Higher Education Policy in the Higher Education Policy in the U.S.U.S.

Case Study for International Case Study for International Conference on Higher EducationConference on Higher Education

Maureen McLaughlinMaureen McLaughlinWorld BankWorld Bank

November 2005November 2005Ankara, TurkeyAnkara, Turkey

““Brains Business”Brains Business”

• Economist Magazine special issue on higher educationEconomist Magazine special issue on higher education– ““Mass higher education is forcing universities to Mass higher education is forcing universities to

become more diverse, more global and much more become more diverse, more global and much more competitive.competitive.

– A more market-oriented system of higher education A more market-oriented system of higher education can do much better than state-dominated model.”can do much better than state-dominated model.”

• ChallengeChallenge– How to balance increased access and diversity of How to balance increased access and diversity of

choices with quality and equitychoices with quality and equity– How to take the advantages of market mechanisms How to take the advantages of market mechanisms

while avoiding the pitfallswhile avoiding the pitfalls

Higher Education in the U.S.Higher Education in the U.S.A Market SystemA Market System

• Is it a “system”? Is it a “system”? • Large, diverse, open, competitiveLarge, diverse, open, competitive

– 16 million students—all ages16 million students—all ages– Total tertiary institutions—4200Total tertiary institutions—4200

• Mixed public/private Mixed public/private – 1700 public; 2500 private1700 public; 2500 private– More than 70% of students in public institutionsMore than 70% of students in public institutions

• Significant public and private sector fundingSignificant public and private sector funding• Heavy reliance on student and family contributionsHeavy reliance on student and family contributions

– Tuition and fees at private college--$17,000; Tuition and fees at private college--$17,000; – At public community college--$1500At public community college--$1500

• Diversity of choicesDiversity of choices• Flexible pathwaysFlexible pathways

Limited but Important Role of Limited but Important Role of GovernmentGovernment

• National level – National level – – Equity agenda—support for students to pay costsEquity agenda—support for students to pay costs– Incentive programs for changeIncentive programs for change– Quality assurance frameworkQuality assurance framework– Research fundingResearch funding

• State level-- 50 different models State level-- 50 different models – Guide and oversee public institutionsGuide and oversee public institutions– License programsLicense programs– Fund public institutionsFund public institutions– Ensure quality and accountabilityEnsure quality and accountability– Support economic developmentSupport economic development

• Turkey, like many countries, combines these two Turkey, like many countries, combines these two government roles into onegovernment roles into one

High Degree of Autonomy for High Degree of Autonomy for Institutions and StudentsInstitutions and Students

• For institutionsFor institutions– Academic Autonomy--yesAcademic Autonomy--yes– Administrative Autonomy--yesAdministrative Autonomy--yes– Financial Autonomy—yesFinancial Autonomy—yes

• Boards of Trustees for all institutions—public as well as privateBoards of Trustees for all institutions—public as well as private– Public models most relevant for TurkeyPublic models most relevant for Turkey

• Different models for how boards are constituted and Different models for how boards are constituted and operate--www.sheeo.orgoperate--www.sheeo.org

– Association of Governing Boards leading major study now on Association of Governing Boards leading major study now on public governance—www.agb.orgpublic governance—www.agb.org

• For studentsFor students– Choice, ability to change studies, transfer between institutions, Choice, ability to change studies, transfer between institutions,

flexible pathways, 2flexible pathways, 2ndnd chances, lifelong learning chances, lifelong learning– Different admissions requirements, set by each institution—for Different admissions requirements, set by each institution—for

ex, open admission, highly selective admissions, use of SSAT ex, open admission, highly selective admissions, use of SSAT test, grades, extracurricular activitiestest, grades, extracurricular activities

Wide Diversity in MissionsWide Diversity in Missions

• Wide diversity of missions for institutions—Wide diversity of missions for institutions—– Teaching, research, service, local community developmentTeaching, research, service, local community development– For example, elite universities, state universities and colleges, junior For example, elite universities, state universities and colleges, junior

and community colleges, shorter term vocational-technical schools, etcand community colleges, shorter term vocational-technical schools, etc• Research mission heavily concentrated—about 100 institutionsResearch mission heavily concentrated—about 100 institutions

– Public and private funding of researchPublic and private funding of research– Public funding—highly competitive, peer reviewPublic funding—highly competitive, peer review

• Four year liberal arts collegesFour year liberal arts colleges– Heavy emphasis on high quality teachingHeavy emphasis on high quality teaching

• Local community colleges—multiple rolesLocal community colleges—multiple roles– Open access institutions, preparation for 4yr colleges, ties with local Open access institutions, preparation for 4yr colleges, ties with local

businesses to train workersbusinesses to train workers• Options for students to transfer across institutionsOptions for students to transfer across institutions• California state system—California state system—

– Clear differentiation among missions of public institutions Clear differentiation among missions of public institutions – Coordination across the system--articulation agreements to move Coordination across the system--articulation agreements to move

among institutions and transfer coursesamong institutions and transfer courses

Quality Assurance and Quality Assurance and Accountability Accountability

• Role of government—both national and state in USRole of government—both national and state in US– Set up the framework and institutions; Set up the framework and institutions; – Ensure accurate and transparent information;Ensure accurate and transparent information;– Monitor performance of institutions.Monitor performance of institutions.

• Accreditation—internal and external reviewAccreditation—internal and external review– Independent agencies--Regional and specialized agenciesIndependent agencies--Regional and specialized agencies– Accredit institutions or programsAccredit institutions or programs– National role—recognize accrediting agenciesNational role—recognize accrediting agencies

• Set standards for recognitionSet standards for recognition• Emphasize outputs and outcomes in addition to inputsEmphasize outputs and outcomes in addition to inputs

• Information—powerful tool for students, society, institutions, Information—powerful tool for students, society, institutions, governmentgovernment– For ex, Graduation rates, job placement rates, student loan For ex, Graduation rates, job placement rates, student loan

default rates, pass rates on teacher licensing ratesdefault rates, pass rates on teacher licensing rates• Required to be collected and published; also accountabilityRequired to be collected and published; also accountability

– US News and World Report--independentUS News and World Report--independent

Public FundingPublic Funding

• State funding of public institutions varies widely in U.S.—State funding of public institutions varies widely in U.S.—– High tuition, high aid models; low tuition, low aid High tuition, high aid models; low tuition, low aid

modelsmodels• Funds provided to public institutions in many ways:Funds provided to public institutions in many ways:

– Lump sum, funding formulae, per-student basis, Lump sum, funding formulae, per-student basis, performance-based funding, etcperformance-based funding, etc

– Many states are now experimenting with different Many states are now experimenting with different approaches designed to encourage and reward approaches designed to encourage and reward performanceperformance

– Set up funding system to support and encourage Set up funding system to support and encourage desired resultsdesired results

• Support for students—grants and student loans—largely Support for students—grants and student loans—largely subsidized at federal level and for students at public and subsidized at federal level and for students at public and private institutionsprivate institutions

ClosingClosing• You are in the middle of these challenges and opportunities You are in the middle of these challenges and opportunities

now but you are not alonenow but you are not alone– Every country in world is dealing with tertiary education Every country in world is dealing with tertiary education

challengeschallenges– Different countries at different points in the change Different countries at different points in the change

processprocess• Learn and share with each other as you have in this Learn and share with each other as you have in this

conferenceconference– Learn from those further along in the process—learn from Learn from those further along in the process—learn from

their mistakes, use their successestheir mistakes, use their successes– Adapt the solutions to Turkey’s own country Adapt the solutions to Turkey’s own country

circumstancescircumstances– Get the incentives rightGet the incentives right

• ““The best is yet to come”The best is yet to come”– EconomistEconomist