Higher Education Trends

August 11, 2016

“Higher education in the United States is at a pivotal juncture in its history.

Multiple forces, including • demand for knowledge and skills, • constrained public funding, • public concerns regarding affordability, • student demographic change, and • technological innovations are driving a need for change at

the system, institution, course, faculty, and student levels.

• Innovation leading to improved performance certainly seems to be in order.”

Pivotal Juncture

Louis Soares Vice President for Policy Research/Strategy American Council on Education (2015)

The landscape

that is making the

job more difficult

Projected High School Graduates – Georgia – 1997 – 2028 - WICHE, 2012

Changing Demographics

Numeric Growth: Adults

28% of all enrolled undergraduate students are over 25 years of age

Projected Growth by

2019

51%

Babson, 2012

• College Scorecard | Aid Tied to College Performance

• Changes in Financial Aid Programs – Promote Access

• America’s College Promise - Free Community College (i.e., the Tennessee Promise)

Governmental & Other Influences

The Influence of Technology

9

• Options (“Swirling”) (Adelman, 2014)

• Multiple content options (Blumenstyk, 2015)

• Challenges faced in K-12 education (Lumina, 2013)

• Diversity of needs: SES, students of color, First-Generation

Student Success Complexity

• The economic climate and its impact on:• Family resources to afford higher education (Adelman,

2010)• The confidence to borrow to pay for higher education

(Hossler, 2009)• Government funding: vulnerabilities and compliance • Securing funds for capital improvements

• Financial aid discount rates • Increasing cost of meeting expectations of

constituents

The Economy & Financing Higher Ed

8/12/201612

“Institutions lacking clear differentiation, a demonstrable value proposition, organizational flexibility and a strong balance sheet will face severe difficulties....In the face of this change no college or university can remain static and survive.”

- Unsettling Times: Higher Educationin an era of change

Marketing and Branding

Grow – more new students, better retention (and hopefully more net tuition revenue!)

Raise – annual fund, campaign, major gifts Borrow – bond issue, other forms of traditional financing,

borrow from yourself (quasi-endowment/net surplus) Shift – (the hardest way) – stop doing something to do

something else and/or do less of one thing to do more of another

Focus – get more with existing resources through training and raising awareness

Alternate – create new revenue streams Partner – a continuum with cooperation on one end and

merger on the other

The 7 Legal Ways to Get Resources

Thank you!

Tim Fuller, Senior Vice President/OwnerCredo