ASU May Merge with a Private Business School

Left and right, things that have been funded by, built by, and supported by the government in the name of the public good have been ushered behind the closed doors of private corporations through the privatization of roads, parks, schools, and of course – universities, which does hell on the public good. The opposite of that (nationalization? eminent domain? socialism?) doesn’t happen much in these United States, but it might be happening in Arizona higher education. ASU and the Thunderbird School of Global Management have announced an impending merger.

Now, before we move forwards, I should say that I’m probably jumping the gun in saying this is the opposite of privatization – so let me issue a disclaimer that I am actually highly skeptical, as usual, of the latest move by ASU. Now:

Arizona State University and the Thunderbird School of Global Management have announced that they’re merging, with Thunderbird coming under the control of ASU (and the Arizona Board of Regents). The Glendale business management school has been facing financial woes and even considered a joint venture with a for-profit university, but the deal fell through.

As a result, ASU and Thunderbird will merge and the financial problems will (hopefully) be resolved, Thunderbird will gain more resources from joining a large university, ASU’s business programs will expand to include Thunderbird’s many international executive programs, and Thunderbird’s staff will join ASU. The information that’s lacking so far is how exactly this merger will be carried out, so keep an eye out.

ASU was in the news last year for the opposite of this – that is, privatization – happening at another professional school. As early as 2010, the Sandra Day O’Connor College of Law at ASU has been playing with the idea of privatization, arguing that state funds have reduced but also arguing “why not?” Here’s an article quoting Paul Berman, Dean of the Law School:

Berman, however, believes higher tuition can be justified.

As his yardstick, he uses what in-state students pay at the Top 40 law schools as rated by “U.S. News and World Report.” ASU is No. 28.

“If you look at all 40 of them, our in-state tuition is lower than all but four,” he said. And even the tuition for those who are not state residents is below the half-way mark.

Berman said the school already has requested that the Board of Regents allow tuition for Arizona residents to go up by $1,500 for next year. “We’re not talking about large increases,” he said. Berman said that, even with that, attending ASU will remain lower than what is being charged at those other Top 40 schools.

And here’s Vice President of Public Affairs Virgil Renzulli:

“It has been shown at other universities that there are certain very popular graduate and professional programs that can do well, even thrive, charging higher rates… The idea is to move to a tuition level that would be more market-driven than state-subsidized.”

The decision to privatize, expand class size, and raise tuition for the hell of it hasn’t moved forwards a ton – but it hasn’t stopped either. ASU will soon be breaking ground on a new downtown campus for the law school, a move which doesn’t necessarily further privatization, but the larger building is within the vision outlined above of increasing admissions. So, with ASU simultaneously privatizing one professional school while using another to take over a private institution, I will continue to say that ASU is a university to watch. You know, in case you weren’t already reading about Starbucks partnerships or police abuse of a WOC professor.

 

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Arizona State University of Starbucks

On Monday, Starbucks announced that it was launching a new program through which it will help many of its employees pay for undergraduate education at Arizona State University’s ASU Online program. Here are some of the details of how it would work:

Tuition for an online degree at ASU is about $10,000 a year, roughly the same for its traditional educational programs. For the freshmen and sophomore years, Starbucks and Arizona State say they will put around $6,500 on average toward the estimated $20,000 in total tuition.

To cover the remaining $13,500, workers would apply for financial aid. Since Starbucks workers don’t earn a lot of money, many would likely qualify for a Pell grant, said Mark Kantrowitz, publisher of EdVisors.com, a website about paying for college. If a worker qualified for a full Pell grant of $5,730 a year — or $11,460 over the two years — he or she would theoretically be left with about $2,040 to pay out of pocket.

The program would work similarly for the junior and senior years, except that Starbucks would reimburse any money workers end up having to pay out of pocket. Starbucks said most of its workers have already started school, so could potentially finish off their degrees at no cost if they applied for the program.

At first, it piqued my interest to hear that ASU was involved in such a project. ASU has long been involved in efforts that purport to expand access to quality university education, but has also engaged in moves that collapse schools and programs (which eliminates jobs and takes power away from faculty), demote staff to the status of at-will employees, and continually raise tuition.

But agreeing to pay for employees’ education is a good move, even if it does nothing to salvage the crisis of public education. And yet there are hidden aspects of this deal that are important to shed light on. Firstly, the program hopes to offer a diverse education to Starbucks employees, but having the selection of majors offered at one university’s online wing is actually quite narrow. As this piece finds, even the students featured in an NYT article about the program may not actually be able to study what they want.

In addition, online-only education is not a tried-and-true provider of education, especially for working students who have not been exposed to higher education before. Sara Goldrick-Rab, professor of education policy studies and sociology at the University of Wisconsin at Madison, linked to this 2011 study [pdf] on online education and its effectiveness for low-income and underprepared students by Shanna Smith Jaggers. In short, online classes saw more low-income and underprepared students withdraw, and many of these students were less likely to return to continue their education. Learning online is as much of a learned skill as learning in the classroom, only online degrees and courses often come with less support for students. I took at least four online classes while at ASU, and only one was as rigorous as in-person courses and provided similar levels of support.

But the more important point here is that Starbucks employees are not being offered free education at Arizona State University, my alma mater and an arguably decent school from which to earn a Bachelor’s. The Starbucks program funnels workers through ASU Online, a joint-venture between ASU and Pearson, the for-profit publishing and ed tech company. The venture overcharges online students, students who may be receiving less support and less freedom in their studies and cost the university less money, but who pay roughly the same tuition as on-campus students. As one article mentions:

Arizona State University Online, a revenue-sharing relationship between Pearson, a for-profit company best known as a publisher, and Arizona State University (ASU), yielded $6 million in profit in 2011 for ASU. Projections are that it will yield $200 million in profit by 2020. Many other non-profit colleges with large online programs tout the substantial profits generated by online programs that are re-invested in on-ground facilities. Thus, online students are being substantially overcharged to generate profits that subsidize face-to-face learners, faculty and administrators.

This type of revenue-sharing happens a lot at universities between departments (the humanities often subsidize the sciences), but the inclusion of a for-profit company makes this deal smell of something far worse. Pearson has long-been a part of the ed reform movement, standardizing and assessing real education into oblivion. That it operates as a “partner” in ASU Online is a shame and a sign of how the top echelons at ASU view education.

This agreement between ASU and Starbucks is supposed to be about providing free education to lower class workers. But according to Starbucks CEO, about 70% of Starbucks workers are current in college or aspire to go. These students, working at Starbucks across the country, will now have to transfer to ASU Online if they want to take advantage of their employers’ benefits – and Starbucks is eliminating its tuition reimbursement program for the City University of Seattle and Stayer University next year in order to commit to the ASU Online endeavor.

As Melissa Byrne points out, this is mostly as PR stunt for Starbucks, whose executives have come straight out and said that they hope this will attract a better class of workers. And ASU hopes to continue to expand its growing online presence and push President Michael Crow’s “New American University” vision one step further. For many of Starbucks’ workers, this program will expand access, but access to what? And what will happen when they fail to finish because they were pushed into a program that was ill-suited for them?

Update: Be sure to check out Tressie McMillan Cottom’s piece on this, in which she links ASU-Starbucks endeavor to what for-profit universities have been doing for decades.