Yesterday, I wrote about the most recent release of earnings data from the US Department of Education. Although the data covered only a few programs per institution, some patterns emerged. Among public, two-year institutions, their earnings data showed that more than 46% of associate degree holders earned less than $40,000 per year four years after graduation.
In Michigan, only about twenty percent of students who start an associate degree program finish it. So, when you combine the low graduation rate with the nearly even probability that a two-year degree won’t provide sufficient income even with four years of work experience, it’s easy to see why people opt for either a bachelor’s degree or direct entry into the workforce.
The picture for non-degree certificate earners at public institutions nationally is even worse. Seventy-eight percent of them will not earn at least $40,000 four years after completion. For these people, certificates may be an entry into the job market, but they are not a pathway to economic security.
Under these circumstances, WCC’s unrelenting support of certificate programs is puzzling. Only one of five certificate programs is economically viable for the holder. Four out of five certificates may literally not be worth the paper they’re printed on. Despite this, WCC offers twice as many certificate programs as associate degree programs.
This deserves an explanation. It is not enough to simply have a job. Not all jobs are equal in their opportunity or their ability to generate adequate income. The community reaps a better return on its investment in the community college when its graduates can maximize their earnings. People who earn more tend to stay in the community. They tend to buy houses and cars. They pay taxes and contribute positively to the overall wealth and well-being of the area.
Associate degree should be the primary credential conferred
Training people for low-wage jobs is counter to the best interests of the community. Therefore, when the community college actively prefers to develop and offer academic programs with the lowest possible economic potential and the elected Trustees don’t question this strategy, something is very wrong.
Without doubt, it is less expensive to develop certificate programs. But economic development – which is the goal of the community college – is not about spending as little as possible. It’s about getting the highest yield for the money spent.
There is no compelling argument for placing people in low-wage jobs at any stage of their career. But this strategy is especially damaging for older workers, women re-entering the workforce, and workers who want to retrain for a different career. Low starting wages make it difficult for workers to repay their educational debts, recover from job losses, support their families, and save for retirement.
WCC’s Board of Trustees needs to re-evaluate the “certificate strategy” considering its minimal positive economic impact on the students and on Washtenaw County as a whole.
Photo Credit: Images Money, via Flickr
