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Higher Education
The Perryman Group
News Release
Monday, November 28, 2011

Benefits of Texas Career College & School Graduates Go Behond Certificates, Degrees
Gains include $75.5 million in savings and 116,910 permanent jobs

Austin, Texas – Texas saves and wins when students choose to receive post-secondary training at a Texas private-sector college or school, according to a recent study by Waco-based The Perryman Group.  Study

The Economic Impact of Career College and School Graduates on Business Activity in Texas and Its Major Urban Regions: An Analysis with Emphasis on Cost Savings and Productivity Benefits revealed that Texas saves about $1,800 in state government funds for every student who obtains a certificate through a member institution of the Career Colleges & Schools of Texas (CCST), a state association of private-sector colleges, rather than a community college. That’s a total savings of $75.5 million for the state.

The cost of obtaining a requisite degree or certification is about 20 percent lower than traditional two-year colleges, the report also states. The full report can be accessed at

 “CCST member schools represent an important segment of the Texas system of higher education, offering notable benefits in terms of productivity gains and economic benefits,” said Ray Perryman, president of The Perryman Group. “In addition, the institutions themselves are tax-paying entities. When all forms of support for the Texas public higher education system are considered, such as property tax support, these cost savings grow even larger.”

The study also states that about 70 percent of the most recent graduates were employed in a related field immediately upon completion of career college programs, according to the Texas Workforce Commission. The commission is charged with oversight of career colleges and schools.

“This percentage undoubtedly will rise as the economic recovery ensues and demand in high-growth occupations accelerates,” the report reads. About 3,000 career colleges in the country have the potential to fill roughly 22 percent of job openings in high-demand occupations such as health professions, business management and computer/IT systems, education communications technologies and legal professions and studies.

About 300 of those private-sector institutions are in the Lone Star State.

 “Career colleges and schools save money for students, residents and the state of Texas,” said John Wood, CCST’s president. “Students focus on their career of choice, schools pay taxes and graduates stand a better chance of landing a job in their respective fields. The benefits are that everyone saves time and money, most of all the students.”

CCST graduates also result in substantial economic benefits, including 116,910 permanent jobs for the state with an annual output of $9.4 million and a contribution of $482.6 million a year in state revenue. And student enrollment is on the rise as more and more students recognize the value of private-sector colleges and schools.

Career college students have a higher national graduation rate, 65 percent, six years after enrollment compared with public, two-year colleges at 39 percent, according to The Imagine America Foundation. The foundation, founded in 1982, is a research, scholarship and training provider for career colleges.

Typically, many of those served by private-sector colleges are non-traditional students who might be working adults, single parents, returning veterans or first-generation college students. In Texas, these colleges and schools provided 61 percent of health profession awards, 48 percent of business/management services awards and 46 percent of engineering/engineering technology awards.

Remembering Jim Guidry

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