The report is critical of private, nonprofit colleges’ and universities’ six-year graduation rates. By excluding certain students from the calculations, the study makes these graduation rates appear worse than they are.
So what are the facts (derived from the same data used by Third Way) about graduations in Wisconsin? In 2015, the four-year graduation rate for four-year, public institutions stood at 29%, while the four-year rate for private, nonprofit institutions stood at 48%. The six-year rate for public institutions was 59% and for private, nonprofit universities it was 65%. As stated in the article, all of us are committed to doing better, but the way these data were sliced and diced in the study does not reflect reality and does not justify denigrating a particular sector of higher education.
First, in its calculation of graduation rates, the Department of Education considers only full-time students who have enrolled for the first time and remained at the same institution for all four or six years. In today’s economy, many more students are part-time and gain their degree by transferring among a number of institutions. These graduates “don’t count” under the study’s measure.
Second, although colleges and universities take responsibility for improving graduation rates, there are other factors not under our control: government mandates for certain professions (e.g. teachers and CPAs). These mandates increase the time to degree. For example, graduates seeking a CPA certificate are required by law to have 150 college credits, instead of the usual 120. In addition, public policy has been to encourage older workers to go back to school. Often, they do so part-time, which results in a longer time to graduation. Approximately 35% of students enrolled in Wisconsin’s private, nonprofit colleges are age 25 or over. Of those 25 or older, almost 60% are attending part-time.
college degree has been the ticket to the middle class in America. That is even truer today than it was before the Great Recession. As the connection between college and the middle class has become common knowledge in our society, more and more young people have sought a college degree while at the same time more and more middle class families have lost the ability to pay for some or all of college, and loans have surpassed grants as a way to fund college education. The result: a generation carrying a large amount of student loan debt. Is this good public policy?
In this paper, Rachel E. Dwyer, a professor at The Ohio State University, examines a key aspect of this problem: whether and to what extent student loans impact graduation from college. This is because, as Dwyer notes “Student loans, then, represent both an opportunity and a risk, just as do other forms of credit.” They can be a good investment in a young person’s future or not. Or, as Dwyer puts it, “Are loans associated with graduation or do they represent a drag on completion?”