The Commissioner's Corner

Proprietary Schools, a Viable Option for Students

By Robert B. Stein

Before making one of the largest investments of time and money in their lives, students shopping for postsecondary education should be sure the school meets their needs and will lead them toward their goal -- regardless of whether they are attending a public, independent or proprietary institution.

Proprietary schools play a valuable role in the Missouri system of postsecondary education. They offer diverse programs, close working relationships with instructors and training that can lead to productive careers.

The Missouri Department of Higher Education annually certifies a broad range of postsecondary education providers, including private career schools and training institutes, through its proprietary school certification program. More than 150 postsecondary education and training providers are certified to operate through this program and more than 68,000 students are enrolled in them.

What type of education and training is available at these schools?

Almost a third of students enrolled in Missouri private career schools study in a health-related field, followed by 18 percent in information technology. The variety of private career school programs is so great, however, that fields ranging from auctioneering to horse-shoeing to Web management are available. Students can enroll in a two-week certificate program or obtain a graduate degree. The MDHE constantly receives new requests for certification; if there isn’t a choice that meets your needs today, chances are there will be one in the future.

Out-of-state regionally accredited degree-granting institutions that operate in Missouri and some other not-for-profit schools also fit into this “proprietary” category. Several types of schools are exempted by law, such as those that grant religious degrees or are regulated by a professional board.

Research Associate Dory Hamburg conducts about 30 site visits a year for the MDHE to determine if proprietary schools have submitted accurate information to the department, to observe the school in action and to provide technical assistance if needed. Talking to students is one of the most important aspects of the site visit, she says. “You hear some incredible stories.”

Most of them recount positive experiences of education opportunities turning people’s lives around. A single mother of three, for example, aspired to become a dental hygienist but couldn’t fit classes into her already busy schedule. Then she found an institute that held classes on Saturday, and the training allowed her to take the first step in pursuit of the career she always wanted. Now she’s determined to go on to receive her associate’s degree from a community college.

Less positive stories occasionally emerge as well. One of the most common issues relates to difficultly with transfer to another school. “If further education beyond a proprietary school is your goal, we recommend contacting the institution to which you are interested in transferring to determine if they will accept the proprietary school credits,” Hamburg advises. She also suggests talking with students or graduates of the institute before deciding to attend.

Many schools have very high rates of job placement after graduation. According to figures they provide, on average 74 percent of graduates find employment related to their fields across all types of schools certified to operate by the MDHE.

Financial aid, primarily in the form of federal grants and loans, can be obtained by students attending accredited proprietary schools. In 2007, $240 million was distributed to more than 30,000 students through federal, state and institution financial aid sources.

As with every consumer purchase, though, it pays to do your homework to make sure your educational choice is right for you. The MDHE website is an excellent starting point for information on proprietary schools that have official certification. Prospective students may also call with questions about specific schools: 573-751-2361.

A Student's Best Frenemy

By Robert B. Stein

Frenemy – Someone who is both a friend and an enemy; a relationship that is mutually beneficial or dependent while being competitive and fraught with risk.

The numbers are out, and they’re not pretty. Missouri’s student loan default rates went up almost 2 percentage points. The good news is that more than 71,000 Missourians are actively repaying their student loans; the bad news is that 4,617 are not.

Loans are students’ friends when they pave the way to a higher standard of living, but are fraught with risk when their allure results in overextending the ability to repay them. Lay-offs, unemployment and a declining economy are making it harder for borrowers to live up to their financial obligations. Repaying student loans competes with daily necessities such as food and shelter.

While there are many circumstances that can’t be prevented, there are ways to minimize debt risks: be conservative in the amount you borrow, finish your academic program if at all possible; and seek help if default seems imminent.

The Missouri Department of Higher Education helps institutions, students and their families make good decisions about planning and paying for college. We consider it one of the most important functions of our agency, and reach out to audiences across the state with a cadre of volunteer staff.

Since 2001, when MDHE began helping institutions improve student financial literacy with Default Prevention Grants, default rates have declined significantly. The chart below shows the declining trend nationally in student loan defaults. To prevent this year’s recent uptick from becoming a trend, we in the higher education community must redouble our efforts to promote financial literacy among students.

Debt has become part of our culture. It is symptomatic of a society that is addicted to consumerism and credit. Students, like any other consumer, get the best value for their money by investing it in something of intrinsic value. Like education.

Education is the Answer

By Robert B. Stein, Commissioner of Higher Education

I have a friend who once told me, “I'm so old I've forgotten the question, but I know the answer is education."

How true! The solution to most societal problems is often education. Just ask the thousands of Missouri citizens who are enrolling in 2- and 4-year colleges and universities across the state. The realization by more Missourians that continuing their education is indeed a positive step in preparing for a better future may be a silver lining in the cloud overshadowing the economy.

Now that the economy and unemployment are on everyone's minds, people are turning more and more to education for retraining, for completing that degree or certificate they never quite finished, or for starting their first venture into postsecondary education.

Enrollment in some community colleges this summer was up 20 to 30 percent. This week, MU reported the highest enrollment in the history of the university. The state's community colleges are also bursting at the seams.

Last week, the Missouri Department of Higher Education announced that Access Missouri scholarship funds will be cut this academic year because there are more needy students applying for aid than ever before.

Yet, many areas of Missouri have had degree attainment levels of less than 12 percent. Rural, inner city and minority populations continue to lag behind the rest of the state in their rates of college attendance and success in program completion. Continuation of such gaps will just lead to more questions.

Studies show that not only do college graduates enjoy a higher income than their high school educated peers, but whole communities benefit when their populations are highly educated. Think jobs, increased revenues and civic engagement.

Three things must happen for education to become a major driver to stimulate the Missouri economy. 1) College must be affordable for all prospective students --especially those with the greatest need. 2) While seeking greater efficiencies, postsecondary institutions must be supported financially so the increased demand for services can be met. 3) While maintaining high standards, current achievement gaps must be closed so the human potential of all citizens can be realized.

What can individuals do? First, educate yourself by learning about the concrete benefits of furthering your education and then follow through by continuing your educational journey as a role model for others. Show friends and family that, with perseverance, continued educational achievement is attainable and serves to generate greater workforce opportunities.  Second, share your story with others, especially elected officials, so they understand that an easily accessible, affordable and productive higher education delivery system is an important factor in the state's future economic growth.

Life-long learning through a college education and beyond really is part of the answer -- for the future security of people, communities, the state and our nation.