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Supreme Court Case Calls into Question the Use of Race in Higher Ed Admissions

On October 10th, the U.S. Supreme Court will hear arguments in Fisher v. University of Texas (UT)—the first Supreme Court case on the use of race in higher education admissions since Grutter v. Bollinger in 2003. The case asks that the Court either declare UT’s admissions policy to be in violation of Grutter v. Bollinger or entirely overrule their 2003 decision that race could play a limited role in universities’ admissions policies. An overruling of Grutter could effectively end affirmative action at public universities.

Although around 80 percent of UT’s admissions decisions are made via a unique, race-blind method called the Top 10 Percent Plan, the case challenges whether UT’s “holistic file review” system (which is used to fill the remaining 20 percent of openings) exceeds their right to consider race and ethnicity. Under the holistic file review system, admissions officers and hired readers assess the full application submitted, reading essays and recommendation letters, assessing writing skills, and importantly, seeking to understand the context in which SAT scores and GPAs were earned. Race is one of many contextual factors considered. The UW adopted a race-neutral version of the holistic approach when it became clear, several years after the passage of I-200, that a composite score admissions platform (which essentially scores applicants based on GPA and SAT or ACT scores) insufficiently accommodated diverse applicants. Over time, the UW’s holistic review, even without a race factor, was found to significantly increase the diversity of entering classes.

In fact, schools across the country use similar systems to foster diversity in their schools, and many have voiced their avid support for UT. In August, the American Council on Education filed a brief on behalf of itself and 39 higher education groups backing UT. The Obama administration also filed a UT-supportive brief, as did a group of U.S. senators, and a number of states (including California, where voters barred public universities from considering race in admissions).

However, last Friday, opponents of UT’s holistic review caught a break when the Brookings Institute, a nonprofit public policy organization based in D.C., presented new research suggesting that eliminating the consideration of race would have a lesser impact on minority students than some believe. In addition, their research implies that under affirmative action, minority students may actually achieve less academic success than they would otherwise. The studies received criticism for their methodology and lack of peer-review, but have still caught the attention of the media and public.

Debates will likely continue through next month. If the Court rules in favor of Fisher, the use of holistic review across the country may be called into question, although the UW’s race-neutral model should be significantly less vulnerable.

Is It All About the Money?

As a recent post discussed, if you attend college, you are more likely to earn more money. But, as you might imagine, the financial value of higher education depends on what program you choose and where.

Information on the annual earnings of students from different programs and institutions is exactly what Sen. Ron Wyden, a Democrat of Oregon, and Sen. Marco Rubio, a Republican of Florida, hope to provide. Their recently-introduced “Student Right to Know Before You Go Act” proposes creating a state-based, individual-level data system linking the average costs and graduation rates of specific programs and institutions to their graduates’ accrued debt and annual earnings.

Although useful, Senator Wyden acknowledged that such information is limited and that focusing on financial indicators alone could undermine the importance of liberal arts—whose graduates may not earn large salaries right after college. He stated that the bill’s intention is “to empower people to make choices.” However, “people” include not just students, but policy makers—such as Florida’s Governor Rick Scott who sparked controversy last October when he asserted that state money should go to job-oriented fields, rather than fields like anthropology which, he said, do not serve the state’s vital interest.

Regardless of the bill’s success, about half of the states already have the ability to link postsecondary academic records with labor data. And some, such as Tennessee, have already done so. Here in Washington, the Education Research and Data Center is in the process of connecting certain employment and enrollment data for schools, such as the UW, to analyze in the coming months.

All this begs the question: Is college chiefly for personal economic gain?

A recent report by the College Board highlights both the financial and nonfinancial payoffs of college. Additionally, David A. Reidy, head of the philosophy department at University of Tennessee Knoxville, stated in a recent Chronicle article that four-year degrees, particularly in liberal-arts, are not solely for job training. “The success of the American democratic experiment depends significantly on a broadly educated citizenry, capable of critical thinking, cultural understanding, moral analysis and argument,” he wrote. Philosophy and other core disciplines help nurture such a citizenry, he continued, “And the value there is incalculable.”

Reseach Shows College is Worth It. Again.

The NY Times reports that researchers at the Brookings Institution have summarized why college is worth it. Their chart shows the percent of people at each income level who have various levels of educational attainment. Not surprisingly, the conclusion is that more education opens the gateway to better, higher-paying jobs.

A few findings to consider:

  • Of the Americans who earn over $150,000, 82 percent had a bachelor’s degree.
  • An individual with only a high school diploma is twice as likely, relative to someone with a college degree, to earn less than $40,000 per year.
  • Conversely, an individual with a college degree is 9 times more likely to make over $100,000 and 13 times more likely to make more than $200,000 per year when compared to someone with only a high school diploma.

Although half of all UW undergraduates graduate with zero debt, even when factoring in debt, college is still a great investment. The same researchers developed another chart showing the return on investing in one’s higher education relative to the return on investing comparable tuition money in the stock market, long-term Treasury bills, housing, corporate bonds or gold.

Once again, the numbers show that postsecondary education opens the door to higher-paying jobs and more opportunities.

2012 Democratic and Republican Higher Education Platforms

Now that both Democrats and Republicans have adopted party platforms at their respective conventions, what do we know about their plans for higher education? Below is a quick overview of each party’s higher education goals and associated action steps (past, present, or future) adapted directly from the parties’ formally-adopted platforms:

DEMOCRATIC PLATFORM

GOAL 1: To make college affordable for students of all backgrounds and confront the burden of loans.

  • Removed banks as student loan middlemen, saving more than $60 billion.
  • Doubled investment in Pell Grant scholarships.
  • Created American Opportunity Tax Credit of up to $10,000 over a 4 year degree.
  • Working to help student loan payments be only 10% of a student’s monthly income.
  • Pledged to incentivize colleges to keep their costs down.
  • Invested over $2.5 billion into strengthening our nation’s Minority Serving Institutions.

GOAL 2: To recognize the economic opportunities created by our nation’s community colleges.

  • Invested in community colleges and called for business-college partnerships to train 2 million workers.

GOAL 3: To make this country a destination for global talent and ingenuity.

  • Will work to help foreign students earning advanced degrees stay and help create jobs here.

REPUBLICAN PLATFORM

GOAL 1: Improve our nation’s classrooms.

  • Address ideological bias that is deeply entrenched within the current university system.
  • Protect the public’s investment in state institutions from abuse by political indoctrination.
  • Call on State officials to ensure that public institutions be “places of learning and the exchange of ideas, not zones of intellectual intolerance favoring the Left.”

GOAL 2: To address rising college costs and get back to programs directly related to job opportunities.

  • Expand new systems of learning (online universities, community colleges, etc.) to compete with traditional 4-year colleges.
  • Advance the affordability, innovation, and transparency needed to make lower cost alternatives accessible to everyone.

GOAL 3: To get federal student aid onto a sustainable path.

  • Provide families with information necessary to making prudent choices about a student’s future.
  • Shift the federal government’s role in student loans from being the originator of loans to an insurance guarantor for private sector student loans.
  • Welcome private sector participation in student financing.
  • Reevaluate any regulation that drives tuition costs higher.

Voters’ choices on November 6th will determine which party, and consequently which platform, has the greatest impact on the UW. In the meantime, any relevant updates or changes will be added to OPBlog.

UW Slips Slightly in US News Rankings: Here’s Why

US News and World Report released its annual college rankings Tuesday and the UW dropped from 42 to 46 in the National Universities category, and from 10 to 13 among public universities.

This drop isn’t as severe as it might seem. As noted by the Seattle Times, this change is a relatively small one. In the rankings, many universities may have equal scores and so share a numeric rank. This year, for example, there are five institutions that are ranked 46th.  Last year, there were several institutions ranked 42nd. Only one institution is now ranked above the UW that was not ranked above or tied with the UW last year: UC Irvine.

Ranks are calculated by weighting a number of factors:

  1. Undergraduate academic reputation
  2. Retention
  3. Graduation rate
  4. Faculty Resources
  5. Student selectivity
  6. Spending per student
  7. Alumni giving

Interestingly, the factor for which the UW shows the greatest deviation from other similarly ranked institutions is “Faculty Resources.” While the UW is ranked 46th overall, it is ranked 150th in terms of faculty resources. The two most heavily weighted measures in faculty resources are:

  1. The percentage of classes with fewer than 20 students, and
  2. Average faculty salary.

Given the recent economic situation faced by the UW, it is not surprising that these are problematic measures for us.

In summary, the UW’s ranking has dropped, but the significance of that drop is low. Moreover, the UW’s low ranking on the key “Faculty Resources” factor is to be expected given the salary freeze and state funding cuts the UW has experienced during the Great Recession.

Pell Expenditures Decrease as Recipients Increase

The Pell Grant program, the largest federal student grant program, was expected to be $20 billion short of the $40 billion price estimated for FY12 (which ended July 1). However, the Department of Education surprised many with newly-released data showing the federal government not only spent well under that estimate at only $33.4 billion, but in fact $2.2 billion less than FY11.

Recently, Pell eligibility increased dramatically as college enrollments rose and the recession continued to impact family/student income. This trend continued in FY12 and, interestingly, the dip in Pell spending occurred despite a 58,000 increase in Pell recipients—to almost 9.7 million. In fall 2011, nearly one quarter of UW freshmen were Pell eligible.

Reasons for the decline in Pell spending include:

  • The elimination of the year-round, or summer, Pell Grant, which allowed students to qualify for two awards in a year.
  • More students attending college part time as part-time status reduces Pell award amounts.
  • Fewer students attending for-profit institutions, which tend to enroll students who qualify for larger awards. Recent bad press and slumping enrollments have hit for-profits hard. Consequently, the number of Pell recipients at for-profits declined by 108,000 students, to roughly 2.1 million, and accounted for $1.4 billion of the decrease.

The drop in Pell expenditures is a relief for most lawmakers as they face next year’s “fiscal cliff” and must address both the impending tax hikes (when Bush tax cuts expire) and the automatic spending cuts (as mandated by the sequester). The Obama administration and congressional Democrats have resisted financial aid-related budget cutting, maintaining the maximum Pell award of $5,550 and writing specific protection for Pell Grant funding into the Budget Control Act. However, recent financial straits have already caused the federal government to eliminate several student loan programs such as the previously-mentioned summer Pell Grant, the six-month grace period for loan repayment, subsidized Stafford Loans for graduate students, and incentives for early loan repayment. With the sequester and difficult budget decisions looming on the horizon, it is safe to say that no funding is safe.

Washington Monthly National Universities Ranking Released

Today, the Washington Monthly released its 2012 national university rankings. Unlike the better known U.S. News & World Report survey, which considers only “widely accepted indicators of excellence [such as] freshman retention and graduation rates and the strength of the faculty”, the Washington Monthly focuses on schools’ “contribution to the public good”. It rates schools in three broad categories: Social Mobility (recruiting and graduating low-income students), Research (producing cutting-edge scholarship and PhDs), and Service (encouraging students to give something back to their country).

The University of Washington-Seattle ranks 8th in the nation among national universities, while UC San Diego, Texas A&M and Stanford take the top three spots. This represents a huge jump for the UW, from 23rd in 2010 to 16th in 2011, and now to 8th place, achieved amidst severe budget cuts. The UW’s notably high score on social mobility (6th in the nation) is a reflection of its strong commitment to financial aid despite rising tuition rates. For full results and a more thorough explanation of the methodology, click here.

Credit Agencies Release Reports on the Financial Health of the Higher Education Sector

Late last week, Moody’s and Standard & Poor’s released a revised assessment of the financial health of the higher education sector.

Not surprisingly, both agencies noted that the sector’s financial risks have intensified since January: state budget appropriations continue to fall, operating expenses are outpacing tuition revenue growth, and diminishing family net worth could affect enrollment as a growing number of colleges become unaffordable. At the same time, institutions’ ability to respond and adapt to these risks is limited by rising political and regulatory scrutiny of the industry and tougher accreditation standards.

S&P and Moody’s also highlighted the importance of successfully navigating the rising tide of technology change. They noted that administrators would need to be “flexible” and “bold” to take advantage of new opportunities for the delivery of educational content and new revenue streams.

Unfortunately, the reports are not public, but Moody’s and S&P subscribers can obtain copies of them through the agencies’ Web sites.

Harkin Issues Damning For-Profit Higher Education Report

Senator Harkin (D-Iowa) released a much anticipated for-profit higher education report today, detailing the sector’s disproportionate use of federal funds, predatory recruitment tactics, insufficient student support programs, and dismal student outcomes. The lengthy report contains alarming evidence that the colleges included in the two-year investigation – with few exceptions – engaged in behavior to maximize profit from taxpayer investment at the expense of students’ financial security and academic success.

Here are some of the findings:

  • Disproportionate use of federal (taxpayer-supported) funds: Last year, the federal government spent over $32 billion on financial aid in the for-profit sector (25 percent of all federal student aid funds available), though fewer than half of the students in that sector graduated with a degree in 2008-09. Committee staff found that 97% of students at for-profit institutions took out loans to pay their expenses, compared to 13% of students at non-profit community colleges and 48% of students at non-profit four-year baccalaureate institutions. These students also typically borrowed more money (57% borrowed more than $30,000) and defaulted on their loans far more often than their peers in the non-profit sector.
  • Focus on marketing and recruitment at the expense of student support and instruction: Not only do students studying at for-profit institutions take out more loans at higher rates, but their institutions spend far less on instruction and student support than on marketing, recruitment, and pre-tax profit. In FY09, for-profit institutions included in Senator Harkin’s report spent 22.7% of all revenue on marketing, advertising and recruitment expenses and 19.4% on pre-tax profit, but only 17.2% on instruction. On average, these corporations paid their CEOs in excess of $7.3 million annually. While practices varied, by and large, for-profit colleges employed three times more recruiters than student support services employees. The report concludes that, “…once a student is  enrolled that same level of service is often not available. This is true even though the companies seek to enroll the students that research demonstrates are most critically in need of those services.” The investigation found that two of the largest for-profits offered no career services and several have falsified job placement data in the last five years.
  • Current Federal Regulations Insufficient: One of the most alarming findings concerned the 90/10 proportionality rule, which dictates the amount of federal money that the colleges collect. Evidence of fraud was uncovered, as for-profit institutions sought to maximize profit and avoid the federal proportionality rule.    

Despite evidence of fraud, abuse of taxpayer funds, and a low, if not absent, standard of care for students, federal interventions seem unlikely at this stage, as for-profit support remains deeply partisan.  No clear intervention efforts emerged so far.

More on College Affordability

The Institute for Higher Education Policy recently published a brief addressing the complexity and confusion surrounding the issue of college affordability. Written by Sandy Baum and Saul Schwartz, Is College Affordable? In Seach of a Meaningful Definition succinctly addresses several familiar issues:

  • The conflation of increased or high prices with low affordability (where the former is dealt with by all, the latter is dependent on a family’s resources).
  • Misperceptions about cost/affordability created by the hard to discern difference between sticker prices and net prices for any given family.
  • Difficulties shifting from perceiving public higher education as a service heavily subsidized for all to a service that parents and students are primarily reponsible for funding.
  • Lack of framing affordability of higher educaiton within the context of a long-term investment that you pay for over time with an expectation that the long-term return warrants the cost.

The authors provide some general policy recommendations, including simplifying financial aid and pricing processes, communicating more clearly the monetary and non-monetary payoffs associated with higher education,  strengthening protections in cases where higher education does not pay off for some students, and increasing investment in public subsidies aimed at lowering the price for low-income students.

This brief is a quick and valuable read. For more information, check out coverage of the brief at Inside Higher Ed as well.