Epperson-CNBC-higher

CNBC’s finance expert weighs in on the future of higher education


According to one CNBC analyst, new institutional models are on the near horizon

Epperson-CNBC-higherThe future of higher education and what it may look like in just 10 years from now is a discussion on many tables, with everyone from concerned parents to university presidents trying to predict how institutional models will rapidly evolve in the next few years–not an easy task.

But the more heads that come together, from Clayton Christensen to Salman Khan, the better, and CNBC recently reached out to eCampus News for a discussion on the future of higher education with the network’s Personal Finance Correspondent and Senior Commodities Correspondent Sharon Epperson.

Epperson—recipient of numerous industry awards for her work in journalism as well as in the community, and with a bachelor’s in sociology and government from Harvard University, and a master’s of international affairs degree from Columbia University—is celebrating CNBC’s 25th anniversary by discussing the changing role of higher ed in the U.S., including a look at what education may look like 25 years from now.

Epperson’s work with CNBC has included many pieces on education reform and technology, including:

  • Will the college bubble burst? (Epperson looks at the possibility of the end of the university as we know it over the next 25 years.)
  • The future of America’s education system: (Discussing the customization of curriculum and how the individualized learning approach may change the way students learn, with former Education Secretary Margaret Spellings and StudentsFirst founder Michelle Rhee.
  • Valuing virtual education: (CNBC’s Herb Greenberg and Epperson share their opinions on the barriers to online education acceptance.)

And in this interview with eCampus News, Epperson discusses alternative credentials, traditional universities and their online branches, the potential of MOOCs as a viable financial model, and much more:

eCampus News (eCN): It seems everyone is saying that higher education should focus more on skills-based degrees and alternative pathways to these degrees, even in traditional four-year institutions. How do you see traditional colleges incorporating these alternative pathways into their missions, which typically include “soft skills,” such as critical thinking? For example, will traditional college and universities simply branch off virtually, or do you think the recent trend of offering online platforms in addition to the traditional degree to showcase credentials in the form of badges and certificates is going to become more prominent?

Epperson: Recent history suggests that the internet is very efficient in destroying any systems that rely on the sale of information. In my own industry, I’ve witnessed the prominence of digital content that is free and plentiful, which is putting storied newspapers and flagship magazines to rest.

With that said, the emergence of online courses and virtual learning is forcing educators to rethink the higher education model, and a restructuring will come in the form of more courses designed to teach specific skills that will be used in the workforce. In this higher education model, employers themselves will have to play a bigger role – because colleges and universities largely exist to prepare an entire workforce of leaders and innovators for the future. They will have a larger say in the types of candidates they are looking for – and the skills they will need to succeed.

College degrees will become less about a paper diploma that indicates completion of a four-year degree, but it will be more about certificates of excellence in the skills employers will need. This is the clearest, alternative path that exists for students.

The residential experience will always exist – but it will become a bygone college experience that only a small percentage will be able to afford. The majority will complete “badges and certificates” which will also be the cheaper alternative.

(Next page: Business and badges; monetizing MOOCs; and more)

eCN: In discussing alternative credentials, job-seekers say that it’s only innovative companies like Google or Fortune 500 companies that accept these credentials as legitimate. How can both colleges and business work together to propel the perceived value of these alternative credentials? Is it a matter of offering some sort of unifying standard system for these credentials, businesses developing more job-specific degrees through partnerships with colleges and universities, or both?

Epperson: Already we are beginning to see the business world partner with colleges and universities to come up with more relevant course material and skills in academic degrees. It’s funny because innovative companies are always the first to experiment with new ideas – and eventually others follow suit.

If an employer wants to find qualified candidates, eventually they will realize their investment and input in training a whole new generation of candidates will be most effective at the university level – before they start to look for jobs. So I think it’s only a matter of time when employers will stop requiring a traditional four-year college diploma as proof of competency – but instead look deeper to find the skills that they truly need. Alternative credentials are indeed legitimate.

eCN: Moving to MOOCs, critics say that they need better assessments and analytics before monetization can happen. However, some say that only when funding comes will full-scale assessments be implemented. What do you think should come first: money or the assessments? Should colleges and universities spend the money to implement high-performing assessments and learning analytics if they’re serious about monetization?

Epperson: Both money and assessments are needed. We already know from several studies that students all over the world are taking advantage of MOOCs – free education is a hot commodity. The problem is they are not completing the classes. If it’s offered for free they may dabble, but will they actually complete an entire course load and receive a degree? That’s the conundrum and the reason why companies like Udacity have changed their business model.

eCN: In the same vein, how could universities begin monetizing MOOCs? Is it simply a matter of better assessments, or could we see other models? For example, could colleges/universities offer an intro course to a subject, then charge for further courses in the same field; or could we see the “airlining” of MOOCs, where the general course is free, but if you want to talk to a professor that’s an extra $100? What do you think could be a good scalable model at this time?

Epperson: I think the Udacity model of “nanodegrees” may be the way that universities could begin monetizing online coursework. MOOCs are free. But with “nanodegrees,” online videotaped courses are being offered in very specialized areas for certification in certain technical subject areas. Classes will be comprised mostly of students from specific companies that are seeking a well-trained workforce skilled in that particular area. Those companies – like AT&T or Google – will be willing to pay an upfront fee to the university to “partner” on offering these courses.

eCN: You mentioned in one of your pieces that mid-size colleges and universities heavily-reliant on tuition may become obsolete in the next decade or so—an idea also discussed by Clayton Christensen. How do you think these universities should re-vamp their model? Can they even revamp at this point?

Epperson: Colleges and universities must direct some of their instruction and coursework online. Many students are working full-time or part-time to be able to afford this education. They need to be able to access courses on their own schedule. They will be willing to pay for this “service” but they don’t necessarily need the extra cost of housing and fees. They also may not need to see their classmates in person, but can collaborate virtually. Colleges and universities can start to try this approach by perhaps having online lectures and then breaking up the course into “discussion groups” facilitated by a junior professor or graduate student. Many institutions are already doing this.

eCN: Another big question in higher education is ‘how do we measure the success of an institution?’ This can be seen especially in all the newly developed rankings for colleges and universities. Is it really just about a student’s ROI through career? How do you think society should measure the success of an institution in this current economy?

Epperson: I was shocked to read PayScale’s recently released ranking of elite universities based on starting salaries. My alma mater, Harvard University, was not even in the top ten! But my husband – a journalist and author who also went to Harvard – pointed out stats like this can be misleading for a number of reasons, including the fact that Harvard graduates often pick jobs for reasons other than money, which brings down the average starting salary. But when we went to that university, the cost was far less. The idea of being well educated just because it is important to be well educated made perfect sense to me back then. I think I will be much more pragmatic with my children, who are now 9 and 12. I want them to have some idea of the career path they may choose and starting salary before choosing a college. That’s the best way to ensure that they get a good return on their investment.

eCN: Lastly, in one of your pieces you mentioned the trend of wearable technology and AI as emerging tech that could revolutionize education in the future. Do you think tech like predictive analytics, adaptive learning, and game-based learning are speeding up the adoption of these emerging technologies? Also, do you think tech like wearable devices and AI are being fast-tracked from emerging to potentially ubiquitous as online, blended, and virtual learning takes hold across the country?

Epperson: Absolutely. My 12-year-old son loves video games, but he’s also very adept at game-based math problems that he finds on teacher-suggested websites. They are very helpful to him in studying and bringing the material to life. I definitely believe gamed-based learning is speeding up the adoption of other emerging technologies in education.

I think it will take time for the adoption of wearable technologies and AI. The success of new items like the Apple Watch among young consumers may ultimately give us some indication of the likelihood of AI wearable devices being used by students.

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