Daniel Edwards

Ditch the widgets. Start investing in their amazing futures

The cost of teaching a student from a low SES background is significantly higher than for more advantaged students. The reasons for these costs include the ‘obvious’ assumptions, such as bursaries, but are likely driven more substantially by infrastructure investment by a number of universities specifically supporting campuses in areas and regions as part of their mission to provide a university pathway as an option to a diverse range of our population.

We believe this investment (a better way of thinking about it than ‘cost’) could be better recognised in funding agreements by switching the focus from ‘activity-based’ funding (i.e. “count your widgets, take your dollars”), to ‘mission-directed’ funding (i.e. recognition of the social impact and additional resources that these contributions require and perhaps redirecting funding from the low cost ‘low hanging fruit’ approaches of some).

Who are we and how did we discover this? A team of researchers spanning multiple universities (Victoria Uni, ANU, Curtin RMIT) and ACER published an article exploring the costs associated with supporting students from low socioeconomic status (SES) backgrounds in university. Our study has a ridiculously complex methodology – using econometric modelling to explore the economies of scale in relation to the costs of educating students in Australian universities, with ten years of financial, enrolment and employment data from 37 universities, and then exploring the outcomes with people who run universities across a range of states – but when you pare it all back, a relatively simple set of findings:

Here’s an overview.

Quantifying costs and differences in costs

First we compiled a large dataset spanning all Australian universities across 10 years. The dataset contained operating expenditure, student enrolments, level of enrolment, field of education and background characteristics of students, teaching costs, research grants, location of university and type of university. This was analysed using an econometric model to identify the average costs for each student, and to explore if there are economies of scale in enrolling some groups of students – in other words, does the average cost decline the more of a group of students you enrol? 

The stark finding (that we checked and re-checked) was that when all other elements are controlled for, the average annual cost for a student from a low SES background at undergraduate level was about 6 times higher than for a student from a medium or high SES background. The difference was slightly lower for postgraduate level students, but nonetheless, it was still a notable difference.

However, the other aspect of the analysis did show that there are economies of scale in enrolling students from low SES backgrounds at undergraduate level – that is, the higher the number of students of this background, the lower the average costs per student become. We also found the opposite (i.e. a diseconomy of scale) for medium and high SES student enrolments.

Explaining the differences

We took our data findings ‘on the road’, visiting four diverse universities in Australia to talk with academic, finance and student support leaders. We wanted to test whether the outcomes from the analysis made sense on the ground and found that while views differed, some key explanations were clear:

  • The kind of additional support needed by students from low SES backgrounds includes: outreach support to raise aspiration and relevant individual capital prior to enrolment; academic, personal and financial support while at university; and in some cases, support to care for students with highly complex needs.
  • The support factors that contribute to the additional costs include investment in the items listed above plus the costs of establishing, maintaining and appropriately staffing multiple and/or regional campuses, particularly but not only those located in highly disadvantaged communities. Further, it was found that universities that are strongly prioritising or enacting missions to address disadvantage have higher costs than universities with other missions.
  • Additional support costs are not the same for all low SES students. Low SES students are not a homogeneous group. Depending on their particular background and circumstances, low SES students may experience different levels of disadvantage and/or multiple disadvantage.

In the universities consulted, there were different costs and different approaches to supporting low SES students. This was partly because of the differences in the universities’ missions, the number and geographic locations of campuses and the characteristics of the particular low SES students for whom support was being provided.

Future considerations on funding

We hope that what this research does is help to highlight the difference in investment required depending on the backgrounds of students enrolled in a university. The emphasis in shifting language from ‘cost’ to ‘investment’ is intended as a means of changing views and perceptions – much the way in which some universities in Australia embed in their mission an aim to open up opportunities by investing in areas or communities where previously a university pathway was not a consideration.

A radical, yet seemingly logical, proposition coming from this research is that if some student groups need a greater investment than others, then perhaps the funding pie should be cut in a way that recognises the variable investments required. From our work, we feel that consideration of ideas to recognise the various missions of universities and the different students they serve in following their mission could be captured in funding allocations. Ideas we have suggested for further consideration include a redistribution of funding based on need; shifting emphasis from activity-based to mission-directed costing; applying the principles of ‘cost compensation’; and conceptualising funding support for students from low SES backgrounds as a transformational investment that can improve outcomes for individuals, communities and society, rather than as a cost.

Dr Daniel Edwards is the Director of the Tertiary Education Research Program at the Australian Council for Educational Research, and an Honorary Senior Fellow with the University of Melbourne’s Melbourne Centre for the Study of Higher Education. Daniel Edwards (ACER) wrote this post on behalf of the project team: Marcia Devlin (VU), Liang-Cheng Zhang (ACER), Glen Withers (ANU), Julie McMillan (ACER) and Lyn Vernon (Edith Cowan University)

Research evidence of issues facing disadvantaged students in higher education

The issues facing disadvantaged students wanting a tertiary education are multi-faceted. Just getting into a course at university can be difficult, then there are many hurdles students will face before they actually complete their degree.

This is why funding of over $1 million was made available by The National Centre for Student Equity in Higher Education (NCSEHE) during 2014 and 2015 for research projects at Australian universities and other research organisations to investigate aspects of student equity in higher education.

The competitive research grants program was designed to further investigate the impact higher education policy has on marginalised and disadvantaged students and how we could improve participation and success. The NCSEHE publication ‘Informing Policy and Practice’ highlights the outcomes of the first 12 research reports.

Each report addresses different, but related, aspects of higher education student equity. They all bring evidence-based investigation to the consideration of policy and practice. This research highlights the complexity of the issues the researchers are attempting to unravel, and that simple statements arising from analysis need to be carefully considered.

The results confirm that more needs to be done to ensure that capable people are not prevented from accessing and completing higher education.

Higher education confers significant individual benefits in terms of personal development, career opportunities and lifetime learning. Higher education is also the key to the social well-being and economic prosperity of Australia. Providing access to higher levels of education to people from all backgrounds enhances social inclusion and reduces social and economic disadvantage.

In the interests of individuals and for the nation, higher education equity for all capable people must be seen as an objective of the system.

We know, from our research, that the policy framework needed to achieve the required change for disadvantaged people will not result from a single policy decision or funding program. It is complex and challenging and needs a wide-ranging response.

There are 12 research reports available. They include research across the various equity groups:-

Resilience/Thriving in Post-Secondary Students with Disabilities: An Exploratory Study
by Dr Rahul Ganguly, Dr Charlotte Bronwlow, Dr Jan Du Preez and Dr Coralie Graham (University of Southern Queensland)

Educational outcomes of young Indigenous Australians
by Stephane Mahuteau, Tom Karmel, Kostas Mavromaras and Rong Zhu (National Institute of Labour Studies at Flinders University)

Are low SES students disadvantaged in the university application process?
by Dr Buly Cardak (La Trobe University), Dr Mark Bowden and Mr John Bahtsevanoglou (Swinburne University of Technology)

Choosing university: The impact of schools and schooling
by Jenny Gore, Kathryn Holmes, Max Smith, Andrew Lyell, Hywel Ellis and Leanne Fray (University of Newcastle)

Do individual background characteristics influence tertiary completion rates?
by Patrick Lim, National Centre for Vocational Education Research (NCVER)

Completing university in a growing sector: is equity an issue?
by Dr Daniel Edwards and Dr Julie McMillan (ACER)

Exploring the experience of being first in family at university
by Associate Professor Sharron King (University of South Australia), Dr Ann Luzeckyj (Flinders University), Associate Professor Ben McCann (University of Adelaide) and Ms Charmaine Graham (University of South Australia)

Secondary School Graduate Preferences for Bachelor Degrees and Institutions
by Trevor Gale (Deakin University), Stephen Parker, Tebeje Molla, Kim Findlay, with Tim Sealey

Best practice bridging: facilitating Indigenous participation through regional dual-sector universities
by Bronwyn Fredericks ( CQUniversity) et al

University access and achievement of people from out-of-home care backgrounds
by Andrew Harvey, Patricia McNamara, Lisa Andrewartha, Michael Luckman (La Trobe University)

Understanding Evaluation for Equity Programs: A guide to effective program evaluation
by Dr Ryan Naylor, Melbourne Centre for the Study of Higher Education (University of Melbourne)

Equity groups and predictors of academic success in higher education
by Jill Scevak, Erica Southgate, Mark Rubin, Suzanne Macqueen, Heather Douglas, Paul Williams (University of Newcastle)

 

Sue_Trinidad_Retouched_2 copy

 

Professor Sue Trinidad – Prior to becoming the Centre for Student Equity in Higher Education’s Director, Sue was Deputy Pro-Vice Chancellor and Dean of Teaching and Learning in the Faculty of Humanities at Curtin during 2007-2012. In these roles she provided academic leadership for the five schools and led the Higher Education Equity Participation Program for a large faculty which had many LSES, Indigenous and regional students. Sue is an established scholar in the areas of higher education pedagogy and change management, the use of technology and student learning. Her research covers higher education and leadership, including the use of technology for regional, rural and remote areas to provide equity access to all students regardless of their geographical location. Sue has also been involved in consultancies, research projects and grants both in Australia and internationally, including Australian Research Council and Office for Learning and Teaching funded research. She currently sits as an advisor to the Western Australian Minister of Education on the Regional and Remote Advisory Council (RREAC).  Her teaching, learning and research have been acknowledged by a number of awards including the 2001 Life Membership Award for the Educational Computing Association of Western Australia for her work with teachers, two best research paper awards in 2004 and 2006,  the Vice-Chancellor’s Award for Excellence and Innovation in Higher Education in 2010; a Citation for Outstanding Contributions to Student Learning 2014; and the PTCWA Outstanding Professional Service Award 2014.