Market size and trends for US higher education institutions and post secondary students.

1. US Higher Education Market
Forest Baker
June 2015

2. US Higher Ed market consists of 28.3M postsecondary students
(undergrad and grad). For-profit schools account for only 12%.
20M
(71%)
5M
(17%)
3.5M
(12%)
Total students enrolled in postsecondary institutions 2012-2013
Public
Private
For-Profit
http://nces.ed.gov/ipeds

3. Enrollments peaked in 2010 for Public and For-Profit.
For-profits have had an annual growth rate of 10%.
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Public
Private
For-Profit
CAGR = 1%
CAGR = 2%
CAGR = 10%
http://nces.ed.gov/i
peds

4. US Higher Ed market consists of >7K postsecondary institutions.
For-Profits are 47% of institutions, but have only 12% of students.
2K
(27%)
1.8K
(25%)
3.4K
(47%)
Total postsecondary institutions in the US that award federal
student aid by control of institution
Public
Private
For-Profit
http://nces.ed.gov/ipeds

5. The # of For-Profit institutions has been growing 3% annually.
The # of Public and Private schools has remained flat.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Public
Private
For-Profit
CAGR = 3%
CAGR = 0%
CAGR = 0%
http://nces.ed.gov/i
peds

6. Graduate students make up only 13% of postsecondary
students.
24.5M
(87%)
3.8M
(13%)
Total students enrolled in postsecondary institutions 2012-2013
Undergraduate
Graduate
http://nces.ed.gov/ipeds

7. Undergrad enrollments peaked in 2010.
Graduate enrollment has grown consistently without spikes.
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Undergraduate
Graduate
CAGR = 2%
CAGR = 2%
http://nces.ed.gov/ipeds

8. Majority of grad students are split between Public and Private
schools, with For-Profits accounting for only 12% of grad students.
1.8M
(47%)
1.6M
(42%)
0.5M
(12%)
Grad students enrolled in postsecondary institutions 2012-2013
Public
Private
For-Profit
http://nces.ed.gov/ipeds

9. Grad student enrollments have been flat for Public schools, but have
been growing for Private and For-Profit (both peaking in 2010).
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Public
Private
For-Profit
CAGR = 0%
CAGR = 2%
CAGR = 11%
http://nces.ed.gov/i
peds

10. Growth in tuition costs at Public and Private accelerated after
2000.
http://www.theatlantic.com/educatio
n/archive/2015/05/the-real-cost-of-
college/393086/

11. Unemployment for recent grads may not be the real issue.
Reduced earnings may be the bigger challenge.
25%
Increase in unemployment rate
for 18-24 college compared to
2006.
This statistic overstates the
magnitude of the problem:
2006 = 4%
2015 = 5%
Reduced earnings may be the
bigger challenge (see chart).
Going to a top school may not
be “the” casual factor for
employment. Simply being the
kind of person who could get
into a top school may be key.
http://cdn.theatlantic.com/static/mt/assets/business
/dalekrueger_More_Selective_College.pdf
http://www.theatlantic.com/business/archive/2015/0
5/the-new-normal-for-young-workers/393560/

12. Profile of For-Profit students: Older (24+) and 48% are white.
Healthcare degrees accounts for 42% of credentials earned.
3K+
Number of institutions
865K
Number of credentials awarded in 2011
http://www.apscu.org