JFF Bettersworth 11-22-11

Credentials That Work UpdateTexas State Technical College

MICHAEL A. BETTERSWORTH@BETTERSWORTHMICHAEL.BETTERSWORTH@TSTC.EDU

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Burning Glass Example

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EMSI Career Coach Example

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Labor/Insight™

Evolving Real-Time LMI Tools

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It’s Not About the ToolsIt’s What We Do With the Tools

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Tradi&onal*LMI*

Real0&me*LMI*

Student*Labor*Market*Outcomes**

Data0driven*Decisions*

•  Educa'on*enrollees*•  Educa'on*completers*•  Unemployed*•  Employed*

Supply*

•  New*hires**•  Replacement*hires**

Demand*•  Qualified*job*referrals*•  Improved*placements*•  Improved*employer*

rela'onships*•  Improved*counseling*

tools*

Strategic*Alignment*

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PLACEMENT)

•  Iden/fy)Hiring)Employers)•  Find)Job)Openings)•  Connect)Students)to)Jobs)•  Analyze)Regional)

Demand)•  Engage)Ac/ve)Employers)•  Setup)Internships)•  Obtain)Scholarships)

CURRICULUM)

•  Iden/fy)Current)Skills)Needed)by)Industry)

•  Compare)to)Exis/ng)TSTC)Offerings)

•  Setup)New)Employer)Capstones)

•  Recruit)Hiring)Companies)to)Advisory)CommiNees)

FORECASTING)

•  Iden/fy)Emerging)Skill)&)Occupa/ons)

•  Find)Hiring)Employers)For)Interviews)

•  Form)Recommenda/ons)Based)on)Market)Demand)

•  Drive)New)Curriculum)Investments)

Doing Stuff With Real-Time LMI

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Why Real-Time LMI?

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Sources: Twentysomething Inc, John J. Heldrich Center for Workforce Development

Class of 2006

67% Moved Back Home.

$30,000 Starting Salary.

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Sources: CollegeGrad.com, New York Times, Heldrich Center for Workforce Development

Class of 2009

70% Jobless Upon Graduation.

$23,000 Average Debt.80% Moved Back Home.

$27,000 Starting Salary.

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Source: Twentysomething Inc

Class of 2010

85% Moved Back Home.

$27,200 Average Debt.

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Student Loan Debt Now Exceeds Credit Card Debt

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Cost of Higher Ed Rising

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Source: MyBudget360

Tuition Rising Faster Than Other Indices

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Source: College Board

College Costs Expected to Continue Increase

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SOURCE: The College Board, Trends in College Pricing 2011, Figure 10A.!

Annual Percentage Changes in State Appropriations for Higher Education per Full-Time Equivalent (FTE) Student and Changes in

Inflation-Adjusted Tuition and Fees at Public Four-Year Institutions, 1980�81 to 2010�11

Source: College Board, Trends in College Pricing 2011, Figure 10A

Appropriations Down, Tuition Up

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Since 2000, in real terms college costs are now up by 23%Since 2000, in real terms real pay for college graduates is down by 11%

Disconnect Between College Costs & Earnings

Rat

io

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Growing Student Loan Debt

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Sources: New York Federal Reserve, Bureau of Economic Analysis

Student Loan Debt Growing Rapidly

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Source: Federal Reserve

Student Loan Debt Only Sector Increasing

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The Next Government Lending Bubble

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Unprecedented Gov’t Student Loan Lending

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Sources: Equifax, Moody’s Analytics

Student Loan Volume & Balances Up

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Defaults Rising

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Percent of Balance 90+ Days Delinquent

Source:

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DOE National Student Loan Default Rates

“The cohort default rate is the percentage of borrowers who enter repayment in a fiscal year and default by the end of the next fiscal year.”

Source: US Department of Education. OSFAP

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Default Rates at For-Profits Much Higher

Source: Information for Student Aid Professionals (IFAP)

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“According to unpublished data obtained by The Chronicle, one in every five government loans that entered repayment in 1995 has gone into default. The default rate is higher for loans made to students from two-year colleges [31%], and higher still, reaching 40 percent, for those who attended for-profit institutions.”

Source: Kelly Field. Chronicle of Higher Education. “Government Vastly Undercounts Defaults”. July 11, 2010

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The Government Can:

• Garnish up to 15 percent of take-home pay without a court order for a borrower who is 12 months behind on student loan payments.

• Intercept federal and state income tax refunds and lottery winnings.

• Offset up to 15 percent of Social Security disability and retirement benefit payments.

You Can Run, But You Can’t Hide

FACTOID~72,000 federal student loan borrowers filed for bankruptcy in 2008. Twenty-nine (.04%) succeeded in obtaining a full or partial discharge of their loans.

You’re more likely to die of cancer or in a car crash than to have your loans discharged in bankruptcy.

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Why Real-Time LMI Now?

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As of July 11, 2011, each program that falls under these regulations is required to report:

• Occupations, SOC codes, links to occupational profiles on O*NET 

• Costs – tuition/fees and books/supplies (may include additional costs)

• On-time graduation (completion) rate for each program

• Job placement rate for students completing each program (if currently required by state or accrediting body)

• Median loan debt incurred by students as provided by ED (identified separately as Title IV loan debt and private educational loan debt)

You Have To: Gainful Employment Disclosures

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Need to Inform Relevant Education Decisions

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Harder Hitting than 2001 Recession

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17 Million Underemployed in USOver 317,000 waiters and waitresses have college degrees (over 8,000 of them have doctoral or professional degrees), along with over 80,000 bartenders, and over 18,000 parking lot attendants. All told, some 17,000,000 Americans with college degrees are doing jobs that the BLS says require less than the skill levels associated with a bachelor’s degree.

Source: Richard Vedder. Chronicle of Higher Education. “Why did 17 million students go to college”. October 20, 2010

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The colleges that most students attend "need to streamline their programs, so they emphasize employability.”

Anthony P. CarnevaleDirector, Georgetown CenterGeorgetown University

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“At the post-secondary level, we need a concerted effort to link work and learning by providing far more opportunities for work-based learning.”

William C.  SymondsDirector, Pathways to ProsperityHarvard Graduate School of Education

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EnrollmentsDemographicsContact Hours

Course CompletionGraduates

Numbers of AwardsAward Levels

National Benchmarks

Placement RateEarnings

Student SatisfactionEmployer Satisfaction

New CompaniesReturn on Investment

Value to TaxpayerEfficiency

What’s Measured What Counts

Activity Performance

Accountability: Coming to a Campus Near You

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“If you can't make people employable, they are not going to participate fully in the life of their times in this system.”

Anthony P. CarnevaleDirector, Georgetown CenterGeorgetown University

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Credentials That Work UpdateTexas State Technical College

MICHAEL A. BETTERSWORTH@BETTERSWORTHMICHAEL.BETTERSWORTH@TSTC.EDU

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