"In our world, consumers, not taxpayers, pay for higher education. Because it’s their money, the students pay more attention, work harder to earn their degrees, are more serious about gaining the skills they need to succeed in the workplace and graduate at higher rates. At a time of shrinking government budgets for higher education and long lines for admission to the most popular programs, that world would seem like a pretty good place to be. Apparently Barron’s disagrees. Instead, reporter Bill Alpert uses a highly charged pair of anecdotes, selective data, and a variety of loaded words to misrepresent the education our students receive and the motives of the institutions making that education available to them (“Leveraging Up to Learn,” November 9, 2009).
Here’s the real picture of career education:
· Our sector educates 2.5 million students and is growing at an annual average rate of 11 percent because our students see value for which they are willing to pay. Attainment rates for career colleges (certificate, two-year and four-year programs) are 60 percent, not 34 percent. Unlike public universities, four-year career colleges often offer certificate and two-year degrees, in addition to four-year degrees. Comparing four-year career colleges to traditional institutions offering just four-year degrees or just two-year degrees is misleading at best;
· Students and institutions share an interest in course completion. For the student, postsecondary completion is tied to jobs, careers and upward mobility; for the nationally accredited institution which must produce certain outcomes to stay accredited, completion rates can spell the difference between institutional success and failure. Accreditation is one leg of an oversight triad, with significant additional oversight of institutions provided by state higher education commissions and the federal government;
· Career college students pay higher tuitions than their public school counterparts because taxpayers pay $7,200 to subsidize the community college student but just $1,200 to support the career college student. Even with the higher borrowed amounts, the overwhelming majority of career college students repay their federal student loans, returning a profit on the taxpayer’s investment;
· Career college students do default on student loans at higher rates than others, but that’s because career college students tend to be poorer, more apt to be independent, more likely to be the first in the family to attend college. There is no mystery here: community colleges and minority serving institutions also serve less affluent populations and experience higher default rates. We don’t “blame” our students for being poor any more than we “blame” affluent students for attending the most selective traditional colleges and universities (and defaulting at lower rates). Income disparities exist in America, but that does not mean that poor students should be kept from higher education opportunities.
· Barron’s computes a year on year drop out rate of 37 percent for career colleges, the same level at public colleges and above the rate for nonprofit private colleges. The newspaper comes up with its own definition of “drop out.” That’s because the U.S. Department of Education itself does not track such numbers. While persistence is critical to student success (and nationally accredited schools are measured on it as well), many reasons explain a break in enrollment from one year to the next, especially for non-traditional students. Such reasons include school transfers, family matters and work obligations.
· Career colleges are described as making loans to students in order to “duck” the Department of Education’s 90-10 regulation, requiring at least 10 percent of tuition to be paid from non-federal government sources. The article fails to mention the fact that the private student lending market cratered in the wake of the credit market collapse, leaving many students out in the cold. Institution-supplied financing is a temporary step designed to help such students avoid a break in their studies. Schools are schools, and have no interest in becoming bankers or lenders.
Reporter Alpert says the “evidence” does not show whether the career education sector is serving its student population or preying on it. Come to our schools. Talk to our students or to employers who hire our graduates. See the career education world as it is, not as how a few short sellers and plaintiffs’ attorneys would like it to be."
Here’s the real picture of career education:
· Our sector educates 2.5 million students and is growing at an annual average rate of 11 percent because our students see value for which they are willing to pay. Attainment rates for career colleges (certificate, two-year and four-year programs) are 60 percent, not 34 percent. Unlike public universities, four-year career colleges often offer certificate and two-year degrees, in addition to four-year degrees. Comparing four-year career colleges to traditional institutions offering just four-year degrees or just two-year degrees is misleading at best;
· Students and institutions share an interest in course completion. For the student, postsecondary completion is tied to jobs, careers and upward mobility; for the nationally accredited institution which must produce certain outcomes to stay accredited, completion rates can spell the difference between institutional success and failure. Accreditation is one leg of an oversight triad, with significant additional oversight of institutions provided by state higher education commissions and the federal government;
· Career college students pay higher tuitions than their public school counterparts because taxpayers pay $7,200 to subsidize the community college student but just $1,200 to support the career college student. Even with the higher borrowed amounts, the overwhelming majority of career college students repay their federal student loans, returning a profit on the taxpayer’s investment;
· Career college students do default on student loans at higher rates than others, but that’s because career college students tend to be poorer, more apt to be independent, more likely to be the first in the family to attend college. There is no mystery here: community colleges and minority serving institutions also serve less affluent populations and experience higher default rates. We don’t “blame” our students for being poor any more than we “blame” affluent students for attending the most selective traditional colleges and universities (and defaulting at lower rates). Income disparities exist in America, but that does not mean that poor students should be kept from higher education opportunities.
· Barron’s computes a year on year drop out rate of 37 percent for career colleges, the same level at public colleges and above the rate for nonprofit private colleges. The newspaper comes up with its own definition of “drop out.” That’s because the U.S. Department of Education itself does not track such numbers. While persistence is critical to student success (and nationally accredited schools are measured on it as well), many reasons explain a break in enrollment from one year to the next, especially for non-traditional students. Such reasons include school transfers, family matters and work obligations.
· Career colleges are described as making loans to students in order to “duck” the Department of Education’s 90-10 regulation, requiring at least 10 percent of tuition to be paid from non-federal government sources. The article fails to mention the fact that the private student lending market cratered in the wake of the credit market collapse, leaving many students out in the cold. Institution-supplied financing is a temporary step designed to help such students avoid a break in their studies. Schools are schools, and have no interest in becoming bankers or lenders.
Reporter Alpert says the “evidence” does not show whether the career education sector is serving its student population or preying on it. Come to our schools. Talk to our students or to employers who hire our graduates. See the career education world as it is, not as how a few short sellers and plaintiffs’ attorneys would like it to be."


