New study investigates side-effects of performance funding

December 6, 2018

A new report out of the US finds that performance-based funding, which allocates money to public institutions based on student outcomes rather than enrolments, does not improve degree completions or graduation rates. The research also found that while performance-based funding incentivized schools to pay more attention to completion goals and institutional performance, some colleges exploited the fact that the policy did not differentiate between types of certification. Consequently, short-term certificates skyrocketed at the expense of two-year degrees. Furthermore, the researcher discovered that the funding model prompted some schools to aggressively target high school students with higher GPAs, which can further marginalize students from at-risk populations who might already have difficulty accessing post-secondary education. Campus Technology (International)