This report presents the results of two studies that assess the effectiveness and efficiency of colleges and universities in promoting timely degree completion. Data were obtained from IPEDS for public two-year colleges (n= 898) and both public and private not-for-profit four-year institutions (n= 1,496). Hierarchical linear regression was used to predict graduation rates based on structural (e.g., mission), demographic (e.g., SES), and contextual attributes (e.g., urbanicity). Effectiveness scores were then computed as the difference between actual and predicted graduation rates, and efficiency was estimated as the ratio of effectiveness to educational expenditures per FTE student. The test-retest reliability of the effectiveness measure over two consecutive years was acceptable to good, depending upon computational method and graduation rate. A test of convergent validity with a subset of institutions indicated that effectiveness scores were positively associated with students’ perceptions of a supportive campus environment at two-year (r= .30) and four-year (r= .56 - .63) institutions.

Graduation rates are frequently employed in rating the effectiveness and efficiency of colleges and universities. However, variation in raw graduation rates may better reflect differences in such factors as admissions selectivity or institutional mission rather than whether institutional practices and programs are conducive to student success. This report thus estimates institutional effectiveness as the difference between an institution’s actual graduation rate and the rate that would be expected given the institution’s structural attributes, the types of students served, and the geographical context. Institutional efficiency is then estimated as the ratio of effectiveness to educational expenditures per full-time equivalent student. The results demonstrate that seemingly low graduation rates may in fact reflect institutional practices that are satisfactory or better.

Graduation rates are frequently employed in rating the effectiveness and efficiency of colleges and universities. However, variation in raw graduation rates may better reflect differences in such factors as admissions selectivity or institutional mission rather than whether institutional practices and programs are conducive to student success. This report thus estimates institutional effectiveness as the difference between an institution’s actual graduation rate and the rate that would be expected given the institution’s structural attributes, the types of students served, and the geographical context. Institutional efficiency is then estimated as the ratio of effectiveness to educational expenditures per full-time equivalent student. The results demonstrate that seemingly low graduation rates may in fact reflect institutional practices that are satisfactory or better.

Graduation rates are frequently employed in rating the effectiveness and efficiency of colleges and universities. However, variation in raw graduation rates may better reflect differences in such factors as admissions selectivity or institutional mission rather than whether institutional practices and programs are conducive to student success. This report thus estimates institutional effectiveness as the difference between an institution’s actual graduation rate and the rate that would be expected given the institution’s structural attributes, the types of students served, and the geographical context. Institutional efficiency is then estimated as the ratio of effectiveness to educational expenditures per full-time equivalent student. The results demonstrate that seemingly low graduation rates may in fact reflect institutional practices that are satisfactory or better.