2 - TRENDS IN HIGHER EDUCATION

SECRETS OF SUCCESS

The Institute of Higher Education at Shanghai's Jiao Tong University ranks the world's universities on a series of objective criteria such as the number of Nobel prizes and articles in prestigious journals. Seventeen of the top 20 universities on that list are American; indeed,

At the same time, a larger proportion of the US population goes on to higher education than almost anywhere else, with about a third of college-aged people getting first degrees, and about a third of those continuing on to get advanced degrees. Non-traditional students also do better than in most other countries. The majority of undergraduates are female; a third come from racial minorities; and more than 40% are aged 25 or over. About 20% come from families with incomes at or below the poverty line. Half attend part-time, and 80% of students work to help support themselves.

So write the editors of The Economist (11/10/05) in a survey that deems the American system of higher education the best in the world. Why is

American higher education so successful? America has always had a passion for education, and the wealth to support it: the US spends more than twice as much per student as the OECD average (about $22,000 versus $10,000 in 2001). The main reason for success, however, lies in organization, based on three principles:

1. The Federal Government plays a limited role; higher education is not centrally planned or administered. Instead, universities have a wide range of patrons, from state governments to religious bodies, from fee-paying students to generous philanthropists (in 2004, private donors gave $24-4 billion to universities).

2. The second principle is competition. Universities compete for everything, from students to professors to basketball stars. Professors compete for federal research grants. Students compete for college scholarships and research fellowships.

3. The third principle is utility: the emphasis on the practical application of higher learning remains a prominent feature of academic culture. America has pioneered the art of forging links between academia and industry. American universities earn more than $1 billion a year in royalties and license fees; more than 170 universities have business incubators of some sort, and dozens operate their own venture funds.

What particularly stands out about the American system of higher education, marvels The Economist, is its flexibility and sheer diversity. This has allowed it to combine excellence with access by providing a wide range of different types of institutions. Only about 100 of America's 3,200 institutions of higher education are research universities; many of the rest are community colleges that act as stepping-stones for some, providers of adequate education for others.

Of course the problems and weaknesses of American higher education are duly noted as well. These include political correctness run rampant, grade inflation, the neglect that teaching often suffers in favor of research (and that core curriculums often suffer in favor of pseudo social sciences), and the escalation of costs (America's universities are pricing themselves out of the range of ordinary Americans).

This points to a last criticism: that meritocracy at universities is in retreat, transforming institutions of higher learning into bastions of privilege rather than instruments of social mobility. Students from high-income households now dominate the enrollments of elite universities; almost all top'rated universities are today private institutions. But American academia's merits still outweigh its faults.

The market-oriented model of higher education in the US has many advantages, the survey summarizes: it combines equity with excellence; produces a diverse system; is more sustainable; and gives universities more control over their own destiny. Universities have achieved striking successes in advancing knowledge, and are justifiably recognized as engines of the knowledge economy. The biggest risk to American higher education, then, is the erosion of the competitive principle.

ONLINE HIGHER EDUCATION MARKET TO EXCEED $6 BILLION IN 2005

The online education market is heating up, with enrollment expected to exceed 1 million students in 2005, representing a market of more than $6 billion. According to a recent report by Eduventures, "Online Distance Education Update: A Nascent Market Matures," the focus in online distance learning will turn to quality over the next few years, and new brands, institutions and types of programs will emerge.

Key factors driving market growth are:

* Online distance learning has been gaining credibility.

* Demand for easy access to quality higher education programs is growing rapidly.

* Life-long learning is widely recognized as a necessity.

* A majority of people are now comfortable and competent using PCs and the Internet.

* The development of new technologies such as broadband allows online distance education to be delivered to wider audiences conveniently, simply and affordably.

Availability of Web-based distance learning has been increasing dramatically over the past five years, according to the report. Most US colleges and universities now offer online education in one form or another, through graduate certificates, professional development courses or degree programs.

Leading this growth are for-profit institutions, which have the support of marketing dollars (and often a national presence). But as the lines between online and on-campus education continue to blur in coming years, nonprofit institutions will also provide more opportunities for distance learning. Increasingly common will be programs that combine online and on-campus study.

TRACKING TRENDS

The Society for College and University Planning (SCUP) publishes a quarterly report on trends in key categories effecting higher education. Here , are some highlights from the latest report:

* DEMOGRAPHICS

Only 55% of American students who start college complete a degree within six years; the figure for African American or Hispanic students is 41%.

Implication: Retaining students needs to be as high a priority as recruiting them.

* ECONOMY

Tuition costs again rose significantly this year, increasing by an average of nearly 10% at public four-year institutions. Likewise, the average cost of books for one undergraduate semester rose to $900.

Implication: Institutions need to apply a much finer analysis to the effects of their tuition, admission and financial aid policies.

The report also tracks trends within the categories of Environment, Global Education, Learning, Politics, and Technology. For access to the current and past reports, go to: http://www.scup.org.