Educational Industry DynamicsA market of opportunities.
A Large and Growing Segment of Higher Education
- Over three million students attended accredited private sector colleges in 2008-2009, representing 12% of the total market of nearly 27.5 million post-secondary students.¹
- From 2005 – 2009, enrollment at private sector colleges increased by 46%.¹
- Private sector schools grant 30% of all associate degrees, diplomas and certificates.³
Demand for Entry-Level Post-Secondary Credentials
- The Georgetown Center on Education and the Workforce is projecting 47 million job openings from 2010 - 2018. Nearly two-thirds of these jobs will require at least some post-secondary education. ²
- An estimated 14 million job openings will require a two-year associate degree, or a post-secondary certificate or diploma.²
- 95% of Corinthian students are working toward an associate degree, diploma or certificate in areas that are currently in demand in the labor market (Company Reports)
Providing Access for At-Risk Students
- Private sector colleges serve more high risk students, as defined by the U.S. Department of Education. Risk factors include: low income, minority, enrolled part-time or working full-time while enrolled, single parent, financially independent, having dependents. ³
- Approximately half of students at private sector schools are high risk students, versus one-third of students in public two-year schools ³
- Minority graduation rates are 64% at private sector institutions (two-year programs and shorter) and 36% at public two-year institutions ³
Public Community Colleges vs. Private Sector Colleges
- 60% of private sector college students who attend 2-year institutions graduate within six years of enrolling, versus 22% of community college students.¹
- Career colleges are 18% more successful than community colleges in retaining part-time students, and 15% more successful in retaining full-time students.⁴
- Enrollment continues to swell at public community colleges, but the funding outlook is “grim”. Thirty-nine out of forty-eight states predict that community college budgets will be flat to down in the coming year.⁵
- Private sector colleges are investing approximately $1 billion annually to expand facilities, buy new equipment, and build new campuses.³
- The total cost to the student/taxpayer of a “positive outcome” (2-year degree, transfer to another institution, certificate or diploma), is $25,300 at a community college, and $26,700 at a private sector college. Even though tuition is lower at a community college, such institutions are heavily subsidized by state and local tax dollars.³
Economic Value to Students
- Having some college but no degree, or a post-secondary certificate, is worth about $473,000 more than a high school degree over a lifetime of earnings.²
- For two-year programs and shorter, annual income gains for private sector graduates average $7,900, versus $7,300 for a public college graduate.³
- For two-year programs and shorter, the average debt burden for a private sector student is ~ $15,000. The monthly payment for a loan of that amount, using typical student loan terms, is ~ $160.³
¹ U.S Department of Education, National Center for Education Statistics, integrated Postsecondary Education Data System (IPEDS), Postsecondary Institutions in the United States: Fall 2004-2006, and Degrees and Other Awards Conferred: 2003-2006; Postsecondary Institutions in the United States: Dall 2004-2006; Graduation Rates, 1998 & 2001 Cohorts, and Financial Statistics, Fiscal Year 2004-2006, Enrollment in Postsecondary Institutions, Fall 2008; Graduation Rates, 2002 and 2005 Cohorts; and Financial Statistics, Fiscal Year 2008.
² Georgetown University, Center on Education and the Workforce, “The College Payoff,” 2011.
³ Parthenon Perspectives, “Private Sector Post-Secondary Schools – Do They Deliver Value to Students and Society?” March 2010.
⁴ Imagine America Foundation, “Postsecondary Graduation Rates,” Authors: Watson Scott Swail, Educational Policy Institute and Nancy Broff, Dickstein Shapiro, LLP, June 15, 2009.
⁵ Education Policy Center, University of Alabama, “Access and Funding in Public Higher Education – the 2011 National Survey”, September 15, 2011.