Prior Condition 1/27/2014. Exploration. Elimination. A New Federal Rating System for Higher Education:

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1 A New Federal Rating System for Higher Education: What It Means and How Higher Education Should Respond David A. Bergeron Center for American Progress And Jamienne Studley January 27, 2014 Prior Condition Federal Resources College Navigator College Affordability and Private Sector Resources U.S. News and World Reports Princeton Review Other ranking systems Federal Tools to Support the College Search Process Prior State Exploration Tool: College Affordability and Access to high and low net price lists Elimination Tool: College Navigator Many more data points about 1

2 Pr int This Institution National College Affordability and Use the options below to generate a report on the highest (top 5%) and lowest (bottom 10%) academic year charges for each sector. Tuition reports include tuition and required fees. Net price is cost of attendance minus grant and scholarship aid. Data are reported by institutions and are for full-time beginning students. Public, 4-year or above / collegecost.ed.gov/ catc/ Private not-for-profit, 4-year or above Private for-profit, 4-year or above Public, 2-year Private not-for-profit, 2-year Private for-profit, 2-year Public, less-than-2-year Private not-for-profit, less-than-2-year Private for-profit, less-than-2-year National Average Percent Change: 15.0 Highest Tuition Highest Net Prices Lowest Tuition Lowest Net Prices Begin typing the name of a program (for example, Cosmetology ) to generate a list of institutions that offer the program and the tuition and net prices they charge for the entire program. Data are reported by institutions on their largest program and are for fulltime beginning undergraduate students. Not all institutions offering these vocational programs are included on this list. For a full list of institutions offering a program, go to College Navigator and search by program/major. Select a Program Select a type of institution below to see which ones have the highest increases in tuition and fees and net prices (price of attendance after grant and scholarship aid). Data are for full-time beginning undergraduate students. Sector: / collegecost.ed.gov/ scorecard/ PrintScoreCard.htm?cgv= 93.4&dgv= 64.6&w= 163&h= 81 Public, 4- year or above Institution State % Increase University of the District of Columbia DC $3,140 $7, Escuela de Artes Plasticas de Puerto Rico PR $2,728 $4, Lake Washington Technical College WA $1,892 $3, University of Puerto Rico-Aguadilla PR $1,747 $2, University of Puerto Rico-Ponce PR $1,747 $2, University of Puerto Rico-Cayey PR $1,913 $2, Georgia State University GA $5,844 $8, University of Arizona AZ $5,542 $8, University of Puerto Rico-Humacao PR $1,940 $2, University of Puerto Rico-Mayaguez PR $1,940 $2, University of Puerto Rico-Rio Piedras PR $1,272 $1, Savannah State University GA $3,848 $5, SOURCE:, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Fall 2010, Institutional Characteristics component and Spring 2011, Texas Student A Financial & M University-Kingsville Aid component. TX $4,386 $6, University of South Florida-St. Petersburg Campus FL $3,183 $4, National University Average of Percent Georgia Change: 4.6 GA $6,030 $8, College of Coastal Georgia GA $2,206 $3, Georgia Institute of Technology-Main Campus GA $6,040 $8, Arizona State University AZ $5,661 $8, / 4/ 13 11:06 AM Page 1 of 2 Pr int 6/ 4/ 13 11:12 AM Page 1 of 2 / collegecost.ed.gov/ scorecard/ PrintScoreCard.htm?cgv= 93.4&dgv= 64.6&w= 163&h= 81 Families typically borrow $19,758 in Federal loans for a student s undergraduate study. The Federal loan payment over 10 years for this amount is approximately $ per month. Your borrowing may be different. To learn about loan repayment options, go to: The is working to provide information about the average earnings of former undergraduate students at Tulane University of Louisiana who borrowed Federal student loans. In the meantime, ask Tulane University of Louisiana to tell you about how many of its graduates get jobs, what kinds of jobs they get, and how much those graduates typically earn. Visit to explore what potential careers a particular postsecondary program or major prepares you to enter. The site has information about current earnings and potential growth in those occupations. 6/ 4/ 13 11:06 AM This College Scorecard has been designed by the to provide better information to students and parents about college affordability and value. Visit for more information. Page 2 of 2 1/27/2014 College Affordability and Federal Tools to Support the College Search Process Exploration Tool: College Affordability and Access to high and low net price lists College Scorecard High value summary information about Elimination Tool: College Navigator Many more data points about Decision Tool: Financial Aid Shopping Sheet Personalized aid offer with high value information College Scorecard Tulane University of Louisiana New Orleans, LA Primarily bachelor s degree granting Undergraduate enrollment: 8,271 $ / mo What is the typical amount borrowed for a student s undergraduate study? $28,855 / yr What does it typically cost to attend Tulane University of Louisiana? The average net price for undergraduate students is $28,855 per year. Net price is what undergraduate students pay after grants and scholarships (financial aid you don t have to pay back) are subtracted from the institution s cost of attendance. The average net price has increased 12.4% from 2007 to What kinds of jobs do students have when they graduate? What percentage of students graduate? Graduation rate data is not available for this institution. Please contact Tulane University of Louisiana if you have questions about what percentage of students graduate and how long it takes for them to complete their program. 5% 13.4% Are students able to repay their loans after they graduate? 5% of borrowers defaulted on their Federal student loans within three years of entering repayment. 2

3 Financial Aid Shopping Sheet ANNOTATED Financial Aid Shopping Sheet (As of 3/11/13) Student Information *Student name/identifier; date issued (right side) *Individual student s cost of attendance *The sum of each grant sub-category appears here; campus-based FSEOG and TEACH Grants would appear under Grants from Your School. NET COST AFTER GRANTS *Aid awarded by school but earned through work *School recommended Federal loan amounts; state and institutional loans appear below in the customized information box. *Other funds that can be used to meet net costs; includes family contribution FAFSA-calculated or institutional methodology Institutional Performance Metrics (All data supplied by the Department) Student Right-to-Know graduation rate compared to the rates of similar institutions (Source: IPEDS) Most recent cohort default rate compared to the national rate. (Source: NSLDS) Median debt for undergraduate borrowers entering repayment (Source: NSLDS) Loan repayment calculator School contact details: for more information and next steps *Space for institution to send custom message NOTE: See the Financial Aid Shopping Sheet page on the Office of Postsecondary Education s Web page at: This Web page provides students, families and institutions with resources and background about the development and adoption of the Financial Aid Shopping Sheet. Institutions may contact ShoppingSheet@ed.gov to indicate their commitment to use the Shopping Sheet. Students, parents, and institutions may also direct questions about the Shopping Sheet to that address. President Obama s Proposal: College Value and Affordability Ratings System Office of the Under Secretary January 27, 2013 Available Data and Metrics Principles Encourage a focus on access, value, affordability and completion Broad ratings, not specific rankings Compare colleges with similar missions Link federal aid to institutions that do the most to help students from disadvantaged backgrounds Identify those that are improving their performance Available data under consideration Access: Percent of students receiving Pell grants Affordability: Net price, average tuition, scholarships, loan debt Outcomes: Graduation and transfer rates, graduate employment and earnings measures, alumni satisfaction, postgraduate education 9 3

4 Outreach Plan September 2013-present: Gather feedback through national outreach» 4 Open Forums (Los Angeles, CA; Cedar Falls, IA; Baton Rouge, LA; Washington, DC)» Regional town halls» Roundtables hosted by colleges, communities, members of Congress» Speaking engagements and conferences» One-on-one discussions and group meetings» Blogs, OpEds, Social Media, & Website» collegefeedback@ed.gov» First half 2014: Share and invite feedback on proposed model Summer-Fall 2014: Incorporate feedback and prepare release For 2015 academic year: Release ratings 10 Feedback Topics Avoid unintended consequences, especially disincentives to enrolling Pell eligible students Handle employment and earnings data sensitively; do not overemphasize income Consider how to point prospective students to information about student learning outcomes and intangible results of postsecondary education Correct for gaps in exiting metrics (such as graduate rate limitations) Think about how to reflect institutional differences in wealth and state support 11 Stakeholder conversations Students and Student Organizations Colleges and Universities, including minority-serving Institutions Faculty and Researchers Policy Leaders & Think Tanks Business & Industry Leaders Higher Education Associations K-12 School Leaders Parents Advocates and Consumer Groups Philanthropic Leaders Others 12 4

5 What Might A Rating System Look Like? Base institutional eligibility on performance using a rating system that considers access, affordability, retention & graduation, and employment outcomes. Platinum: Top performance on four metrics (for example, 90 th centile on all metrics). Gold: Good performance on at least three of four metrics (for example, 75 th centile on 3 or 4 metrics). Silver: Acceptable performance on retention and graduation and employment outcome metrics and either access or affordability metrics. Bronze: Unacceptable performance on retention and graduation and employment outcomes but provide access and are affordable. Lead: Unacceptable performance overall. Platinum: Outstanding performance against all access, affordability, retention and graduation, and employment outcomes. Gold: Silver: Good performance against 3 of 4 measures Acceptable including retention and graduation & performance against 3 of 4 measures employment outcome metrics. Bronze: Bronze: Poor performance Poor performance Lead: against measures against measures Poor performance related to related to against measures graduation employment outcomes outcomes Illustrative Example David Bergeron, CAP What would I do? Quality Assurance & Improvement Return accreditation to a community of practice model with connection to aid limited. Students attending high performing institutions could receive additional aid. Require poor performing institutions to have skin in the game in student loans. Institutions would be required to buy special class of 10-year Treasury notes equal to: Most recent cohort default rate times prior year loan volume. Base yield would be the same as regular 10-year Treasury but institutions with: Better than expected graduation and repayment rates would receive a bonus; and Poorer than expected graduation rand repayment rates would take a hair cut. Revenues from the additional loans made would create revenue that would be set aside to provide institutional support (similar to current titles III and V of the HEA) into performance-based funding with funding tied to outcomes. David Bergeron, CAP QUESTIONS & COMMENTS? 15 5