career college sector report career college sector reportaccountability & outcomes michael j. cooney...
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Career College Sector Report Career College Sector ReportAccountability & Outcomes Michael J. Cooney Editor, Career Education Review Slide 2 The Career Educators Challenge jobs? Do your graduates get jobs? The Value Proposition in Todays Economy Slide 3 Higher Education Challenge 2009 3.3 Million High School Graduates June 2009 1 Million College Graduates June 2009 Career & Community College Enrollment up 2030% Many Workers Delaying Retirement if Possible Unemployment Rate Continues to Rise to Near 10% 1.2 Million High School Dropouts Each Year Slide 4 College for All (Pre-Recession) 90% of high school seniors expect to go to college 70% Expect to work in professional jobs 67% of high school seniors go on to college 50% Finish college in five or more years Many with unproductive degrees Thus 50% fail No skills / no degree Plus most all have student loans Slide 5 The Curse of the Class of 2009 For College Grads Lucky Enough to Get Work This Year, Low Wages are Likely to Haunt Them for a Decade or More Wall Street Journal 5/9/09 Major Trends in Employment : College Graduates Now Facing Higher Unemployment, U-6 Rate now at 14.8%, and 4.3 million jobs lost during this Recession. The rate for college graduates has doubled in one year meaning that higher paying jobs are now falling in large numbers. My Budget 360 3/09 Slide 6 New Level of Criticism of Higher Education The Four-year College Myth Its a path ingrained in us: Go to a University right after High school and graduate in four years. But that couldnt Be further from reality. And until education leaders take that into account, too many students will lose out. Boston Globe 5/31/09 4-year colleges graduate 53% in 6 Years And some are far below that average, study finds USA Today Universities will be irrelevant by 2020 BYU Professor Says Desert News 4/20/09 Slide 7 Broader U-6 Unemployment Rate Hits 17.5% Wall Street Journal 11/6/09 At No Time in Post-World War II America Has it Been More Difficult To Find a Job! Huffington Post 11/9/09 MBAs Confront a Savage Job Market The MBA Class of 2009 was hit harder than expected by the recession. At some top schools, 1 in 5 are jobless 3 months after graduation Business Week 10/29/09 Student Loans Coming Due, Job or No Job The Columbus Dispatch 11/9/09 Slide 8 Are Too Many Students Going to College? The Chronicle of Higher Education 11/8/09 Two-Year Colleges, Swamped, No Longer Welcome All New York Times 11/11/09 Slide 9 Career College Sector Under Increased Scrutiny GAO Report Stronger Department of Education Oversight Needed to Help Ensure Only Eligible Students Receive Federal Student Aid Congressional Hearings Ensuring Student Eligibility Requirements for Federal Aid Neg Reg II Incentive Compensation, state authorization, gainful employment in a recognized occupation, definition of a credit hour, and satisfactory academic progress) Negative Press The Growing Student Debt Crisis at Career Colleges Stephen Burd, Higher Ed Blog Slide 10 They are looking like us. We are looking like them Career focused programs ROI considerations Three year bachelor degrees No frills campuses Slide 11 The Recessionary Student Market Boom September 2009 9.1 million individuals 25 years and over were unemployed And had not attained a bachelors degree or higher Up from 5.5 million only a year ago. Stifel Nicholaus 10/21/09 We expect aggregated enrollment growth to increase about 23%, slightly below last quarters 25%well above the 3-year average of almost 12%. Slide 12 Thus, the 20092010 Career College Graduate Placement Challenge Slide 13 What if, in your state, a highly regarded career college, after experiencing a 30% growth in enrollment, then reported a 50% graduate placement rate, which meant that they were placing about the same number of graduates that they were before the recession? Slide 14 Would you: 1.Recognize them for outstanding work in a difficult job market and helping advance the careers of half their graduates? 2. Put them on show cause for failing to place half their graduates who now have student loans to pay and no job? 3.Both of the above? 4.Misplace their file? Slide 15 Beware the Wave! Wave! Nationally enrollment is up 20 - 30% or more at Career & Community Colleges IT IS THE BEST OF TIMES Slide 16 Beware the Wave The the challenge is to place 20 - 30% more graduates in a job market with 10% (17%) unemployment. Thus longer job search time and a growing pool of graduates waiting to be placed in a very competitive Job market. Rising default rates for graduates than now exceeds The rate for non-completers. Slide 17 Beware the Wave The the challenge is to place 20 - 30% more graduates in a job market with 10% (17%) unemployment. Recommendation: Apply Admissions/Marketing type resources to job search / placement activities to gain sustained market credibility. Slide 18 Beware the Wave accelerated Have we accelerated the enrollment of our traditional market depleted And thus depleted the pool of prospects for the near future? Thus to maintain current enrollment levels will colleges seek ATB to expand their enrollment efforts with either ATB students State U Or the traditional State U student? Plus competitive colleges (especially public companies) will increase their marketing expenditures to maintain the current level as the new normal. Slide 19 Beware the Wave accelerated Have we accelerated the enrollment of our traditional market depleted And thus depleted the pool of prospects for the near future? Thus competitive pressures will increase in 2010 Slide 20 Its the best of times it is all about student outcomes! And if we are going to survive as a sector then Slide 21 A few Ideas: Employer engagement is vital. Brand your curriculum. Increase student services Move from a placement model to a job search model. Teach entrepreneurial skills. Creative a Culture of Innovation.