New ‘net price calculators’ required by law may bring sticker shock to families planning for college — from Michigan (USA)/mlive.com and Flint Journal by Beata Mostafavi

University tuition hits an ugly milestone; how can college be affordable again? — from Michigan (USA)/mlive.com by Peter Luke

Also see:

 

 

 

Analysis: In debt row, hints of emerging-economy crises — from Reuters by Pedro Nicolaci da Costa
WASHINGTON | Sun Jul 24, 2011 5:59pm EDT
Debt default. A ratings downgrade. Political deadlock. Such terms, once associated primarily with the developing world, now abound in the mighty United States.

 

Last-minute tuition hikes hit students — from SmartMoney.com by Anna Maria Andriotis
Almost 20 states have cut funding for colleges, raising costs for students — starting now

Excerpt:

With freshman orientation right around the corner, many college students and their parents are about to get a surprise that could derail years of careful financial planning: last-minute tuition increases and cuts to financial aid packages promised just a few short months ago.

 

From DSC:
Many already know that such budgetary pressures are a piece of the perfect storm within higher education; but what may not be as visible is the catalyzing effect that these pressure are having/will have towards creating a game-changing environment within higher education. For example, such escalating costs may cause people to pursue other avenues of obtaining knowledge and/or experience. Some examples off of the top of my head include: 

  • StraighterLine.com
  • More community college-based coursework
  • iTunes U
  • YouTube.edu
  • University of the People
  • Apprenticeships
  • More vocationally-based programs
  • Etc.

 

 

 Paying Off Student Loans Has Become More Difficult

 

Also see:

 

The sky has not fallen — but pieces of it could soon be hitting a campus near you.

That is one way of summing up the findings of Inside Higher Ed’s first-ever Survey of College and University Business Officers, released today in advance of the annual meeting of the National Association of College and University Business Officers. (A copy of the survey report can be found here.)

Related articles I saw today on this include:

 

Also see:

Report: Only five colleges properly serve needy students — from The Washington Post by Daniel de Vise

A new report from the nonprofit Education Trust finds only five U.S. colleges that properly serve the disadvantaged — by offering a quality education to a significant number of low-income students at a reasonable price.

The report, issued this month, draws this stark conclusion from new federal data on the net price of higher education, after accounting for grant aid.

Americans worried by soaring tuition fees — Yahoo! News by Virginie Montet

(Originally saw the above items on eCampusNews.com)

Excerpt (emphasis DSC):

Clayton Christensen and Henry Eyring, building on Christensen’s contribution to business, health care and K-12 education, apply Christensen’s model of disruptive innovation to higher education. Unlike the many doom-and-gloom books of recent years, this work offers a hopeful analysis of the university and its traditions and how it must find new models for the future.

“The Innovative University” builds upon the theory of “disruptive innovation” and applies it to the world of higher education. The concept, originally introduced by Christensen in his best-selling book “The Innovator’s Dilemma,” holds that sustaining institutions or models exist, until change “disrupts” the traditional or “sustaining” model. In the case of higher education, the disruptor to the traditional university might be a recession, the rise of for-profit schools or the prevalence of high-quality online programs. The authors suggest that to avoid the pitfalls of disruption and turn the scenario into a positive and productive one, universities must change their institutional “DNA.”

disruption

“The Innovative University” shows how online technology makes a college or university vastly more attractive to a wide subset of students. It gives many people a second chance at learning – i.e. those who cannot afford a traditional college education, those who do not have the flexibility to take part in a full plate of coursework, and late bloomers or dropouts who have fallen behind and now have the chance to catch up.

Originally saw this at Biz Dean’s Talk

Colleges in Crisis - Harvard Magazine -- July-August 2011

Excerpt (emphasis DSC):

Surveys of the American public and of more than 1,000 college and university presidents, conducted this past spring by the Pew Research Center in association with the Chronicle of Higher Education, revealed significant concerns not only about the costs of such education, but also about its direction and goals.

More fundamentally, the business model that has characterized American higher education is at—or even past—its breaking point. Many institutions are increasingly beset by financial difficulties, and the meltdown since 2008 is but a shadow of what is to come. Undergraduate tuition has risen dramatically: at a 6.3 percent annual clip for nearly the last three decades—even faster than the much-decried 4.9 percent annual cost increases plaguing the healthcare industry. The full increase in the price of higher education has actually been hidden from many students and families over the years because gifts from alumni, earnings from private university endowments, subsidies from state tax revenues for public universities, and federal subsidies for students have been used to mitigate some costs. But universities are exhausting these mechanisms.


A Thriving, Disruptive Innovation
Just at the moment when these challenges to established higher education have arisen and compounded, another group of universities has arisen whose financial health is strong and enrollments have been booming. And yet the brands of these schools are weak and their campuses far from glamorous; sometimes the campuses are even nonexistent from the perspective of students, as online learning has largely driven their growth. How could this upstart group be so successful when the rest of higher education is treading water at best?

What TV operators are missing — from Emma Wells

From DSC:
It may not be that long before the word “learning” can either be added to — or substituted for — the word “TV” below (emphasis mine):

Many of the TV tablet apps have taken a few tentative steps toward personalisation, but no one has fully embraced the potential of TV interfaces that can learn and change according to an individual’s preferences and tastes.

What a lot of these operators seem to be overlooking is the chance not only to offer content anytime, anywhere, but to personalise the entire TV experience.

While watching the main TV tends to be a group experience, watching TV on an app is much more intimate and personal.

 

-- excerpt from What TV operators are missing [Wells]

Addendum on 6/17/11

DIY U: The Future Of Learning [Video] — from FastCompany.com by Anya Kamenetz
From Khan Academy and TED Talks to instructional YouTube videos, the future of learning is open and free.


DYI: The future of learning

 


A related comment from DSC:


I have it that higher ed is a bubble and if an increasingly larger group of people can’t afford ityet still want it — then, in my book, that’s a major problem.

I’ll use myself as an example. My wife and I could not begin to afford to send our kids to many of the colleges and universities out there right now — today, in 2011! (Let alone in 2017+ when our kids start hitting the college scene.)  I should note that our kids are doing well in school and are very talented, hard workers.  I should also point out that my wife and I place a very high value on being educated and we are both trying to pass that value along to the next generation.

But if you tell me that higher ed is not a bubble, the first question I will ask you (besides what planet are you living on) is what’s the gross income for your household? If you are making close to 6 figures, I highly doubt that your perspective will be the same as that of folks from households who are making $20,000-$50,000 a year. In fact, my hunch is that those who say higher ed is not a bubble are:

  • Upper middle class to upper class (i.e. wealthy in the eyes of many in the world today)
  • Folks who don’t have to worry about where their next paycheck is coming from (nor have they had to live like that in years!); that is, they are doing quite well these days…living quite comfortably
  • College educated (nothing wrong with that!)
  • Potentially involved with higher ed — or at least want to maintain the status quo
  • Folks who do not have children

My take on this is that all of us in higher education need to figure out how we can greatly reduce the price of higher education. It shouldn’t be how well you understand the system or how many hours of work you have done to figure out the grants, loans, etc. that exist out there.

NEVER again should we be pleased with ANY sort of increase in tuition. Never again should we say, “Well, our tuition only went up by ___% which is the smallest increase in our history (or the smallest increase relative to our competition…or the smallest in our state/country/nation).”

Such a situation is causing a backlash against the current higher education environment/setup.
As such, we need to constantly be looking to reinvent ourselves — and to staying relevant.

 

Addendum on 6/17/11:

Surging college costs price out middle class -- from CNNMoney.com on June 13, 2011

 

Excerpt:

NEW YORK (CNNMoney) — What do you get when college costs skyrocket but incomes barely budge? Yet another blow to the middle class.

“As the out-of-pocket costs of a college education go up faster than incomes, it’s pricing low and medium income families out of a college education,” said Mark Kantrowitz, publisher of financial aid sites FinAid.org and FastWeb.com.

The numbers confirm what most middle class families already know — college is becoming so expensive, it’s starting to hold them back.

Google Building “Global Classroom” in YouTube EDU with 400 Colleges Worldwide — from blip.tv

About the above video:

Having launched just over two years ago as a hub for college and universitie YouTube channels, YouTube EDU has become a destination for education, providing an index for a broad range of topics and campus activities, says Angela Lin who manages the education program at YouTube. The YouTube site integrates content from 400 colleges and universities in the United States, Canada, Europe, Israel and Australia.

College choice & prudent consumers (infographic) — from the Higher Education Management Group by Keith Hampson

 

 

From ‘gainful employment’ to lower college costs — from The WashingtonPost.com by Matt Miller

Excerpt (extra emphasis by DSC):

But whatever happens as these new rules are implemented in next few years, for-profit colleges will never get out from under a cloud, nor make good on their potential social contribution, until they pass on to students the benefit of the lower educational cost structures they are creating. To date, they’ve been reluctant to do so, because, for public companies especially, it seems tantamount to ignoring the shareholder interest in maximizing profits.

But this is shortsighted. For one thing, it ensures a perennial political backlash, which can’t serve shareholders over time. And beyond this, as a business matter, it means there’s a huge opening for any number of “Wal-Marts of higher ed” to win a vast market of underserved or overindebted young Americans (or mid-career workers who seek training) who desperately need affordable, high-quality educational services. The strategy should be to lower costs, lower prices and “make it up on the volume.” The firms that do this and earn a reputation for quality will force the traditional college world to reexamine its own inefficient practices, to the lasting benefit of students and the governments that fund them.

 

From DSC:
Also see:

 

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