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American Enterprise Institute Education Outlook Report - The High Cost Of Low Community College Graduation Rates


An ever-increasing number of individuals are turning to community college for their higher education. However, the majority of students entering community college fail to complete their degrees, and as a result, earn lower wages throughout the course of their lives. If community college retention rates were increased, graduates could become part of a wholly different income bracket, and taxpayers in the nation and the states would likewise experience substantial monetary gains. Cost-cutting and time-saving strategies and resources such as online delivery of classes, competency-based models of higher learning, and for-profit colleges and universities should be employed to increase the number of Americans completing their associate’s degrees.

Key points in this Outlook:

  • Community colleges are serving more and more students, but how well they’re serving them (or taxpayers) is debatable: only 1 in 4 graduates, compared to 3 in 5 at four-year schools.
  • Cutting the dropout rate by half would generate substantial gains: the 160,000 “new” graduates would earn $30 billion more in lifetime income—and create an additional $5.3 billion in total taxpayer revenue.
  • Community colleges can boost graduation rates and save money by streamlining the degree path, using online courses, and borrowing innovations from for-profit schools. Another potential game-changer is the competency-based model, which has helped Florida’s Valencia College achieve a 40 percent graduation rate.
More can be found here: http://www.aei.org/outlook/education/higher-education/community-colleges/completion-matters-the-high-cost-of-community-college-graduation-rates/
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