Millions of students attend college each year, only to face enormous student loan debt, regret their choice of major, and be underemployed after graduation. For educational institutions, declining enrollment due to the demographic cliff is compounded by declining confidence in the value of higher education, creating a financial crisis on campuses across the country, leading to program cuts and college closures.
Because universities are not designed to adapt, the gap between student expectations and campus reality grows. They are designed for a world that is much more static, where demographics look significantly different, and where universities play very different roles. However, all of this has changed over the past 30 years without significant changes in academic programming formats and methodologies across traditional undergraduate campuses. This is further exacerbated by the governance structures of many schools, which were optimized at various times and no longer empower faculty to undertake the reforms necessary to achieve satisfactory results.
Finally, segment headwinds related to demographics and worsening student ROI are driving steep revenue declines. Budget cuts are inevitable for many organizations. The cost of academic programming accounts for nearly 50% of a university's operating budget, and institutions have no recourse to make these cuts. New academic program models are needed if higher education is to survive and return the promise of the American dream to millions of students seeking economic mobility for themselves and their families.
The academic program model of the future is flexible, student-centered, and leverages collaboration to ensure better outcomes for students and institutions. Traditional program development models are expensive, time-consuming, and risky. Developing and launching a new program can cost more than $1 million and take two to three years to design the curriculum, drive it through faculty management and certification, and market it before students enroll. Moreover, according to research from Lightcast, 55% of new programs fail. It is no wonder, then, why many institutions have maintained the same academic programs for the past 30 years or more, rather than adjusting their program composition to meet changing student and labor market demands.
Being student-centered begins with providing students with the academic programs they want and need to succeed in the workplace and having systems in place to support them throughout their education. Deciding which programs to add or cut can be difficult. At Rize Education, we use a program evaluation rubric that integrates student needs, student outcomes (what career outcomes can students expect?), partner university needs, and educational possibilities. Another framework that we have found success with is the Program Evaluation System developed by Gray Decision Intelligence. The system combines student demand, institutional mission, academic standards, and program economics to help institutions determine the best mix of programs for their unique markets. Once an institution has the right mix of programs, focusing on outcomes and supporting students through those programs is essential to helping students realize ROI on their degrees.
Developing the skills needed to succeed in life after graduation, as well as the skills needed to identify and pursue life, has traditionally been modeled in higher education as separate pursuits divided between academic advisors and career services. We have been meeting with students and campus leaders over the past few months to gain a deeper understanding of the challenges they face in bridging the gap. Our research shows that students need more ways to explore potential career paths, industry connections, and structures that require engagement. Career exploration courses help students explore potential career paths within their chosen field of study, gain the skills necessary to navigate the job market, and gain real-world experience that will set them apart in a competitive job market. Ensuring that course content is relevant to the skills students need in the workplace and fostering relationships with individuals working in the industry are also important in producing positive student outcomes.
Implementing new programs, continuously iterating courses to ensure career relevance, and developing industry partnerships can be difficult and expensive for institutions, especially small colleges already overwhelmed by competing priorities. This is challenging for any institution, so collaboration is the way of the future. By working together, institutions can not only reduce costs, but also realize efficiencies of scale and adapt more quickly to changing market conditions. Program sharing allows institutions to share multiple courses in a specific field along with services such as enrollment marketing and student success monitoring. Sharing programs also allows us to develop more scalable partnerships with industry leaders like Google and ensure course content is relevant to the skills students need to succeed in their careers. As the technology force behind a low-cost model for independent college consortia, Rize has helped more than 85 colleges and universities add career-ready undergraduate programs and has seen firsthand how collaboration can help improve student outcomes and lower institutional costs. .
Traditional higher education models are outdated and no longer meet the needs of today's students. The future of higher education depends on innovation and adaptability. By collaborating with other educational institutions and incorporating career-focused skills into their curriculum, such as through career exploration courses, institutions can better prepare students for the demands of the modern workforce. Restoring pathways to employment for all students is essential to the long-term success of higher education and making the American dream a reality again.