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The national rhetoric regarding the value of attending a college or university has reached a fever pitch. Being “better off” goes well beyond politics and the price of milk and eggs or an understanding of how tariffs work. Let’s face it: Education provides opportunity, and making higher education work for everyone must be a priority if we are to be a thriving, civilized society.
Let’s start with the current disruptive notion that poses the discomfiting question: Is a college degree worth it?
Many of us working in postsecondary education felt that question didn’t go far enough in looking for the opportunity to improve in new and better ways when the stakes are higher than ever.
So, we took that question on as a challenge and expanded it to ask: What is college worth, and how do we measure and improve its value, especially for low- and moderate-income learners? Answers to such questions should prove fruitful, especially given that a new Gallup survey reports Californians overwhelmingly value postsecondary degrees or credentials, particularly because of their career-related benefits. Yet, we know that many are hesitant to enroll in college or university because of the perceived unaffordability of earning a credential or degree.
This led our organizations to explore what kind of return on investment higher education institutions — part of a stale, antiquated system that does not always deliver on its promise of economic mobility and equity — provide to their learners. The ensuing report produced more nuanced data to inform continuing conversations on the value of postsecondary education, which, frankly, helps learners and their families make decisions on where they want to make a higher education investment from a value and return-on-investment perspective.
Our first step was to look at the value that California institutions offer their low- and moderate-income learners. We also wanted to know if certain college programs or credentials made a difference.
After all, learners who choose a postsecondary education should end up better off for it, right?
The good news we found was, yes, most students were better off for the most part. The troubling news, though, was that for some students, it was not always, and sometimes, never.
We’ve also learned that sometimes a student’s college major can matter just as much for an economic return-on-investment — if not more — than the institution itself. Some programs provide a strong return, but some offer none whatsoever, even leaving some degree or credential graduates making less than a high school graduate.
For example, we found that almost all programs (97%) offered at public institutions in California show their graduates being able to earn back the costs of obtaining a degree or credential within only five years. Essentially, these graduates earn enough of an “additional income” because of their college degree to make their college program worth it.
And, also impressive, nearly half of public college programs (48%) allow this within one year’s time. Programs at private nonprofit colleges in California generally take students longer, as only 7% enable graduates to recoup their costs within 12 months. And worrisomely, for-profit colleges show their graduates struggling to recoup their college costs, and nearly a fifth of their programs (17%) show no economic return whatsoever.
This work is not a denouncement of any specific program or desired area of study, but rather an opportunity for further research to understand why and how these institutions and college programs produce these outcomes and where there may be policy and practical implications.
A simple example of such a practical change may be for institutions to provide a clearer picture to students before they enroll of how much a specific program will cost — and provide information on how much former students typically earn. Another may be more geared toward college administrators to ensure that they are equipping students with the right skills — and necessary credentials — to pursue and succeed in careers within the geographic region where the institution is located.
Institutional leaders and elected officials must lean into discussions that are happening right now about the value of a college education and how it ties to learners’ futures and where improvements can happen.
While more questions must be answered — and more research will follow — one thing has become abundantly clear: Our higher education system can no longer be enabled by a “this is the way we do things” mentality in places where it is not working.
Postsecondary attainment must be tied to value, economic mobility and equity, as this is essential to creating a higher education system that drives a robust, inclusive economy that works for all Californians.
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Eloy Ortiz Oakley is president and CEO of College Futures Foundation, whose mission is based on a belief in the power of postsecondary opportunity.
Michael Itzkowitz is founder and president of the HEA Group, a research and consulting agency focused on college access, value, and economic mobility.
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