13 of all students took at least one online course 23 of colleges offered online courses 93 of colleges charge the same or more for online Recent Studies Credit is fungible Many providers ID: 688301
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Slide1
Burck Smith
Revenge ofSlide2
1/3 of all students transfer.
1/3 of all students took at least one online course.2/3 of colleges offered online courses.
93% of colleges charge the same or more for online.
Recent Studies
Credit is fungible.
Many providers
High profit
m
argins
Credit for online is widespreadSlide3
P = MC
Online courses should be much cheaper than f2f courses
You no longer need to be a college to offer a college courseSlide4
Institution/Course
Cost Per Course
Non-Resident Tuition and Fees
Frostburg State University/Intro.
Psych
$25
$1,688
University of Alabama/Intermediate Math$82$2,680Average NCAT Institutions/Gen Ed Course$111$1,854Typical Adjunct Taught ($3K/30 students)$100
$1,000 - $2,000
How Big Is The Bubble?Slide5
(in $b)
Direct
IndirectStudent$52$35
College
$73
$20+
$190 Billion
Annual Higher Education SubsidiesSlide6
Accreditation Keeps Competition OutSlide7
Tuition
Student Funding Sources
Can I repay the debt?
Can I get a job?
Out-of-Pocket Spending
Different Buying Behavior
Exponentially More Choices
Focus on Course Transferability
What am I learning?
Students are Shoppers!Slide8
Provides affordable, well-supported, flexible online general education college courses.
$99 per month + $49 per course started. Almost 90% sign up for the subscription.
Expect to serve 12,000 – 14,000 students this fiscal year. At WGU, 90% of SL students are still enrolled after twelve months.
StraighterLineSlide9Slide10
Value to a CollegeSlide11Slide12Slide13
Selective, high-priced colleges will be unaffected.Non-selective colleges will loosen transfer restrictions.Erosion of most profitable courses.
Colleges should think carefully about online delivery.Residential will cost a lot more than online courses.Term-based vs. credit-based pricing is significant.New marketing opportunities for the most creative.The rising cost of college will become a non-issue.
New emphasis on academic credibility and integrity.Institutional IssuesSlide14
Burck Smithbsmith@straighterline.comTwitter: @
burckBlog: http://www.straighterline.com/ceo-corner
Questions?