With the rise in tuition at universities and the relatively limited government funding of the education is proposing new challenging on students. The need for new approaches and changes in higher education is becoming more and more urgent.
The evaluation of the choice to proceed with higher education or not depend primarily on the estimated wage premiums, will it be worth it to invest in education with a higher potential wage in the future? Tuition is now 13 times higher than what they were 40 years ago, and government reduced education funding significantly after the recession in 2008 (16% less per student from 208 to 2018). However, the average wage can increase 60 to 75% more than what is earned by individuals with no education. Due to the reduced funding, universities are responding in different manner. Purdue, for example, lessened the intake of instate students, and increased the intake of out of state and international students since these students pay higher tuition with less need for financial aid.
In addition to the reduced funding, there is the concern that higher education might not necessarily provide students with the needed skills for the jobs outside. Some university programs seems much simpler or outdated than real world problems. This problem seem to be worsening with the increase in automation and artificial intelligence worldwide, forcing universities to come up with new solutions to overcome the challenges faced by students in higher education.
Some of the solutions/ innovations include online teaching as an accepted option to attain a degree; the increase in competency-based education (CBE) which are less expensive and more career-orientated; income share agreements that help students in paying their debts from their salaries and allow them a grace period until they find a job; in additions to other solutions.
** This blog on based on the Education Plus development article found here.