BUILDING PATHWAYS TO CREDENTIALS, CAREERS, AND ECONOMIC MOBILITY FOR TODAY S STUDENTS AND ECONOMY 1
INTRODUCTION While the U.S. ecnmy has certainly imprved since the great recessin, far t many Americans are still withut a high-quality degree r credential despite the ecnmy s increasing demand fr pstsecndary educatin t meet wrkfrce needs. Lw credential attainment has resulted in millins f Americans withut high quality jbs, and numerus emplyers unable t find the skilled wrkers they need t remain cmpetitive. There is a dire need fr skilled wrkers and munting evidence that pstsecndary educatin has a direct impact n earnings. The shifting needs f the current ecnmy make it clear that t attain real upward mbility, wrkers will need t be equipped with the educatin and skills that make them f high value t emplyers and able t adapt t changes in the wrkplace. Unfrtunately, the current federal law gverning pstsecndary educatin (the Higher Educatin and Opprtunity Act f 2008) is utdated and des nt effectively address the needs f tday s pstsecndary students wh are mre diverse than ever and have respnsibilities and needs that are als mre cmplex. Many are supprting families and lking t frge new career paths, sme never cmpleted high schl, sme are veterans lking t translate the skills gained thrugh their military service, and still thers are reentering the wrkfrce after invlvement in the criminal justice system. Pstsecndary plicies shuld allw fr enugh flexibility s that institutins can assist all students alng pathways t the attainment f pstsecndary credentials. If dne right, updating the Higher Educatin Act t meet the changing needs f tday s students and the ecnmy will help reduce the large discrepancies in educatinal attainment, emplyment rates, and incme levels acrss ur natin s mst vulnerable ppulatins. Jbs fr the Future (JFF) urges Cngress t spur the develpment f innvative and evidencebased pstsecndary strategies designed t help a brad range f individuals, including thse wh are unemplyed and underprepared, s they may successfully access, cmplete, and attain the pstsecndary credentials and skills that are needed fr family-supprting careers. In all f these effrts, it will be vital t ensure that individuals wh are mst in need have access t the full range f services and supprts that ensure ecnmic mbility fr all Americans. Jbs fr the Future is a natinal nnprfit that builds educatinal and ecnmic pprtunity fr underserved ppulatins in the United States. JFF develps innvative prgrams and public plicies that increase cllege readiness and career success and build a mre highly skilled, cmpetitive wrkfrce. With ver 30 years f experience, JFF is a recgnized natinal leader in bridging educatin and wrk t increase ecnmic mbility and strengthen ur ecnmy. 2
RECOMMENDATIONS JFF ffers the fllwing recmmendatins fr cnsideratin in the reauthrizatin f the Higher Educatin Act t reshape the natin s higher educatin system t meet the increasingly cmplex needs f tday s students and increase the number f pstsecndary students wh attain needed credentials. Imprve Data Transparency Althugh the Higher Educatin Act (HEA) requires rbust reprting frm institutins f higher educatin n a variety f tpics, cnsumers d nt have access t transparent and user-friendly infrmatin that is needed t make smart investments in their educatin. Prspective students make pstsecndary educatin decisins withut full and clear infrmatin n the educatin and labr market utcmes they can expect t achieve, given their chice f institutin, prgram, and educatinal fcus. As a result, students chse institutins r prgrams f study that d nt meet their needs, have lw persistence rates, and have high levels f median debt amng graduates. Additinally, plicymakers and institutins f higher educatin lack meaningful data t make prgram adjustments and imprvements. Recmmendatin: Imprve data systems: The HEA shuld create a data system that ensures prspective students have access t infrmatin by institutin and by prgram n rates f remedial enrllment, rates f students wh prgress frm remedial cursewrk int credit-bearing cursewrk, credit accumulatin r ther measures f educatinal prgress, credential attainment, and graduatin; csts f the prgram and debt accumulated; and shrt- and lng-term pst-graduatin emplyment and average annual earnings. Data shuld be made widely available, accessible, and in an easily understandable frmat fr use by cnsumers and cllege advisrs, while prtecting student privacy. Make Federal Financial Aid Mre Flexible Title IV f HEA assists millins f students and families in gaining access t federal funds t help pay fr pstsecndary educatin. Federal financial aid plicies shuld be flexible, accessible, and innvative s all students can access pathways that lead t pstsecndary credential attainment. 3
Recmmendatins: Simplify FAFSA: The FAFSA applicatin prcess shuld be simplified t make financial aid mre accessible t all students and create simple pathways fr autmatic student aid qualificatin fr families already enrlled in ther means-tested federal benefits prgrams. Retain restratin f year-rund Pell Grants: Year-Rund Pell Grants shuld be retained in the HEA, enabling lw-incme students t cntinue t take classes and gain credits all year accelerating cllege and credential cmpletin. Maintain Ability t Benefit: The Ability t Benefit prvisin in HEA helps individuals withut a high schl diplma r its equivalent, but wh are enrlled in an eligible career pathway prgram, t begin t earn pstsecndary credits at the same time as they are wrking n basic educatinal r English language skills accelerating credential attainment. At a minimum, HEA s current prvisins n ATB, tied t participatin in a career pathway prgram, shuld be retained. Cnsideratin shuld be given t a brader restratin f ATB fr all individuals wh can prve their ability t benefit frm higher educatin putting individuals in HEA n an accelerated rute t credential attainment, while maintaining guardrails t ensure student readiness. Allw Pell Grants t cver prir learning assessments: Prir learning assessments (PLA) measure an individual s skills and knwledge develped in past educatin and wrkfrce settings. Despite gd utcmes, Title IV f HEA des nt allw federal funds t be used t pay fr PLAs r even encurage this strategy, even thugh many students enter int pstsecndary educatin with prir knwledge and skills. Pell grants shuld cver the csts f PLAs. PLA and the award f credit fr prir learning shuld als be encuraged thrugh state innvatin grants (see belw). Supprt creatin f stackable credential pathways: Stackable credentials are sequenced credentials that can accumulate ver time t build an individual s qualificatins fr different and ptentially higher-paying psitins alng a career pathway fr in-demand jbs. Fr purpses f student aid prgram eligibility, credentials that are shrt-term are nt eligible fr federal student aid cverage. Hwever, the HEA is unclear n whether stackable credentials that cmbine t meet the federal time requirements fr eligibility are allwable fr student aid cverage. T address this cncern, the HEA shuld be amended t clarify that shrt term stackable credentials, if taken as cmpnents in a student s lnger-term prgram f study, are eligible fr title IV cverage as lng as the entire prgram f study is title IV eligible. 4
Supprt a Fcus n Cllege Cmpletin and Successful Practices The HEA currently des little t incent evidence-based plicies r strategies that are needed t imprve student utcmes. Because many f these prmising practices fr imprving student utcmes are implemented at the state and institutinal levels, the HEA shuld prvide incentives fr the develpment and scaling f evidence-based and prmising practices that increase student utcmes, including cmpletin f pstsecndary prgrams. Recmmendatins: Leverage existing funding streams: Existing funding streams shuld be leveraged t supprt guided and career pathways appraches t imprve cmpletin, including pririties fr these successful appraches in cmpetitive federal funding aimed at increasing cllege access, affrdability, and/r cmpletin, such as TRIO, GEAR UP, and prgrams under Title III and Title V f HEA. Establish state pstsecndary cmpletin grant prgram: HEA reauthrizatin shuld establish a state pstsecndary cmpletin grant prgram with the purpse f encuraging statewide, evidence-based, systemic refrms that are knwn t increase students credential cmpletin and labr market success. We recmmend that the Fund fr Imprvement f Pstsecndary Educatin be cnverted fr this purpse, fcusing n imprving student utcmes. These grants wuld be awarded cmpetitively t statelevel entities respnsible fr state systems f higher educatin (including cmmunity clleges), requiring that in exchange fr grants, states develp r take t scale the fllwing evidence-based and prmising pathways strategies: Alignment f educatin, wrkfrce develpment, ecnmic develpment, human services, and ther prgrams in supprt f system-wide pathways t pstsecndary credentials. Redesign and enhance assessment, placement, cunseling, and supprtive services in ways that ensure credential cmpletin and that map accelerated rutes t credential attainment and labr market success. Accelerate and imprve delivery f develpmental educatin and adult basic educatin thrugh c- enrllment, integrated service delivery, and ther prven appraches. Supprt the creatin f stackable, prtable credentials aligned with n-ramps and ff-ramps that lead t prgressive levels f emplyment fr yuth and adults. Engage emplyers and use labr market infrmatin t identify high-demand industry sectrs and feed that infrmatin directly int the design and delivery f educatin and wrkfrce develpment prgramming and credentials. 5
Establish statewide prir learning assessment plicies and incentivize articulatin plicies that ensure unifrm credit accumulatin and credit transfer. Enact utcmes-based funding mdels fr state pstsecndary funding. Create incentives fr clleges t expand early cllege high schls and dual enrllment prgrams that result in accelerated credential attainment and pstsecndary cmpletin. Refrm the Accreditatin System Under the HEA, the Department f Educatin recgnizes accreditrs that the secretary f educatin identifies as reliable authrities fr determining the quality f educatin r training prvided by institutins f higher educatin. But histrically, the accreditatin prcess has fcused mre n inputs than utcmes and has been slw t adapt t new mdels f higher educatin delivery. At a time when U.S. cmpetitiveness and individual ecnmic prsperity directly crrelates t the educatin and skills f American wrkers, it is imperative that pstsecndary systems keep pace with the ever-changing demands fr skills and credentials that are needed by high demand emplyers. Recmmendatin: Fcus n student utcmes: The HEA shuld shift the fcus f infrmatin accreditrs require f institutins. Accreditrs shuld fcus n inputs and utcmes t ensure that institutins are making gains n enrlling and graduating students with credentials that are valued in the labr market, with a particular fcus n underrepresented grups. This will enable accreditrs t prvide better and mre targeted supprts t help institutins imprve student utcmes. The HEA shuld require a generalized list f utcmes be cnsidered in the accreditatin prcess, such as rates f remedial enrllment, rates f students wh prgress frm remedial cursewrk int credit-bearing cursewrk, credit accumulatin r ther measures f educatinal prgress, credential attainment, and graduatin; csts f the prgram and debt accumulated; and shrt- and lng-term pstgraduatin emplyment and average annual earnings. Create Pilts t Spur Innvatin and Test Alternative Delivery Methds in Higher Educatin Innvative appraches t the delivery f pstsecndary cntent are ften stymied by rules within HEA that were designed t fit traditinal clleges, universities, and students entering cllege directly frm high schl. Hwever legitimate cncerns ver quality cntrl d exist when cnsidering the expansin f Title IV cverage fr prmising strategies such as cmpetency-based educatin, shrt-term credentials, and student aid cverage fr high schl 6
students and even fr nntraditinal prviders f pstsecndary cntent. The experimental sites authrity under HEA has helped t identify and seed many prmising appraches ver the past several decades, including thse just described. Hwever this authrity n its wn is t limited t adequately test these strategies, examine their ptential fr scaling, and ensure psitive student utcmes. Cngress shuld utline mre clear avenues fr these innvative prgrams and delivery ptins t be tested and ultimately cnsidered fr Title IV funding if fund t be effective. Recmmendatins: Pilts fr prmising appraches: T better meet the needs f tday s students and the skill needs f the U.S. ecnmy, HEA shuld authrize pilts t allw Title IV funding t be used (and t prvide necessary waivers) t test emerging and prmising methds f delivering cntent, accelerating credential attainment, awarding credit, and determining qualified prviders. In carrying ut these pilts, it is critical that rigrus quality cntrl prcesses be identified t ensure that student utcmes are priritized and that federal student aid is safeguarded against fraud and abuse. Pilts shuld include the testing f: Cmpetency-based educatin mdels Shrt-term, industry-recgnized credentials Alternative prviders f pstsecndary credentials Dual enrllment fr high schl students Outcmes-fcused pstsecndary educatin mdels Test methds f quality cntrl: As part f the pilts, HEA shuld als experiment with appraches t develp a rigrus quality assurance prcess thrugh which alternative prviders, prgrams, and credentials are determined t be valid. This culd include testing alternative accreditatin prcesses r entities. Evaluate and scale as apprpriate: Evaluatin shuld be a mandatry and funded cmpnent f the pilts, ensuring that each are evaluated thrughly and results reprted t Cngress. Scaling triggers culd be incrprated t allw pilts t grw and scale as prgrams shw psitive results thrugh the evaluatins. Incrprate utcmes-fcused appraches: In the develpment f pilts, HEA shuld allw fr innvative, utcmes-fcused disbursement f Title IV funding, such as Pay fr Success, perfrmance-based cntracting, and ther appraches that prvide Pell reimbursement fr prgrams that meet agreed upn utcmes. Under this apprach, the abve-described delivery alternatives culd be tested thrugh utcme-fcused funding mdels, and demnstratins culd test perfrmance-based mdels as an ptin fr student aid funding. 7
Revitalize Federal Wrk Study Thrugh the HEA, federal wrk-study (FWS) prgrams prvide part-time emplyment pprtunities t undergraduate and graduate students wh demnstrate financial need. Hwever, the prgram s current funding frmula inequitably directs funding twards mre expensive institutins and institutins that serve a small share f lw-incme students. The prgram is als intended t prvide participants with career-related wrk experience, but the majrity f FWS jbs are clerical jbs that are unrelated t participants' curse f study. Recmmendatin: Update current federal wrk-study prgram: The HEA shuld update the federal wrk-study prgram t reach students wh can benefit the mst frm the pprtunities it prvides, imprve linkages t career-relevant wrk experiences, and encurage ffcampus jb placements with lcal emplyers by: Replacing the frmula with ne that better targets funding tward lw-incme students and high-quality jb placements, and phase ut the campus-base guarantee. Strengthening language t encurage strnger cnnectins between FWS psitins and a student s career gals. Cllecting better data abut the jb placements and educatin utcmes f wrkstudy students. Reducing barriers t students using their FWS funding fr jbs with fr-prfit cmpanies and ff-campus nnprfits, with a fcus n career-relevant ffcampus placements. 8