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A number of trends at other institutions with which BGSU competes for students and other resources may affect the University’s
future. These competitors include traditional four-year residential universities as well as community colleges, proprietary
institutions, virtual universities, and corporate education and training initiatives.
As institutions in some regions, including the Midwest, compete for market share of students among a stable or declining pool,
institutionally-funded financial aid has increased considerably in the last few years as a recruitment tool. Another trend
related to pricing and reported on in the May 20, 2005 edition of the Chronicle of Higher Education is that institutions are beginning to adopt tuition certainty plans where entering students are apprised of tuition increases
that are already set several years in advance. Another approach involves offering scholarships to students (who meet certain
criteria) so that their fees effectively do not increase after their first year. Providing scholarships to enable low income students to attend without needing to repay any loans is also becoming an increasingly
popular strategy. Miami University announced its Miami Access Initiative in August 2006, wherein students with family incomes
of less than $35,000 will receive a financial aid package that will cover all fees.
The February 13, 1998 edition of the Chronicle of Higher Education notes that many residential universities are investing millions of dollars in improvements to keep students in campus housing.
They are adding more personal space, privacy, and amenities to meet the competition from off-campus apartments. Increasing
numbers of institutions, public as well as private, are beginning to form partnerships with commercial developers in order
to meet the need for student housing. Off-campus partners may be more well positioned to provide and maintain amenities such
as apartment-style facilities, more privacy, and greater capacity for computer technology, as reported in the November/December
1998 edition of University Business and in the June 11, 1999 edition of the Chronicle of Higher Education.
According to the July 2005 edition of Trends in Higher Education published by the Society for College and University Planning, four-year institutions are experiencing increased competition from community colleges, which can offer instruction at substantial
lower price, often have smaller classes, may offer classes at more convenient times (including via distance learning), are
perceived as more career-oriented, and are viewed by many students and parents as providing similar quality as four-year colleges
and universities.
Another trend is seen in the development of the Community College Distance Learning Network, as noted in the July 10, 1998
edition of the Chronicle of Higher Education. A group of eight community colleges from across the United States is banding together to have as many as 500 courses and
some number of associate degree programs available for Fall 1998. Courses will be delivered by the Internet, video, and a
combination of the two. The network will have a World Wide Web page where each college’s listings can be offered. While not
part of the initial offerings, the group may have aspirations to move into baccalaureate degree courses.
The October 2005 edition of NACUBO Business Officer reports that for the 8th year in a row, enrollment grew at a higher rate at for-profit institutions that
for public or private not-for-profit colleges and universities. Ove the course of the last decade, fall enrollment at for-profit
institutions more than doubled while enrollment rose 13% at public and 17% at private not-for-profit colleges and universities.
For-profit higher education has been transformed into a multi-billion dollar per year industry, as companies can raise millions
from investors to finance ambitious expansions. Owners of these businesses attribute their success to convenient campuses,
flexible class times, and reasonable tuition. An article in the January 16, 2004 edition of the Chronicle of Higher Education notes that for-profit institutions have been able to expand their curricula in high demand areas such as nursing because
they are not burdened with traditional structures and can move with more agility than non-for-profit institutions.
An article in the November 25, 2005 edition of the Chronicle of Higher Education notes that as the regulatory environment becomes increasingly favorable for proprietary institutions, their enrollment continues
to increase. Several for-profit institutions, such as the University of Phoenix, which have traditionally catered to working
adults, have recently expanded their marketing efforts to traditional aged students.
An article in the July 16, 1999 edition of the Chronicle of Higher Education highlights the trend of more and more businesses creating in-house forms of higher education or asking for-profit institutions
like the University of Phoenix to train their employees because public colleges are too slow to respond to their needs. Business
leaders, governors, and state legislators warned higher education representatives at the annual conference of the Education
Commission of the States that for-profit institutions are succeeding where traditional universities are failing: creating
cutting-edge programs and moving students through in a timely manner. One governor noted that "We have a higher-education
culture that says ‘we'll think about it' when asked to change."
A concise description of the emerging roles of for-profit universities, new distance education universities, mega-universities,
and corporate universities, and the implications for traditional universities is provided by Thomas Athey in the September/October
1998 issue of On the Horizon.
James Morrison, in the May-June 1996 issue of On the Horizon discusses the implications for higher education of computer software,
entertainment, and telecommunications industries joining together to develop and provide educational materials. The indicators
of such a possibility include:
- Educational courses and programs are already being produced by corporations.
- Cable and phone companies are consolidating to provide interactive multimedia programming. Some cable companies are experimenting
with offering high speed access to the Internet via cable.
- Distance education is becoming accepted practice. There is increasing evidence that much instruction can be provided effectively
by interactive instructional software.
- Telecommunications, software, and the Internet eliminate walls and boundaries.
- Investors recognize that the younger generation is quickly adapting to telecommunications.
- An increasing number of students want and need nontraditional, flexible schedules.
- The prices of computers and modems are decreasing.
- A third of Americans have a computer in the home; 40 percent of these computers have modems.
- The use of the Internet is expanding exponentially, and more in the business sector than in the education sector.
James Morrison, in the May-June 1997 issue of On the Horizon, speculates upon the potential breakup of the "certification
monopoly" and the "competency guarantee," both of which imply increased competition for traditional institutions such as BGSU:
- The certification monopoly currently enjoyed by accredited educational organizations is at risk because (1) employers in an
increasingly competitive global marketplace are concerned about the competency of high school and college graduates applying
for employment; (2) employers are publicly expressing doubts about the validity of transcripts in making hiring decisions;
and (3) employers are relying more on past employment experience, portfolios, and other means of competency certification
and less on diplomas in deciding who to hire.
- A second, and related, signal of change concerns competency. Commercial businesses are beginning to produce educational courses
and programs and certifying the competency of graduates of those programs. In some cases, such as the International Community
College, these courses and programs of study are produced and distributed in partnership with for-profit businesses and educational
organizations.
- In response to the concern about graduates’ competency, public schools in Milwaukee and New York have introduced competency-based
testing for high school graduation. Several community colleges have offered employers and graduates no-cost retraining if
the graduates do not exhibit the competencies implied by the degree. The Western Governors University assists students to
develop programs of study using a variety of educational courses and programs (on-line and traditional), but will not grant
a degree until applicants pass a competency-based examination. The newest campus in the California State University system,
CSU–Monterey Bay, is developing a competency-based degree. These avant-garde institutions have decoupled courses of study
from competency-based assessment and thereby will offer a degree that may well be more attractive to prospective employers.
(p. 2)
An article in the August 23, 2006 edition of Inside Higher Education notes that increasing numbers of institutions are finding ways to promote residential and commercial development near their
campuses. Strategies include leasing out institutionally-owned space to private developers in an effort to reap economic
benefits without having to bear construction costs.
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