Officials in Indiana have revised the way that funding to schools based on their effectiveness is assessed, reports Inside Higher Ed.
Under the new initiative, colleges throughout the state will receive various levels of federal funding depending on how many students reach specified "credit thresholds." Two-year colleges will be funded based on the number of students achieving 15, 30 and 45 credit hours, and four-year schools have to meet 30 and 60 credit hour thresholds to meet the criteria to receive state funds.
Other criteria that will be taken into account are admissions factors for low-income students and those from ethnic minorities, the number of students who graduate on time, and how many individuals earn degrees in science, technology, engineering and math – or STEM – majors.
"We need more quality, more volume, more at-risk degree completion, and we’re placing a premium on some high-impact degrees," Teresa Lubbers, state commissioner for higher education, told the news source.
States such as Missouri are considering introducing similar incentives. According to The Republic, an education task force recommended earlier this week that colleges in the state be rewarded for improving graduation rates.
If you're thinking about filling out a college application, look into the graduation rates of the schools that interest you.