It may sound far-fetched, but more and more students are questioning the fundamental value of a college degree. And this is being translated into action. Enrollment numbers are declining, and universities are being forced to permanently close.
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These are just some of the challenges and opportunities that Deloitte seeks to analyze in its annual Higher Education Trends Report. Her 2024 edition, released today and published exclusively in Fortune, addresses her five areas of importance to higher education.
- Results and a clear value proposition.
- Leadership crisis.
- college athletics.
- artificial intelligence (AI); and
- Public-private partnership.
What's the overarching theme behind all these trends? “Trust in higher education is eroding,” says Megan Kluber, principal of higher education at Deloitte.
Moving from done to accomplished
According to Gallup, trust in higher education is declining, dropping from 57% in 2015 to just 36% in 2023. And, more importantly, a study published this year by Strada and The Burning Glass Institute found that just over half (52%) of graduates are underemployed one year after graduation. Ten years after graduation, that percentage is still 45%.
Combined with rising tuition costs, it's hard to see the value in attending college.
Cole Clark, managing director of higher education at Deloitte, said trust in higher education to prepare students for the true workforce is rapidly eroding, creating challenges on all fronts.
“Focusing on outcomes is one way to start changing the narrative around the ROI of post-secondary degrees,” Clark told Fortune. “For a long time, the higher education sector has focused on completion, which was not optimal, and in some cases still is suboptimal, but we are now seeing a major shift from completion to outcomes and employability. ”
The trends report, which he co-authored with Kluber and others, suggests that higher education institutions should prioritize aligning their offerings with labor market demands, which will not only help more students get jobs; It also suggests a better return on investment.
Additionally, universities can expand lifelong learning opportunities through continuing education programs and online degree offerings, the report adds. Additionally, to regain trust, schools simply need to be more transparent about program costs and degree outcomes. For example, the University of North Carolina System has researched and published ROI data for all of its programs.
Let's work on AI together
AI, especially generative AI, continues to be a top concern for students, faculty, and administrators alike.
The larger R1 research institutions are very focused on AI, Cluver explains, to improve not just their own universities but the world and society as a whole. For smaller colleges that don't have the resources to devote to AI, she expects to see more partnerships across higher education, as well as third-party providers to tackle AI together.
“I think it's going to open up a whole new world of educational opportunities that we thought would completely disrupt higher education. And now I think we're going to see a different way of experimenting,” Clark says.
They pointed to Khan Academy and its AI assistant, Khanmigo, as a promising example of how AI can be truly and effectively integrated into learning and working towards leveling the playing field.
Deloitte's report highlights three key impact areas where AI, if properly integrated, can truly improve the world of higher education: evolving the curriculum, strengthening core operations, and streamlining day-to-day operations. We also encourage schools to train their faculty to apply it to their courses and evaluate its appropriate and ethical use.
“Higher education will leverage the promise of generative AI to make education more accessible and affordable for all, while helping envision a future where society trusts humans and machines to collaborate. This makes it uniquely suited to serve at this time,” the report said.