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Community Colleges OnlineFrom Re.ViCaThe Community Colleges Online Programme is the working title for a National initiative by President Obama of the US to foster the development of e-learning in the Community Colleges sector. It is part of a much larger $12 billion initiative to revitalise the whole Community College sector and in particular to boost graduation rates, improve facilities and develop new technology. This in turn is part of the $100 billion stimulus package for education. A recent report by the Brookings Institution, as quoted in the Wall Street Journal, estimated the US (federal) government provides community colleges with about $2 billion a year in direct support, about a tenth of what it spends on public-four year universities.
The broader initiativeThis has three main aspects:
The president said the programme is inspired in part by a Michigan programme that offers displaced auto workers tuition assistance at community colleges to seek retraining for alternative careers, such as in the health-care industry, which until recently has been expanding in the state.
Background on community colleges(This is sourced from AACC material at http://www.aacc.nche.edu/Advocacy/aginitiative/Documents/talkingpoints.pdf)
Impact on for-profit sectorThe community college initiative could have an impact on the fortunes of for-profit education companies that offer associate degrees, but analysts say funding for the program is not big enough to make much difference. The programme for community colleges could make them more competitive against firms such as Apollo Group Inc , Corinthian Colleges, ITT Educational Services Inc and Lincoln Educational Services Corp. However, they said the amount of money earmarked for the program would result in only a marginal increment in budgets for community colleges and have a small impact on these companies in the short term. Analyst Trace Urdan of Signal Hill said, "I think, in general, though the amount of money is very large in the aggregate, it really amounts to only about a 3 percent increase in total operating budgets for community colleges." In the for-profit sector, companies such as Apollo, Corinthian, ITT and Lincoln offer associate degrees, which have gained popularity as they offer flexibility to students looking to retool their skills in a tough economy. Most of these universities also offer bachelor and masters degree programmes. Analysts say community colleges lack facilities and flexibility that companies like Apollo offer. According to a filing with the U.S. Securities and Exchange Commission on June 29, Apollo's associate degree enrollment represented about 44 percent of its degreed enrollment at May 31, 2009. "We think for-profits will continue to outshine community colleges on student support services, flexible schedules, and lower teacher to student ratios," J.P. Morgan Securities' Andrew Steinerman wrote in a note dated July 14. However, if the dollars are applied to making these programs more successful, at some level it could eat into Apollo's business, Urdan said. Obama's initiative to increase the number of graduates in the United States is likely to have little bearing on companies such as Strayer Education Inc, Capella Education and Grand Canyon Education. These universities are more focused on bachelors, postgraduate or doctoral degree programs. However, some say increasing the number of community college graduates could result in more students chasing bachelor's degrees offered by companies like these.
FundingThe US government plans to fund the new initiative with savings that result from proposed changes in the federal student loan programme. They have proposed eliminating private lenders from the programme and making the federal government the sole lender. Such a change would save $87 billion over the next decade, although it still faces opposition from private lenders. Of the nearly 19 million graduate and undergraduate college students, about 6.7 million, or 36%, attend two-year colleges. With an average age of 29, they tend to be older than students at four-year universities and work longer hours at jobs outside the classroom. Many need remedial classes; fewer than a third earn their associates degrees in three years or less. The initiative is designed to produce an additional five million community college graduates by 2020.
Community Colleges Online - details(sourced from Inside Higher Education) The funds envisioned for online courses - $50 million a year - may be small in comparison to the other ideas being discussed. But in proposing that the federal government pay for (and own) courses that would be free for all, as well as setting up a system to assess learning in those courses, and creating a "National Skills College" to coordinate these efforts, the plan could be significant far beyond its dollars. According to the draft materials from the administration, the program would support the development of 20-25 "high quality" courses a year, with a mix of high school and community college courses. Initial preference would go to "career oriented" courses. The courses would be owned by the government and would be free for anyone to take. Courses would be selected competitively, through peer review, for support. And the courses would be "modular" or "object based" such that they would be "interoperable" and could be offered with a variety of technology platforms. Under the plan, the government would also support a "National Skills College" at a community college that would, among other things, work to develop examinations that could be given at the end of the courses so that colleges, employers and students could judge how much learning had taken place. Course developers would be asked to consult with colleges on standards, so that the offerings could be created with the goal of having credit transferred to many institutions. And the National Skills College would work to promote programs that might mix the free courses with tuition courses so students could earn degrees at lower cost. While the program is described as one that emphasizes community colleges and high schools, it would be open to public agencies and to private for-profit or nonprofit groups.
CommentariesAACC comments that:
Analysts comment (reported from analysts for the London Stock Exchange):
References
Related initiativesFor a somewhat similar but much smaller programme in the UK for universities see the Online Learning Innovation Fund.
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