Is the Higher Education Model Outdated?

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June 16 (Bloomberg) -- Jamie Merisotis, president and CEO of Lumina Foundation, discusses Starbucks picking up most of the tab for workers to get a degree through Arizona State University online. He speaks with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Welcome.

Great to have you here.

Arizona state university online.

It is a very high quality education.

One of the best online learning programs in the country.

I think starbucks is breaking ground with this new initiative.

There is a lot of college reimbursement programs in the country.

This is the first directed specifically to an online program.

Absolutely.

This has become very high quality -- i don't know.

You go to apply for a job and you have an online degree.

How will that ever compare from the real degree from the real university?

There is a real -- there is a survey from the economist and it says increasingly they are valued in terms of what they are except inc.. starbucks program i think is groundbreaking.

No other him and he is doing what they are doing -- not full tuition.

For the first two years and the other years iis half.

Roughly this cost $10,000 so people will still be on the hook.

Either out of pocket or could be given money through grants, which means taxpayer dollars or they of course take out loans.

1.2 trillion outstanding loans in the country.

Do we really need more?

We do not need more debt.

What we need is a higher rubble of talent.

I think what starbucks is doing, it is good for starbucks.

The company will benefit.

They will be able to serve the management ranks better.

Will people go on to management after having gotten a degree?

I think so.

What is interesting about the starbucks program, you do not have to stay at starbucks.

That is different than what other companies are doing.

Normally they say you have to pay us back.

Like the military.

We will get this to you but you owe was five years.

Back to the tuition and education.

You no longer would argue with the idea that people should be as educated as they possibly can be.

However, we are dealing with an issue where a lot of kids graduating from school, owe a lot of money, and not getting well-paying jobs.

Are they just not studying the right stuff?

That is part of it.

The other part is college price is too high.

The delivery model is outdated.

We deliver higher education that is more related to the 19th and 20th century than the 21st century.

You sit in the classroom and study for five or six years before you get your bachelors degree.

That is very different than what we need people in the work worse with skill degrees will not only serve themselves but us as a society.

You wonder how to put that into practice.

It has been suggested maybe you have incentives where if you are going to study nursing or engineering or something we see a need for in the society come a maybe the government is there to offer more padding in the way of loans or grants for these students that incentivizes people to do these particular majors as opposed to english or philosophy.

That is right.

The government has a role on and so does the private sector.

That is why the starbucks row graham is so great.

The challenge is to get that are solutions to bring higher education and employers together -- and that is what you are involved in.

You have been doing crowd sourcing.

Explain to me how that works.

You get experts outside of the space you are trying to solve the problem and you get new talent and offer a prize to those people on the so they are competing for money.

You try to get new ideas.

What is the goal?

A product or service to narrow the gap so employers get what they need, higher education produces what we need, and we as a society benefit from that.

You are calling on people to come up with these ideas?

Absolutely.

We will get the money to come up with these ideas.

These are the inventors from the garages.

They are inventing new ideas that solve problems in companies and society.

Do you think we will ever see a day when an online degree from arizona state university will be the equivalent of a four year college somewhere else you get in person?

I think many employers today say it is already there.

That online is very high-quality.

I do not know if i agree with you on that.

This text has been automatically generated. It may not be 100% accurate.

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