Facts that Matter
According to Bains, over 1/3 of American college and university’s finances are declining.
70 percent of students who take all of their courses at a distance do so from public and nonprofit institutions. Source: Inside Higher Ed, Essay on the Value of states banding together for stronger, more clear regulations of online education
More than 40% of students with college loans are not making payments. They are behind by over $200 billion dollars. Source: Wall Street Journal, Student Default Rates, April 7, 2016
46 % of respondents to the New Survey of Higher Education “Insiders” said the culture and structures of higher education represent the greatest obstacle standing in the way of innovation at colleges in the U.S. Source: Inside Higher Ed
Student loans now make up 37% of the total assets of the US government. Source: Education Watch International
The number of students earning their first undergraduate degree fell 2.6% between 2011-2012 academic year and 2014-15 while the number of graduates with prior credentials rose by 12.4%. The number of first-time graduates older than 25 dropped by 15% in the period studied while the number of students younger than 25 increased by 25%. Source: The National Student Clearinghouse
One of our four (25%) student loans issued by the federal government are now delinquent. Source: Education Watch International
In 2015, more than 35 million people enrolled in an online course, doubling the enrollment from one year ago. Today, there are more than 4,200 MOOC courses available (many more if you include corporate training programs from companies like Udemy, BigThink, Pluralsight, Lynda, NovoEd and Skillsoft). Source: LinkedIn Pulse
Roughly 40% of universities estimate lower total enrollment next fall.Source: Moody’s Investors Service
According to an annual survey of college freshmen across the country by UCLA researchers, just 18 percent of students said magazine rankings were important in influencing their final college selection. Rankings didn’t even break the top 10 among the factors students said were important.Source: The Washington Post, "The end of college rankings as we know them"
‘Place’ Impacts Enrollment “The farther students live from an institution, the less likely they are to enroll.” 57.4% of incoming freshmen at public four-year colleges enroll within 50 miles of their home Median distance from home:
- 18 miles -- all schools combined
- 46 miles -- private four-year colleges
- 8 miles -- public two-year colleges
Sharp Rise in Recruiting Online Students Universities are reporting sharp increases in the cost of recruiting online students, which is being driven by hundreds of universities putting their degree programs online. University of Phoenix reports that student acquisition cost rose from $1,500 per student in 2004, about 12% of tuition, to $5,700 per student presently, more than 50% of tuition.Source: The Chronicle, Why More Colleges Are Emulating Deals Like the ASU-Starbucks Alliance, January 22, 2016
2016 Chief Academic Officer Survey 55% of Chief Academic Officers expect a significant decline in the number of liberal arts institutions over the next 5 years 40% say their institution’s financial situation did not improve in 2015 65% say their institution is reallocating funds to support academic programs rather than finding new revenues to support them 63% say their institution has not recovered from economic downturnSource: Inside Higher Ed Chief Academic Officer Survey, 2016
33 million Americans attended a university but did not complete a degree according to the National Student Clearninghouse. It is believed that, roughly 4 million are potential completers–if the price is right.
60% of defaulters on student loans did not graduate. Nearly all of the remaining 40% just received a certificate, not a degree.Source: New America Foundation
# of degrees online: • 1,516 M.Eds from 515 universities• 458 MBAs from 336 universities• 434 RN-BSNs• 371 MSNs (Master of Science in Nursing)• 264 DNPs (Doctor of Nursing Practice)Academic Partnerships research
U.S. College Enrollment • Undergrad 17.3 million (86%) • Graduate 2.9 million (14%)
Up until now, online has focused on graduate-level students, the 14%. Much of the future growth in online enrollment will be in undergraduates, the 86%.
College cost has surged 500% since 1985; almost five times the Consumer Price Index.Source: Bloomberg
90% or more of incoming freshmen receive tuition rebates or grants from most private colleges. Source: Forbes
Average tuition discount rate by student category: · 48% for first-time, full-time freshmen · 41.6% for all undergraduatesSource: NCES, Fall 2015
The percentage of college cost covered by grants and scholarships is now greater than from any other source – parents, student borrowing, etc., up 30% since 2010.
48% of AASCU schools have at least five degree programs fully online. 82% have at least one. Source: The Learning House
The tuition of 86% of universities with online program is priced the same or lower than their on ground offerings. Source: The Learning House
Over one third of all college students have taken an online course within the past 12 months Source: The Learning House
70% of all online students attend college within 100 miles of their home. However, for a lower tuition, they say, they would attend a college anywhere in the country.
40% of on campus students at a 4-year university are working at least 30 hours a week. Source: Sallie Mae
47% of students are working more than they did in 2010 to cover the cost of college Source: Sallie Mae
67% of families eliminated college choices based on the price of tuition.Source: Sallie Mae
Student debt has quintupled since 2004. Student loans are now 10% of all household debt in the United States. Source: Federal Reserve Bank of New York
11% of business leaders compared to 96% of chief academic officers believe that graduates have the requisite skills for the workforce.Source: The Republic
45% of enrollments in doctorates of education are earned online.Source: Eduventures
4-year public university enrollment change: 2010-2015 online +69%; on-campus -3.4%.Source: AP research
74% of all college students are classified as “non-traditional”. Source: NCES
Nearly 40% of graduate students enrolled in fully online programs study business.Source: Career builder
Arizona State now offers more than 100 degree programs fully online.
Without online programs, more than 2 million fewer students would have attended college in 2014.Source: Learning House
Biggest worry among higher ed leaders: Declining enrollment.Source: Industry Outlook Survey – Higher Education, KPMG