Views on Higher Education as a Pathway to Opportunity: A Conversation with Third Way’s Michelle Dimino and AEI’s Beth Akers

I recently reached out to Third Way's Michelle Dimino and AEI's Beth Akers —two higher ed industry experts from organizations representing views from both the left and right of center respectively—to explore common ground on value-centered policy advancements in higher education. I anticipated a policy-heavy discussion filled with abstract concepts, but what we uncovered instead was something much more profound. Our conversation quickly shifted from policy jargon to the real-world challenges that students face within a system that isn’t clear enough about its value proposition. Both Michelle and Beth expressed concern that we’ve failed to keep higher education aligned with its essential role as a pathway to opportunity and catalyst for economic mobility, which has serious consequences felt by many of our nation’s learners.

This conversation and shared human-centered perspective clarified for me that, despite coming from different perspectives, there is common ground: we need to elevate the narrative around value to fulfill students' baseline expectation of higher education—improved economic opportunity. I couldn’t agree more. Our conversation is below (edited for clarity and length):

I believe that enabling individuals to experience economic mobility and self-determination is the most important calling for higher ed. What’s your take on what it will take to fulfill this fundamental purpose?

MD: For higher education to be the catalyst for economic mobility that it should be, we need to focus on access and value. Access to low-quality higher ed leaves students in debt without a valuable credential to advance their careers and build the lives they want, and gatekeeping value within a tiny subset of institutions perpetuates inequities.

Institutions need to care more about opening doors for students and helping them succeed than about their own prestige, and federal policymakers need to play their part by setting baseline levels of quality for student outcomes and holding institutions accountable. That’s a big systemic shift, but it’s what will be necessary to see higher ed reach its full potential.

BA: I believe that we’ve sent the wrong message to both students and institutions about the purpose of higher education. We often hear political and cultural leaders wax poetic about the virtues in building a more civil citizenry. The benefits of higher education are numerous and all should be celebrated, but the reality for most Americans is that education after high school is their ticket to financial wellbeing. I hope that in the future we’ll hear leaders speak about higher education more in that light, giving permission to both students and institutional leaders to explicitly invest in that goal

What roles do individuals and their families play in shifting their "consumption behaviors," and how can that influence institutional change?

BA: In my book, Making College Pay: An Economist Explains How to Make a Smart Bet on Higher Education, I explain to students and their families that the federal system of accountability doesn’t make college a foolproof pathway to prosperity. Rather, aspiring students need to consider whether the time and money they’ll invest in a degree are worth the likely benefits, including increased pay or access to a rewarding career. As students pay more attention to those details before signing on the dotted line, colleges will have to respond by ensuring good labor market outcomes. Many already are.

MD: Decisions about college are complicated! How students think about education is often shaped by the paths those around them took and by society’s messaging about different higher ed options and their worth, and that can make it really hard to cut through all the noise and find the program that best aligns with their goals and offers the best chances for strong ROI.

If college choices were motivated just based on value, I think we’d see a big change in the types of schools we consider “elite,” and institutions would be pushed to rethink their business models and program offerings from the ground up. There’s a reason that so many regional public colleges and schools come out on top on Third Way’s Economic Mobility Index, while Harvard comes in 800th place.

Where are areas of bipartisan agreement in advancing value-centered reforms at the federal level, and what are the sticking points?

MD: We’re seeing an exciting convergence in how policymakers on different sides of the aisle are thinking about the problems in higher ed and viable solutions to address them. A few key areas include increasing transparency, promoting student success, and ensuring financial value. The College Transparency Act, which would equip students with better data to make informed decisions, remains one of the most popular bills on Capitol Hill. Policymakers have shown broad support for an innovative Department of Education grant program to help institutions implement and scale college completion programs. Both the Biden Administration’s gainful employment rule and a package of bills led by Republicans in the Senate tie federal financial aid access to college programs’ ability to deliver economic value. And next up, I expect we’ll see action to fix major problems in debt and borrowing for graduate school, which is an area around which Beth has led a lot of great work to develop bipartisan consensus.

BA: Almost everyone in Washington wants institutions to offer high-quality education both for students and society. But we tend to disagree about what high quality looks like. On the right, favored policies tend to focus more narrowly on earnings outcomes. On the left however, there is a concern that an earnings-only approach to accountability will harm access for the already-economically-disadvantaged, both by pushing colleges to exclude these students from their enrollment or by shutting down schools that specialize in serving a hard-to-reach population. The right solution will balance these concerns with the need to put earnings outcomes at the center of the conversation.

Why are you both motivated by this work?

BA: I believe that higher education is one of the most valuable mechanisms for social mobility in our society. But at the same time, I feel like the way we talk about education in our culture has limited the ability for the neediest students, those not born with economic means, to benefit. I want to make the conversation about value in higher education more explicit so that we can unlock this pathway to financial freedom for more Americans.

MD: I believe that every student who chooses to invest in themselves through higher education should be better off for making that choice. It’s unacceptable to me that nearly half of students who start college won’t graduate, and doing work to close that gap motivates me every day. We need a strong higher ed system, and higher ed needs passionate advocates pushing to make it work better for future generations of students who deserve every ounce of promise it can offer.

Both Michelle and Beth underscore a critical truth: regardless of ideological perspective, there’s a shared desire to make higher education a pathway to opportunity and catalyst for economic mobility. This realization gives me hope that, despite our differences, we can come together to advocate for policy change that prioritizes value, ensuring that every student has the opportunity to succeed.

As we advance this dialogue, what specific actions can we take to change these narratives and re-center higher education’s purpose? As always, I look forward to continuing the conversation in the comments.

Until next time,

Scott

Reader Spotlight: How are we ensuring educational success for every career path?

Recently, I reached out to the LinkedIn community seeking insights into how we can better prepare graduates for the workforce. I’m grateful to Doug Wismer for sharing his personal experience and contributing his thoughts to the conversation (response edited for clarity and length):

As a college graduate with two young sons, aged 18 and 21, who are prime candidates for higher education, I haven't specifically encouraged or discouraged them from pursuing a degree. One of them has chosen to enter the workforce directly, while the other is considering a trade-based education at a traditional higher education institution. As Scott rightly points out, higher education is in serious need of reform. We, as a society, are wasting resources on degree programs that often lack relevance. Higher education should be financially invested in the success of its students. Imagine a system where institutions of higher education tied their financial success to the financial outcomes of their graduates. What if education were free upfront, with schools being paid a percentage of their graduates' earnings for a certain period after graduation? This would incentivize schools to ensure their programs are truly valuable.

I agree -- a crucial point in reforming higher education is to align institutional incentives with student outcomes. When institutions measure success based on the financial outcomes of students, student satisfaction, employment rates, and long-term career fulfillment, we can help everyone find success, no matter their chosen path.

ICYMI: Here’s what caught my attention recently

Colleges, Companies, And Communities Are Working Together To Improve Higher Ed ( Jamie Merisotis , Forbes ) Jamie explains how collaboration between higher education and employers benefits everyone involved. These partnerships are crucial for building a stronger workforce for the future.

Survey: Over Half of Rising Seniors Feel Pessimistic About Starting Their Careers ( Ashley Mowreader , Inside Higher Ed ) Our learners deserve to feel hopeful about their future after graduation. We must ensure that their hard work and sacrifices truly lead to the bright futures they're aiming for.

Governors To Examine How To Better Link Education To Economic Success ( Jim Cowen , Forbes ) Great to see our nation's governors actively working to enhance the evolution and improvement of higher education outcomes, particularly as we navigate the challenges of a rapidly evolving workforce.

OPINION: Colleges have to do a better job helping students navigate what comes next (Abby Miller, The Hechinger Report ) A look into how higher ed institutions can help learners better understand how to translate their educational learnings into a successful career.