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ERIC Number: EJ1072826
Record Type: Journal
Publication Date: 2011-Feb
Pages: 8
Abstractor: As Provided
ISSN: ISSN-1940-5847
A Value-Added Model to Measure Higher Education Returns on Government Investment
Sparks, Roland J.
Contemporary Issues in Education Research, v4 n2 p15-22 Feb 2011
The cost of college is increasing faster than inflation with the government funding over 19 million student loans that have a current outstanding balance of over $850 billion in 2010. Student default rates for 2008 averaged 7% but for some colleges, default rates were as high as 46.8%. Congress is demanding answers from colleges and universities about the quality of their education and the return on the government's investment. Current practices measure universities effectiveness by self-developed and measured outcomes. This system does not seem to be effective in measuring the value-added by a college education. This paper develops a model to evaluate the value-added through higher education. The model uses financial return on investment as viewed by the government lenders. A service quality model is introduced to help identify factors that are significant and easy to measure in determining a university's ability to return the government's investment.
Clute Institute. 6901 South Pierce Street Suite 239, Littleton, CO 80128. Tel: 303-904-4750; Fax: 303-978-0413; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A