What's A Degree Worth?

Recently, a very interesting piece of student data was just released in a commissioned report and joint effort with CDHE and College Measures that revealed some interesting first year employment outcomes for recent college graduates in Colorado. Though important variables were excluded, like those who may have obtained work with the federal government, those who matriculated directly into graduate programs and those who move out of state, some surprising information was revealed.

Most revealing was data reflecting that median first-year earnings for those with AAS degrees were on average $7,000 above those who earned bachelor degrees.  This data snap shot is sure to bolster the community college marketing of CTE programs as an important, critical and viable path to securing good middle class jobs. While the data certainly reflects the value and importance of CTE programs, life-time earnings generally tend to start off more slowly for those with a four year education but generally out pace those with AAS degrees in the long run. 

I found the release of the College Measures data and an article published in the NY Time a few days ago to be very timely. The article entitled The Great Aid Gap highlights the regulation that allocates student aid for those in traditional degree programs but does not make eligible for aid those who are in short-term credit or non-credit industry aligned certificate programs.  

True, many non-credit and continuing educational programs at various schools may be considered skills directly related to workforce training for those already employed in their respective industries, and many people who take these classes have the financial means to pay directly for them. However, as someone who does a lot of out-reach at locations like our local workforce centers, I can see the value of allowing student access to federal student aid who are seeking short term industry aligned trainings. Many of these students do not have the means to fund short term certificate programs and must seek assistance via other more restrictive programs like the Department of Labor’s (i.e. W.I.A) dislocated worker fund. 

As new data continues to reflect the economic value of shorter term degrees and certificates, I wonder what national effort should be directed toward opening up the possibility of financial aid eligibility for programs that prove a viable path to obtain industry skills that lead to employment.  True, many certificate programs and all AAS degrees are financial aid eligible, but many are not: Examples include C.N.A. training, project management certificates, some short term precision machining certificates, etc. In fact, as the article reveals, many white papers produced for the Malinda Gates Foundation suggest many strategies for overhauling financial aid. 

While those suggested strategies would be great fodder for another post, I feel it’s worth considering  the outdated provision of financial aid that exclude eligibility for very relevant and in demand training programs.  These restrictions often exclude certain programs that provide viable options for adults of all ages seeking training that can help them quickly adapt and keep current in the ever present changing labor market.  The Pell Grant needs to remain fully intact as a vehicle of opportunity for low income families to achieve a four year education and to be clear, I’m not in favor of limiting aid for those on the traditional educational path by increasing aid to programs not now eligible. However, aren’t we limiting access and options for low income families who seek to begin their educational path with a shorter term post-secondary certificate?