The Conundrum of Profit-Making Institutions in Higher Education

Dr. William G. TierneyCenter for Higher Education Policy Analysis

University of Southern Californiahttp:/www.usc.edu/dept/chepa/www.21stcenturyscholar.org

Philosophical Objections:

The Nature of a Public Good

What We Know

What We Think We Know

What We Need to Know

Assumption:

To Big to Fail (if we want to reach our goals)

Setting the Stage: 2020/2025

Access

Completion

Attainment

The Profitability of a Postsecondary Credential

Marx v.

The Case of California

Shortfalls in Educated Workers in CaliforniaSource Out‐

yearBasis for the goal Degree mix Age 

groupTarget goal Gap in

above currentproductionlevels

PPIC 2025 Labor force and CA rank relative to other  US states

BA and above only 25‐64 41% 1 million

GeorgetownCenter forWorkforce andEconomy

2018 Labor force Some postsecondary,all credentials and degrees

25‐64 61% 1,327,000

LuminaFoundation “BigGoal”

2025 Internationalleadership

Some postsecondary,all credentials and degrees

25‐34 60% 3.4 million

ObamaAdministration

2020 Internationalleadership

Some postsecondary,all credentials and degrees

25‐34 California’s share of anational goal to get to 60%, adjusted to reflect state variations in attainment

1.13 million

WorkforceAdvisory Board

2016 CAWorkforce/skill needs

All skill areas, Including on‐the Job/Certificate/Degree

24‐64 Not expressed as a target, good source for occupation‐specific areas, Notes CA needs for replacement workers will be as great as new job growth.

WorkforceAdvisory Board

Source: The Public Policy Institute of California. 2010

What We Know about For-profits

Fastest growing postsecondary sector

Degree-granting mega-institutions (U of Phoenix) 7% of sector

Non-degree granting certificate granting

(Marie’s School of Beauty) 5% of sector

Admissions

Focused Curriculum

Diverse Student Body

Part-time Faculty – No Tenure or Shared Governance

The Holy Grail:

Accreditation

Federal Aid – State Aid

What We Think We Know

Admissions

Debt Burden

Gainful Employment

What We Need to Know

Ethical and innovative admissions practices

Access and program completion

Student remediation

Student default rates

Gainful employment

Useful regulatory standards

“More research is needed”

Center for Higher Education Policy Analysis

www.21st Century Scholar.org