Page 158 - Crisis in Higher Education

Changing Attitudes and Expectations • 129

below 20 and a 100% acceptance rate. This university may do an excellent
job at fulfilling its mission, but it will never rank high in this poll. There
are many universities between these two extremes, and it is a challenge to
know which one is better. Assuming that institutions have rigorous con-
tent and high performance standards, the most important factor in deter-
mining how much students learn is the amount of effort they put into it,
not the name of the institution. 14

6.1.4 Creating an Educational Database
Applicants need a fast and easy way to get relevant and reliable informa-
tion about various institutions of higher learning so they can start their
search for the best value. This can be accomplished if they have access to
data about price, graduation rates, completion time, passing licensure and
certification exams, and job placement. In fact, these data should be avail-
able for all institutions of higher learning that receive government support.
A database of Higher Education Pricing and Outcomes (HEPO) would be
built and maintained by government using verified data from accredita-
tion bodies and regulatory agencies. HEPO would provide applicants with
enough information to narrow down their list of options for a more detailed
investigation, including campus visits. Government could use HEPO to
determine if the educational products being offered meet reasonable per-
formance outcomes, given the institution’s admissions policy and criteria.

6.1.5 Earning and Saving More While Keeping Costs Low
Parents, other family members, and friends should understand how much
universities cost and begin saving when the potential student is very young.
There is enough time to increase earnings and reduce spending, so more
money can be saved. The report about How America Pays for College shows
that 22% of parents who are planning to help their children with university
1
expenses work more and 45% reduce spending. When done early enough,
this has a major impact on parental savings. Each dollar saved when the
child is born is worth $2.85 when the applicant is 18 years old, assuming a
6% compounded annual return on investment. The report also shows that
70% of students work while earning a degree. 1
No matter how hard some families try, they simply do not have the
income to save. The federal government offers Pell Grants, subsidized
student loans, and work study jobs, and universities and other entities