There is a higher education crisis in America.
U.S. News reports that the price index for college tuition grew by 79.5 percent (outpacing the Consumer Price Index nearly threefold) between 2003 and 2013. This led to an unprecedented increase in student debt with outstanding student loans totaling $1 Trillion, with the average balance across all age groups being $24,301.
So what have we gotten in return for this massive increase in tuition and debt?
Not much.
According to Forbes’ Top Colleges, out of the 50 most expensive colleges, only 23 are in the top 50 academically.
Sarah Lawrence College, for example, is the most expensive higher education institution in the country ($62,636 in tuition per year). It ranks 131st on the list. The figure below plots the top U.S. colleges by annual tuition and ranking, and shows the relationship between price and quality being fundamentally broken.
More broadly, the U.S. education system (including primary, secondary, and post-secondary institutions) is not adequately preparing students to enter the workforce. This is most often discussed in relation to science, technology and mathematics (STEM) careers. According to Adecco, a large professional staffing firm, U.S. colleges are only graduating enough computer science engineers to fill 30 percent of STEM jobs by 2020.
But it’s not only STEM. A study by the Association of Talent Development (ATD) titled, “Leadership Development for Millennials: Why It Matters,” found that those born between 1980 and 2000 often need to develop “soft skills,” such as diplomacy, communication and relationship building. Students are not developing these skills in school, and despite the need, most companies do not offer this type of specialized training.
So what can be done to reduce the cost of education while preparing our students to be successful?
One solution garnering attention is College for America’s $10,000 Bachelor’s degree. Operated entirely online, the degree is offered through employers and grants credit based on demonstrated ability to master competencies (instead of credit hours, such as traditional universities). The degree is targeted towards adult learners who are already in the workforce and want a basic and flexible educational experience.
The $10,000 Bachelor’s degree is a noble pursuit. It aims to provide education and career advancement opportunities to an underserved segment of the population. The problem is that an online, competency-based model fails to build the competencies that workers today actually need.
In “The Global Achievement Gap,” Tony Wagner (who currently serves as an Expert in Residence at Harvard University), argues that we are failing to develop “new and improved knowledge workers – those who can think in disciplined ways, but also those who have a burning curiosity, a lively imagination, and can engage other empathetically.”
He further states that students must develop the following seven survival skills in order to be prepared for the modern economy:
- Critical Thinking and Problem Solving
- Collaboration Across Networks and Leading by Influence
- Agility and Adaptability
- Initiative and Entrepreneurialism
- Effective Oral and Written Communication
- Accessing and Analyzing Information
- Curiosity and Imagination
The $10,000 degree may address some of the seven survival skills, but an online education that is based on strict competencies will not adequately prepare or equip workers with the full spectrum of skills that they need. Instead of developing adaptable and innovative thinkers, the $10,000 degree is more likely going to manufacture a homogeneous crop of “knowledge tradesmen.” This is not the recipe for success in today’s fast-paced and volatile economy.
Paradoxically, the world’s leading universities have realized that content is perhaps the least important part of the equation. In order to provide a truly outstanding educational experience focus on just that – the experience.
For example, The Wharton School of the University of Pennsylvania famously published the “foundation series” on Coursera, which includes a large portion of the first-year MBA curriculum that covers topics such as financial accounting, marketing, and corporate finance. To a certain extent, financial accounting at Wharton is the same as financial accounting at any business school.
If that is true, what makes Wharton one of the best business schools in the world?
Don Huesman, managing director of the innovation group at Wharton, said there is a very different experience that happens in a two-year immersion in a community of scholars that culminates in a degree.
He is correct.
The Internet has made an astonishing amount of the world’s collective knowledge available for free and on demand. Content delivery is no longer the purpose of today’s university. The real purpose is challenging students to develop Tony Wagner’s seven survival skills by creating academic communities that encourage collaboration, innovation and knowledge creation.
In order to truly address the crisis in higher education, costs must be lowered, but it is imperative that education quality be maintained and improved.
Only then will we be able to bring down costs to a reasonable level, while ensuring that a high level of education (that prepares American workers to be competitive in the 21st century) is provided.
