In the past several years, online higher education has come under increased scrutiny by the federal government and policymakers.  As a relatively new trend, online education has been closely examined by some, not so closely examined by others, and has a number of critics.  In a recent report called “Odd Man Out: How Government Supports Private-Sector Innovation, Except in Education,” published by the American Enterprise Institute, author John Bailey notes that an acute lack of support and engagement from government agencies to the private sector in education is not only out of sync with other public-private enterprises, it is counterproductive in attempting to reform higher education. 

Bailey points out that the public sector has frequently employed the expertise of private industry in various attempts to solve the nation’s problems.  For example, in March 2010, President Obama reached out to private-sector businesses, agreeing to provide some $150 billion in support of those businesses developing an alternative to foreign oil.  He said to the CEOs in attendance, “’Your country needs you to mount a historic effort to end, once and for all, our dependence on foreign oil…And in this difficult endeavor, in this pursuit on which I believe our future depends, our country will support you.’” 

In another example, Bailey points out that the Review of US Human Spaceflight Plans Committee established by the White House Office of Space and Technology Policy recommended that NASA seek private sector assistance in developing commercial spacecraft.  “The review argued that this would free NASA to focus its attention and investment on developing more advanced capabilities, particularly in deep-space exploration.”  In each of these examples, a significant problem or dilemma has been acknowledged and government has rightly recognized that private sector innovation has the business agility and market understanding to propose and execute a meaningful solution.

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America’s declining college graduation rates have been the subject of many a political speech or hearing lately.  President Obama set a long term goal for his administration to restore America’s prominence in the percentage of its citizens with college degrees.  When you examine the research literature regarding student attrition, persistence, or graduation rates, there are thousands of publications and numerous dissertations written about some aspect of those topics.

John Thelin is a research professor in the Department of Educational Policy Studies and Evaluation at the College of Education at the University of Kentucky.  He also authored A History of American Higher Education.  The American Enterprise Institute (AEI) recently sponsored a working paper (#2010-01) authored by Thelin entitled The Attrition Tradition in American Higher Education:  Connecting Past and Present.  Thelin’s research documents that attrition in higher education has been a problem since the early 1900’s, but that it has only been the focus of research, discussion, and improvement efforts for the past 30 years.  He cites several recent publications, AEI publication Diplomas and Dropouts:  Which Colleges Actually Graduate Their Students (and Which Don’t) and a publication of The Andrew W. Mellon Foundation, Crossing the Finish Line: Completing College and America’s Public Universities, which both deliver distressing news about college graduation rates.  The first publication indicates that graduation rates are not entirely a function of the selectivity of admissions by the school and the type of institution.  The second publication focuses on the 20-year decline in state university graduation rates noting that few state universities graduate more than 65 percent of their students in six years.

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