Title: Accounting for Additional Credentials in Postsecondary Earnings Data
Authors: Jason Delisle, Jason Cohn, and Bryan Cook
Source: The Urban Institute
As policymakers across both parties consider how to evaluate postsecondary outcomes and earnings data, the authors of a new brief from the Urban Institute pose a major question: How should students who earn multiple credentials be included in data collection for the college that awarded their first degree?
For example, should the earnings of a master’s degree recipient be included in the data for the institution where they earned their bachelor’s degree? Additionally, students who finish an associate degree at a community college are likely to earn higher wages when they complete a bachelor’s degree at another institution. Thus, multiple perspectives need to be considered to help both policymakers and institutions understand, interpret, and treat additional degrees earned.
Additional key findings include:
Earnings Data and Accountability Policies
Many legislative proposals would expand the use of earnings data to provide further accountability and federal aid restrictions. For example, the House Republicans’ College Cost Reduction Act, proposed in 2024, would put institutions at risk of losing funding if they have low student loan repayment rates. The brief’s authors state that the bill does not indicate if students who earn additional credentials should be included in the cohort of students where they completed their first credential.
The recently implemented gainful employment rule from the Biden administration is explicit in its inclusion of those who earn additional credentials. Under the rule, students who earn an additional degree are included in both calculations for their recent degree and the program that awarded their first credential.
How Much Do Additional Credential Affect Earnings Data?
Determining how much additional credentials affect wages and earnings for different programs is difficult. The first earnings measurement—the first year after students leave school—is usually too early to include additional income information from a second credential.
Although the entire data picture is lacking, a contrast between first- and fifth-year earnings suggests that the number of students earning additional degrees may be very high for some programs. As an example, students who earn associate degrees in liberal arts and general studies often have some of their quickest increases in earnings during these first five years. A potential explanation is because students are then completing a bachelor’s degree program at a four-year institution.
Policy Implications: How Should Earnings Data Approach Subsequent Credentials?
In general, it seems that many policymakers have not focused on this complicated question of students who earn additional degrees. However, policy and data professionals may benefit from excluding students who earn additional credentials to more closely measure programs’ return on investment. This can be especially helpful when examining the costs of bachelor’s programs and their subsequent earnings benchmarks, by excluding additional earnings premiums generated from master’s programs.
Additionally, excluding students who earn additional credentials may be particularly valuable to students in making consumer and financial aid decisions if the payoff from a degree is extremely different depending on whether students pursue an additional credential.
However, some programs are intended to prepare students for an additional degree, and excluding data for students who earn another degree would mean excluding most graduates and paint a misleading picture.
To read the full report from the Urban Institute, click here.
—Austin Freeman
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By Professor Amanda J. Broderick, Vice-Chancellor & President at the University of East London.
It wasn’t so long ago that universities across the UK were rallying to preserve the graduate visa route, a vital lifeline for international students and higher education. When the Migration Advisory Committee (MAC) concluded there was no significant abuse of the pathway and recognised its immense value, the sector exhaled a collective sigh of relief. Data from the Office for National Statistics (ONS) underscored this conclusion: 80% of international students leave the UK within five years of arrival.
But amidst this hard-fought victory, a critical oversight emerged. In our defence of the graduate visa, we inadvertently highlighted the transient nature of international students in the UK, risking the perception of them as only economic contributors rather than showcasing the profound, enduring responsibilities we owe to them as alumni – and their broad value. The reality is, universities have a far greater role to play in empowering international graduates to thrive – not just within the UK, but globally.
A Broader Vision for Graduate Support
International students arrive with diverse ambitions. Some envision building careers in the UK, while others plan to apply their skills back home. Regardless, the implicit promise of higher education remains the same: their degree must unlock opportunities and enable them to succeed, whether they are in Hyderabad, Atlanta, Cairo or Athens. But how effectively are we fulfilling this promise?
We are getting better as a sector at having frank conversations about support for international students while at university – HEPI and Uoffer Global’s recent report on integration challenges facing Chinese students by Pippa Ebel is a good example of this. But as these students graduate, their needs evolve.
Economic growth is the mantra of the UK government, but this will remain a distant dream if we do not focus on global skills as part of the solution. Business and industry are competing internationally for talent and innovation, and as such, global employability and enterprise are an integral part of the education agenda.
To truly fulfil our responsibilities, universities must look beyond the campus experience and address the evolving, global needs of their international alumni. This involves building a bridge between academic learning and the economic, cultural, and professional landscapes of not only the UK but our alumni’s home countries too.
UEL’s Global Employability Model
At the University of East London (UEL), this principle is central to our mission. My recent visit to India for the UEL 2024 India Summit offers a case study in how universities can redefine global graduate support. With over 8,000 Indian students in 2024, UEL’s commitment to fostering long-term success is clear. The Summit – spanning Chennai, Hyderabad, and Vadodara – brought together leaders from academia, government, and industry to explore partnerships that align a UEL education with India’s economic and societal needs.
A key outcome of the Summit was the launch of the UEL India Industry Advisory Board. This pioneering collaboration between alumni, industry leaders, and academic experts provides strategic direction on UEL’s curriculum development and enterprise initiatives aligned to India’s workforce demands, while also offering alumni robust post-graduation support. Another important engagement took place at T-Works Innovation Centre in Hyderabad, where we worked with international stakeholders on the practical steps UEL can take to bridge the gap between academia and industry. The result: stronger industry ties, better-prepared graduates, and increased support for retaining high-value talent, reducing brain drain and supporting local innovation.
These efforts are not isolated. UEL has long been engaged in projects that foster international employability, including partnerships with Tamil Nadu’s government, where we hosted a hackathon and work placement initiative for computer science and engineering students. This initiative resulted in work placements for alumni based in Chennai, opening up career pathways in sectors such as robotics and AI.
UEL’s forward-thinking approach also extends beyond such events – our international employability offer begins during a student’s degree, with Careers in India mentoring panels and an employer webinar series, opportunities for students to connect with industry professionals and gain insights into fields such as business, HR product design, and digital marketing in India. This support does not finish after graduation; our offer to global alumni includes post-graduation employability boosters, lifelong access to career support portals with free resources, and business incubation and acceleration.
Perhaps most importantly, we also offer a programme of peer-to-peer mentoring, facilitated by our India alumni chapter and bolstered by our Industry Advisory Board, creating a supportive network that fosters continuous learning and career advancement. Unlike many universities, where alumni engagement is viewed primarily through a philanthropic lens, at UEL it is integral to our mission of creating real-world impact. By empowering our international alumni to ‘pay it forward’, we generate a virtuous cycle of mentorship, opportunity, and success. Through our alumni’s success, we amplify the value of a UK degree, not just for the individual, but for their home countries and the global economy too.
Rethinking Metrics of Success
Alongside universities’ own work to ensure they support global graduate employability, we must also look to the role of other stakeholders in this endeavour. As policymakers and universities work together to shape the future of higher education, we must advocate for more nuanced metrics to capture the true global success of our graduates. The Graduate Outcomes Survey (GOS), while valuable, is insufficient to capture the global impact of UK higher education. Refined metrics that capture the contributions of international students to both the UK and their home countries could better highlight the profound influence of UK higher education on a global scale. This data is critical not only for refining university strategies but also for safeguarding the UK’s reputation as a global leader in higher education.
David Willetts’ recent report with the Resolution Foundation also raises issues with the GOS, pointing out that ‘many graduates are on a long and not necessarily straightforward route to a career,’ and that ‘assessing where they are at 15 months is premature’. This is surely even more pertinent for many of our international graduates, whose circumstances may not be accurately captured by a one-size-fits-all survey. Our support for these students must be based on their specific contexts as much as possible – including how we measure success.
Above all, the responsibility to support international graduates does not end at graduation. The world is changing, and the future workforce demands new skills and global collaboration. By supporting international graduates throughout their careers, we help them not only succeed but also lead the way in shaping the jobs the world needs tomorrow. In partnership with business, government, and stakeholders beyond, we can ensure that our international graduates are equipped to thrive in a rapidly evolving global economy – both for their own success and for the benefit of communities worldwide.
At UEL, we are committed to this vision. By nurturing a cycle of mentorship and opportunity, we aim to empower our alumni to transform their communities and industries. Their success is our success – and a testament to the enduring value of UK HE. It’s time for the sector to embrace its role as a global enabler, ensuring that every graduate not only thrives but becomes a beacon of the UK’s educational excellence around the world.
An ed-tech consultant writes that a recent article about online completion rates “shows a disturbing disregard for the complexities of education outcomes.”
By Ian Blenkharn, Director of Education and Student Services at the University of Bath.
Like most institutions across the sector, the University of Bath is carefully considering the potential opportunities, implications and challenges posed by the new Lifelong Learning Entitlement (LLE).
Bath is somewhat unusual in having both a high proportion of integrated master’s courses and a high proportion of students studying programmes with a placement year (nearly two-thirds of Bath students undertake a placement during their time with us). This means we have a large number of students studying five-year, integrated masters programmes with a year on placement.
This raises important questions for us, as it will for others across the sector. The information so far published about the LLE seems to suggest that we will be able to charge students for the full, five-year integrated-masters-with-placement programme, which has a total of 600 credits under the CATS credit accumulation framework. However, it isn’t yet clear whether students, who are automatically entitled to a ‘digital wallet’ to cover up to 480 credits of higher education study, will be able to pay for the entirety of their programme without access to private funding.
For those programmes offered at Bath, the shortfall would be the cost of the placement year – either 15% or 20% of the maximum regulated fee. Perhaps not a deal-breaker for those with access to the Bank of Mum and Dad. However, it could deter some students for whom the chance to work for a year in industry provides unparalleled opportunities to build social capital, experience and confidence to compete in the graduate jobs market. We know that such opportunities are transformative for our students. The prospect of this becoming the preserve of students who can privately fund their tuition risks not only the viability of the programmes we offer but also the social mobility benefits they afford students from widening participation backgrounds.
The decision by the Labour government to defer the implementation of the LLE to January 2027 means there is some time to clarify the situation for both universities and students. However, we will have students applying in September 2025 for deferred entry in 2027, so the time to clarify the situation is shorter than it first appears.
It is imperative that everyone has clarity on this issue (and many others associated with the LLE) before we enter the 2025/2026 recruitment cycle. This is so universities can appropriately advise students on how much their course will cost and whether their Lifelong Learning Entitlement will be sufficient to cover those costs. At the moment, far too many unanswered questions are swirling around the LLE, as evidenced by the 400+ sector participants who logged on to the Higher Education Strategic Planners Association (HESPA)-organised seminar on the LLE with representatives from the Student Loans Company. The sector, and most importantly the students who will be pioneers of the new LLE system, need these questions answered as soon as possible.
The 2023 NCES completion data points to some interesting – and impactful – student trends that continue to paint a picture of a fundamentally changing set of priorities for the Modern Learner. Specifically, more students are moving towards degrees that have firm career outcomes, either in furthering their current career or starting a new endeavor.
Institutions need to pay attention to these trends in order to prepare themselves for a radically different higher education market in the next 5-7 years. This includes prioritizing programs that align with the market’s appetite, as well as re-investing in the value proposition of programs that are currently declining in popularity.
Other Highlights
Associate degree completions saw marked decline, which is notable considering the growth of Undergraduate Certificate completions. Students seem to be preferring certificates that can lead to employment opportunities.
STEM programs continue to either grow or remain stable, depending on the level of the degree. This was most notable at the Graduate level. As more jobs continue to require advanced degrees, this trend is set to only grow in importance.
Liberal Arts programs across all levels experienced significant YoY reductions in completions. Schools that are defined by their Liberal Arts programs will need to assess ways in which they continue to project relevance as the market shifts.
Undergraduate Health Profession programs also saw a decline, which goes against the commonly held belief that the labor market and these programs are continuing to grow. This is something that should definitely be monitored and evaluated, to ensure that institutions do not over-invest in a sector that may be slowing.
2023 NCES Completions Data and the Changing Priorities of the Modern Learner
The 2023 National Center for Education Statistics (NCES) completions data offers a rich and complex tapestry of insights into the trajectory that the Modern Learner is taking their education. As enrollment managers and marketers, it is our imperative to move beyond surface-level observations and delve into the intricate patterns and implications woven within these numbers. This data serves not merely as a historical record but as a powerful compass, guiding us towards a deeper understanding of the Modern Learner’s market demands, and the strategic decisions that will chart the course for institutions in the years to come.
This year’s data unveils a series of significant shifts in student choices, reflecting both the evolving needs of the labor market and the lingering reverberations of the COVID-19 pandemic. We observe a notable decline in associate degree completions, particularly in general studies and humanities, while undergraduate certificates continue their upward trajectory. At the bachelor’s level, STEM fields remain stable, while other areas, especially those associated with traditional liberal arts programs, face headwinds. Graduate programs, particularly in STEM disciplines, are experiencing a surge in completions, and both undergraduate and graduate certificates continue to gain popularity.
In this analysis, we will dive deep into the data, exploring the specific programs experiencing growth or decline, examining the multifaceted factors driving these trends, and discussing the profound implications for higher ed. We will delve into the remarkable growth in graduate programs and certificates, highlighting the increasing demand for advanced credentials in the labor market. We will also confront the undergraduate decline, exploring the potential impact of the COVID-19 pandemic and the looming 2025 enrollment cliff, with a particular focus on the challenges facing private non-profit liberal arts schools. By understanding these multifaceted trends and their interconnectedness, we can proactively adapt our strategies, ensuring that our institutions not only remain relevant and competitive but also thrive amidst a landscape in flux.
Associate Degree: Trade Focused
The 5% decline in associate degree completions is notable both in what programs dropped and which programs are continuing to see growth. The most significant drop emanates from Liberal Arts and Sciences, General Studies, and Humanities, programs that have historically served as a bridge to further education or a broad foundation for diverse career paths. 61% of the YoY decline were in this category. The decline in these areas, coupled with the simultaneous rise in undergraduate certificates, suggests a growing preference among students for more focused, career-oriented pathways that offer a faster and more tangible return on investment.
This shift in student preferences is not surprising in the context of a rapidly changing labor market that increasingly values specialized skills and knowledge. Students are seeking educational pathways that provide them with a clear and direct route to employment and career advancement. In this environment, the perceived value of broad-based, general education programs may be diminishing.
However, amidst this overall decline, we observe encouraging signs of growth in fields directly aligned with high-demand skills. Programs such as Construction Trades, Mechanic and Repair Technologies/Technicians, and Computer and Information Sciences and Support Services have all witnessed increases in completions. This trend underscores the enduring value of associate degrees that equip students with tangible, marketable skills, enabling them to seamlessly transition into the workforce and meet the demands of employers seeking skilled talent.
Bachelor’s Degree: Value Proposition Challenges
At the bachelor’s level, we encounter a mixed bag of stability and change. While STEM fields remain a stronghold, with only a negligible 0.07% dip, other areas, particularly those associated with traditional liberal arts programs, are facing challenges. The most pronounced decline occurs in Health Professions, a field traditionally associated with strong job prospects and stable growth. This decline, juxtaposed with the increase in master’s level completions in Health Professions, suggests a potential shift towards requiring advanced degrees for certain healthcare roles. This mirrors a broader trend of “graduate degree bloat” in the labor market, where employers increasingly demand advanced credentials for positions that previously required only a bachelor’s degree.
The COVID-19 pandemic has undoubtedly exacerbated the challenges facing undergraduate programs. The disruption to traditional learning models, coupled with economic uncertainty and concerns about the value of a college degree, has led many students to reconsider their educational plans. The looming 2025 enrollment cliff, which predicts a significant drop in the number of high school graduates, further compounds these challenges, creating a perfect storm for undergraduate enrollment.
Private non-profit liberal arts schools are particularly vulnerable in this environment. The growth areas in the undergraduate space are mainly concentrated in STEM programs, leaving liberal arts institutions grappling with declining enrollments and a need to reimagine their value proposition. Adapting to this changing landscape will require innovative approaches to curriculum design, student support, and career services. Tuition driven, liberal arts institutions must demonstrate the relevance and value of their programs in today’s world, not only highlighting the critical thinking, communication, and problem-solving skills that their graduates possess (which has always been their particular promise), but also their undergraduate’s career opportunities.
Graduate Studies: Career Growth and Specialization
Graduate programs, especially those in STEM disciplines, are experiencing a period of remarkable growth. The 51% and 25% surges in Computer and Information Science and Support Services and Engineering master’s completions, respectively, echo the trends at the bachelor’s level and underscore the premium placed on advanced technical expertise. The overall 30% rise in STEM master’s completions further solidifies this trend, reflecting the insatiable demand for skilled professionals in these fields.
This surge in graduate completions aligns with the broader trend of graduate degree bloat (others might more favorably describe it as “expansion”) in the labor market. As certain industries and professions increasingly require advanced degrees for career advancement, we can anticipate continued growth in graduate programs, particularly in fields that offer a clear pathway to high-demand, well-paying jobs. This presents a significant opportunity for institutions to expand their graduate offerings and cater to the growing population of working professionals seeking to upskill and advance their careers.
Graduate certificates are also experiencing growth, with a 2% increase in completions. The growth in fields like Computer and Information Technology, Psychology, and Engineering/Engineering-related Technologies/Technicians demonstrates the appeal of these focused credentials for professionals seeking to enhance their skill sets or transition into new careers. The flexibility and shorter duration of graduate certificates make them an attractive option for busy professionals who may not have the time or resources to pursue a full master’s degree – especially if the certificates are tied to a degree later.
The flourishing graduate landscape presents a wealth of opportunities for institutions. Expanding graduate program offerings, enhancing online and hybrid learning options, and strategically marketing to working professionals are all essential strategies for capitalizing on this growth. The increasing popularity of graduate certificates also underscores the need for institutions to develop a diverse portfolio of graduate programs that cater to the varied needs and preferences of learners.
Navigating the Data’s Implications for Engaging with the Modern Learner
The 2023 NCES completions data provides a roadmap for navigating the complexities of the higher education landscape. The trends we’ve observed highlight the growing preference for career-focused programs, specialized credentials, and flexible learning options. They also underscore the challenges facing undergraduate programs, particularly in the liberal arts, in the wake of the COVID-19 pandemic and the approaching enrollment cliff.
To thrive in this environment, institutions must be proactive, agile, and data-driven. The Modern Learner is looking for clear career outcomes – not just in program availability but in the flexibility that comes with balancing work with furthering education. They want to know exactly what they can expect from their investment of time and money to the program. Schools must also reimagine their programs, enhance student support services, and strategically market offerings to meet the evolving needs of learners and the demands of the labor market. They need to embrace innovation and explore new models of education that provide students with the skills and knowledge they need to succeed in the 21st century.
For associate degree programs, this may involve a greater emphasis on career-focused pathways, stackable credentials, and partnerships with employers. Bachelor’s degree programs, especially in the liberal arts, may need to re-articulate their value proposition, highlighting the transferable skills and lifelong learning benefits that their graduates acquire. Graduate programs should continue to expand and innovate, offering a mix of traditional degrees and flexible certificates to meet the diverse needs of working professionals.
Above all else, if this data is speaking to troubling realities on campus, the most important takeaway should be: trying the same strategies that are producing tepid results in regards to enrollment growth will not be the solution going forward. If you are seeing challenging enrollment numbers for any level of program, think about how your institution can more readily adapt to these changing trends, whether that be introducing multiple starts per term, reworking tuition costs, or making better strategic use of marketing and enrollment processes for priority programs.
Is Your Institution Ready for the Modern Learner?
We help schools all the time who have been trying to fit a square peg into a round hole, and often the solution is for an outside perspective to create a vision for the future. The time to act is right now, there is a quickly closing time frame for ensuring a flourishing future for your institution. In fact for many schools, it is already too late. The Modern Learner is moving at a swift pace, and if universities do not keep up, they will quickly be left behind.
There has been a lot written about the death of the English degree in higher education. Is it true?
Sort of. But there are other interesting trends in patterns across the country in the past dozen years. I downloaded IPEDS data from 2010 to 2022 (even years) and created the visualization to show those changes and patterns in bachelor’s degrees awarded. There are six views, and some of them are interactive.
The first (using the tabs across the top) shows degrees by the institutions where they’re awarded. You can see the college or university sector, region, urbanicity, and Carnegie classification (rolled up into larger segments for clarity.) You’ll see little change: Most degrees are still awarded by public institutions, doctoral institutions, in larger cities. Hover for details.
Over the years, degrees (in first majors) increased about 29% and the second view allows you to see the changes by area (using 2020 CIP codes that cluster degrees in broad areas). You can see the growth in computer science, health professions, and engineering relative to the gray line: All career and professional focus areas; and you can see the drop in traditional degrees in liberal arts.
The third view is identical, but shows growth in second degrees, which increased about 19% over time.
The fourth view also focuses on second majors: Click a single year or the “All” button to drill down or summarize.
The fifth view is highly interactive and allows you to see just what you want to see in terms of the biggest producers of bachelor’s degrees in aggregate or for a specific academic area. Choose a year, academic area, Carnegie type, region and sector, and the filter to size using the slider filter. The view will update to show you wish institutions produce the most degrees in that area.
And finally, if you want to drill down to a single institution, try the last view. It starts showing Oregon State University and five academic areas, but you can change the institution using the filter at the top, and you can add or remove academic areas based on your interests. I recommend no more than five or six for the purpose of clarity, but you do what you want.
As is always the case, the Penn State data are problematic over time due to various names and IPEDS ID designations over time. My tech skills have not figured out a way to normalize this, and I’m not sure it’s worth the effort to do so anyway. You can look up their data on their site if you’re interested.
And one note: The increase in Military Science degrees is over 2000% (on a very small base) and for the sake of clarity, I took it out of the displays showing change over time).
September 6, 2022 by Dean Hoke – The percentage of students without a post-secondary degree in the United States has been a widespread concern for decades. Employment at a decent working wage did exist for those who did not have a degree however that world is quickly changing. This topic has been of interest to me for over 50 years because I am one of those who dropped out of college.
I started attending university in the Fall of 1968 and it took me until June 1975 to complete my bachelor’s degree. I attended two universities and dropped out twice before coming back and finishing. I thought in early 1969 when I left the university, I didn’t have the academic ability to get a degree and my university advisor certainly was not supportive and suggested I should go sign up for military service that day.
I did go back to another smaller university six months later and though I had pauses due to those challenges everyone has in life I finished with a bachelor’s degree six years later. Upon graduation, I started immediately after commencement at a small university in Kentucky as an admissions officer and completed my master’s in a relativity short amount of time while working.
With that in mind, I have always wondered how we get dropouts back to school and finish their degree. Employers, government, and adults all believe it’s needed, and it has financial benefits for all. Yet nearly 40 million people from the age of 18-64 started higher education and did not complete one degree. I am presenting my initial thoughts and I would ask for your thoughts on how to address this question.
US Labor Market
According to the Federal Reserve Bank of Saint Louis, the US Civilian Work Force from 25-34 as of June 2022 has the following educational attainment
The Harsh Facts on College Dropouts
American higher education overall has 39 million people with Some College, No Credential (SCNC) as of July 2020 according to the National Student Clearinghouse Research Center. The most recent study dated 2017 shows the following:
30% of first-year students drop out before their second year of college.
58.5% of students who started in community college after 6 years have not obtained any degree or certificate (1,071,720 students from students starting in 2011)
32.6% of students who started at a four-year institution after 6 years have not obtained any degree or certificate. (730,556 students starting in 2011)
More than two-thirds of college dropouts are low-income students, with family-adjusted gross income (AGI) under $50,000.
Full-time employment reduces graduation rates.Students who work a full-time job during the school year are half as likely to graduate with a bachelor’s degree, as compared with students who work 12 hours or less a week. Every additional hour of work beyond 12 hours a week reduces graduation rates. Working a full-time job takes too much time away from academics.
The reasons why are not surprising but still distressing.
Source: Hanson, Melanie. “College Dropout Rates” EducationData.org, June 17, 2022,
Economic Impact
According to the 2020 US Bureau of Labor Statistics, the average wage earned by a person by education level looks like this.
One statistic that stands out is the percentage of the income difference between a 4-year degree vs a person with a two-year degree person is $19,288 a 38.5% increase.
As the United States’ employment needs quickly change, industry and government have a pressing need for more qualified workers. In the publication HR Drive titled“Employers are hiring, but 80% say they can’t find skilled candidates”More than 82% of employers said they’re actively hiring, despite predictions of an economic downturn, according to a survey of 150 HR leaders by Challenger, Gray & Christmas, Inc. 80% of the respondents, however, reported having difficulty finding workers, with 70% identifying skills shortages as the reason.
It is further reported that 43% of Challenger’s respondents reported that, although they have enough applicants, those applicants do not have the needed skills. Another 43% said they do not receive enough applicants, with 27% noting that candidates who do apply are not qualified. “The labor market remains tight and employers are reporting skills shortages in almost every area, including in STEM, data analytics, human resources, finance, and operations.
During the next decade, the need for people with advanced credentials will continue to rise. Corporations have made it clear there is a need for more qualified workers whether it’s via a traditional degree such as a bachelor’s or micro-credentials/badges which verify customized skills. A report by McKinsey projected that more than 100 million workers will need to find a different occupation by 2030. In the United States, for instance, customer service and food service jobs could fall by 4.3 million, while transportation jobs could grow by nearly 800,000. Demand for workers in healthcare and STEM occupations may grow more than before the pandemic.
Organizations use different techniques for reimbursing student employees. The most common include:
Tuition assistance/reimbursement (63%)
In-house training seminars (61%)
Attendance at educational conferences (51%)
Continuing education courses (50%)
Coverage for licensing courses and exams (44%)
Personal development courses (35%)
Looking at tuition assistance the concept by employers is not new and many have had some sort of program in place for well over 10 years.
The Society for Human Resource Management survey reports tuition assistance programs are an attractive recruiting measure, and most employees are aware of the basic benefit. However, less than 5% percent of employees participate. Of those who participate in the tuition assistance program more than 4 in 10 who are using the benefit to attend graduate school.
Large corporations such as Starbucks, Target, Walmart, and others have all implemented go-back-to-school incentive programs using various higher institutions schools with an emphasis on online degree institutions.
Example One – Starbucks
Starbucks was one of the early adopters. In 2014, Starbucks and Arizona State University (ASU) introduced the Starbucks College Achievement Plan (SCAP), which provided Starbucks’ U.S. employees the opportunity to earn their first-time bachelor’s degree with the company paying for 100% of their tuition.
in 2021, Starbucks modified the tuition reimbursement benefit by paying all tuition and fees up front, as opposed to reimbursing employees for their out-of-pocket costs later.
More than 20,000 Starbucks employees are currently participating in SCAP.
The number of employees finishing their undergraduate degrees through SCAP will reach over 8,500, with Starbucks setting a goal of 25,000 graduates by 2025.
There are more than one hundred different degree programs offered through the SCAP program, and Starbucks has employees enrolled in all of them.
Almost 20% of people who apply to work for Starbucks say that SCAP is a major reason for their decision.
SCAP scholars are retained by Starbucks for a 50% longer period than non-participants, and they are promoted at nearly three times the rate of those employees who do not participate
Example Two – Walmart
In July 2021 Walmart announced it will pay for full college tuition and book costs at some schools for its US workers, the latest effort by the largest private employer in the country to sweeten its benefits as it seeks to attract and retain talent in a tight job market.
The program includes 10 academic partners ranging from the University of Arizona to Southern New Hampshire University. Participants must remain part-time or full-time employees at Walmart to be eligible. They have recently dropped a previous $ 1-a-day fee paid by Walmart and Sam’s Club workers who want to earn a degree and will begin to cover the costs of their books.
Example Three – Target
Target in August 2021 announced a fund to support educational courses for its employees. It is similar to the Walmart program. Available to 340,000 full-time and part-time workers.
Cover the full cost of select undergraduate degrees, certificates, and certifications for its 340,000 U.S.-based workers.
Pay up to $10,000 each year for master’s programs at those institutions.
Allow participants to attend one of 40 partner institutions.
Invest more than $200 million within the next four years in the program
However, one of the issues employees are challenged by is tuition remission vs tuition assistance. It is difficult and a deterrent to potential participants to upfront costs.
Researchers who have studied tuition benefits, including Jaime S. Fall, director of UpSkill America at the Aspen Institute, and Kevin Martin, chief research officer at the Institute for Corporate Productivity, believe that frontline workers might be more likely to participate in these programs if companies moved from “tuition reimbursement” to “tuition assistance” models, where employers pay their portion of education costs upfront. Many lower-income employees—or workers of any kind—can’t afford to float tuition costs for several months while they wait to be reimbursed.
Despite these new and innovative programs, we still have millions who are not going back to school. While 80% of employees are positive about these benefits only 40% have made any investigation and only 2% have taken advantage.
Student Barriers include
Restricted options by degree, college choice, net cost, upfront payment before receiving reimbursement
Lack of knowledge of grants and loans by employers, government, and schools.
Student personal issues (living life and family issues)
Childcare options and cost
Fear of failure,
School too far away
The older you get the less likely you will return to school
Paths to Explore by Higher Education, Corporate, and Government
Each sector is aware of the challenge and trying different approaches to get students dropouts and get a degree.
Higher Education
Private and state-supported regional universities are an asset underutilized
Further development and refinement of quality online degree programs to encourage re-enrollment
Developing stronger retention programs to reduce the percentage of college dropouts
Expansion of Teaching and Learning Centers for their communities
Evening and weekend on-campus programs
Academic credit for life experience
More student-friendly transfer of credits to a new school
Easier for students with outstanding bills to send an academic transcript
Corporate
More generous funding for employees to return to school. Going above the $5,200 a year tax deduction
The movement to paying tuition in advance by the employer rather than paying tuition in advance by the student
Increasing the number of majors a company will financially support
Opening the door for employees to have a selection of more universities including accredited private institutions
An example is the IBM apprentice program which aims to hire more than 400 trainees each year, from software development to data science to human resources. The current estimated cost to the company is $65 million since 2018.
Improvement in communicating and encouraging employees to return to school
Government
Increased priority in developing joint partnerships that incentives employment and encourage dropouts to return to school
Increase current state and federal student grants program
Establish no-interest loans to encourage students who have previously dropped out to return to complete their undergraduate degree
Let me expand on the role of partnerships between government, Corporate and higher education. The development of regional partnerships between government, industry, and higher education is not necessarily new. It has been used with tier one institutions such as Ohio State, the State of Ohio, and local government to entice Intel to establish a major tech center in Central Ohio.
Another recent bi-partisan proposal was introduced in August, by Rep. Jim Costa (D–Fresno) and co-sponsored by Rep. Bruce Westerman, an Arizona Republican. The bill is aimed toward four-year regional public universities in distressed areas that could receive federal grants of up to $50 million for economic and community development efforts under newly introduced bipartisan legislation.
In a press conference at Fresno State to unveil new legislation that he will put forward to Congress that would benefit up to 174 universities, Congressman Costa stated “Universities like Fresno State and many universities throughout California, but throughout the country, support community development. “They represent constituencies where we have distressed communities. They support the workforce, leading to faster employment growth, along with a higher per capita income.”
Robert Maxim, a senior research associate at Brookings, a think tank based in Washington, D.C. is an advocate of this type of partnership. “There are way more regional public universities in the U.S. than there are R-1s, our view is that they are really good anchor institutions to route federal investment through. They are a set of institutions that have been historically neglected and deserve a bit more attention and support from the federal government.”
Conclusion
I believe we need to prioritize on the group with the best chance of returning and obtaining a degree, the 25-34 age group with some college but no degree. This is 5.7 million of the overall 39 million who started college but did not finish. While we should make available any current or new programs that encourage people to return to school the 25-34-year-olds are the most likely to go back.
The United States should emphasize the wider use of partnership programs with government and industry teaming up with state regional higher education institutions and local small town and private colleges and universities would be a valuable asset to all parties. These schools are scattered in smaller cities across America. Both regional state institutions and private schools come from the applied teaching traditions Many are in small towns and rural areas in which employees who wish to return for a degree have few options. The question of cost certainly exists but I believe some form of government/industry/university partnership can effectively address the cost issues. They have space and teaching knowledge and the ability to customize local solutions.
One final thought and that is the question of will. While cost is a significant issue government, industry and schools must work in unison to get students to return and complete their education. We must remember these are second or in some cases third-chance students. They have failed in their attempts for various reasons. However, these students must overcome the fear of failure. We must find ways to support and encourage these students to take that leap of faith and believe they can graduate.
Postscript:
Graduation day 1975
I have been asked why did I go back? I worked in a factory and my parent’s deli for 6 months I felt I needed someone to test me and determine what I should do for the rest of my life. I went to the state employment bureau in my hometown to be skills tested to learn what I was best suited for. After the tests, I sat down with a lady who read the results. She told me with a smile that scared me I needed to go back to college and get a degree. Seeing I was somewhat shocked by her recommendation she stated the test revealed my hand/eye coordination was horrible and if I worked in a factory as my father did, I would seriously hurt myself. I asked her about joining the military and she commented if you went into the military, it better be an officer working behind the lines in military intelligence because I was unlikely to be much of a decent front-line soldier. As you can see, I graduated, and my proud parents were there for the event. I later in my life suspected the lady at the employment bureau was trying to give me a slap of reality to grow up and use my brain.
Dean Hoke is Co-Founder and Managing Partner Edu Alliance a higher education consulting firm located in Bloomington, Indiana and Abu Dhabi, United Arab Emirates. Dean received his Bachelor of Arts degree from Urbana University in Ohio, his Master of Science in Community Development from The University of Louisville, and a graduate of the Wharton School of Business Executive Management program. Since 1975 Dean has worked in the higher education and broadcasting industry, serving in senior leadership roles specializing in marketing, communications, partnerships, online learning and fund raising.
He currently serves as Chairperson Elect of the American Association of University Administrators , Franklin University and is Co-Host of the Podcast series Higher Ed Without Borders . Dean is actively engaged in consulting projects in international education, branding, business intelligence, and online learning leading projects in the United States, the Middle East, Africa, and Asia. Dean resides in Bloomington, Indiana
