business side of he

College operating costs rose 3.4% in fiscal 2024 [Unglesbee]

On 12/21/2024, in business side of he, colleges, community colleges, cost of getting a degree, higher education, learning ecosystem, United States, universities, by Daniel Christian

College operating costs rose 3.4% in fiscal 2024 — from highereddive.com by Ben Unglesbee
Commonfund Institute’s latest Higher Education Price Index shows that cost spikes slowed — but that doesn’t make them any less painful.

Dive Brief:

Costs for operating a college rose 3.4% in fiscal 2024, according to the latest Higher Education Price Index from the Commonfund Institute.
The price increases outpaced Commonfund’s preliminary projections this spring of 3% for the year. However, the HEPI showed that inflation has slowed more than half a percentage point from fiscal 2023 and is down nearly 2 percentage points from 2022’s 5.2% inflation rate.
Utility prices and those for supplies and materials slowed the most significantly, after recent years of volatility in those areas. While costs for institutions are cooling, “there is an ongoing trend of inflation rates remaining elevated compared with the previous decade,” Commonfund said.

Speaking of higher education, also see:

25 Stats for 2025 — from insidehighered.com by Ashley Mowreader
Inside Higher Ed compiled two dozen–plus data points to help guide strategic decision-making and student success initiatives on college campuses.

Reflections on “US College Closures Are Expected to Soar, Fed Research Says” [Bloomberg.com]

On 12/07/2024, in 21st century, Artificial Intelligence/Agents/LLMs/and Related, assessment, business side of he, change, changing business models, colleges, community colleges, cost of getting a degree, dangers of the status quo, Daniel S. Christian, data related items, economics, faculty/staff, game-changing environment, higher education, ideas, law schools, learning ecosystem, Learning from the Living [Class] Room, legislatures / government / legal, liberal arts, new business models, parents/guardians, policy, reinvent, society, staying relevant, student-related, surviving, United States, universities, vendors, by Daniel Christian

US College Closures Are Expected to Soar, Fed Research Says — from bloomberg.com

Fed research created predictive model of college stress
Worst-case scenario forecasts 80 additional closures

The number of colleges that close each year is poised to significantly increase as schools contend with a slowdown in prospective students.

That’s the finding of a new working paper published by the Federal Reserve Bank of Philadelphia, where researchers created predictive models of schools’ financial distress using metrics like enrollment and staffing patterns, sources of revenue and liquidity data. They overlayed those models with simulations to estimate the likely increase of future closures.

Excerpt from the working paper:

We document a high degree of missing data among colleges that eventually close and show that this is a key impediment to identifying at risk institutions. We then show that modern machine learning techniques, combined with richer data, are far more effective at predicting college closures than linear probability models, and considerably more effective than existing accountability metrics. Our preferred model, which combines an off-the-shelf machine learning algorithm with the richest set of explanatory variables, can significantly improve predictive accuracy even for institutions with complete data, but is particularly helpful for predicting instances of financial distress for institutions with spotty data.

From DSC:
Questions that come to my mind here include:

Shouldn’t the public — especially those relevant parents and students — be made more aware of these types of papers and reports?
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How would any of us like finishing up 1-3 years of school and then being told that our colleges or universities were closing, effective immediately? (This has happened many times already.) and with the demographic cliff starting to hit higher education, this will happen even more now.
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Adding insult to injury…when we transfer to different institutions, we’re told that many of our prior credits don’t transfer — thus adding a significant amount to the overall cost of obtaining our degrees.
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Would we not be absolutely furious to discover such communications from our prior — and new — colleges and universities?
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Will all of these types of closures move more people to this vision here?

Relevant excerpts from Ray Schroeder’s recent articles out at insidehighered.com:

Winds of Change in Higher Ed to Become a Hurricane in 2025

A number of factors are converging to create a huge storm. Generative AI advances, massive federal policy shifts, broad societal and economic changes, and the demographic cliff combine to create uncertainty today and change tomorrow.

Higher Education in 2025: AGI Agents to Displace People

The anticipated enrollment cliff, reductions in federal and state funding, increased inflation, and dwindling public support for tuition increases will combine to put even greater pressure on university budgets.

On the positive side of things, the completion rates have been getting better:

National college completion rate ticks up to 61.1% — from highereddive.com by Natalie Schwartz
Those who started at two-year public colleges helped drive the overall increase in students completing a credential.

Dive Brief:

Completion rates ticked up to 61.1% for students who entered college in fall 2018, a 0.5 percentage-point increase compared to the previous cohort, according to data released Wednesday by the National Student Clearinghouse Research Center.
The increase marks the highest six-year completion rate since 2007 when the clearinghouse began tracking the data. The growth was driven by fewer students stopping out of college, as well as completion gains among students who started at public two-year colleges.
“Higher completion rates are welcome news for colleges and universities still struggling to regain enrollment levels from before the pandemic,” Doug Shapiro, the research center’s executive director, said in a statement dated Wednesday.

Addendum:

Attention Please: Professors Struggle With Student Disengagement — from edsurge.com

The stakes are huge, because the concern is that maybe the social contract between students and professors is kind of breaking down. Do students believe that all this college lecturing is worth hearing? Or, will this moment force a change in the way college teaching is done?

Adapting to the future | Educause

Institutions are balancing capacity issues and rapid technological advancements—including artificial intelligence—while addressing a loss of trust in higher education.

To adapt to the future, technology and data leaders must work strategically to restore trust, prepare for policy updates, and plan for online education growth.

Hopping on the Affordability Bandwagon [Knox]

On 11/27/2024, in business side of he, change, changing business models, colleges, cost of getting a degree, higher education, parents/guardians, student-related, United States, universities, by Daniel Christian

Hopping on the Affordability Bandwagon — from insidehighered.com by Liam Knox
Five selective colleges launched strikingly similar student aid initiatives last week for low- and middle-income students. What’s behind the frenzy to boost financial aid?

The announcements have come pouring in at a time when public resentment of elite institutions has reached a fever pitch, doubts about the value of college are at a historic high and the impact of the Supreme Court’s affirmative action ruling on demographics is becoming clear. And after last year’s bungled FAFSA rollout, families are warier than ever of financial aid promises.

“We know what’s going on with confidence in higher education, and one element of that is increasing cost and increasing debt levels,” said James Milliken, chancellor of the UT system.

It’s part of a broader marketing and recruitment effort to raise awareness of the financial aid resources at colleges with staggeringly high sticker prices—she calls it a “clear cost” initiative. And as more colleges expand financial aid, it creates a domino effect among peer institutions looking to compete for highly qualified applicants from lower income brackets, she said.

Tania LaViolet, director of research and innovation at the Aspen Institute

Two items re: enrollment data for higher education

On 11/01/2024, in business side of he, colleges, community colleges, funding / grants, higher education, legislatures / government / legal, parents/guardians, student-related, United States, universities, by Daniel Christian

Undergraduate enrollment rises 3% despite drop in first-year students, early data shows — from highereddive.com by Laura Spitalniak
Headcounts declined among students attending college directly after high school, the National Student Clearinghouse Research Center found.

Dive Brief:

Undergraduate enrollment rose this fall for the second year in a row, up 3% compared to similar early data from fall 2023, according to preliminary figures released Wednesday by the National Student Clearinghouse Research Center.
Enrollment jumped 1.9% in bachelor’s degree programs and 4.3% in those for associate degrees. While all credential types saw gains, the number of undergraduate certificate seekers increased the most, at 7.3%.
However, enrollment among first-year students shrank 5%, the first dip since the decline seen at the start of the pandemic. Declining enrollment among 18-year-olds — a proxy for students who attend college directly after high school — accounted for most of that drop, the clearinghouse said.

What preliminary enrollment data from fall 2024 tells us — from highereddive.com by Laura Spitalniak
Higher education experts broke down some trends in the early data and what may have prompted the decline in first-year students.

Higher education news tends to be a mixed bag, and the most recent enrollment report from the National Student Clearinghouse Research Center is no exception.

Last week, the clearinghouse released preliminary findings for fall 2024 and found that undergraduate enrollment rose 3% compared with early data from last year. On the other hand, it showed enrollment among first-year students dropped 5% compared with the year before, the first decline since the drop at the start of the pandemic.

The youngest adults, 18-year-olds, drove a majority of the decrease, according to the clearinghouse. Its researchers used this group as a proxy for students who enroll in postsecondary education directly after they graduate high school, it said.

2025 EDUCAUSE Top 10: Restoring Trust

On 10/29/2024, in adjunct faculty, business side of he, change, colleges, community colleges, higher education, IT in HE, leadership, strategy, United States, universities, by Daniel Christian

2025 EDUCAUSE Top 10: Restoring Trust — from educause.edu

Higher education has a trust problem. In the past ten years, the share of Americans who are confident in higher education has dropped from 57 percent to 36 percent.

Colleges and universities need to show that they understand and care about students, faculty, staff, and community members, AND they need to work efficiently and effectively.

Technology leaders can help. The 2025 EDUCAUSE Top 10 describes how higher education technology and data leaders and professionals can help to restore trust in the sector by building competent and caring institutions and, through radical collaboration, leverage the fulcrum of leadership to maintain balance between the two.

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The Uberfication of Higher Ed [Ubell]

On 10/29/2024, in adjunct faculty, business side of he, career development, colleges, community colleges, faculty/staff, higher education, learning ecosystem, teaching & learning, United States, universities, by Daniel Christian

The Uberfication of Higher Ed — from evolllution.com by Robert Ubell | Vice Dean Emeritus of Online Learning in the School of Engineering, New York University
As the world of work increasingly relies on the gig economy, higher ed is no different. Many institutions seek to drive down labor costs by hiring contingent works, thereby leaving many faculty in a precarious position and driving down the quality of education.

While some of us are aware that higher ed has been steadily moving away from employing mostly full-time, tenured and tenure-track faculty, replacing them with a part-time, contingent academic workforce, the latest AAUP report issued this summer shows the trend is accelerating. Precarious college teachers have increased by nearly 300,000 over the last decade, as conventional faculty employment stays pretty much flat. It’s part of a national trend in the wider economy that replaces permanent workers with lower paid, contingent staff—members of what we now call the gig economy.

The wide disparity is among the most glaring dysfunctions—along with vast student debt, falling enrollment, rising tuition and other dangers afflicting higher education—but it’s the least acknowledged. Rarely, if ever, does it take its place among the most troubling ails of academic life. It’s a silent disease, its symptoms largely ignored for over half a century.

Do families who send their kids to college, paying increasingly stiff tuition, realize that most of the faculty at our universities are as precarious as Uber drivers?
…
Everyone at the table was taken aback, totally surprised, a sign—even if anecdotal—that this dirty secret is pretty safe. Mass participation of contingent faculty at our universities remains largely obscure, wrapped in a climate of silence, with adjunct faculty perpetuating the quiet by leaving their students mostly uninformed about their working conditions.

College sports are out of hand! [Christian]

On 10/29/2024, in business, business side of he, change, changing business models, colleges, Daniel S. Christian, higher education, parents/guardians, student-related, trends, United States, universities, vendors, by Daniel Christian

From DSC:
The following reflections were catalyzed by Jeff Selingo’s Next posting from 10/22, specifically the item:

Student fees for athletics, dark money in college sports, and why this all matters to every student, every college.

All of this has big risks for institutions. But whenever I talk to faculty and administrators on campuses about this, many will wave me away and say, “Well, I’m not a college sports fan” or “We’re a Division III school, so that all this doesn’t impact us.”

Nothing is further from the truth, as we explored on a recent episode of the Future U. podcast, where we welcomed in Matt Brown, editor of the Extra Points newsletter, which looks at academic and financial issues in college sports.

As we learned, despite the siloed nature of higher ed, everything is connected to athletics: research, academics, market position. Institutions can rise and fall on the backs of their athletics programs – and we’re not talking about wins and losses, but real budget dollars.

And if you want to know about the impact on students, look no further than the news out of Clemson this week. It is following several other universities in adopting an “athletics fee”: $300 a year. It won’t be the last.

Give a listen to this episode of Future U. if you want to catch up quick on this complicated subject, and while you’re at it, subscribe wherever you get your podcasts.

Clemson approves new athletics fee for students. Here’s what we know — from sports.yahoo.com by Chapel Fowler
How much are student fees at other schools?

That’s true in the state of South Carolina, when comparing the annual fees of Clemson ($300) and USC ($172) to Coastal Carolina ($2,090). And it holds up nationally, too.

DC: Having played a sport at the NCAA Div I collegiate level, I can say sports are out of hand in our country. Increasingly, ALL students are being billed new athletic-related fees. One wonders…in the future, how much will future Ss/parents pay per yr? https://t.co/P64plKVdH2

— Daniel S. Christian (@dchristian5) October 22, 2024

From DSC:
The Bible talks a lot about idols….and I can’t help but wonder, have sports become an idol in our nation?

Don’t get me wrong. Sports can and should be fun for us to play. I played many an hour of sports in my youth and I occasionally play some sports these days. Plus, sports are excellent for helping us keep in shape and take care of our bodies. Sports can help us connect with others and make some fun/good memories with our friends.

So there’s much good to playing sports. But have we elevated sports to places they were never meant to be? To roles they were never meant to play?

Freshman enrollment dropped more than 5% from last year at American colleges & universities [Montague]

On 10/23/2024, in business side of he, colleges, community colleges, higher education, parents/guardians, reinvent, staying relevant, student-related, surviving, United States, universities, by Daniel Christian

Freshman Enrollment Appears to Decline for the First Time Since 2020 — from nytimes.com by Zach Montague (behind paywall)
A projected 5 percent drop in this year’s freshman class follows a number of disruptions last year, including persistent failures with the FAFSA form.

Freshman enrollment dropped more than 5 percent from last year at American colleges and universities, the largest decline since 2020 when Covid-19 and distance learning upended higher education, according to preliminary data released on Wednesday by the National Student Clearinghouse Research Center, a nonprofit education group.

The finding comes roughly a year after the federal student aid system was dragged down by problems with the Free Application for Federal Student Aid form, commonly known as FAFSA, which led to maddening delays this year in processing families’ financial data to send to school administrators. That in turn held up the rollout of financial aid offers well into the summer, leaving many families struggling to determine how much college would cost.

Re: the business of higher ed, also see:

Tracking college closures— from hechingerreport.org by Marina Villeneuve and Olivia Sanchez
More colleges are shutting down as enrollment drops

College enrollment has been declining for more than a decade, and that means that many institutions are struggling to pay their bills. A growing number of them are making the difficult decision to close.

In the first nine months of 2024, 28 degree-granting institutions closed, compared with 15 in all of 2023, according to an analysis of federal data provided to The Hechinger Report by the State Higher Education Executive Officers Association or SHEEO.

And when colleges close, it hurts the students who are enrolled. At the minimum, colleges that are shutting down should notify students at least three months in advance, retain their records and refund tuition, experts say. Ideally, it should form an agreement with a nearby school and make it easy for students to continue their education.

“College competition & operational pain are the ‘new normal,’ S&P says” [Unglesbee] + other items re: higher ed

On 10/14/2024, in adjunct faculty, business side of he, colleges, community colleges, cost of getting a degree, faculty/staff, higher education, learning ecosystem, liberal arts, neurodivergent/special needs, parents/guardians, student-related, teaching & learning, United States, universities, by Daniel Christian

S&P: Community colleges lifted by improved enrollment and finances — from highereddive.com by Ben Unglesbee

Dive Brief:

With enrollment trends improving and state appropriations increasing, the community college sector has reason for “optimism,” according to a recent report from S&P Global Ratings.
For 2023, median full-time equivalent enrollment, at 5,439 students, was down just 0.3% from 2021 and up nearly 8.1% from the previous year, S&P found among the roughly 200 community colleges it rates. That comes after enrollment in the sector fell 7.7% year over year in 2022,.
Meanwhile, median state appropriations per FTE student for the sector increased 19.1% to $4,930 between 2021 and 2023, analysts found.

College competition and operational pain are the ‘new normal,’ S&P says — from highereddive.com by Ben Unglesbee-
Margins are down, costs are up and tuition revenue is constrained after the pandemic exacerbated existing challenges, according to a recent report.

Dive Brief:

U.S. colleges face a “new normal” and accelerated existing challenges in the wake of the COVID-19 pandemic, including constrained operations and heavy competition, a recent report from S&P Global Ratings found.
Between 2018 and 2023, operating margin rates fell from 0.8% to -0.1% amid rising costs to colleges, according to S&P. Meanwhile, median tuition discount rates at private colleges rose by more than 5 percentage points, to 44.4%, in that period, putting pressure on college revenues.
From 2019 through the second quarter of 2024, the ratings agency issued 126 credit downgrades for the higher ed sector, compared to 62 upgrades, per the report.

5 ways colleges can improve outreach to rural students — from highereddive.com by Laura Spitalniak
Students from small towns help strengthen campus communities, said panelists at the National Association for College Admission Counseling’s conference.

We cannot just swoop in and take the best and brightest and just say, ‘Oh, good job us.’ We want this to be a two-way highway, not a one-way brain drain.

Marjorie Betley
Deputy director of admissions at the University of Chicago

A Trauma-Informed Teaching Framework for Stewards — from scholarlyteacher.com by Jeannette Baca, New Mexico Highlands University; Debbie Gonzalez, California State Polytechnic University, Humboldt; Jamie Langlois, Grand Valley State University; and Mary Kirk, Winona State University

Using the Trauma-Informed Community of Inquiry (T-I CoI) framework as a pedagogical design helped us address students’ emotional stress and facilitated cognitive growth and connection to the learning process. It also provided an opportunity to create a sense of community within an online learning environment. When we returned to in-person instruction, the model continued to be beneficial.

Average Student Loan Debt — from educationdata.org by Melanie Hanson; last updated August 16, 2024

Report Highlights.

The total average student loan debt (including private loan debt) may be as high as $40,681.
The average federal student loan debt is $37,853 per borrower.
Outstanding private student loan debt totals $128.8 billion.
The average student borrows over $30,000 to pursue a bachelor’s degree.
A total of 42.8 million borrowers have federal student loan debt.
It may take borrowers close to 20 years to pay off their student loans.

From DSC:
In other words, we are approaching the end of the line in terms of following the status quo within higher education. Institutions of traditional higher education can no longer increase their cost of tuition by significantly more than the rate of inflation. Increasingly, K-12 students (and families) are looking for other pathways and alternatives. Higher ed better stop trying to change around the edges…they need new, more cost-effective business models as well as being able to be much more responsive in terms of their curricula.

Has the cost of college reached a tipping point for a significant number of middle-class students? [Young]

On 09/27/2024, in business side of he, colleges, community colleges, cost of getting a degree, future of higher education, higher education, parents/guardians, student-related, trends, United States, universities, by Daniel Christian

Has the cost of college reached a tipping point for a significant number of middle-class students? — from edsurge.com by Jeffrey R. Young

Has the cost of college reached a tipping point for a significant number of middle-class students?

I’m seeing more signs of just that, and it’s happening at the undergrad and graduate levels.

Just this week, for instance, a new survey of 1,500 high school counselors conducted by the education consulting firm EAB found 63 percent reported that fewer students at public schools plan to attend college than four years ago. And 53 percent of those counselors said cost was the primary reason.

Meanwhile, a new study released this week by Georgetown University’s Center on Education and the Workforce found that the cost of graduate education has risen to the point where a significant number of degrees will not pay off. The center says that 41 percent of master’s degree programs and 67 percent of professional degree programs for which data was available would not pass their “debt-to-earnings test,” meaning they would not bring enough earnings to cover the cost plus interest from typical student loans.

Also see:

How Rising Higher Ed Costs Change Student Attitudes About College — from edsurge.com by Jeffrey R. Young

Risepoint Releases Voice of the Online Learner Report

On 09/12/2024, in Artificial Intelligence/Agents/LLMs/and Related, business side of he, colleges, community colleges, cost of getting a degree, higher education, online learning, parents/guardians, skills, society, student-related, United States, universities, by Daniel Christian

Risepoint Releases Voice of the Online Learner Report — from academicpartnerships.com by Risepoint; via Jeff Selingo on LinkedIn

The Voice of the Online Learner report highlights the journey of online learners, and the vital role education plays in their personal and professional growth and development. This year’s report compiled responses from over 3,400 prospective, current, and recently graduated online learners.

Key findings from this year’s Voice of the Online Learner report include:

Decision Factors for Online Students: When evaluating online programs, the key decision for students is cost, with 86% saying it’s extremely or very important. After cost, 84% said accreditation is most important, 75% said program concentrations, followed by 68% of respondents who said it was the time it took to achieve a degree. 38% selected the lowest cost program they evaluated (up from 29% in 2023).
Perception of Online Programs: Students see online programs as equally valid or better at meeting their needs than on-campus degree programs. 83% of respondents prefer the flexibility of online programs over hybrid or on-campus options, while 90% feel online programs are comparable to or better than an on-campus degree. 83% (up from 71% last year) want no on campus requirement.
Degree ROI: 92% of students who graduated from online degree programs reported tangible benefits to their career, including 44% who received a salary increase.
Value of the Degree: Career outcomes continue to be very important for students pursuing their degree.86% felt their degrees were important in achieving their career goals, and 61% of online undergraduates are likely to enroll in additional online degree programs to stay competitive.
Importance of Local Programs: Attending a university or college in the state where the student lives and works is also an important decision factor, with 70% enrolled at a higher education institution in the state where they live and/or work. These students say that local proximity creates greater trust, and that they also want to ensure the programs meet local licensing or accreditation requirements, when relevant.
Demographics: The average age for online students enrolled in undergraduate programs is 36 years old, while the average age for students enrolled in graduate programs is 38 years old. Of the students enrolled in undergraduate programs, 40% are first-generation college students.
Upskilling is lifelong: 86% of graduated and currently enrolled students are likely to do another online program in the future to upskill.
Generative AI is a concern: Students want guidance on generative AI, but 75% reported they have received none. 40% of students think it will affect their career positively and 40% believe it will impact them negatively. Nearly half (48%) have used it to help them study.

Majoring in video games? A new wave of degrees underscores the pressures on colleges — from usatoday.com by Zachary Schermele
From degrees in AI to social media influencing, colleges are adapting to economic trends with new majors that emphasize the debate about getting students their money’s worth.

Majors like hers are part of a broader wave of less conventional, avant-garde majors, in specialties such as artificial intelligence, that are taking root in American higher education, as colleges grapple with changes in the economy and a shrinking pool of students.
…
The trend underscores the distinct ways schools are responding to growing concerns over which degrees provide the best return on investment. As college costs soared to new heights in recent years, saddling many students with crippling loan debt, that discourse has only become increasingly fraught, raising the stakes for schools to prove their degrees leave students better prepared and employable.

“I’m a big believer in the liberal arts, but universities don’t get to print money,” he said. “If enrollment interests are shifting, they have to be able to hire faculty to teach in those areas. Money has to come from someplace.”

From DSC:
Years ago, I remember having lunch with one of the finalists for the President position of a local university. He withdrew himself from the search because the institution’s culture would be like oil and water with him at the helm. He was very innovative, and this organization was not. I remember him saying, “The marketplace will determine what that organization ultimately does.” In other words, he was saying that higher education was market-driven. I agreed with him then, and I still agree with that perspective now.

School is back in session, and so are AI art classes [Farfan]

On 08/28/2024, in art, Artificial Intelligence/Agents/LLMs/and Related, business side of he, career development, change, changing business models, colleges, community colleges, creativity, curriculum, new business models, United States, universities, by Daniel Christian

School is back in session, and so are AI art classes — from hyperallergic.com by Isa Farfan
New university programs are incorporating generative tools into studio art courses while attempting to address the murky ethics of the technology.

There’s a new addition to the course catalog at Ringling College of Art and Design, a small private art school in southwest Florida: an Artificial Intelligence Undergraduate Certificate.

The college claimed its new program is the first-of-its-kind AI certificate at an undergraduate arts institution in a news release earlier this month. Other schools in the United States offer courses and certificates focused on the integration of artificial intelligence and creative work, and educators across the country have already brought the technology into the art studio. Critics, however, say pushing AI into arts education won’t level the playing field for professional artists competing against increasingly sophisticated generative tools.

From DSC:
Though this next item is not necessarily related to AI, the following is still art and it’s very fun to watch!

Wait for the magic pic.twitter.com/peHgBHCoti

— Learn Something (@cooltechtipz) August 27, 2024

Learning Ecosystems

College operating costs rose 3.4% in fiscal 2024 [Unglesbee]

2025 EDUCAUSE Top 10: Restoring Trust

The Uberfication of Higher Ed [Ubell]

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