College ranking models
Last week Obama began to making threats regarding a new college ranking system and its connection to federal funding. Here’s an excerpt of what he was talking about, from this WSJ article:
The president called for rating colleges before the 2015 school year on measures such as affordability and graduation rates—”metrics like how much debt does the average student leave with, how easy is it to pay off, how many students graduate on time, how well do those graduates do in the workforce,” Mr. Obama told a crowd at the University at Buffalo, the first stop on a two-day bus tour.
Interesting! This means that Obama is wading directly into the field of modeling. He’s probably sick of the standard college ranking system, put out by US News & World Reports. I kind of don’t blame him, since that model is flawed and largely gamed. In fact, I made a case for open sourcing that model recently just so that people would look into it and lose faith in its magical properties.
So I’m with Obama, that model sucks, and it’s high time there are other competing models so that people have more than one thing to think about.
On the other hand, what Obama is focusing on seems narrow. Here’s what he supposedly wants to do with that model (again from the WSJ article):
Once a rating system is in place, Mr. Obama will ask Congress to allocate federal financial aid based on the scores by 2018. Students at top-performing colleges could receive larger federal grants and more affordable student loans. “It is time to stop subsidizing schools that are not producing good results,” he said.
His main goal seems to be “to make college more affordable”.
I’d like to make a few comments on this overall plan. The short version is that he’s suggesting something that will have strong, mostly negative effects, and that won’t solve his problem of college affordability.
Why strong negative effects?
What Obama seems to realize about the existing model is that it’s had side effects because of the way college administrators have gamed the model. Presumably, given that this new proposed model will be directly tied to federal funding, it will be high-impact and will thus be thoroughly gamed by administrators as well.
The first complaint, then, is that Obama didn’t address this inevitably gaming directly – and that doesn’t bode well about his ability to put into place a reasonable model.
But let’s not follow his lead. Let’s think about what kind of gaming will occur once such a model is in place. It’s not pretty.
Here are the attributes he’s planning to use for colleges. I’ve substituted reasonably numerical proxies for his descriptions above:
- Cost (less is better)
- Percentage of people able to pay off their loans within 10 years (more is better)
- Graduation rate (more is better)
- Percentage of people graduating within 4 years (more is better)
- Percentage of people who get high-paying jobs after graduating (more is better)
Nobody is going to argue against optimizing for lower cost. Unfortunately, what with the cultural assumption of the need for a college education, combined with the ignorance and naive optimism of young people, not to mention start-ups like Upstart that allow young people to enter indentured servitude, the pressure is upwards, not downwards.
The supply of money for college is large and growing, and the answer to rising tuition costs is not to supply more money. Colleges have already responded to the existence of federal loans, for example, by raising tuition in the amount of the loan. Ironically, much of the rise in tuition cost has gone to administrators, whose job it is to game the system for more money.
Which is to say, you can penalize certain colleges for being at the front of the pack in terms of price, but if the overall cost is rising constantly, you’re not doing much.
If you really wanted to make costs low, then fund state universities and make them really good, and make them basically free. That would actually make private colleges try to compete on cost.
Paying off loans quickly
Here’s where we get to the heart of the problem with Obama’s plan.
What are you going to do, as an administrator tasked with making sure you never lose federal funding under the new regime?
Are you going to give all the students fairer terms on their debt? Or are you going to select for students that are more likely to get finance jobs? I’m guessing the latter.
So much for liberal arts educations. So much for learning about art, philosophy, or for that matter anything that isn’t an easy entrance into the tech or finance sector. Only colleges that don’t care a whit about federal money will even have an art history department.
Gaming the graduation rate is easy. Just lower your standards for degrees, duh.
How quickly people graduate
Again, a general lowering of standards is quick and easy.
How well graduates do in the workforce
Putting this into your model is toxic, and measures a given field directly in terms of market forces. Economics, Computer Science, and Business majors will be the kings of the hill. We might as well never produce writers, thinkers, or anything else creative again.
Note this pressure already exists today: many of our college presidents are becoming more and more corporate minded and less interested in education itself, mostly as a means to feed their endowments. As an example, I don’t need to look further than across my street to Barnard, where president Debora Spar somehow decided to celebrate Ina Drew as an example of success in front of a bunch of young Barnard students. I can’t help but think that was related to a hoped-for gift.
Obama needs to think this one through. Do we really want to build the college system in this country in the image of Wall Street and Silicon Valley? Do we want to intentionally skew the balance towards those industries even further?
Building a better college ranking model
The problem is that it’s actually really hard to model quality of education. The mathematical models that already exist and are being proposed are just pathetically bad at it, partly because college, ultimately, isn’t only about the facts you learn, or the job you get, or how quickly you get it. It’s actually a life experience which, in the best of cases, enlarges your world view, and gets you to strive for something you might not have known existed before going.
I’d suggest that, instead of building a new ranking system, we on the one hand identify truly fraudulent colleges (which really do exist) and on the other, invest heavily in state schools, giving them enough security so they can do without their army of expensive administrators.