Giving Compass' Take:

• American Enterprise Institute and Third Way offer two areas for improvement to boost college completion rates: college choice and addressing poor performance. 

• How can philanthropy support further research into this topic? What are colleges in your state doing to boost completion? 

• Learn about effective post-secondary education interventions to help low-income students succeed. 

Improving College Choice:

Unfortunately, what researchers and government agencies know about college completion rates and other outcome measures (such as default rates and earnings) does not appear to have substantially influenced how students decide on a college. Federal resources such as the College Scorecard and College Navigator may have more utility for researchers than for students and families.

There is ample evidence that many students do not apply to (or attend) colleges that are well matched to their achievements and aspirations. In particular, high-achieving low- and moderate-income students are less likely than their more affluent peers to attend an institution where expected graduation rates are high.

Improving college choice is likely among the most powerful potential college completion reform strategies. If students choose colleges that have strong records of completion and are well matched with their academic preparation and career aspirations, they may be more likely to complete degree programs. Moreover, when students “vote with their feet” and make well-informed choices about where to attend college, the higher education marketplace improves as strong institutions are rewarded and low-performing ones exit or reform.

Addressing Poor Performance:

An important role for state and federal policy is to ensure that there are sufficient guardrails in place so that institutions that do not demonstrate systematic patterns of success in college completion, as well as other indicators such as earnings and loan repayment, do not lure students to an unfulfilled promise of college education. While colleges unquestionably have different missions, along with varying levels of student preparation and institutional resources, each institution that is eligible for federal financial aid should be able to demonstrate realistic prospects for college completion. Institutions with the lowest completion rates often serve the most at-risk populations, potentially contributing to a cycle of poverty rather than fostering the economic gains that are part of the promise of higher education