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Where Are the Cost Efficiencies in Higher Education?

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(1)

Texas Higher Education Coordinating Board

2009 Texas Higher Education Leadership Conference Accelerating Closing the Gaps:

Making Opportunity More Affordable for Texas and Texans

Where Are the Cost Efficiencies in

Higher Education?

Dr. Jorge Klor de Alva

Former President, University of Phoenix

President, Nexus Research and Policy Center

University of Phoenix

(2)

UOPX is a Proud Contributor to Texas Higher Education

San Jose

Sacramento

Las Vegas

Salt Lake City

Denver

Colorado Springs Albuquerque

Tucson Phoenix San Diego

So. Cal

Detroit

New Orleans

Orlando Seattle

Portland

Grand Rapids

Oklahoma City Tulsa

Honolulu Guaynabo, PR

Tampa

Jacksonville

Baltimore

Maui

Philadelphia St. Louis

Cleveland Pittsburgh Boston

Dallas

Houston

Milwaukee Boise

Kansas City Chicago

Santa Teresa Vancouver, BC

Charlotte Reston Billings

Wichita

Indianapolis

Nashville Memphis

Worcester

Jersey City Columbus

Cincinnati

Little Rock

Columbia Reno

Spokane

Cheyenne

Louisville Minneapolis

Des Moines

San Antonio

Atlanta

Raleigh

Columbus Austin

Omaha Calgary, AB

Ft Lauderdale

Wilmington Sioux Falls

Alaska

Birmingham

Also includes locations in Mexico and The Netherlands

Includes states in which the University is licensed to operate. At the current time we do not have locations in Alaska or Montana

(3)

University of Phoenix

UOPX Is a

Comprehensive University:

Offering Associate,

Bachelor, Master, and

Doctorate Programs

(4)

Helping to Close the Gap Between Educational Attainment of Different Ethnic Groups in Texas and

Nationwide

Source: NCES 2005 Caucasian

61%

Hispanic 10%

African American 12%

Asian/

Pacific Islander Other/Unknown 6%

10%

Native American/Alaskan

1%

National Enrollment

As of 02/29/2008

Caucasian 51%

Hispanic 11%

African American 30%

Asian/

Pacific Islander Other/Unknown 3%

4%

Native American/Alaskan

1%

University of Phoenix Enrollment 2009

(5)

University of Phoenix

Cost Efficiencies Through Innovation:

A New Learning

Platform—Again

(6)

Online Modality

For Students Onsite and Online:

Full Integration of Technology

University of Phoenix

Online Campus (Established in 1989,

Before WWW available to general population)

•1996 enrollment 2,000

•2008 enrollment >200,000

Resource: Digitizing Education Products and Services

•All course materials delivered via electronic portal

•Allows for rapid revision of materials

•Includes rich media

•Permits 24/7 access from anywhere

(7)

• 1720+ courses maintained by Colleges

• 1690+ courses completely electronically enabled with

• Electronic textbooks (over 1,800 works)

• Electronic articles (online library <20million articles; 65K publications; 114 databases)

• UPX-owned writings

• Discussion questions

• Web links

• 260+ courses use Simulations (<140K unique users/month)

• 400+ courses use Virtual Organizations (over 76K unique users per month)

• 100+ courses have Web tutorials

• 100+ courses use Electronic Portfolios (over 15K unique users per month)

University of Phoenix

Online Course Delivery:

Comprehensive and Multidimensional

(8)

Online Delivery of Support:

Student-centered, Ubiquitous

University of Phoenix

•Center for Writing Excellence

WritePointsm (Immediate feedback; <600K papers/month)

Tutor Review (Faculty reviewed, within 48 hrs;

<6K papers/month)

Spanish Writing Lab (El Centro de RedAcción) Dissertation Services

Tutorials and Guides

Turnitin Plagiarism Checker (promotes originality and improves writing and research

skills; <400K papers/month; 15 minute turnaround)

•Center for Mathematics Excellence

Running Start

Online Tutoring (< 4K live tutoring sessions per month; approximately 10K students per month access site for assistance)

Self-Assessments

•University Library

(9)

Onsite Support for Online and Onground Modalities

University of Phoenix

Local Resource Centers Nationwide

•First centers were established in Texas

•25 new centers by end of last year

•Drop-in centers for computer usage, tutoring, etc.

•Open and staffed 7 days a week

•Available to all students and

faculty – both online & onsite

•Creates community for students and faculty of both modalities

(10)

University of Phoenix

Does All This

Technology-Based Support Lead To

Success?

(11)

University of Phoenix

Key Predictors of Degree Completion for Open

Enrollment Institutions

• High School Grades

• Transfer Credits

• Risk Factors

• All only partially predict success

(12)

University of Phoenix

Number of Risk Factors vs.

Bachelor Graduation Rate (%)

0 10 20 30 40 50 60 70 80

0 1 2 3 4 5 6

DOE 1996 Data UPX 1998-2000 Data

Note: Almost all UOPX students in the 1998–2000 cohort studied had R6 (financially independent) and R7 (working full time) risk factors as determined by USDOE because UOPX required students at that time to be working and at least 23 years old.

(13)

University of Phoenix

Transfer Credits vs. UPX Bachelor Graduation Rate (%)

0 10 20 30 40 50 60 70

1 to 15 16 to 30 31 to 45 46 to 60 Over 60 Transfer Credits

Data Source: UPX cohort 11/1998 to 3/2000.

(14)

University of Phoenix

Taxpayer Costs Public Not-for-Profit For-Profit UPX

Direct Government Support2 $11,992.06 $5,641.11 $712.49 $0.00 Student Loans –Interest Rate

Subsidy4 38.16 93.78 152.51 123.66

Expected Future Loss Due to

Loan Default5 64.14 80.15 527.44 599.67

Taxes Forgone on Investment

Income of Endowments6 550.25 7,079.64 0.00 0.00

Taxes Forgone on Additions to

Endowments7 39.73 92.45 0.00 0.00

Taxes Forgone on Gifts,

Grants, and Contracts8 325.36 2,406.55 0.00 0.00

Taxes Forgone on Corporate

Profits9 2,387.78 5,534.64 0.00 0.00

Sales & Other Taxes

Forgone10 131.20 304.10 0.00 0.00

Total Costs $15,528.66 $21,232.41 $1,392.44 $723.34

Taxpayer Credits

Tax on Corporate Profit11 0.00 0.00 1,146.91 818.06

Sales and Other Taxes12 0.00 0.00 63.02 46.09

Taxpayer Credits 0.00 0.00 1,209.93 864.15

Net Cost to Taxpayers $15,528.66 21,232.41 182.51 -(140.82)

Research Expense13 2,279.27 4,563.00 0.00 0.00

NET COST TO TAXPAYERS WITH

RESEARCH EXPENSE REMOVED $13,249.39 $16,669.42 $182.51 -($140.82)

Cost Efficiencies To the State:

Net Cost to Taxpayers Per Students

References

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