The Accountability Revolution: How States Are Redefining the Value of a College Degree
A seismic shift is underway in higher education, driven by a growing demand for accountability and a re-evaluation of the return on investment for a college degree. Starting this summer, many college programs will face increased scrutiny, needing to demonstrate that their graduates earn more than those with only a high school diploma to maintain federal funding. But the pressure isn’t stopping at the federal level.
Indiana Leads the Charge with a Drastic New Approach
While a federal “earnings test” is coming, Indiana is poised to go much further. Senate Bill 199 proposes not just cutting off federal student loan access to programs that fail the test, but eliminating them entirely at public universities and Ivy Tech Community College. This represents a significant escalation in state-level oversight of higher education.
The average salary for a high school graduate in Indiana is just over $35,000. Based on recent data, roughly a dozen public institution programs could be at risk, though the state Commission for Higher Education retains the power to grant exemptions. The commission supports the bill, stating it will “strengthen the guarantee that higher education investment leads to meaningful career opportunities.”
A Growing Trend Across State Lines
Indiana isn’t acting in isolation. Bills have been proposed in Nebraska and New Hampshire that would also expand the penalties for failing the federal earnings test. New Hampshire’s proposal would cut off state funding, while Nebraska’s would cut both state and local funds. This suggests a broader trend of Republican-led states seeking to hold universities accountable for student outcomes.
This accountability push isn’t limited to financial outcomes. Last year, Indiana passed House Bill 1001, requiring programs to meet minimum graduation numbers. This led to the voluntary elimination of over 400 programs statewide, including teacher training and humanities disciplines.
Faculty Pushback and Concerns About Academic Freedom
The proposed changes are sparking significant debate. Critics argue that focusing solely on earnings reduces the value of education to a purely economic calculation. Representative Ed DeLaney of Indiana called the bill “a form of academic Stalinism,” arguing that it disregards the inherent value of diverse academic pursuits.
Noor O’Neill, president of the Indiana Conference of the American Association of University Professors, expressed dismay, stating the bill “goes against AAUP’s values that deliver faculty primary control over curriculum.” She emphasized that the legislation risks “reducing the dreams that students have to enter different fields, judging those dreams and ambitions based on dollars, and cents.”
Nuance and the Limits of Earnings-Based Metrics
Experts acknowledge the need for accountability but caution against overly simplistic metrics. Jordan Matsudaira, a public administration and policy professor at American University, notes that closing programs entirely is an “aggressive choice.” He suggests that states should carefully consider the broader value of programs before eliminating them, particularly at the graduate level.
Matsudaira also points out that the U.S. Education Department’s initial analysis was based on broader classifications of fields of study and older data, making it difficult to predict exactly which programs will fail the test. Programs potentially at risk in Indiana include bachelor’s degrees in dance and music, and associate degrees in library assistance and teacher education.
What Does This Signify for the Future of Higher Education?
The trend toward increased accountability is likely to continue, with states exploring new ways to measure and reward the value of higher education. This could lead to:
- Increased focus on career-oriented programs: Programs with clear pathways to high-demand jobs are likely to be prioritized.
- Program consolidation and elimination: Institutions may be forced to streamline their offerings, focusing on programs with demonstrable returns on investment.
- Greater emphasis on data and analytics: Universities will need to collect and analyze data on student outcomes to demonstrate their value.
- Potential for innovation in curriculum design: Programs may need to adapt their curricula to better prepare students for the workforce.
Did you know?
Research suggests that when low-performing programs close, students tend to choose more valuable programs to attend.
FAQ
Q: What is the “earnings test”?
A: It’s a new federal accountability measure that requires college programs to demonstrate that their graduates earn more than high school graduates to remain eligible for federal funding.
Q: What is Indiana Senate Bill 199?
A: It proposes to eliminate programs at public universities and Ivy Tech that fail the federal earnings test.
Q: Is this trend limited to Indiana?
A: No, similar proposals are being considered in other states, including Nebraska and New Hampshire.
Q: What are the concerns about these changes?
A: Critics worry that focusing solely on earnings will devalue humanities disciplines and limit academic freedom.
Pro Tip: Students considering a degree in a field that may be at risk should research potential career paths and earning potential thoroughly.
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