The College Stress Test : Tracking Institutional Futures Across a Crowded Market

Provides an insightful analysis of the market stresses that threaten the viability of some of America's colleges and universities while delivering a powerful predictive tool to measure an institution's risk of closure. In The College Stress Test , Robert Zemsky, Susan Shaman, and Susan Campbell Baldridge present readers with a full, frank, and informed discussion about college and university closures. Drawing on the massive institutional data set available from IPEDS (the Integrated Postsecondary Education Data System), they build a stress test for estimating the market viability of more than 2,800 undergraduate institutions. They examine four key variables―new student enrollments, net cash price, student retention, and major external funding―to gauge whether an institution is potentially at risk of considering closure or merging with another school. They also assess student body demographics to see which students are commonly served by institutions experiencing market stress. The book's appendix includes a powerful do-it-yourself tool that institutions can apply, using their own IPEDS data, to understand their level of risk. The book's underlying statistical analysis makes clear that closings will not be nearly as prevalent as many prognosticators are predicting and will in fact impact relatively few students. The authors argue that just 10 percent or fewer of the nation's colleges and universities face substantial market risk, while 60 percent face little or no market risk. The remaining 30 percent of institutions, the authors find, are bound to struggle. To thrive, the book advises, these schools will need to reconsider the curricula they deliver, the prices they charge, and their willingness to experiment with new modes of instruction. The College Stress Test provides an urgently needed road map at a moment when the higher education terrain is shifting. Those interested in and responsible for the fate of these institutions will find in this book a clearly defined set of risk indicators, a methodology for monitoring progress over time, and an evidence-based understanding of where they reside in the landscape of institutional risk. "Education economist Robert Zemsky and his team of researchers devised a predictive model to assess a higher education institution's risk of closure. Using institutional data publicly available from the Integrated Postsecondary Education Data System (under the auspices of the US Dept. of Education), the team analyzed a set of metrics for estimating the market viability of more than 2,800 undergraduate institutions. With this massive data set, they developed a stress test that identifies institutions at greatest risk of closure or consolidation because of shifting student markets"-- Provided by publisher "Education economist Robert Zemsky and his team of researchers devised a predictive model to assess a higher education institution's risk of closure. Using institutional data publicly available from the Integrated Postsecondary Education Data System (under the auspices of the US Dept. of Education), the team analyzed a set of metrics for estimating the market viability of more than 2,800 undergraduate institutions. With this massive data set, they developed a stress test that identifies institutions at greatest risk of closure or consolidation because of shifting student markets"--Résumé de l'éditeur Contents 6 Acknowledgments 8 Prologue. Is It Closing Time? 12 1. Threat, Reassurance, and Grief 16 2. A Winner’s Market 30 3. A Calculus for Risk 50 4. The Distribution of Risk 68 5. Winners and Losers 82 6. Those Who Are Bound to Struggle 94 7. Changing the Slope 104 Appendixes 130 A. Risk Index Workbook for Institutional Analysts 130 B. On Squaring the Circle 150 C. A Note on Verification 154 References 158 Index 162 A 162 B 162 C 162 D 162 E 162 F 163 G 163 H 163 I 164 J 164 K 164 L 164 M 164 N 165 O 165 P 165 R 165 S 166 T 166 U 166 V 166 W 166