Concerned over graduation rates?

According to CNN, Princeton President William Bowen is concerned about college graduation rates and he intends to find the causes of why graduation rates have been stagnant for several years now. However, I have the following questions that the article did not raise:

1. How are graduation rates at colleges actually configured? (I am assuming that it is based on my #2 question.)
2. Do college graduation rates only consider students that actually started and graduate from the initial institution?
3. Do transfer students ever figure into the statistics?
4. Do distance learning students figure into the graduation formula?

In SLI, it was already mentioned that colleges and universities were being threaten by distance learning programs; however, that does not have to be if they go hybrid. I do feel that brick and column insititutions are being impacted by "technical schools" that offer certificate programs and help with job placement. Why go four years if you can get what you need in two years and a job?

Distance learning could be a way to attract learners who may only want selected courses for job promotions and the such. UMW, UVA, GMU have all capitalize on distance learning that is geared towards IT, education, and business. All of these universities offer certificate programs like the "technical schools". It is cost effective if one looks at the impact on resources - both internally and environmentally. Harvard and MIT are doing it too so it can't be all that bad.

I feel that institutes of higher learning will need to savvy with their offerings and modes of delivery. The traditional institutions will be threaten if they do not take into account the consumer-student needs and the mighty pocket book.

The CNN article also talked about affirmative action and UVA. I wonder if studies show that distance learning helps in this area as well?