Should College Funding be Tied to Student Graduation Rates?

by Denisa Gandera Editor’s note: Performance-based funding – a policy where a portion of state funding for public colleges and universities is based on how well they perform – is gaining in popularity. Colleges are often judged by their graduation rates in performance-based funding formulas.  1. How many states have adopted performance-based funding and what is the appeal? At least 30 states are using some version of performance-based funding for colleges and universities. Although these policies are widespread, most performance-based models only link a very small portion of state funds to performance metrics. Performance-based funding for higher education is not new: The first performance-based […]
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