Monday, 2 September 2013

3 Pakistani universities among world’s top 200


KARACHI: According to new world rankings, seven universities of Pakistan have made it to the list of top 250 Asian universities while three other universities among the top 200 world universities in agriculture and forestry.
Quacquarelli Symonds (QS), United Kingdom-based universities ranking agency issued the ranking for the year 2013.
In accordance to the ranking, Quaid-e-Azam University Islamabad (QAU) has secured 119 position among top 250 Asian varsities while National University of Science and Technology Islamabad (NUST) was declared 120, Agha Khan University Karachi (AKU) between 151-160, Lahore University of Management Sciences Lahore (LUMS) between 191-200, University of Engineering & Technology Lahore (UET), University of Karachi and University of the Punjab Lahore between 201-250 are now in top 250.
“This is the result of hard work and the passion we poured into the university in order to deliver world class education in developing country,” Quaid-e-Azam Universities Vice Chancellor Masoom Yasinzai said.
In addition, three Pakistani universities: University of Agriculture Faisalabad (UAF) 142, Arid Agriculture University Rawalpindi 152 and QAU 172, are now in the Top 200 World Universities categories in the disciplines of agriculture and forestry.
“We are in the subject ranking list, which carries over 3,000 varsities,” Vice Chancellor University of Agriculture Faisalabad Iqrar Khan said. “It is important, however, that we sustain the ranking we attained.”
Commenting on the universities’ international recognition, Higher Education Commission (HEC) Chairman Dr Javed Laghari said during the last year six Pakistani universities were among top 300 Asian universities. “This year seven varsities are in the list of top 250,” he said.
According to HEC sources, since the establishment of education body in 2002, research output has grown eight-folds (from 815 research papers in 2002 to more than 6,300 in 2012) with the largest number of publications in areas of economic development.
As a result, the world share of Pakistan’s research has gone up by 300 per cent in the last five years.


Philanthropy: The immortal legacy of giving to education

The time for investing in the education of Pakistani youth is now. There is no greater or longer-lasting legacy for any citizen than giving to education. While those who have can share their good fortune with those who have not, everyone can and must contribute to improve education quality and access for youth.Even the smallest gift to education can make a tremendous change in the life of a student who travels hours to reach a school, stays late at night to study after a full day of work, or who has big dreams for the future.
Big dreams come true with support There are many ways to contribute to the education of the next generation such as donating to student-oriented endowment funds, establishing public-private partnerships with universities, or simply donating toward student scholarships. All these contributions can bring changes that will last for years to come and ensure a lifetime legacy that will be remembered and honoured not just by individuals, but celebrated by everyone.
The Promotion of Education in Pakistan (PEP) Foundation lost one of these philanthropists and one of its founders, Dr Inge Grundke-Iqbal, last month. A native of Germany, Inge was, in addition to being a world-leading Alzheimer’s disease researcher, a passionate educationist committed to helping talented students coming from economically disadvantaged backgrounds in Pakistan.
Since 1994, Dr Grundke-Iqbal dedicated much of her energy, resources and time to increase access to quality education for those Pakistanis who could not afford it otherwise. Through PEP Foundation activities, she ensured that talented students have a fair chance to continue their studies, advancing their talents. Inge was a strong advocate of student voices in Pakistan. During many professional meetings concerning education issues organised by PEP Foundation in Pakistan and New York, she ensured that students were well-represented and that their opinions and concerns were heard.
Inge Grundke-Iqbal defines a great, lifetime educationist who supported the dreams of many poor students in Pakistan and made it possible for them to earn graduate and undergraduate degrees by generously donating her lecture earnings, salary, prizes and book royalties to this cause. Her legacy continues to live on through the projects of the PEP Foundation, such as the Student Advancement Fund Endowment (SAFEs) and Student Start-Up Business Centres (SSBCs) at various public and private higher education institutions in Pakistan. Many students and future generations of students, will continue to benefit from these projects and from Inge Grundke-Iqbal’s dedication to improve education.
Big pockets, big hearts Another notable example in Pakistani education philanthropy is represented at one of the best institutions of the country. In addition to an education of world-class standard, LUMS has taken serious steps to attract the most talented students who cannot afford it financially by awarding Rs340 million financial assistance to more than 40 per cent of its students.
The Vice Chancellor, Dr Adil Najam, is rightly proud to have earned the trust of the Suleman Dawood family, the Syed Babar Ali family, and the Mushtaq Gurmani family, whose donations made it possible to add to the existing Suleman Dawood School of Business (SDSB) two newly named Schools — the Syed Babar Ali School of Science and Engineering and the Mushtaq Ahmed Gurmani School of Humanities and Social Sciences, and within the next three years an independent School of Law. The School of Science and Engineering, which graduated its first class of undergraduates, is being named after LUMS Pro Chancellor Syed Babar Ali to commemorate his vision, dedication and philanthropy as the single largest donor to LUMS over the last 26 years.
In an interview with The New York Times that was printed in the Dec 19, 2009, issue, Syed Babar Ali emphasised his conviction that one day LUMS students might deliver the leadership skills needed to change the country for good. As a Harvard Business School graduate, he fully understands the importance of quality higher education and the crucial role it plays in preparing leaders. His vision is fully embraced by other philanthropic families, such as the Gurmani Foundation, that endowed the Gurmani Centre for Language and Literature at LUMS and recently gave LUMS the largest private single gift ever given to any higher educational institution in Pakistan, a Pakistani Rs 1 billion endowment, to assist talented students with financial assistance and other scholarly activities.
The way forward Pakistan’s youth, making up the majority of the population, must be educated and provided with the necessary skills to become a viable workforce and produce the next generation of innovators, and leaders. By increasing access, improving quality and having more means to reward talent, education at all levels can offer many opportunities to its youth and to the general population.
Educating young Pakistanis must become a national priority not just for the government, the educationists and the visionaries of the society, but a concern shared by all citizens. Families that give to education causes, regardless of their identification as business people, those of modest means, or internationally recognised scientists, all share the vision and the commitment to invest in the future of Pakistan. Their foresight and dedication must be shared and thus enlighten all other families and individuals to help alleviate the burden of the education crisis in Pakistan. The gift of education is immortal and ensures a legacy like no other, benefiting not just one individual but the society, and the world.


Supporting education: Making money and doing good

Making lots of money and doing good in the world at the same time are not contradictory concepts according to Peter Blair Henry, the current dean of New York University Stern School of Business interviewed on February 24, 2013 by The New York Times. His refreshing viewpoint emphasises that there is a different way of thinking about the role of business in society. As the dean of one of the most prestigious business schools in the world, he is trying to educate a new generation of business leaders that want to make the world a better place. While considered avant-garde in the developed world, his vision is crucial for the developing world including Pakistan’s new business elite and educators.
In the current competitive world, no country can be developed and brought to its full potential without having an easily accessible system of education that is of high quality and supports creativity and talented students. One of the critical objectives of higher education is to support the large pool of talented but financially disadvantaged students to reach their goals and become the next generation of leaders, scientists and professionals who can lead the country out of poverty into an economically sustainable nation.
Giving back Supporting education, especially higher education in Pakistan has never been more important or time-sensitive. Big businesses, corporations and also self-made wealthy people in Pakistan must realise that the future of the country and their business’ success depends on the quality of the education delivered today. Their donations to support student education through fellowships or student endowment funds are critical to the advancement and accessibility of education. It is especially important to consider the power of small but continuous donations in a populous country like Pakistan.
The power of numbers is impressive and can make a real difference in fundraising for education (see: ‘Civic duty: university education for the community, by the community’, Dawn April 7, 2013). Even a small contribution to a student endowment fund can over time grow and increase the chances that talented young persons become successful and make a difference in the world.
To enable more students to access and receive a quality education is the goal of the PEP Foundation programme: the Student Advancement Fund Endowment (SAFE). The endowment fund is dedicated to provide scholarships and financial aid to needy students. It is invested in guaranteed income instruments such as government bonds with only half of the gains, at the end of each year used for scholarships. The other half of the gains together with the principal are reinvested so that SAFE becomes a source of awarding scholarships in perpetuity.
The scholarship programmes supported by SAFE ensure that talented students are not deprived of their education because of their financial status and will have a chance to excel in their studies. With initial financial assistance from PEP Foundation, SAFEs have already been established at the University of Punjab; the University of Engineering and Technology, Lahore; Government College University Lahore; Government College University Faisalabad; the Beaconhouse National University, Lahore; Lahore College for Women University; and University of Agriculture Faisalabad while Memorandums of Understanding have been signed with 19 additional universities.
Everyone in the community, including business leaders and philanthropists may contribute to these student funds at any time by contacting their local universities or during the university’s designated education fundraising week.
Next generation of philanthropists The receivers of these funds will become not only the next generation of leaders, but also the next donors and philanthropists who can contribute to the institutions that have helped them. However, it is important that even those who are blessed to have the support of their families and do not need financial assistance for their education know the value of philanthropy. Encouraging volunteering and donating to noble causes such as education or other community needs, makes students responsible citizens and can be regarded as a part of their civic education.
Similarly, community service must become part of school curricula to instill civic duty and compassion in students, and also make their education relevant to the needs of the community around them. The next generation of professionals, leaders and scientists will include those talents that employ global solutions to local needs and can easily apply their intellectual abilities and financial power to make the world a better place, starting at home.


Civic duty: University education for the community, by the community

The current enrolment of around five per cent of the 17-23-year age group in a college/university is less than 10 per cent of that desired for Pakistan to become a successful developed country. Furthermore, Pakistani universities are producing graduates without any training in the practical problem solving of the needs of the communities they belong to and without much real life exposure to their issues.
Pakistani universities need to transform to meet their obligations of making high quality and relevant education accessible. To achieve these goals, universities will need both funds and the support of the communities they serve. The bridge between a university and the community is critical both for successful fundraising for the former from the latter and to make education relevant to the needs of the community and Pakistani society.
Pakistan, with its population of ~190 million, is currently the sixth most populous country and is on its way to becoming the fifth most populous country in the world by 2050 if it continues to grow at its current rate. With the current number of about 73 public-sector (and a similar number of private) universities, each of these institutions serves over one million people on average.
As a way of making education relevant to the needs of the society and to in turn receive the community’s support, a practical community service course should be a part of the core curriculum of every undergraduate and graduate programme. As a part of this course the graduating students would volunteer teaching basic mathematics, science, languages, art, music and basic computer skills to children and adults in need, as after school or evening programmes and to inpatients in their area hospitals and volunteer their services assisting hospital staff in providing ambulatory services. The community service would also include time spent by students to raise funds for their university’s Student Advancement Endowment Fund (SAFE). This is an endowment that makes education accessible to students from economically disadvantaged families by providing need-based scholarships and enhancing the academic capacity building programmes that directly benefit students (‘Higher education: Innovations and gains through self-help’, Dawn, Images on Sunday, May 12, 2012).
One of the most effective ways for universities to give more financial aid to talented students who cannot otherwise attend higher education is to raise funds periodically to increase the capital in their student endowment fund. For a populous country such as Pakistan the power of numbers is impressive and can make a real difference in fundraising for education. The strength of such campaigns comes from the simple mathematical fact that even a small contribution multiplied by thousands of people can mount up to millions of rupees over years of investing them in student endowment funds. Universities need to plan effective, transparent and creative fundraising campaigns where students can become a major vehicle during a dedicated educational annual fundraising week. Most importantly, higher education institutions must increase the public awareness of how important education is and make their financial needs clear to appeal to the community for their contribution.
Finding your niche The best fundraising strategies not only raise considerable amount of funds periodically thus ensuring lasting funding for different projects; they also give the donors a sense of pride. Their donations also express a commitment to a valuable cause to the society. Some schools in the United States come up with inventive ideas appealing to their communities to help them. One example in Florida is collaborating with local authorities to sell specialty automobile licence plates, whereof the tag sale $2 goes to the state and $15 goes to help fund school activities. These special tags having educational symbols such as a graduation cap and a diploma inside an apple are predicted to bring in as much as $3 million. Some schools have found unique ways to raise money from their students and community. In one school students who purchased a sticker for a dollar could wear a hat to school on that day. That particular school does not allow its student to wear hats, so it was a rare exception for most.
In another school with a strict dress code, teachers paid $5 to wear casual jeans to school. As part of its school-to-career programme, one school opened a store that sold snacks, clothing, school supplies and novelties before and after school and at lunchtime. Initially, faculty operated the store, but students are gradually taking over the responsibility for selling, ordering, and restocking the store.
These fundraising ideas can be very useful to generate funds for SAFEs and capacity-building programmes but most importantly they make excellent training of students and a great way to encourage communication between universities and the communities surrounding them. With such strategies, the participants also feel part of something significant, a sense of ownership which has shown to be very important in maintaining sustainable development practices over time.
It is time for everyone in the country to participate and offer a helping hand to secure education’s financial sustainability. Communities all over the country have the chance of a lifetime to leave their mark in history by sponsoring the future through improving and investing in educational institutions. It is the civic duty of every single citizen to contribute in developing a better future and stronger nation by securing affordable and quality education for everyone.


How Transparent Is Your State’s Department of Education?

When a business applies for a loan, the bank needs to know the business’s operating expenses as well as its overhead to make an informed decision about whether to grant the loan. A business that acquired a loan while understating or hiding some categories of its expenses would be in serious trouble. However, the government seems to operate by a different set of rules.
A new report from the Cato Institute finds that state departments of education routinely understate the cost of public schools and often fail to report key spending categories. This may be contributing to the public’s vast underestimation of the true cost of public education.
The report, “Cracking the Books: How Well Do State Education Departments Report Public School Spending? ” assigns A-to-F grades to all 50 state education departments for the completeness, timeliness, and accessibility of the spending data that they make available to the public on their websites. The report reveals that very few state education departments provide complete and timely financial data that is understandable to the general public.
The most useful figures to compare school districts of varying sizes are the annual per pupil expenditures (PPE). However, half of all state education departments report a PPE figure that leaves out major cost items such as buildings, interest on debt, and pensions, thereby significantly understating what is actually spent. This is like a business reporting operating expenses to the bank but hiding its overhead. Alaska’s department of education website does not even report PPE figures at all.
Other important spending categories are omitted entirely. Eight states fail to provide any data on capital expenditures. Ten states lack any data on average employee salaries and 41 states fail to provide any data on average employee benefits.
10 Most Transparent States
RankStateScoreGrade
1New Mexico93A
2South Dakota92.5A-
3Washington85B
4Texas84.5B
5Nebraska82.5B-
6Kentucky81.5B-
7California80B-
8New York79.5C+
9Pennsylvania79C+
10New Jersey78C+
10 Least Transparent States
RankStateScoreGrade
41 (tie)Massachusetts49.5F-
41 (tie)Missouri49.5F-
43Connecticut48.75F-
44Oregon47F-
45Ohio44.25F-
46Oklahoma38F-
47Nevada37F-
48Iowa35.75F-
49Hawaii28.25F-
50Alaska26.75F-
Moreover, states too often report spending data that are hard to find and interpret. For example, the average citizen is unlikely to know that the term “current expenditures per ADA” means “operating expenditures per pupil as measured by average daily attendance.” “Current” sounds like “recent,” not “operating,” which can give the false impression that it merely refers to timely data rather than indicating that the figure excludes some major categories of spending. Also, without defining or at least spelling out acronyms like “ADA” or “ADM,” the average citizen will have a hard time deciphering the data presented.
This financial opacity may be contributing to the widespread misperceptions about public education spending. Despite tremendous and persistent spending growth in the last half-century, the public vastly underestimates the true cost of public education. The 2013 Education Next/Harvard University Program on Education and Governance (PEPG) survey found that the public’s average estimate of the annual cost per student in American public schools was only $6,680. The true cost is more than double the public’s estimate. According to the most recent data from the National Center for Education Statistics, the average total cost per pupil was $13,692 in the 2009-10 school year, adjusted to 2012 dollars.
The two most recent EdNext/PEPG surveys also examined how misconceptions about education spending affect support for spending levels. The survey randomly divided respondents into two groups. The first group of respondents were simply asked, “Do you think government funding for public schools in your district should increase, decrease, or stay about the same?” Respondents in the second group were first told what the annual per pupil expenditures were in their school district.
In each year’s survey, informed respondents were significantly less likely to support increased spending. In 2012 EdNext/PEPG survey, 63 percent of uninformed respondents supported increasing spending compared to only to 43 percent of informed respondents. In 2013, the support for increased spending among uninformed respondents was 10 percentage points lower than the previous year at 53 percent, while informed support remained steady at 43 percent. Informed respondents were also more likely to support decreasing public school spending.

Click to enlarge
The public’s vast underestimation of education spending has real-world consequences. For example, on Election Day 2012 in Colorado, a majority of voters in 29 of 31 districts voted to increase K-12 education spending by over $1 billion, approving 34 bond issues and operating revenue increases. Nearly two-thirds of the ballot questions passed with less than 60 percent of the vote. As the EdNext/PEPG surveys suggest, a fully-informed public would likely have voted differently.
An informed public is a necessary condition for self-government. When the government agencies provide incomplete or misleading data, they deprive taxpayers of the ability to make informed decisions, undermining democracy itself. A bank cannot make a loan without access to a business’s complete and accurate financial statements. Likewise, it is impossible to determine what the appropriate amount of K-12 education spending should be without accurate information about what is currently being spent. At a time when state and local budgets are severely strained, it is crucial that spending decisions reflect sound and informed judgment.

Source :
http://educationnext.org/how-transparent-is-your-state%E2%80%99s-department-of-education/


What Education Can Learn From Kung Fu

Last week, The Learning Accelerator, a non-profit that supports the implementation of high-quality blended learning in American school districts, announced its first district-wide pilot for blended learning with the Reynoldsburg City School District in Reynoldsburg, Ohio.
A critical part of The Learning Accelerator’s definition for high-quality blended learning is that the learning be mastery-based (also known as competency-based)—that is, students make progress when they master a concept, not based on time.
The CEO of The Learning Accelerator, Scott Ellis, has done a lot of thinking about how Kung Fu is a useful analogy for thinking through what mastery-based learning would look like in our K–12 schools, so I interviewed Scott to learn more.
Q: How did you get involved in Kung Fu?
A: Three years ago I started learning Kung Fu. I was signing my kids up to take classes and had always wanted to try it. When I told the instructors, they were confused: “You mean Tai Chi, right? It’s nice and slow, better for you. Kung Fu is fast, good for the kids.” In my first class a few days later I was breathing hard and my face was red. It took a while to convince them I was not going to have a heart attack. Today I am a brown belt, which means I have completed 9 of the 13 levels.
Q: What does Kung Fu have to do with public education?
A: Kung Fu offers an interesting example of a system of mastery-based learning: enabling students to learn at their own pace and advance as they master content, rather than moving forward based on time requirements.
Q: Mastery, or competency-based, learning is being explored a lot right now in American education. But it would be a significant change from the current system in which all students move at the same pace in their classes. How does it work in Kung Fu?
A: The structure of progression in Kung Fu is based on belt levels. In class, students wear a cloth belt of the color that shows their level. Students start with white belts and as they master new content and skills they are awarded new belts: yellow, green, etc., until the top level—black. To receive a new belt, a student must demonstrate mastery of several different elements: a series of moves called a “form,” a specific kick, two self-defense maneuvers, strength, flexibility, and endurance. These requirements are what, in K–12 education, would be called “standards”: what students are expected to know and be able to do. In Kung Fu a student advances when she can demonstrate that she has mastered the required content.
Q: What does that look like in a class?
A: When the class starts, students line up in order of their belt level, starting with the most advanced. Students do the 10-minute warm-up phase together: stretching, running, and basic exercises. Students also do the 20-minute technique practice together, with everyone working on the same element (e.g., kicks). Each student, however, works on the kick for her level, and the less advanced watch and learn from the more advanced. Students separate by ability level for the 20-minute forms phase. Each student takes a turn to show what she learned in the previous class and receive corrections, and then learns the next few moves of the sequence. The instructor rotates among the groups of students and returns to each group multiple times during the session. In the 10-minute physical fitness phase, the students do push-ups, sit-ups, and other exercises together.
Q: What is the role of the teacher in all this?
A: The instructor plays a central role in the learning process by serving as a role model and motivator and providing differentiated instruction. Key drivers of instructor effectiveness are their own deep knowledge of the material and their keen awareness of each student’s current stage of learning and the support each needs to move forward.
Q: How does a student demonstrate mastery and progress to the next belt?
A: Once the instructor is satisfied that a student has mastered all elements of her level, he tells the student that she is ready to take the “belt test.” Students cannot take a belt test until the instructor tells them they are ready, and they must also demonstrate that they remember all required elements of every previous level.
The belt test occurs in a separate session from a normal class. Each element is tested separately:  endurance, forms, kicks, and so forth. For each element the instructor grades the student as “excellent”, “satisfactory”, or “unsatisfactory.” If a student is graded unsatisfactory on more than two elements, then he fails the belt test. He may have to come back to another belt test session in the future, or the instructor may allow him to practice the element and then demonstrate it in the next class.
Q: How does this apply to our K–12 education system?
A: There are a number of aspects of Kung Fu that may be relevant for mastery-based learning in schools.
1) There are clear and defined standards. It is clear to students what they must know and be able to do in order to advance. The transparency is empowering and exciting for students as they see the path ahead.
2) There is a specific mechanism to demonstrate mastery. Although nothing in Kung Fu is quantitative, the instructor assesses every student’s ability to complete each element. Success or failure is binary. Instructor judgment and knowledge are essential parts of this process.
3) There is a mastery-based progression, which is driven and controlled by the student. Each student moves at her own pace. The time spent at a particular level is irrelevant. Some students attend one class per week; some attend several. Some practice at home; some don’t. Some take other classes like dance that build complementary skills and enable them to advance faster.
4) There is a combination of shared and individualized learning. Social interaction and community are fostered by the parallel portions of the classes (warm-up, technique practice, and physical fitness), while at the same time students advance at their own pace and receive focused instruction that enables them to move forward when they are ready.
5) Instruction and assessment of mastery are separated. The student learns a certain group of skills until the instructor determines they are ready to demonstrate mastery. The assessment process is separate from the learning process, though the assessment session is an opportunity to reinforce learning.
6) There is a public signaling of the level of mastery. Students wear belts that everyone can see, and students line up based on their belt level. This is a contrast to other mastery-based examples like swim classes, where students may be grouped by ability level and receive an award ribbon when they reach a new level, but the ribbon is something they take home.
7) There is public recognition of a student’s progression. When students pass a belt test, they receive their belt at their next class. When the class ends, everyone sits down, the instructor calls the student to the front and awards them their new belt. Everyone applauds.
8) Students help each other and model skills. Since activities are parallel across belts (all have kicks, forms, etc.), there are many opportunities for students to help each other. Because advanced students do common activities first, the less advanced students see multiple demonstrations of good performance—not just from instructors, but also from their peers.
9) Finally, a broader range of content is taught than is tested. Students learn things in class that are not part of the belt tests. For example, students often do sit-ups, conditioning drills, and flexibility exercises, such as forward and backward splits, that are not included in the testing process.
Q: What’s the big takeaway?
A: Examples of mastery-based progression like Kung Fu offer models that could help transform American K-12 education. As policy proposals are considered in the months ahead, it is important to examine the underlying structure of America’s education system. Most fundamentally, students should advance when they master content, not based on outdated time requirements. Although not every student in America will become a black belt in Kung Fu, every student should receive the benefits of mastery-based learning.

Source :
http://educationnext.org/what-education-can-learn-from-kung-fu/


3 education trends reshaping the industry

While a public company's earnings reports are typically a good source of information for investors, those same SEC filings can also serve to provide key insight on a variety of trends shaping an industry.

Though there aren't a plethora of publicly traded companies operating primarily in the education space, the few that do still speak volumes on the changing face of education—and on several fronts. A quick look at a handful of recent earnings releases from for-profit colleges and textbook publishers reveals three key trends likely to have a considerable impact on the education space in both the short- and long-runs.



1. FOR-PROFITS ARE LOSING STUDENTS
Companies impacted: DeVry Inc., Career Education Corporation, Apollo Group Inc. and other for-profit institutions

Declining enrollments are costing for-profit education companies big money. In its August second-quarter earnings release, Career Education Corporation reported tuition and registration fees revenue of $289.2 million, down $70.6 million from the same quarter last year. Apollo Group Inc. had a 17% decline in enrollment during the third quarter, which ended in May, reporting overall revenues of $946.8 million—$175.5 million less than the same quarter last year. Strayer Education Inc. also saw continuing student enrollments fall 12% and new student enrollments fall 17%, causing a $14.3 million revenue decline over the previous year for the quarter ending in June.

In Apollo Group's third quarter earnings call, CEO, Director and Chairman Gregory W. Cappelli projected future enrollment growth as the company rebrands itself, partially attributing the decline to recent campus closures—the company closed more than 100 campuses for its primarily online for-profit University of Phoenix in December—and noting that he wouldn't get into "the exact quantification of it." DeVry noted its own realignment in its fourth quarter release.

It's no secret that the sector has been plagued by issues ranging from over-priced tuition (price adjustments are also mentioned in the earnings calls) to predatory recruitment, both of which are probably contributors to the high dropout rates. Those issues have also contributed to some unwanted attention in the last several years.



2. PENDING REGULATIONS COULD CREATE MORE LOSSES
Companies impacted: Apollo Group Inc., Strayer Education Inc., Career Education Corporation and other for-profit institutions

U.S. Senator Tom Harkin has had the for-profit education industry in his crosshairs for several years now. The Iowa Democrat is chairman of the U.S. Senate Committee on Health, Education, Labor and Pensions, and in 2012, he wrapped up a two-year investigation questioning whether the industry's high dropout rate merited continued federal aid and loan investment. Along with the aforementioned high dropout rates, predatory recruitment and high tuition, Harkin also found that for-profits spend a disproportionate amount of money on marketing.

The high number of military students enrolled in for-profits probably doesn't help diminish federal attention, either. In Career Education's most recent earnings call, CEO and President Scott Steffey noted the increasing popularity of his company's Colorado Technical University among active military members, saying, "According to a survey of Defense Department Information by Military Times Edge magazine, CTU is the 25th most popular university the nation in terms of where military students are choosing to use their tuition assistance benefits."

Strayer Education Inc., Apollo Group and Career Education Corporation all make direct references to the potential for increased regulation on the industry in their releases, as well. All three make note of the enrollment and financial impacts potential regulations affecting their eligibility for Title IV funding could have. That's not to mention the impact the attention could have on accreditation, though Apollo and Bridgepoint haven't seemed to have too much trouble on that front despite prior warnings.

It's not a stretch to think that the federal attention alone could have further adverse effects on enrollment. After all, a degree from a school that has lost its accreditation or been shut down by the government is of questionable value at best.



3. TEXTBOOK PUBLISHERS EMBRACE DIGITAL AS PRINT SALES DWINDLE
Companies impacted: John Wiley & Sons Inc., Pearson PLC, other publishers

A changing campus environment is forcing the textbook market to innovate as print sales fall. The decline is attributable to the reported 82% increase in course material prices over the past decade, which has led to pushback from students and some faculty. As many as 34% of students even reported pirating their textbooks in a recent Book Industry Study Group survey, and the third annual CourseSmart survey earlier this year revealed that only 7% of students think print textbooks will remain dominant.

The numbers reported by major education publishers support these stats. In June, John Wiley & Sons Inc. reported fourth quarter revenues of $446 million, down $9 million from the same quarter the previous year. For fiscal 2013, the publisher was down $22 million to $1.76 billion. In the company's earnings call, Wiley CEO, President and Director Stephen M. Smith stated, "Print book revenues continue to be under pressure across all 3 segments as a result of tight library budgets, changes in student purchasing behavior, shrinking sales in brick-and-mortar sales channels and the continuing migration to digital."

In its own second quarter earnings call in July, Pearson PLC reported level K-12 business subdued by Common Core adjustments and uncertainty, though it reported its higher ed business had "grown modestly."

Both publishers have made moves in recent years to expand into digital services, with Pearson acquiring startups like virtual education program Embanet Compass. CFO and Executive Director Robin Freestone said Embanet Compass "is giving us a lot more capacity and capability, as well as taking us into the very important postgraduate market," while also touting eCollege, another virtual education program. Meanwhile, Wiley acquired higher ed online program provider Deltak for $220 million in October and e-learning systems provider ELS in November for $24 million.

Wiley, Pearson, Macmillan, Random House, McGraw-Hill, Cengage—which filed for Chapter 11 bankruptcy protection in July—and other publishers also offer lower-priced e-textbooks through a number of services, including the one recently announced for Google Play. However, Wiley's Smith reported that despite the growth in digital and its partial offset of declining print sales, the growth still isn't matching the pace of print's decline. Still nobody is debating that further innovation is the wrong direction—in fact, Pearson Education North America Executive Director and CEO William T. Etheridge says innovative services and products like the company's Common Core materials and MyLabs for higher ed are a necessity.

"The move to digital is going to happen. And while the timing may be a little bit unclear, it's going to happen. And people have been holding back for so long — they can only hold back for so long and they got to move to these new curriculum."