DeVos Makes Case for Alternatives to 4-Year College

I have written on the unsustainable cost of college previously. This post shares a recent Wall Street Journal Article on the topic. Ms. DeVos nails it when she discusses the lack of financial literacy. Both students AND PARENTS must become more financially literate. Enabling better decision-making and avoiding a life time of UNNECESSARY DEBT. The cost of college is unaffordable for average American families and students.

I am happy to see in addition to discussion she is taking actions.

Please Read My Previous Blog:

HOW COLLEGES FOOL YOU INTO OVERPAYING FOR UNDER PERFORMANCE:

https://wealthbuildingpowers.com/2019/04/29/how-colleges-fool-you-into-overpaying-for-under-performance/

Michelle Hackman June 11, 2019; Wall Street Journal Article

“For students going forward, giving a lot more information about what theyʼre buying is of critical importance,” Mrs. DeVos said. “I think there are too many young people starting a traditional college degree without any idea about what they want to pursue.”

The number of job openings exceeded the number of unemployed Americans by the largest margin on record in April, signaling difficulty for employers to find workers in a historically tight market.

Mrs. DeVos pointed to several steps the government has taken to boost career and technical education in K-12 schools and community colleges, including increasing funding for career education through the Perkins Act and promoting industry-recognized apprenticeships. But, she said, local governments and private companies are in a better position to design the curriculum that will produce the skills they are seeking.

“There has been a giant silo between business and education for too long,” she said.

Mrs. DeVos noted several recent steps her agency has taken. On Tuesday, the Education Department published proposed rules governing the college accreditation system that would essentially loosen standards around the types of educational programs that could qualify for federal financial aid.

She also promoted an effort the Education Department has been attempting to accomplish since the Obama administration to publish studentsʼ debt and earnings by particular college majors or programs. That data, which is expected to be published by July, can be used to calculate the return on investment of majors at particular schools, she argued.

Her agency is touting the data as an alternative to an Obama administration initiative, which Mrs. DeVos is attempting to repeal, that would have shut down programs, primarily at for-profit schools, where students were taking on a high ratio of student debt compared with their earnings three years after leaving a program.

Mrs. DeVos also made clear, in response to a question, that she is no fan of the College Boardʼs decision to provide adversity scores to colleges for individual test-takers.

“I think any measure that doesnʼt treat students as individuals and treats them on their own merit is ill-conceived, and ultimately the downstream effect is not going to be what the original idea or intention was,” she said.

DeVos: Students Should Be ‘More Financially Literate’

Secretary of Education Betsy DeVos said that students should be better informed about college costs and the long-term financial impact of taking on student loans.

Write to Michelle Hackman at Michelle.Hackman@wsj.com