bu sackable credenials may no work as

    well or hose who are well prepared because hey ollow a well-defined pah ha

    does no easily adap o a suden saring a a more advanced level ha migh, or

    example, be halway hrough a radiional course or course sequence.

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    11 Center for American Progress | A Path Forward

    o he exen ha a sysem o sackable credenials is developed by higher-educa-

    ion insiuions, he sysem ends o be more academically oriened. Ta is o say

    ha hey do no give adequae consideraion and academic credi or wha a su-

    den may have learned hrough work experience. Furhermore, sackable creden-

    ials ha are developed by communiy colleges or adul basic educaion providers

    end o lead o an applied associaes degree, which can be a dead end becausehese credenials are no easily ranserable o a bachelors degree or higher.

    Despie he limiaions, sackable credenials can provide a clear pah rom he

    sudens curren siuaion o a beter siuaion. As such, sackable credenials

    are paricularly helpul o he chronically unemployed and underemployed as

    hey seek o successully move ino more producive roles in he workorce and

    ino he middle class.

    Competency-based learning models

    As sackable credenials have developed o address he needs o working adul

    learners as hey move in and ou o educaional programs, compeency-based

    approaches have developed o ensure ha graduaes are well prepared or he

    jobs o oday by making sure ha he educaional credenial hey obain is well

    conneced o he expecaion o employers. As highlighed in he CAP repor,

    Meeing Sudens Where Tey Are: Profiles o Sudens in Compeency-Based

    Degree Programs,21compeency-based learning is suden cenric. I is abou

    wha a suden knows and can do, and less abou eaching and how he suden

    learns. Under he compeency-based approach, he pace o learning can be linked

    o on a sudens readiness and level o confidence when he or she begins heir

    educaion, and can build rom wha he or she already knows, which means ha

    some sudens will finish more quickly han ohers. Meeing sudens where hey

    are means ha i migh ake some much longer han ohers, bu unlike curren

    models o educaion delivery, sudens would no have o ail.

    Compeency-based learning is an approach o eaching and learning where he

    applicaion o knowledge is assessed in he process o awarding a credenial. Te

    radiional approach o learning places he eacher or proessor a he cener o helearning process. Te compeency-based approach flips he model by placing he

    suden a he cener insead. Tis reorienaion allows a suden o acquire a com-

    peency hrough any number o learning aciviiessome aciviies can be guided

    by an insrucor or proessor, while ohers can be sel-direced using exernal

    resources such as online courses and oher ree web-based resources.

    Competency-based app

    es have the unique abili

    blurring the lines betwe

    different levels of educa

    There is no reason that

    school students cannot

    working toward the dev

    ment of competencies t

    could permit them to re

    a certificate or associate

    degree at the same time

    receive their high schoo

    diploma, based solely o

    demonstration of comp

    cies. This would significa

    reduce the time and cos

    associated with comple

    undergraduate credent

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    12 Center for American Progress | A Path Forward

    A major reason why any o a number o learning aciviies can be used in a compe-

    ency-based seting is because here is a shared undersanding among he aculy,

    sudens, and oher sakeholders such as employers and policymakers abou he

    specific skills and knowledge ha sudens should maser as a resul o heir learn-

    ing experiences. When he insiuion is clear abou wha is expeced o sudens

    in a paricular compeency-based program, i becomes possible o demonsraeproficiency in each compeency in a wide variey o setings.

    Tis concep is no new. Some disciplines such as medicine and nursing have

    long hisories o using compeency-based learning. Te Naional Cener or

    Educaion Saisics firs wroe abou he hen-emerging approach o possecond-

    ary educaion 13 years ago. A ha ime, he Naional Possecondary Educaion

    Cooperaive Working Group on Compeency-Based Iniiaives in Possecondary

    Educaion described compeencies as he bridge beween radiional credi hour

    measures o suden achievemen and he learning revoluion.22

    Ou o concern or poenial abuse ha could wase axpayer unds while sad-

    dling sudens and amilies wih excessive deb, ederal suden-aid policies,

    along wih accrediing agency hesiance, have salled he movemen. Bu recen

    acions, including he approval o Souhern New Hampshire Universiys College

    or America compeency-based, online associaes degree23as well as a policy

    saemen by he Deparmen o Educaion24have acceleraed movemen o

    embrace new ways o hinking abou learning. wo regional accrediors have

    recenly embraced change: he New England Associaion o Schools and Colleges,

    or NEASC, in he case o Souhern New Hampshire Universiys College

    or America,25and he Higher Learning Commission, or HLC, in he case o

    Universiy o Wisconsin, Madison and Milwaukee.26Te Universiy o Wisconsin

    has recenly announced a urher expansion o hese effors.27

    In recen years, a ew higher-educaion insiuions have developed new mod-

    els ocused on sudens acquiring knowledge and skills a heir own pace and

    demonsraing achievemen o specific compeencies. Tese insiuions award

    a degree or oher credenial based on he sudens demonsraed compeencies.

    Te Higher Educaion Ac o 1965 was amended in 2005 o permi he eligibil-

    iy o direc assessmen programs in he ederal suden-aid programs.28

    Teseprograms use he assessmen o suden learning or recognize he direc assess-

    men by ohers o suden learning in lieu o measuring learning in credi hours

    or clock hours. Unil lae las year, no higher-educaion insiuion had applied

    o use his auhoriy.29Examples o he kinds o measures ha can be used in

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    direc assessmen programs include projecs, papers, examinaions, presenaions,

    perormances, and porolios. When applying o have a program deemed eligible

    or direc assessmen, an insiuion is required o explain is mehodology or

    deermining hese equivalenciesmeaning how i deermined he equivalen

    number o credi hours or clock hours or he program. In addiion, he insiu-

    ion mus demonsrae ha is insiuional accrediing agency has reviewed andapproved is offering o he direc assessmen program. I mus also demonsrae

    ha is insiuional accrediing agency or sae licensing body has agreed wih he

    insiuions assessmen o is credi- or clock-hour equivalencies.30Significanly,

    he direc assessmen program may use learning resourcescourses or porions

    o courses, or exampleha are provided by eniies oher han he insiuion

    providing he direc assessmen program, bu he learning aciviies mus be pro-

    vided or overseen by he insiuion.31

    Te firs example o a program using direc assessmen o esablish eligibiliy or

    ederal suden aid is Souhern New Hampshire Universiys College or Americaassociaes degree, which is buil around 120 compeencies.32In approving his

    degree program early his year, he Deparmen o Educaion explicily provided

    insiuions wih flexibiliy o demonsrae alernaive mehods o measuring

    suden learning, so long as hey resuled in insiuional equivalencies ha reason-

    ably approximae he definiion o a credi hour.33College or America sared

    wih a simple idea: connecing wih employers and finding ou wha hey need

    rom heir enry-level employees.

    Anoher early adoper o compeency-based learning is Capella Universiy. Unil

    recenly, Capellas approach has been o inegrae compeency-based approaches

    ino very radiional, insrucor-direced online courses. However, he universiy

    was recenly approved o offer bachelors and masers degree programs using

    direc assessmen. Te universiy has also begun o use compeency maps ha,

    similar o he GPS model, help adul sudens visually rack career-relevan com-

    peencies ha hey have demonsraed hrough each course. Tese compeency-

    based maps give sudens deailed repors ha hey can share wih curren and

    uure employers so hey can documen exacly wha hey masered in heir degree

    programs as i relaes o heir proessions. radiional grading sysems, on he

    oher hand, provide sudens and employers wih a limied undersanding o whaa suden has acually learned and wheher hey can apply ha learning.

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    Implications for business and

    financing models

    Higher educaion in he Unied Saes is a massive enerprise. Possecondary

    educaion insiuions repored enrollmens oaling abou 29 million sudens

    in 2011-12.34O hese, roughly 25.2 million were undergraduaes and approxi-

    maely 3.8 million were graduae sudens.35In fiscal year 2011, possecondary

    educaion insiuions generaed more han $556 billion in revenues and spen

    $468 billion, including $149 bil lion on direc insrucion,36and employed 3.8

    million people, including 1.5 million aculy members.37An enerprise o his

    magniude does no change rapidly.

    In par, he lack o change

    reflecs he ac ha higher

    educaion is a complex sysem

    and complex sysems do no

    change rapidly. wo ypes o

    sysemsechnological and

    humaninhibi ransorma-

    ive change.

    Firs, echnology sysems in

    higher educaion are spe-

    cifically designed o award

    degrees based on compleion

    o a sequence o courses wih

    progress measured in credis.

    Te echnological sysems,

    wheher home grown or buil, and suppored by vendors, were developed specifi-

    cally o manage sudens, aculy, and aciliies scheduling ha delivered educa-ion in physical or virual classrooms in courses ha were ypically held wo or

    hree imes a week or 12 o 15 weeks. Tese sysems will need o be modified

    significanly o record credis earned no in classrooms bu hrough any number

    o learning aciviies, wih credi ulimaely awarded based on an assessmen.

    Revenues Tuition revenues Expenses Instructional expenses

    FIGURE 4

    Revenues and expenses of postsecondary education institutionsin 2011 (in billions of dollars)

    $600

    $500

    $400$314 $288

    $208$300

    $200

    Public Private For-profit Total

    0

    Source: Laura G. Knapp, Janice E. Kelly-Reid, and Scott A. Ginder, National Center for Education Statistics, Enrollment in

    Postsecondary Institutions, Fall 2011; Financial Statistics, Fiscal Year 2011; and Graduation Rates, Selected Cohorts, 20032008(Washington: National Center for Education Statistics, 2012), available at http://nces.ed.gov/pubs2012/2012174rev.pdf.

    $100 $58$92

    $60 $50 $34 $30 $27 $7

    $153

    $556

    $468

    $149$148

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    More significanly, he learning sysems o possecondary educaion insiu-

    ions will need o be compleely revised o capure compeencies atemped and

    demonsraed, mos likely in he orm o compeency-based ranscrips. Tis is no

    easy ask and clearly will no occur wihou significan pressure rom ouside he

    educaion communiy.38

    Te more significan barrier, however, is he need o modiy he human sys-

    ems in higher educaion. Higher-educaion insiuions have been organized

    verically or cenuries wih specific roles and responsibiliies or he aculy

    in conducing research, developing curriculum, designing courses, delivering

    insrucion, and assessing summaive learning and learning in each course.39

    radiionally, once a decision was made o offer a specific program o sudy,

    he curriculum became he sole responsibiliy o he aculy. Wih he ongoing

    reorms in higher educaion, his will change dramaically. In developing guided

    pahways, he curriculum needs o be srucured o efficienly move sudens

    hrough a se o courses wih a minimum amoun o unnecessary courseakingha could delay or derail a suden. Under compeency-based and sackable cre-

    denial models, he curriculum needs o be developed wih close relaionships

    wih employers o ensure ha graduaes have he skills and knowledge neces-

    sary or enry ino he workorce. As such, he role o aculy will change rom

    creaors o he curriculum o, a bes, co-creaors wih learning, curriculum,

    and assessmen specialiss and employers. Similar adjusmens will be needed

    o show how research is conduced, courses are designed and augh, and how

    learningincremenal and summaiveis assessed.

    Ulimaely, his will resul in a wholesale reorganizaion and renegoiaion o

    he role o aculy as well as adminisraors. We have already seen some aculy,

    paricularly a wholly online colleges, become specialiss in using echnology o

    deliver educaional conen. Some aculy, or example, will also become special-

    iss in assessmen wih no responsibiliy or eaching while oher aculy members

    will become learning coaches who help sudens sruggling wih difficul learn-

    ing aciviies. Undoubedly, he reorganizaion and renegoiaion o aculy roles

    will no be easy. Te limied experience hus ar suggess ha some aculy will

    embrace heir new role while ohers will resis, making srong change-manage-

    men skills a premium in higher educaion in he years ahead.

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    Te reason ha he Carnegie Uni, more commonly called he

    credi hour, is he coin o he realm in higher educaion oday

    and is so difficul o move away rom is because i was developed

    o simpliy decisions abou how much o pay each aculy mem-

    ber based on he number and level o he unis each was assigned

    o each.40

    Ulimaely, he academyhow higher educaion reerso iselwill need o come up wih a sandardized approach o

    defining roles and a mehod o assign a value o hose roles. Te

    insiuions ha quickly figure ou how o compensae aculy in

    newly defined roles, which are aligned oward effecively deliver-

    ing learning aciviies and assessing learning, will have a signifi-

    can compeiive advanage.

    Similarly, wha will sudens pay or under hese new models? oday, sudens

    ypically pay per coursea specific dollar amoun per uni or credior erm and

    sudens could sill pay or insrucion delivered in very radiional courses. Tahas been he suden experience wih nearly all o he compeency-based models

    available o his poin, bu his approach ails o ake any significan advanage o

    he benefis o his model.

    o address his concern, insiuions could adop an approach o charging jus or

    he educaional resources used by each suden. Essenially, his would unbundle

    he cos o educaion so ha each suden pays jus or he services, maerials,

    or suppors ha hey need. Tis approach would be undoubedly difficul or

    insiuions o adop, bu i would be similar o how hospials and oher medical

    providers have unbundled services o more accuraely and efficienly assign coss

    o procedures and reamens. So yes, i would be challenging, bu i is doable.

    Some insiuions, including Wesern Governors Universiy and he College or

    America, have adoped subscripion models where he suden pays or he ime

    he or she is enrolled in six-monh or year-long incremens. Wesern Governors

    Universiy charges a basic uiion o $2,890 per six-monh erm41and College or

    America charges jus $2,500 per year.42Such an approach would no likely be eco-

    nomically viable i mos sudens came prepared o immediaely ake he assess-

    mens necessary o earn a degree or cerificae.

    Knowledge creation

    Curriculum development

    Teaching

    Testing

    Summative assessment

    FIGURE 5

    Higher-education knowledge creatio

    transmission, assessment, and

    credentialing

    Research

    Assessment

    Knowledge

    transmission

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    Anoher alernaive migh be o charge only or he incremenal or summaive

    assessmens. Under his model, a suden migh no need o enroll or regiser

    unil he or she is ready o ake an assessmen. Such an approach, however, would

    make i difficul or low-income sudens who ofen need suppor o mee living

    expenses while in school.

    Ulimaely, how sudens pay or and experience possecondary educaion will

    likely drive changes in he organizaional srucure o he insiuions as well. I

    sudens are buying a bundle o educaional services, i is unlikely ha hey will

    develop loyaly o a brand as he experience o atending college could look and

    eel very differen han i does oday. Combined wih he ac ha many sudens

    will no be physically on campus or our or more years, i will likely have signifi-

    can implicaions or boh public and privae nonprofi colleges and universiies

    ha rely on brand idenificaion or long-erm alumni suppor. (Noe: Efficiency

    is no everyhing.)

    Changes o he magniude suggesed by a move oward compeency-based

    programs, sackable credenials, and Guided Pahways o Success will ulimaely

    cause a reconsideraion o he quesion o how o effecively assess learning

    oucomes. oday, he higher-educaion sysem relies on a ew imperec measures

    o perormance: cohor deaul (a measure o a sudens abiliy o repay heir

    ederal suden loan), reenion, and graduaion raes. Wih wide-scale adopion

    o income-based repaymen likely o render ineffecive cohor deaul raes as an

    oucome measure in he coming years, reenion and graduaion raes will likely

    become he predominan measures, and hose oo will become o less uiliy as

    alernaive modes o delivery are implemened. Consider or a momen he uiliy

    o an on-ime measure or 150 percen o normal ime o degree when a suden

    does no need o announce heir inenion o obain a degree unil hey are pre-

    pared o si or an assessmen. And wha does reenion mean in his conex?

    Innovation in higher ed

    tion often occurs in silos

    a result, an institution th

    implements an innovatunaware that others hav

    are trying to implement

    same or similar innovat

    To facilitate learning fro

    innovators, the secreta

    education should provi

    opportunities for institu

    and states to enhance e

    tional opportunities. On

    to accomplish this wouto re-establish the Dista

    Education Demonstrati

    Program as a mechanis

    to encourage collabora

    among institutions offe

    ing educational progra

    through massive open

    courses, or MOOCs, com

    tency-based models, an

    other innovative mode

    Such a demonstration

    program would create a

    place for institutions to

    information about what

    are learning through inn

    tive efforts.

    Demonstration prog

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    Policy recommendations

    Given he difficuly in effecing change in higher educaion, jus permiting change

    is no sufficien. On December 5, 2013, he Deparmen o Educaion announced

    plans o conduc experimens under he secreary o educaions auhoriy o

    waive regulaory and sauory provisions o he ederal suden-loan programs43

    and asked or recommendaions o poenial experimens.44o oser posiive and

    ransormaive change, i is criical o use his ool o provide srong and powerul

    incenives or change, enlis workorce sakeholders o define compeencies, and

    esablish qualiy sandards or compeency-based educaion programs.

    Experiments

    We recommend ha he secreary o educaion use he waiver auhoriy o

    encourage reorms such as Guided Pahways o Success, sackable credenials, and

    compeency-based programs.

    Te ederal suden-aid sysem has long served o suppor a second chance a

    qualiy educaion by permiting sudens wihou a high school diploma he

    abiliy o pursue a possecondary program o sudy. Congress limied his abiliy

    by eliminaing he auhoriy or prospecive sudens o ake a es or complee

    six credis and hen receive ederal suden aid.45Resoring his auhoriy in

    a limied way would ensure access o possecondary educaion or low- and

    middle-income sudens who did no complee high school. Tus, o encour-

    age he adopion and greaer use o Guided Pahways o Success, he secreary

    should expand eligibiliy or aid o individuals who have been denied access o

    possecondary educaion by resricing he abiliy o benefi by using his experi-

    menal sie auhoriy o make ederal suden aid available o sudens who areno high school graduaes by reinsaing aid o sudens who earned six credis

    or he equivalen coursework oward a degree.

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    o encourage expansion o he use o sackable credenials, he secreary o

    educaion should consider approving addiional experimens or programs ha

    are shorer han normally permited o be eligible or aid i delivered as par o a

    comprehensive and coordinaed sysem o sackable credenials. Te secreary

    has already approved an experimen involving shor-erm raining programs

    ha prepare sudens or quick enry ino he labor marke.46

    In general, onlyacademic programs ha are a leas 15 weeks in duraion and provide 600 clock

    hours, 16 semeser or rimeser hours, or 24 quarer hours o academic credi

    are eligible programs or purposes o he ederal Pell Gran program.47Te

    secreary approved his experimen o allow shorer-erm vocaional raining

    programs o be Pell Gran eligible, which would enable unemployed and under-

    employed persons o obain he shor-erm raining required or employmen by

    local or regional employers. A modes exension would permi sudens o con-

    inue heir educaion in an inegraed manner hrough appropriaely designed

    sackable credenial programs.

    Anoher poenial experimen would decouple financial aid programs rom

    he credi-hour sandard. Such an experimen could be conduced o suppor

    he expansion o compeency-based programs in a conrolled manner and es

    differen ways o measure and rack suden progress, as his will likely be a

    criical issue in he nex reauhorizaion o he Higher Educaion Ac. Given

    he sae o developmen o compeency-based models, exploraion o differen

    approaches is criical. I would be helpul o ideniy and es alernaive means

    o appropriaely measuring suden progress oher han by he credi hour ha

    would al low equivalen levels o aid o be disbursed. A number o oher possible

    experimens could be conduced o deermine wheher i is possible o provide

    incenives or adoping compeency-based models ha are less draconian han

    moving away rom he credi hour compleely. One possible ex perimen could

    expand wha is considered insrucion or he purposes o deermining wheher

    a week is couned in he definiion o an academic year. Anoher experimen

    migh es how bes o monior and assess academic progress in a compeency-

    based educaional environmen. Given he sel-paced naure o learning in many

    compeency-based models, he curren definiion wih is ocus on radiional

    insrucion limis is limiing. Te curren largely ime-based approach limis he

    poenial o compeency-based programs o beter-serve sudens wih disabili-ies, paricularly inellecual disabiliies, because aid can only be provided or

    150 percen o he normal ime o degree.

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    Quality measures and standards

    In order or people o gain confidence in new mehods o delivering educaion,

    i is criically imporan o esablish early-on qualiy measures and objecive

    sandards o effeciveness. In he case o guided pahways, radiional measures

    o educaional progressreenion, graduaion, and ime-o-degreewill likelyconinue o be useul measures and, as noed above, he resul agains hose

    measures has been very posiive or insiuions ha have implemened guided

    pahway models.

    I is unlikely, however, ha hese measures will be useul in assessing compeency-

    based programs and will likely have limied uiliy in assessing sackable creden-

    ials. In he case o sackable credenials, he mos imporan merics will likely be

    measured in labor marke oucomes: job placemen, earning above a hreshold,

    and, perhaps mos imporanly, earning gains a each level o exi. Tese measures

    will likely be useul in assessing he effeciveness o compeency-based educa-ion programs. In keeping wih he radiions o higher educaion in he Unied

    Saes, accrediing agencies should develop a common se o qualiy sandards or

    compeency-based programs and assessmens. Such sandards would define good

    qualiy in he esablishmen o compeency rameworks and he developmen o

    valid and reliable assessmens, suden suppor, and oher program componens.

    Alernaively, he measure o he relaive effeciveness o radiional and emerging

    mehods, a se o assessmens could be developed o assess wheher program com-

    pleers are career ready. Such an approach would permi graduaes o be cerified

    as career ready and receive a credenial above and beyond a radiional associaes

    degree or bachelors degree. Te resuls o his assessmen could be used o judge

    he relaive effecives o educaional delivery.

    Importance of stakeholder engagement

    One criical elemen in each o hese reorms is he imporan role ha employers

    mus play in defining educaional program resuls. Tus, i is criical o find ways

    o enlis workorce sakeholders o define wha success looks like, including whacompeencies are valued. Tis is necessary o ensure greaer alignmen beween

    possecondary educaion and he workplace, and business and indusry sakehold-

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    ers. Formalized roles or employers, labor unions, and proessional associaions

    should be developed so ha hey help define he compeencies required or enry-

    level posiions as well as or oher job opporuniies hroughou an individuals

    career pahway. An approach o srenghening needs connecions is adding

    employers, labor unions, and proessional associaions o he decision-making

    bodies o accrediing agencies so ha hey have a ormal and significan role insaying wha qualiy looks like.

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    Conclusion

    Dramaically improving he perormance o our naions higher-educaion sysem

    will require an all-o-he-above approach o addressing he problem. Jus as

    Complee College America has called or he adopion by saes and insiuions

    o he five game changers ha i has idenified, i is now apparen ha we will

    need o adop a number o reorms and measure heir effeciveness over ime.

    Implemening compeency-based sackable credenials ha use compeency maps

    o keep learners moving oward heir educaional and career goals likely would

    achieve beter resuls han simply adoping one o he reorms.

    Careul assessmen o reormed sysems, however, will be criical. Te assess-

    mens should include evidence o wheher i is easier or employers o engage wih

    he higher-educaion sysem and hire graduaes wih confidence. Ta is o say,

    employers will know ha graduaes possess he skills and knowledge o do wha

    is needed as enry-level employees o move seamlessly and direcly ino he paid

    workorce. Te cos o he educaion delivered, including ime spen in unproduc-

    ive aciviy, should also be assessed in order o deermine i i is possible o deliver

    higher-qualiy programs a a lower cos.

    In his repor, we have atemped o ideniy insances where he modes appli-

    caion o policy levers could yield significan benefi. I is likely, however, ha

    more wholesale reorms will be necessary in he reauhorizaion o he Higher

    Educaion Ac, which is expeced o begin in earnes in 2014. Bu beginning now

    o adop incremenal reorms could help inorm he reauhorizaion process.

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    About the author

    David A. Bergeronis he Vice Presiden or Possecondary Educaion a he

    Cener or American Progress. He came o CAP afer serving as he acing assis-

    an secreary or possecondary educaion a he U.S. Deparmen o Educaion.

    In his posiion, David aced as he educaion secrearys chie advisor on higher-educaion issues and adminisered more han 60 gran and loan programs ha

    provide nearly $3 billion annually o insiuions o higher educaion and commu-

    niy-based organizaions.

    Prior o becoming acing assisan secreary, David served as he depuy assisan

    secreary or policy, planning, and innovaion or he Office o Possecondary

    Educaion. In his capaciy, he was responsible or he program budge or

    he ederal possecondary educaion programs adminisered by he Office o

    Possecondary Educaion and Federal Suden Aid, which generae more han

    $160 billion in financial aid o more han 25 million sudens enrolled a publicand privae possecondary insiuions. David was also responsible or legislaive,

    regulaory, and oher policies affecing he deparmens possecondary educa-

    ion programs, including Federal Suden Aid. His career a he Deparmen o

    Educaion included leading key policy groups working on he reauhorizaion o

    he Higher Educaion Ac, researching marke-based approaches o loan subsidies

    under he guaraneed loan programs, and developing program regulaions and

    oher policy guidelines.

    David received his bachelor o ars in poliical science and sociology rom he

    Universiy o Rhode Island.

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    Endnotes

    1 Complete College America, Guided Pathways toSuccess, available at http://www.completecollege.org/gameChangers.html#clickBoxTeal(last accessedNovember 2013).

    2 Ibid.

    3 Letter from Jane Oates to state workforce agencies

    and others, December 15, 2010, available athttp://wdr.doleta.gov/directives/attach/TEGL15-10.pdf.

    4 Higher Education Act of 1965, Public Law 89-329, 89thCong. 1 sess. (Government Printing Office, 1965).

    5 Organisation for Economic Co-operation and Develop-ment, Time for the U.S. to Reskill?: What the Survey ofAdult Skills Says (2013).

    6 The White House, The Presidents Plan for A StrongMiddle Class & A Strong America(2013), available athttp://www.whitehouse.gov/sites/default/files/up-loads/sotu_2013_blueprint_embargo.pdf.

    7 David A. Bergeron and Steven Klinsky, Debt-FreeDegrees, Inside Higher Ed, October 28, 2013, availableat http://www.insidehighered.com/views/2013/10/28/essay-need-new-innovation-focused-accreditor.

    8 National Association of Colleges and Employers, SalarySurvey: Starting Salaries for New College Graduates(2013), available athttp://www.naceweb.org/upload-edFiles/NACEWeb/Research/Salary_Survey/Reports/salary-survey-april-2013-executive-summary.pdf.

    9 Hart Research Associates, It Takes More Than A Major:Employer Priorities for College Learning and StudentSuccess(2013), available at http://www.aacu.org/leap/documents/2013_EmployerSurvey.pdf.

    10 Anthony P. Carnevale, Ban Cheah, and Jeff Strohl, HardTimes: College Majors, Unemployment and Earnings(Washington: Georgetown University Center onEducation and the Workforce, 2012), available athttp://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Un-employment.Final.update1.pdf.

    11 National Association of Colleges and Employers, Classof 2013: Paid Interns Outpace Unpaid Peers in JobOffers, Salaries, May 29, 2013, available at http://www.naceweb.org/s05292013/paid-unpaid-interns-job-offer.aspx.

    12 Jaison R. Abel and Todd M. Gabe,Human Capitaland Economic Activity in Urban America(New York:Federal Reserve Bank of New York, 2010), available athttp://www.newyorkfed.org/research/staff_reports/sr332.pdf.This paper shows thata 1 percentage pointincrease in the proportion of residents with a collegedegree is associated with about a 2 percent increase inmetropolitan-area gross domestic product, or GDP, percapita.

    13 College Board, Recommendation Two: Improve middleschool and high school college counseling, available athttp://completionagenda.collegeboard.org/recom-

    mendations/two (last accessed November 2013).

    14 Gouvernement du Qubec, The Qubec educationsystem, available athttp://www.immigration-quebec.gouv.qc.ca/en/education/comparative-evaluation/education-system.html(last accessed November 2013).

    15 CAP analysis of the Integrated Postsecondary Educa-tion Data System, or IPEDS, data from the NationalCenter for Education Statistics, IPEDS Data Center,available at http://nces.ed.gov/ipeds/datacenter/(lastaccessed November 2013)..

    16 Ibid.

    17 Complete College America, Guided Pathways toSuccess (PowerPoint),available at http://www.completecollege.org/resources.html#tabMaterials(lastaccessed November 2013).

    18 Ibid.

    19 Complete College America, Guided Pathways to Suc-cess.

    20 Michael E. Wonacott, Stackable Certificates (Colum-bus, OH: Ohio Department of Job and Family Serivces,2008).

    21 Rebecca Klein-Collins and Elizabeth Baylor, MeetingStudents Where They Are: Profiles of Students in Com-petency-Based Degree Programs (Washington: Centerfor American Progress, 2013), available athttp://www.americanprogress.org/wp-content/uploads/2013/11/

    CAEL-student-report-corrected.pdf.

    22 Elizabeth A Jones, Richard A. Voorhees, and KarenPaulson, Defining and Assessing Learning: ExploringCompetency-Based Initiatives (Washington: U.S. De -partment of Education, 2002), available athttp://nces.ed.gov/pubs2002/2002159.pdf.

    23 Marc Parry, Competency-Based Education AdvancesWith U.S. Approval of Program, The Chronicle of HigherEducation Wired Campus blog, April 18, 2013, availableat http://chronicle.com/blogs/wiredcampus/u-s-educa-tion-department-gives-a-boost-to-competency-based-education/43439.

    24 Letter from David A. Bergeron to institutions, March19, 2013, available at http://ifap.ed.gov/dpcletters/GEN1310.html.

    25 New England Association of Schools and Colleges,Recent Commission Actions, available at http://cihe.neasc.org/about_our_institutions/recent_commis-ion_actions(last accessed November 2013).

    26 Higher Learning Commission, Actions: Academic Year2012-2013, available at http://ncahlc.org/Decision-Making-Bodies/recent-actions.html(last accessedNovember 2013).

    27 University of Wisconsin System, Four more UW Institu-tions to participate in Flexible Option, Press release,December 6, 2013, available athttp://www.wisconsin.edu/news/2013/r131206.htm.

    28 Deficit Reduction Act of 2005, Public Law 109-171, 109thCong. 1 sess. (Government Printing Office, 2006),available at http://www.gpo.gov/fdsys/pkg/PLAW-109publ171/pdf/PLAW-109publ171.pdf.

    29 College for America, A Milestone for Competency-Based Higher Ed, Press release, April 18, 2013, availableat http://collegeforamerica.org/latest/entry/a-mile-stone-for-competency-based-higher-ed.

    http://www.completecollege.org/gameChangers.html#clickBoxTealhttp://www.completecollege.org/gameChangers.html#clickBoxTealhttp://wdr.doleta.gov/directives/attach/TEGL15-10.pdfhttp://wdr.doleta.gov/directives/attach/TEGL15-10.pdfhttp://www.whitehouse.gov/sites/default/files/uploads/sotu_2013_blueprint_embargo.pdfhttp://www.whitehouse.gov/sites/default/files/uploads/sotu_2013_blueprint_embargo.pdfhttp://www.insidehighered.com/views/2013/10/28/essay-need-new-innovation-focused-accreditorhttp://www.insidehighered.com/views/2013/10/28/essay-need-new-innovation-focused-accreditorhttp://www.naceweb.org/uploadedFiles/NACEWeb/Research/Salary_Survey/Reports/salary-survey-april-2013-executive-summary.pdfhttp://www.naceweb.org/uploadedFiles/NACEWeb/Research/Salary_Survey/Reports/salary-survey-april-2013-executive-summary.pdfhttp://www.naceweb.org/uploadedFiles/NACEWeb/Research/Salary_Survey/Reports/salary-survey-april-2013-executive-summary.pdfhttp://www.aacu.org/leap/documents/2013_EmployerSurvey.pdfhttp://www.aacu.org/leap/documents/2013_EmployerSurvey.pdfhttp://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Unemployment.Final.update1.pdfhttp://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Unemployment.Final.update1.pdfhttp://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Unemployment.Final.update1.pdfhttp://www.naceweb.org/s05292013/paid-unpaid-interns-job-offer.aspxhttp://www.naceweb.org/s05292013/paid-unpaid-interns-job-offer.aspxhttp://www.naceweb.org/s05292013/paid-unpaid-interns-job-offer.aspxhttp://www.newyorkfed.org/research/staff_reports/sr332.pdfhttp://www.newyorkfed.org/research/staff_reports/sr332.pdfhttp://completionagenda.collegeboard.org/recommendations/twohttp://completionagenda.collegeboard.org/recommendations/twohttp://www.immigration-quebec.gouv.qc.ca/en/education/comparative-evaluation/education-system.htmlhttp://www.immigration-quebec.gouv.qc.ca/en/education/comparative-evaluation/education-system.htmlhttp://www.immigration-quebec.gouv.qc.ca/en/education/comparative-evaluation/education-system.htmlhttp://nces.ed.gov/ipeds/datacenter/http://www.completecollege.org/resources.html#tabMaterialshttp://www.completecollege.org/resources.html#tabMaterialshttp://www.americanprogress.org/wp-content/uploads/2013/11/CAEL-student-report-corrected.pdfhttp://www.americanprogress.org/wp-content/uploads/2013/11/CAEL-student-report-corrected.pdfhttp://www.americanprogress.org/wp-content/uploads/2013/11/CAEL-student-report-corrected.pdfhttp://nces.ed.gov/pubs2002/2002159.pdfhttp://nces.ed.gov/pubs2002/2002159.pdfhttp://chronicle.com/blogs/wiredcampus/author/mparryhttp://chronicle.com/blogs/wiredcampus/u-s-education-department-gives-a-boost-to-competency-based-education/43439http://chronicle.com/blogs/wiredcampus/u-s-education-department-gives-a-boost-to-competency-based-education/43439http://chronicle.com/blogs/wiredcampus/u-s-education-department-gives-a-boost-to-competency-based-education/43439http://ifap.ed.gov/dpcletters/GEN1310.htmlhttp://ifap.ed.gov/dpcletters/GEN1310.htmlhttp://cihe.neasc.org/about_our_institutions/recent_commision_actionshttp://cihe.neasc.org/about_our_institutions/recent_commision_actionshttp://cihe.neasc.org/about_our_institutions/recent_commision_actionshttp://ncahlc.org/Decision-Making-Bodies/recent-actions.htmlhttp://ncahlc.org/Decision-Making-Bodies/recent-actions.htmlhttp://www.wisconsin.edu/news/2013/r131206.htmhttp://www.wisconsin.edu/news/2013/r131206.htmhttp://www.gpo.gov/fdsys/pkg/PLAW-109publ171/pdf/PLAW-109publ171.pdfhttp://www.gpo.gov/fdsys/pkg/PLAW-109publ171/pdf/PLAW-109publ171.pdfhttp://collegeforamerica.org/latest/entry/a-milestone-for-competency-based-higher-edhttp://collegeforamerica.org/latest/entry/a-milestone-for-competency-based-higher-edhttp://collegeforamerica.org/latest/entry/a-milestone-for-competency-based-higher-edhttp://collegeforamerica.org/latest/entry/a-milestone-for-competency-based-higher-edhttp://www.gpo.gov/fdsys/pkg/PLAW-109publ171/pdf/PLAW-109publ171.pdfhttp://www.gpo.gov/fdsys/pkg/PLAW-109publ171/pdf/PLAW-109publ171.pdfhttp://www.wisconsin.edu/news/2013/r131206.htmhttp://www.wisconsin.edu/news/2013/r131206.htmhttp://ncahlc.org/Decision-Making-Bodies/recent-actions.htmlhttp://ncahlc.org/Decision-Making-Bodies/recent-actions.htmlhttp://cihe.neasc.org/about_our_institutions/recent_commision_actionshttp://cihe.neasc.org/about_our_institutions/recent_commision_actionshttp://cihe.neasc.org/about_our_institutions/recent_commision_actionshttp://ifap.ed.gov/dpcletters/GEN1310.htmlhttp://ifap.ed.gov/dpcletters/GEN1310.htmlhttp://chronicle.com/blogs/wiredcampus/u-s-education-department-gives-a-boost-to-competency-based-education/43439http://chronicle.com/blogs/wiredcampus/u-s-education-department-gives-a-boost-to-competency-based-education/43439http://chronicle.com/blogs/wiredcampus/u-s-education-department-gives-a-boost-to-competency-based-education/43439http://chronicle.com/blogs/wiredcampus/author/mparryhttp://nces.ed.gov/pubs2002/2002159.pdfhttp://nces.ed.gov/pubs2002/2002159.pdfhttp://www.americanprogress.org/wp-content/uploads/2013/11/CAEL-student-report-corrected.pdfhttp://www.americanprogress.org/wp-content/uploads/2013/11/CAEL-student-report-corrected.pdfhttp://www.americanprogress.org/wp-content/uploads/2013/11/CAEL-student-report-corrected.pdfhttp://www.completecollege.org/resources.html#tabMaterialshttp://www.completecollege.org/resources.html#tabMaterialshttp://nces.ed.gov/ipeds/datacenter/http://www.immigration-quebec.gouv.qc.ca/en/education/comparative-evaluation/education-system.htmlhttp://www.immigration-quebec.gouv.qc.ca/en/education/comparative-evaluation/education-system.htmlhttp://www.immigration-quebec.gouv.qc.ca/en/education/comparative-evaluation/education-system.htmlhttp://completionagenda.collegeboard.org/recommendations/twohttp://completionagenda.collegeboard.org/recommendations/twohttp://www.newyorkfed.org/research/staff_reports/sr332.pdfhttp://www.newyorkfed.org/research/staff_reports/sr332.pdfhttp://www.naceweb.org/s05292013/paid-unpaid-interns-job-offer.aspxhttp://www.naceweb.org/s05292013/paid-unpaid-interns-job-offer.aspxhttp://www.naceweb.org/s05292013/paid-unpaid-interns-job-offer.aspxhttp://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Unemployment.Final.update1.pdfhttp://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Unemployment.Final.update1.pdfhttp://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Unemployment.Final.update1.pdfhttp://www.aacu.org/leap/documents/2013_EmployerSurvey.pdfhttp://www.aacu.org/leap/documents/2013_EmployerSurvey.pdfhttp://www.naceweb.org/uploadedFiles/NACEWeb/Research/Salary_Survey/Reports/salary-survey-april-2013-executive-summary.pdfhttp://www.naceweb.org/uploadedFiles/NACEWeb/Research/Salary_Survey/Reports/salary-survey-april-2013-executive-summary.pdfhttp://www.naceweb.org/uploadedFiles/NACEWeb/Research/Salary_Survey/Reports/salary-survey-april-2013-executive-summary.pdfhttp://www.insidehighered.com/views/2013/10/28/essay-need-new-innovation-focused-accreditorhttp://www.insidehighered.com/views/2013/10/28/essay-need-new-innovation-focused-accreditorhttp://www.whitehouse.gov/sites/default/files/uploads/sotu_2013_blueprint_embargo.pdfhttp://www.whitehouse.gov/sites/default/files/uploads/sotu_2013_blueprint_embargo.pdfhttp://wdr.doleta.gov/directives/attach/TEGL15-10.pdfhttp://wdr.doleta.gov/directives/attach/TEGL15-10.pdfhttp://www.completecollege.org/gameChangers.html#clickBoxTealhttp://www.completecollege.org/gameChangers.html#clickBoxTeal
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    25 Center for American Progress | A Path Forward

    30 U.S. Department of Education, Federal Student AidPrograms; Final Rule, Federal Register 71 (211) (2006) ,available at http://ifap.ed.gov/fregisters/FR11012006Fi-nalRuleHERA.html.

    31 For policy reasons, several types of programs andcoursework that would otherwise be eligible are noteligible for federal student aid if direct assessmentincluding programs at foreign schools; preparatorycoursework required for entry into an eligible program;courses necessary for an elementary or secondaryschool teaching credential or certificate; and remedial

    coursework measured through direct assessment.

    32 David A. Bergeron, Moving Away from Credit Hours inHigher Education, Center for American Progress, April18, 2013, available at http://www.americanprogress.org/issues/higher-education/news/2013/04/18/60847/moving-away-from-credit-hours-in-higher-education/.

    33 Letter from Eduardo Ochoa to institutions, March18, 2011, available at http://ifap.ed.gov/dpcletters/GEN1106.html.

    34 Scott A. Ginder and Janice E. Kelly-Reid, Postsecond-ary Institutions and Cost of Attendance in 2012-13;Degrees and Other Awards Conferred, 2011-12; and12-Month Enrollment, 2011-12 (Washington: NationalCenter for Education Statistics, 2013), available athttp://nces.ed.gov/pubs2013/2013289rev.pdf.

    35 Ibid.

    36 Laura G. Knapp, Janice E. Kelly-Reid, and Scott A.Ginder, National Center for Education Statistics,Enrollment in Postsecondary Institutions, Fall 2011;Financial Statistics, Fiscal Year 2011; and GraduationRates, Selected Cohorts, 20032008 (Washington:National Center for Education Statistics, 2012) , availableat http://nces.ed.gov/pubs2012/2012174rev.pdf.

    37 National Center for Education Statistics, Table 284:Employees in degree-granting institutions, by sex,employment status, control and level of institution, andprimary occupation: Selected years, fall 1991 throughfall 2011, available at http://nces.ed.gov/programs/di-gest/d12/tables/dt12_284.asp(last accessed November2013).

    38 Paul Fain, Competenc y-Based Transcripts, InsideHigher Ed, August 9, 2 013, available at http://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcripts.

    39 Joseph E. Aoun, From Vertical to Horizontal: TheRestructuring of Higher Education, NortheasternUniversity, Keynote address to the National ChineseLanguage Conference of the College Board and theAsia Society, April 2013.

    40 Jessica Shedd, The History of the Student Credit Hour,New Directions for Higher Education122 (2003).

    41 Western Governors University, Tuition & Financial Aid,available at http://www.wgu.edu/tuition_financial_aid/overview(last accessed November 2013).

    42 College for America, Enroll As A Working Student,available at http://collegeforamerica.org/students(lastaccessed November 2013).

    43 Section 487A(b)of the Higher Education Act of 1965, asamended.

    44 Brenda Dann-Messier, Notice Inviting Suggestionsfor New Experiments for the Experimental Sites Initia-tive; Federal Student Financial Assistance Programsunder Title IV of the Higher Education Act of 1965, asAmended,Federal Register78 (235) (2013), available at

    http://www2.ed.gov/documents/college-affordability/notice-experimental-sites-initiative.pdf.

    45 Libby A. Nelson, No Diploma, No GED, No Aid, InsideHigher Ed, March 20, 2012, available at http://www.insidehighered.com/news/2012/03/20/colleges-worry-about-end-federal-aid-based-ability-benefit.

    46 Eduard Ochoa, Postsecondary Educational InstitutionsInvited To Participate in Experiments Under the Experi-mental Sites Initiative, FederalRegister76 (208) (2011),available at http://ifap.ed.gov/fregisters/attachments/FR102711ExperimentalSitesInitiative.pdf.

    47 Section 481(b)(A) of the Higher Education Act of 1965, asamended.

    http://ifap.ed.gov/fregisters/FR11012006FinalRuleHERA.htmlhttp://ifap.ed.gov/fregisters/FR11012006FinalRuleHERA.htmlhttp://www.americanprogress.org/issues/higher-education/news/2013/04/18/60847/moving-away-from-credit-hours-in-higher-education/http://www.americanprogress.org/issues/higher-education/news/2013/04/18/60847/moving-away-from-credit-hours-in-higher-education/http://www.americanprogress.org/issues/higher-education/news/2013/04/18/60847/moving-away-from-credit-hours-in-higher-education/http://ifap.ed.gov/dpcletters/GEN1106.htmlhttp://ifap.ed.gov/dpcletters/GEN1106.htmlhttp://nces.ed.gov/pubs2013/2013289rev.pdfhttp://nces.ed.gov/pubs2012/2012174rev.pdfhttp://nces.ed.gov/programs/digest/d12/tables/dt12_284.asphttp://nces.ed.gov/programs/digest/d12/tables/dt12_284.asphttp://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcriptshttp://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcriptshttp://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcriptshttp://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcriptshttp://www.wgu.edu/tuition_financial_aid/overviewhttp://www.wgu.edu/tuition_financial_aid/overviewhttp://collegeforamerica.org/studentshttp://www2.ed.gov/documents/college-affordability/notice-experimental-sites-initiative.pdfhttp://www2.ed.gov/documents/college-affordability/notice-experimental-sites-initiative.pdfhttp://www.insidehighered.com/news/2012/03/20/colleges-worry-about-end-federal-aid-based-ability-benefithttp://www.insidehighered.com/news/2012/03/20/colleges-worry-about-end-federal-aid-based-ability-benefithttp://www.insidehighered.com/news/2012/03/20/colleges-worry-about-end-federal-aid-based-ability-benefithttp://ifap.ed.gov/fregisters/attachments/FR102711ExperimentalSitesInitiative.pdfhttp://ifap.ed.gov/fregisters/attachments/FR102711ExperimentalSitesInitiative.pdfhttp://ifap.ed.gov/fregisters/attachments/FR102711ExperimentalSitesInitiative.pdfhttp://ifap.ed.gov/fregisters/attachments/FR102711ExperimentalSitesInitiative.pdfhttp://www.insidehighered.com/news/2012/03/20/colleges-worry-about-end-federal-aid-based-ability-benefithttp://www.insidehighered.com/news/2012/03/20/colleges-worry-about-end-federal-aid-based-ability-benefithttp://www.insidehighered.com/news/2012/03/20/colleges-worry-about-end-federal-aid-based-ability-benefithttp://www2.ed.gov/documents/college-affordability/notice-experimental-sites-initiative.pdfhttp://www2.ed.gov/documents/college-affordability/notice-experimental-sites-initiative.pdfhttp://collegeforamerica.org/studentshttp://www.wgu.edu/tuition_financial_aid/overviewhttp://www.wgu.edu/tuition_financial_aid/overviewhttp://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcriptshttp://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcriptshttp://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcriptshttp://www.insidehighered.com/news/2013/08/09/northern-arizona-universitys-new-competency-based-degrees-and-transcriptshttp://nces.ed.gov/programs/digest/d12/tables/dt12_284.asphttp://nces.ed.gov/programs/digest/d12/tables/dt12_284.asphttp://nces.ed.gov/pubs2012/2012174rev.pdfhttp://nces.ed.gov/pubs2013/2013289rev.pdfhttp://ifap.ed.gov/dpcletters/GEN1106.htmlhttp://ifap.ed.gov/dpcletters/GEN1106.htmlhttp://www.americanprogress.org/issues/higher-education/news/2013/04/18/60847/moving-away-from-credit-hours-in-higher-education/http://www.americanprogress.org/issues/higher-education/news/2013/04/18/60847/moving-away-from-credit-hours-in-higher-education/http://www.americanprogress.org/issues/higher-education/news/2013/04/18/60847/moving-away-from-credit-hours-in-higher-education/http://ifap.ed.gov/fregisters/FR11012006FinalRuleHERA.htmlhttp://ifap.ed.gov/fregisters/FR11012006FinalRuleHERA.html
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    The Center for American Progress is a nonpartisan research and educational institute

    dedicated to promoting a strong, just, and free America that ensures opportunity

    for all. We believe that Americans are bound together by a common commitment to

    these values and we aspire to ensure that our national policies reflect these values.

    We work to find progressive and pragmatic solutions to significant domestic and

    international problems and develop policy proposals that foster a government that

    is of the people, by the people, and for the people.