President Jill Tiefenthaler

Myth #1 You no longer need a college degree to be successful.

Forbes edition on The Richest People in America, January, 2012 – “Think you need a college degree to become a business star--think again.” Despite the hype, 85% of those on the list have at least a college degree.

College-to-High School Weekly Wage Premium, 1963–2008 SOURCE: The College Board, Trends in Higher Education 2010, Figure 1.7a

Myth #2 More than half of recent college graduates are unemployed.

Unemployment Rates by Education Level, 1992–2009 SOURCE: The College Board, Education Pays 2010, Figure 1.10a

Unemployment rate for young college graduates, by gender, 1989–2012* * Latest 12-month average: April 2011–March SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure G

SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure I *Latest 12-month average: April 2011–March Unemployment and underemployment rates for young college graduates, 1994–2012*

Unemployment and underemployment rates of young high school graduates, 1994–2012* SOURCE: Economic Policy Institute, “The Class of 2012: Labor market for young graduates remains grim,” Figure D *Latest 12-month average: April 2011–March 2012.

College costs too much. It isn’t worth the investment. Myth #3

Estimated Cumulative Earnings Net of Loan Repayment for Tuition and Fees, by Education SOURCE: The College Board, Education Pays 2010, Figure 1.3

Distribution of Full-Time Undergraduates at Four-Year Institutions by Tuition and Fees, SOURCE: The College Board, Trends in College Pricing 2012, Figure 2

Increasing tuition has created a student loan debt crisis. Students are drowning in mounds of debt that they can’t repay. Myth #4

American Debt – Type 2011

Growth of Loan Dollars by type, Constant 2010 Dollars SOURCE: The College Board, Trends in Student Aid 2011, Figure 4.

Average Debt Bachelor’s Recipients, Public Schools, 2010 Dollars Average Debt Bachelor’s Recipients, Public Schools, 2010 Dollars SOURCE: The College Board, Trends in Student Aid 2011, Figure 10A.

Average Debt Bachelor’s Recipients, Private Schools, 2010 Dollars

National Student Loan Default Rate SOURCE: U.S. Department of Education, www2.ed.gov/offices/OSFAP/defaultmanagement/defaultrates.html. www2.ed.gov/offices/OSFAP/defaultmanagement/defaultrates.html

Federal Student Loan Two-Year and Three-Year Cohort Default Rates by Sector SOURCE: Department of Education (studentaid.ed.gov/about/data-center/student/default); Table: The College Board, Trends in Student Aid 2012, Figure 9B.studentaid.ed.gov/about/data-center/student/default

Your text here. For-profit colleges are more efficient than traditional privates and publics and will bring much needed competition to higher education. Myth #5

Four-year Graduation Rates, by sector SOURCE: The Education Trust 2010; “For-profit Data Summary,” IPEDS First Look , Table 5. Graduation rates at Title IV institutions, by race/ethnicity, level and control of institution, gender, and degree at the institution where the students started as full-time, first-time students: United States, cohort year 2002.

Average Published Undergraduate Charges by Sector, SOURCE: The College Board, Trends in College Pricing 2012, Table 1A Tuition and Fees Sector $ Change% Change Public Two-Year In-State $3,131$2,959$1725.8% Public Four-Year In-State $8,655$8,256$3994.8% Public Four-Year Out-of- State $21,706$20, 823$8834.2% Private Nonprofit Four-Year $29,056$27,883$1,1734.2% For-Profit$15,172$14,737$4353.0%

Median Debt, by sector SOURCE: The Education Trust, Subprime Opportunity: The Unfulfilled Promise of For-profit Colleges and Universities (November 2010), Figure 3

SOURCE: The College Board, Trends in Student Aid 2012, Figure 11C Cumulative Debt: Students Who Left without Completing a Degree by Sector and Length of Enrollment Amount Borrowed by Students Who First Enrolled in and Left Without Completing a Degree or Certificate by 2009, by Institutional Sector and Length of Enrollment (with Percentages of Students in Each Sector Within Enrollment Category)

The whole industry is inefficient. Tuition keeps going up because higher education can’t control costs. Myth #6

Average Annual Percentage Increase beyond Inflation, to Source: The College Board, Annual Survey of Colleges; NCES, Integrated Postsecondary Education Data System (PEDS).

Inflation-Adjusted Published Tuition and Fees, to Source: The College Board, Annual Survey of Colleges; NCES, Integrated Postsecondary Education Data System (PEDS).

Distribution of Undergraduate Enrollment by Sector, Distribution of Undergraduate Enrollment by Sector, Source: The College Board, Trends in College Pricing 2011

TUITION = COST/Student – SUBSIDY

Annual Percentage Changes in State Appropriations per Full-Time Equivalent (FTE) and in T&Fs at Public Four-Year Institutions, Inflation Adjusted Sources: The College Board, Annual Survey of Colleges; Illinois State University, Grapevine reports; NCES, Digest of Education Statistics 2008, Table 219.

Resident Student’s Share of College Cost All Governing Boards $9,636 $9,154 SOURCE: NCHEMS, Colorado Commission on Higher Education, “Some Basic Facts about Colorado Higher Education ”

Colorado College’s Selectivity over Time

Even if the public tuition is increasing faster in recent years, they are still more affordable than private colleges.

Average Published Undergraduate Charges, by Carnegie Classification SOURCE: The College Board, Trends in College Pricing 2012, Table 1B Tuition and Fees Carnegie Classification $ Change% Change Public Doctoral In-State$9,539$9,126$4134.5% Public Master’s In-State$7,606$7,207$3995.5% Public Bachelor’s In-State $6,718$6,433$285$4.4% Private Doctoral $35,660$34,230$1,4304.2% Private Master’s $25,997$24,903$1,0944.4% Private Bachelor’s$27,482$26,427$1,0554.0%

“Calculating the Cost of College” SOURCE: New York Times, “Calculating the Cost of College,” Family AFamily BFamily C 2011 Combined Income$50,000$100,000$150,000 Home Equity75,000150,000225,000 Savings/Investments5,00010,00025, Total PriceFamily and Student Burden Colorado College$54,2009,30022,65040,500 U.C. Berkeley Resident Out-of-State $32,706 $55,584 11,110 33,768 23,500 46,378 32,706 55,184 U. of Illinois, Urbana Resident Out-of-State $33,922 $48,064 26,277 41,356 33,922 48,064 33,922 48,064

Online education is the disruptive innovation that changes everything. It will lower costs, increase accessibility and make traditional colleges irrelevant.

Liberal Arts colleges are irrelevant in this STEM world.

The best and brightest students attend our nation’s elite institutions.

Percentage Growth in Mean Family Income by Quintile in Constant 2010 Dollars Sources: U.S. Census Bureau, Current Population Survey, Table F-1, Table F-3, and FINC-01; calculations by the authors.