oppu money managment

Is free college really going to work?


Promise programs are being established elsewhere at individual colleges, through the support of cities and private donors. Efforts to pass additional statewide Promise programs, despite a strong push by the administration, have little chance of passing in the current political climate—of the 16 state legislatures in which Promise legislation has been introduced, only a handful have passed it. One of those, Kentucky, recently announced that it will delay implementation.

College Promise is modeled on an innovative program in Tennessee, designed to attack low college completion rates. It combined intensive mentorship with requirements to maintain a satisfactory academic record and complete community service, in exchange for free tuition at community colleges and state institutions. Tennessee’s higher education policy has also included a significant shift toward outcomes-based funding, designed to focus institutions on completion rather than enrollment. These innovations have the potential to shift the business model of higher education in Tennessee and focus institutions on outcomes rather than inputs. Tennessee didn’t just change who was paying—it took substantive steps to change the nature of what was being paid for. It’s frustrating that these high-potential innovations aren’t being more widely copied, but that the headline of “free college” continues to catch fire.

Last month, the White House announced a new initiative in higher education, which we think is on the right track, despite the “free college” tagline. In fact, this $100 million grant competition is a good deal more substantive and takes aim at closing the gap between college and the labor force by creating partnerships between community colleges and employers. The competitive nature of the initiative should spur institutions across the country to start thinking creatively about who they could partner with and how to develop programs that meet labor force needs—regardless of whether they ultimately win a grant. The programs are expected to be tuition-free, but much more importantly, they are expected to create productive credentials that create pathways to employment for students. Individual community colleges have long partnered with employers, but the new grant competition could help spur the creation of these kinds of programs.

The private sector is already experimenting with sustainable solutions to close the gap between workforce training programs and the actual workforce. Capella, a for-profit provider of both degrees and credentials, is piloting a new program called RightSkill. In a partnership with CareerBuilder, Capella is seeking to identify jobs employers are struggling to hire for and then to build programs that train potential employees for those jobs. The first program is in front-end web-development, where Capella estimates there are currently more than 50,000 open positions. RightSkill charges students less than $500, but if students complete the program and don’t find a job, their tuition is refunded.

We are delighted to see the Obama administration spurring further innovation around these crucial issues. “Free college” may score votes, but it doesn’t solve problems. Closing the gap between higher education and high-quality employment opportunities does.

This post was originally published on the Clayton Christensen Institute’s blog here.

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