An August 11th article in The New York Times caught my attention.  Written by Tamar Lewin, the article describes a policy brief released by the College Board which concludes that for the most part, recent graduates are carrying “manageable” debt loads.  Using data published in the Department of Education’s National Postsecondary Student Aid Study, the policy brief notes that while the number of students using loans to pay for their post-secondary educations has increased in the last five years, the volume of students who carry overly burdensome levels of debt upon graduation remains small in comparison.

According to the policy brief, of the students who earned a degree or certificate program during the 2007-2008 academic year, some 41 percent graduated with no debt whatsoever.  Those students borrowing more than $40,000 to pay for their educations represented only six percent of total student borrowing.  Students borrowing money to pay for a certificate program carried substantially less debt overall than those borrowing money to pay for an associate or bachelors degree.  A meager one percent of those borrowing money for a certificate program found themselves $40,000 or more in debt upon graduation while ten percent of those borrowing to complete a bachelors degree carried that level of debt or more upon graduation.  The above statistics found in the College Board’s policy brief are logical when one considers the number of credits required to complete each of the three degree types compared above.  What’s not logical is the $40,000 threshold selected to evaluate reasonable debt loads.  Obtaining a $40,000 loan for a certificate program is almost certain to lead to a negative ROI unless the certificate is related to technical training in an extremely high paying profession.  Even then, it is a risky venture.  While borrowing $40,000 for a four year degree sounds better, it may not be relative to the average loan balance of graduating students.  The College Board briefing does not take into account the students who borrow money to attend college who don’t graduate at all, or the students who attend college until their money runs out.  Using limited outcomes with a broad brush to stimulate policy discussions can be misleading.  With approximately half of college freshmen graduating in six years, we shouldn’t ignore the half that don’t finish.

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In last week’s The Chronicle of Higher Education, Scott Carlson reported on a speech given by George Pernsteiner, Chancellor of the Oregon University System.  In addressing attendees at the annual meeting of the Society for College and University Planning (SCUP), Pernsteiner was quoted as saying “If [the crisis] is all we look at, we will have failed.  Our institutions will have failed.”

Mr. Pernsteiner believes that all the solutions generated so far out of the current crisis are “Band-Aids.”  He talked about the slipping position of college educated Americans versus other nations, the cutback in funding to public institutions by the states, and the growing percentage of Latinos who have been a traditionally underserved group in higher education. “More students, different students, fewer dollars, more control, and more accountability,” Mr. Pernsteiner said. “If you lay those things down end to end, you have a series of puzzles.”

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Last week President Obama announced the American Graduation Initiative, a 10-year, $12 billion plan focused on community colleges.  Community colleges play an integral role in the American higher education system and will play an even bigger role as America works toward President Obama’s goals of regaining America’s place as the world’s leader in college completion rates and establishing an American workforce that is able to compete with that of other nations. 

According to a May 2009 report published by the Brookings Institute, enrollments in community colleges increased between 2000-2001 and 2005-2006 by 2.3 million students.  In total, community colleges enroll approximately 45 percent of the nation’s college students.  Community college populations represent far greater diversity than is found on traditional four-year campuses.  According to the Brookings Institute, in 2004, 67 percent of Latino and 47 percent of African-American students entering college were enrolling in community colleges.  Given the large volume of community colleges in the nation, they provide affordable and convenient options for many groups otherwise underrepresented in other higher education institutions.  Community colleges are also appealing for non-traditional-aged college students, many of whom are juggling families and full time jobs. 

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