The federal government has implemented a significant change in measuring higher education outcomes. For the first time, all programs that participate in the federal student loan program are accountable for their graduates’ earnings. This change is part of the new Student Tuition and Transparency System and Earnings Accountability rule. While earnings are an easy metric to assess initial program outcomes, this one-dimensional standard misses long-term considerations.

Shortcomings of Earnings Metrics

Preparing students for their first job isn’t sufficient. With rapid advancements in artificial intelligence, automation, and global forces, job functions, and required skills are evolving swiftly. Employers increasingly prefer skills-based hiring approaches, with 70% using them according to a recent survey. Reskilling and upskilling workers have become efficient methods to fill job vacancies, aided by better tools to assess skills.

Credit for Prior Learning

Students now utilize credit for prior learning and innovative online methods to validate skills and knowledge while pursuing degrees. Despite this, public narratives often emphasize straightforward metrics like class time or initial earnings.

Opportunity to Rethink Measurement

The focus on skills offers an opportunity to rethink how we measure education quality. Instead of valuing postsecondary education solely by graduates’ earnings, mastery of skills should be the benchmark. Previously, institutional prestige or seat time were used to gauge quality, but these don’t clearly define graduates’ skills.

Beyond Wage Thresholds

Wage thresholds, often used by policymakers, measure only earnings, not skills.

Engineering students might secure high-paying jobs, while other talented graduates choose lower-paying roles that contribute to the community.

Skills-Based Evaluation

Currently, the tools exist to evaluate outcomes based on skills and competencies. Rapid workforce changes require precise knowledge of workers’ capabilities. Automation disrupts roles, yet workers possess transferable technical skills for career redeployment.

Recognition of Competencies

Recognizing competencies can link workers to new career pathways. In Alabama, healthcare employers recruited metal pickling equipment operators for surgical technician roles due to shared safety and sterilization skills.

Competency-Based Education Programs

Institutions are establishing rigorous competency-based education programs that clearly define mastery requirements for credentials. These programs ensure transparency, credibility, and comparability. Employers can verify skills and states can hold institutions accountable for meeting local demands.

Future-Ready Quality Assurance

A future-ready quality assurance model confirms credentials deliver verified skills that drive measurable mobility. It eliminates guesswork from college transcripts or job descriptions, providing clarity for both learners and employers.

Beyond Initial Earnings

While federal standards set a baseline, colleges must strive to enhance their graduates’ lifelong careers. By ensuring graduates have the necessary competencies, institutions can propel them into successful, mobile careers. Charla Long, president of the Competency-Based Education Network, supports these new standards.