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National Perspectives: Demographics, Accountability and the Economic Impact of Proprietary Schools. Educational Approval Board Approved Schools Conference November 15, 2007. John Lee JBL Associates, Inc. Proprietary School Accountability. Consideration of student academic achievement

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National Perspectives: Demographics, Accountability and the Economic Impact of Proprietary Schools

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National Perspectives: Demographics, Accountability and the Economic Impact of Proprietary Schools

Educational Approval Board Approved Schools Conference

November 15, 2007

John LeeJBL Associates, Inc.

Proprietary School Accountability

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Consideration of student academic achievement

Retention rates

Course and program completion

Passing state licensing examinations

Job placement rates

H.R. 3746, the “College Access and Opportunity Act of 2007

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First Morrill Act authorized public land grants to the states for the establishment and maintenance of agricultural and mechanical colleges, 1852

Smith-Hughes Act provided for grants to states for support of vocational education 1917

Changing Missions

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Veterans made up 49 percent of U.S. college enrollment in 1947

7.8 million veterans trained at colleges, trade schools and in business and agriculture training programs.

1952 veterans of the Korean War

1966 veterans of the Vietnam War ended in 1989

Servicemen's Readjustment Act 1944

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The Higher Education Act of 1965 and the National Vocational Student Loan Insurance Act


Amendments to the Higher Education Act

Pell Grant

Recognition of proprietary schools as equal partners

Higher Education Act

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AICS (Association of Independent Colleges and Schools) 1912

NACCAS (the National Accrediting Commission of Cosmetology Arts and Sciences) 1924

NATTS (the National Association of Trade and Technical Schools) 1965

Major Associations

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Elimination of eligibility to participate in federal student loan programs for any college with a default rate of 25% or more for three consecutive years (or 40% or more in a single year)

Higher Education Amendments, 1992

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The 90/10 (formerly 85/15) Rule: federal financial assistance is limited to no more than 90 percent.

Limits on Student Aid for Schools that Offer Predominantly Correspondence and Telecommunications Courses

Minimum Instructional Time Requirements

Minimum Completion and Job Placement Rate Requirements

Prohibit commissions, bonuses, and other incentive payments to school employees and recruiters

Limited Loan Forgiveness for Victims of Fraud

Higher Education Amendments, 1992

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Economic Impact of Proprietary Schools

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30 years ago, 28% of the workers between the ages of 30 and 59 had at least some postsecondary education

Today, more than 60% of the age group have some education beyond high school

The Knowledge Economy

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Manufacturing jobs have dropped from 32% of all jobs in 1959 to 17% today

Big increases in:

office jobs—30% to 39%

health care—10% to 16%

technical jobs—3.5% to 7%

Low skilled service jobs—20% to 20%

Changing Job Market

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Proprietary School’s Contribution

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The BLS projects a 14 percent increase in job opportunities requiring a vocational certificate from 2004 through 2014,

a 19 percent increase in jobs requiring an associate’s degree over the same period of time

Growth in Demand

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Health Services/Allied Health/Health Sciences

Personal and Culinary Services

Business, Management, Marketing & Related Support Services

Computer and Information Sciences

Most Commonly Pursued Occupations for Career College Graduates

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Degrees Awarded

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The lifetime earnings for associate’s degree holders total $1.6 million, or $337,127 higher than that of high school graduates

The average career college graduate paid an estimated $4,363 in federal taxes

Proprietary School Graduates Receive Higher Salaries

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Proprietary schools include 2,694 Title IV eligible institutions

39 percent of all Title IV postsecondary institutions in the nation

Serving over 2.1 million students annually

Enrollment increased by 17 percent since 2003-2004

Proprietary Schools are Growing

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Career colleges reported total revenues of approximately $14.6 billion last year

Of nearly 500,000 career college completions in 2005, 76%(376,560) are employed directly following graduation

The average income earned by career college graduates is $39,546

Economic Impact

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6 % for White, non-Hispanic;

27 % for Black, non-Hispanic;

42 % for Hispanic;

28 % for Asian or Pacific Islanders;

30 % for American Indian or Alaska Native

34 % for nonresident aliens

Projected Enrollment Increase 2004 to 2014

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Proprietary Schools Enroll and Graduate Minority Students

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We must increase educational achievement if we are to remain competitive in the world economy

That is going to be made difficult given that the generation entering postsecondary age will pose greater educational challenges


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Market responsive

Must provide effective education

Other providers will continue to be critical

Limit aggressive marketing

Document job placement

Transparent accounting

Proprietary Schools Will be an Important Part of the Solution

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Can we prove value added by our education?

Employability is partially a function of “soft skills” Can we teach those skills?

Do we add to the cultural capital of our students?

We can only be accountable for what can be measured, but that may not be enough

Cautions and Questions

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Federal government

State government

Accrediting agencies

Directly to students

To Whom Should we be Accountable?

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John LeeJBL Associates, Inc.6900 Wisconsin Ave., #606Bethesda, MD

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