1. For Review: CHE Presentation DRAFT 4 Version: October 8, :00 a.m.

2. Will there be a tsunami? “…I'd be very surprised if in ten years we don't see hundreds of universities in bankruptcy.” –Clayton Christensen, 2013 “The business model that has characterized American higher education is at—or even past—its breaking point.” –Clayton Christensen, 2011 “There’s a tsunami coming.” —John Hennessy, President of Stanford

3. 1 in 10 four-year universities facing “acute financial distress” Negative outlook for higher ed sector “…pricing power nearly exhausted” Moody’s Outlook

4. Out-of-control Costs Tuition & Fees College Textbooks College Housing Medical Care All Items % CHANGE IN PRICE SINCE 2002 – NATIONWIDE Bureau of Labor Statistics, Purdue Calculations, GAO The average student spends $1,200 annually on supplies

5. Enrollment Declining -1.7% -1.4% -1.3% National Enrollment In Millions

6. Affordability Driving Enrollment Source: UCLA CIRP, 2014 A record 46% of freshmen named cost as a very important factor in their school choice. ‑ Up from 31% in 2004 The four main reasons students pass on an admissions offer from their “first-choice school” are all related to affordability.

7. % Believing A College Education Is “Very Important”

8. Growing Debt Average Debt Per Borrower: $33,000 Percent of graduates who borrow: 70% Total U.S. Student Debt: $1.1 Trillion % delaying home purchases: 25-40% Graduates with no debt who start a business: 26% Graduates with debt ≥$40,000: 16% % delaying marriage: 7-14%

9. Graduates are Moving Back Home Living with family* *Does not include graduates who own the home or who are listed on the lease Source: Pew, Richard Fry Living on their own

10. % of young business owners cut in half from 2010-13 Impact On Young Entrepreneurs Representation among U.S. entrepreneurs at an all-time low Source: Wall Street Journal

11. Purdue’s Response

12. Growing High Value: High Impact Degrees 1.Chemical Engineering 2.Aerospace Engineering 3.Energy & Extraction Engineering 4.Computer Engineering 5.Electrical Engineering 6.Mechanical Engineering 7.Civil Engineering 8.Industrial & Manufacturing Engineering 9.General Engineering 10.Computer Science 11.Operations & Logistics 12.Construction Services Source: Brookings/Hamilton 2014 Lifetime Earnings By Major

13. Named a No. 1 seed in the “Sweet Sixteen of tough graders” Stuart Rojstaczer, Ph.D., Duke University, GradeInflation.com National grade inflation per decade: 0.14 Purdue in the last 35 years:.09 Committed to Rigor Purdue Arizona State MIT Princeton Georgia Tech Cal Tech Years of math required 4

14. Declining Cost of Attendance 2009-15

15. Student Debt 18% $223M $204M $40M

16. Big Ten 5-year average: 6 Companies 24 8 11 Record! Record # Of Startups Viable Startups Commercializing a University Innovation Augmenting Purdue’s Economic Impact 24 3X Previous record

17. DFTx Drug-free pain therapy Speak Modalities Autism therapy via a tablet device Bearing Analytics Wireless monitoring of bearings Spero Energy Clean energy catalyst Energy Driven Technologies Nanostructure surface treatment Nano-Meta Technologies Creation of new nanomaterials Frontier 3D molecular laser printing Symic Tissue Scaffold Technology SpeechVive Parkinson’s disease treatment device BioKorf LLC Flexible & personalized drug delivery Neuro Vigor Pain therapy Nemo Co Nanoscale transistor modeling BlueVine Energy storage Battle Ground Tech Electronic device technology Selected Fy2014 Startups

18. Higher Education at the Highest Proven Value