Dies ist die HTML-Version der Datei http://www.nchelp.org/elibraryII/Main/12-Present/2003%20Presentations/Career%20College%20Association%20-%20NCHELP%20CEOs%202003.ppt.
G o o g l e erzeugt beim Web-Durchgang automatische HTML-Versionen von Dokumenten.
Um einen Link oder ein Bookmark zu dieser Seite herzustellen, benutzen Sie bitte die folgende URL: http://www.google.com/search?q=cache:cx5IJMfdYBAC:www.nchelp.org/elibraryII/Main/12-Present/2003%2520Presentations/Career%2520College%2520Association%2520-%2520NCHELP%2520CEOs%25202003.ppt+global+education+market&hl=de&ie=UTF-8

Google steht zu den Verfassern dieser Seite in keiner Beziehung.
Diese Suchbegriffe wurden hervorgehoben: global education market 
 

Career College Association 

Trends, Policies and Issues

Reauthorization – 2003 

Nicholas J. Glakas 

National Council of Higher Education Loan Programs

Sarasota, Florida

January 9, 2003

 

The Global Education Markplace 
 

A few facts . . .

 

Education … A Few Facts 

Education spending in the United States is $750 billion and worldwide is over $2 trillion. 

Higher education is a $250 billion market in the United States.  

More money is spent in the United States on education than in any other industry with the exception of health care.  Annual expenditures are more than Social Security and defense combined. 

Globally, 84 million students attend 20,000 colleges and universities.   

66 million adults and more than 50% of all employed persons participate in some form of continuing education.   

Less than 25% of U.S. adults have a B.A. or higher.   
 

 

Education … A Few More Facts 

Over half a million foreign students study in the United States and spend $13 billion.   

India, China and South Korea are the top places of origin for foreign students studying in the United States in 2001-02.  Combined they sent almost 180,000 students to the United States. 

Global demand for higher education is forecast to reach 160 million students in 2025. 

In 1950, approximately 30% of all jobs in the United States required skilled labor; today, 85% of jobs require skilled labor. 

There are 9,485 postsecondary institutions in the U.S.  Forty-seven percent (4,463) are career schools, institutes, colleges and universities.  

There are 6,431 Title IV participating institutions in the U.S.

       Thirty-seven percent are career schools, institutes, colleges and universities.    

 

Size of Global Education and Training Market 

Global education and training market: $2 trillion

U.S. higher education market:  $250 billion

U.S. online higher education market (2001): $4.5 billion

U.S. corp. & government training market:  $100 billion 

Global corp. & government learning market: $300 billion 
 
 

Source: ThinkEquity Partners, Eduventures.

 

Major Sectors in the U.S. Economy  

100% 

$7,790 

Total GDP 

4.0% 

$272 

Defense 

5.0% 

$336 

Social Security 

9.5% 

$740 

Education 

14.1% 

$949 

Health 

% of GDP 

$ Billions 

Education = $2 trillion global market! 

Source: Credit Suisse First Boston 

 

The Evolving Higher Education Marketplace 

The higher education market is huge…

And growing …

With significant demand imbalance…

Source: ThinkEquity Partners, National Science Foundation

 

 
Education Counts 
 

Salary Gap between Male High School and College Graduates 

Educational Attainment Outcomes 

Source: National Center for Education Statistics

 

 
The Need for Skilled Workers 
 

% of Jobs Requiring Skilled Workers 

Source: ThinkEquity Partners

 

The Need for Skilled Workers 

75% 

25% 

Less than 25% of U.S. Adults 25 and Older have a Bachelor’s Degree

or Higher 

Source: ThinkEquity Partners

 

Higher Education Landscape 

66 million adults and more than 50% of all employed persons participate in some form of continuing education

56% of the workforce, or 66 million people, is without an advanced degree

Number of corporate “universities” skyrocketed from 400 in 1988 to over 2,000 today, including 40% of Fortune 500 companies

More than 60% of corporate universities have alliances with institutions of higher education, increasing to 85% by 2003 

Source: ThinkEquity Partners

 

Global Higher Education Landscape 

Over 500,000 foreign students, or 3.5% of total postsecondary enrollees, study in the U.S. and spend $13 billion

America educates one-third of all foreign students

For every foreign student studying in the U.S., there are three to five students who would consume U.S. education online, if they had the access or the resources

Global demand for higher education forecast to reach 160 million students in 2025

Source: ThinkEquity Partners

 

Number of International Students at U.S. Colleges & Universities 1975-2002 

Source: Institute for International Education, Open Doors 2002.

 

Number of International Students at U.S. Colleges & Universities From Top Ten Places of Origin, 2001-02 

Source: Institute for International Education, Open Doors 2002.

 

Future Demographic Trends 

OVER THE NEXT 50 YEARS: 

U.S. population will grow by 50%

Immigration will increase by 80 million 

Under 17 population = 100 million or 1 in 4 

Elderly population will double = 20% of total population 

Racial Mix

 

The For-Profit Sector 

The Career College Association is a voluntary membership organization of private, postsecondary schools, institutes, colleges and universities that provide career-specific educational programs.  CCA’s 1,000 members educate and support more than a million students each year for employment in over 200 occupational fields.  

CCA member institutions cover the full gamut of postsecondary education: from short-term certificate and diploma programs, to two- and four-year associate and baccalaureate degrees, to master’s and doctoral programs.  

Most CCA member institutions participate in federal student financial assistance programs under Title IV of the Higher Education Act.  

In addition, over the past four years CCA’s Foundation has provided more than 17,000 scholarships to high school graduates attending CCA member schools, institutes, colleges and universities.  
 

 

Size of the the U.S. Postsecondary For-Profit Sector  

There are 9,485 postsecondary institutions in the U.S.  Forty-seven percent (4,463) are career schools, institutes, colleges and universities.  

There are 6,431 Title IV participating institutions in the U.S.  Thirty-seven percent (2,355) are career schools, institutes, colleges and universities.   

Source: National Center For Education Statistics, Postsecondary Institutions in the United States: 1993-94 and 1998-99. 

 

        
 
  
     Non-Profit and For-Profit Distinctions in Higher Education 
 
 
           

Non-Profit

Tax-exempt

Donors

Endowment

Stakeholders

Shared governance

Prestige Motive

Cultivation of knowledge

Discipline-driven

Quality of inputs

Faculty power 

For-Profit

Tax-paying

Investors

Private investment capital

Stockholders

Traditional management

Profit motive

Application of learning

Market-driven

Quality of outcomes

Customer power 
 

Source: Richard Ruch, Higher Education, Inc., The Rise of the For-Profit University.  Baltimore: The John Hopkins University Press, 2001.

 

Postsecondary Education Companies 

Bachelor’s – Doctorate 

133,700 

65 

Apollo Group/U. of Phoenix 

Non-degree – Doctorate 

39,000+ 

40 

Education Management Corp. 

Diploma – Doctorate 

9,000 

22 

Whitman Education Group, Inc. 

Associate’s – Master’s 

16,500 

20 

Strayer Education, Inc. 

Diploma – Bachelor’s 

20,000 

44 

Kaplan Higher Education 

Associate’s - Bachelor’s 

33,000 

74 

ITT Educational Services, Inc. 

Associate’s – Master’s 

56,000 

26 

DeVry, Inc. 

Diploma – Master’s 

35,000 

63 

Corinthian Colleges, Inc. 

Diploma – Master’s 

50,400 

43 

Career Education Corp. 

Programs 

Enrollment Total 

# of Campuses 

Company

 

The Reauthorization of the Higher Education Act 

CCA Reauthorization Preparations

 

CCA’s Reauthorization Preparations 
 

Identified our key issues for reauthorization

 Prepared a CCA Board-approved strategic lobbying plan

Established a reauthorization budget

Formalized input from membership

Assembled a coordinating council of Washington representatives

 

CCA’s Reauthorization Preparations (continued) 

Implemented a grassroots lobbying effort.

Effective PAC Operations

Excellent relations with key participants in Reauthorization

 

The Reauthorization of the Higher Education Act 

CCA Reauthorization Issues

 

CCA Reauthorization - Issues 

Transfer of Credit (study)

Return of Federal Funds (study)

90-10 (study)

Financial Responsibility

Single Definition of Higher Ed Institution

Federal Investment (Loan Limits)

Provisional Certification

Judicial Review

 

Reauthorization – Issues (continued) 

50% Telecommunications Rule

Accountability 

Probably off the table:

12-Hour Rule

Incentive Compensation 

 

Transfer of Credit 

Issue: CCA’s Foundation commissioned the Institute for Higher Education Policy to study the relationship between credit transfer of students who attend nationally accredited institutions to regionally accredited institutions. The study found a strong pattern of full acceptance of credit for virtually all institutions that are regionally accredited, but acceptance for only a small percentage of institutions accredited by national accrediting bodies.  

CCA Proposal: Revise section 1094(a) to add a new required condition in the program participation agreement signed by institutions participating in the Title IV student aid programs as follows: (25) The institution will not exclude transfers of credit earned by students completing courses of programs from other eligible institutions of higher education on the basis of the agency or association that accredits such institutions, provided that the agency or association is recognized by the Secretary pursuant to Subpart 2 of Part H of this Act, and will base decisions on whether to accept such credits solely on whether the courses or programs are equivalent in content to those offered by the institution and the student has completed the course or program at the required level of proficiency. 

         Revise section 1099b(a) to add a new required recognition criterion for accrediting agencies:

         (9) such agency or association shall not adopt or apply standards, policies or practices that restrict transfers of credits between eligible institutions of higher education as defined by this Act that are accredited by an agency or association recognized by the Secretary under this Subpart. 
 

 

Return of Title IV Funds 

Issue: Return of Federal Funds has been one of the most controversial provisions of the 1998 reauthorization.  CCA has commissioned a major study to determine the extent of harm to students and institutions. 

CCA Proposal:Use the results of the study and its simulation model to develop specific proposals.  Anticipated completion the end of January.   

 

90-10 Rule 

Issue:  As part of the 1998 HEA Amendments, Congress modified the 85-15 rule to allow no more than 90% of a proprietary institution’s revenue to be derived from Title IV.  Subsequently, the Department of Education changed the definitions of eligible revenue to make compliance more difficult.  

CCA Proposal: CCA has contracted with the American Economics Group for a comprehensive study of the effect of the 90-10 rule on students and institutions. Upon completion of the 90-10 study, CCA will determine the alternative proposals that have the greatest aggregate benefits for the largest number of institutions and students.

 

Financial Responsibility 

Issue:  The higher education community and the Department of Education have gained five years of experience in applying the financial responsibility regulations adopted in November 1997.  While the regulations have been an improvement over the requirements previously used to measure financial responsibility, there are still serious problems with the manner in which the Department judges the financial stability of institutions. 

CCA Proposal: Only historic goodwill should be used in determining the ratios and calculating the composite score; additional goodwill booked as a consequence of an acquisition would not be deducted. After an acquisition, this additional goodwill would be recognized on a gradual basis over a five-year period. This treatment of goodwill would be conditioned on the acquirer being creditworthy at the time of the acquisition as measured by the strength factors for its primary reserve and equity ratios. 

The language of the statute should clearly state that the Secretary will permit accounting treatments that are in accordance with GAAP.

 

Single Definition of a  
Higher Education Institution 

Issue:  1998 HEA Amendments moved toward enacting a single definition for the purpose of providing equal access to all Title IV programs. Separate definitions still remain in Section 101 of the Act.  

CCA Proposal: Revise the  Act to include proprietary institutions in Section 101 and delete Section 102.  

 

Federal Investment in  
Postsecondary Education 

Issue: The federal grant and loan programs have not kept pace with inflation.  Grants now account for less than one fourth of federal financial aid.

CCA Proposal:  Increase funding to the Pell Grant program thereby increasing the maximum award levels, and explore other innovative proposals such as the concept of “front-loading” federal grant aid to provide increased assistance to students during their first two years of postsecondary education.  

Increase the loan limits of the subsidized and unsubsidized federal student loans as much as feasible within the constraints of budget considerations, with special consideration given to students who are in year one and two where assistance is often needed the most.

 

Provisional Certification 

Issue: Provisional certification is a status that carries both limitations and risks that fully certified institutions do not face. The Department of Education takes the position that the Secretary may terminate the provisional certification of institutions as a response to allegations of regulatory violations.  In such cases, the institutions do not have the due process protections that would be provided in a Limitation, Suspension & Termination action or an emergency action.

CCA Proposal:The law should be changed to create an exemption from the requirement that an institution be placed on provisional certification upon a change of ownership that results in a change in control when a change transfers ownership to a person or entity that has an established track record of regulatory compliance, which could be judged by whether the acquiring institution is itself fully certified and is permitted to use the advance payment method.  

Additionally, the Department’s ability to make ad hoc policy should be replaced with a clear set of rules.

 

Judicial Review 

Issue: The Department of Education has used an obscure provision in the HEA to persuade some federal courts to deny educational institutions their day in court. 

CCA Proposal:  Amend Section 432(a)(2) of the HEA to allow court review.

 

50% Telecommunications Rule 

Issue: During the 1992 HEA Amendments, Congress enacted the 50% telecommunications rule. The rule stipulates that institutions are not eligible to participate in Title IV programs if they offer more than 50% of their courses via telecommunications or correspondence or if 50% or more of their regularly enrolled students are enrolled in telecommunications or correspondence courses.  

CCA Proposal: CCA supports modification of the 50% rule to allow increased flexibility for students in meeting their educational goals.

 

Accountability 

Issue: The Administration has indicated that, just as performance measures were the centerpiece of the recent K-12 reauthorization, it will seek to import into the postsecondary education arena some measure of institutional effectiveness.  CCA formed a Task Force to formulate recommendations for reasonable, workable accountability measures in higher education.  

CCA Proposal: Create an “Institutional Report Card” based on a general framework with three constituent parts:

 

Career College Association 

Nicholas J. Glakas 

NickG@career.org

Phone: 202/336-6754 

www.career.org