Search News


Browse Archives

News

Disincentive for Distance Learning

January 23, 2009

Share This Story

FREE Daily News Alerts

Advertisement

Online learning enrollments continue growing at double-digit rates each year. But for one sector of students -- a sector seen as a particularly good demographic for distance learning -- demand for it could be curbed by a new federal law, the new Post-9/11 GI Bill.

Under the new GI Bill, which goes into effect in August, veterans who study entirely online will be eligible for generous tuition and book benefits. But they will be ineligible for a third benefit of the bill -- a housing allowance that’s available to their peers attending brick and mortar institutions more than half-time. The amount of the housing allowance varies by location, but, on average, is valued at $1,250 per month.

While lawmakers originally distinguished between online and in-person learners because of practical considerations -- specifically, how to allocate housing allowances to veterans living far from their campuses -- many point to inherent value judgments within the new GI Bill that favor a traditional, even transformative, college experience.

The proposed regulations for implementing the GI Bill do define distance learner narrowly -- in order to be eligible for a housing allowance, veterans could take a mix of online and in-person courses, so long as they take at least one course in-residence. The U.S. Department of Veterans Affairs does not track enrollment by mode of delivery. But many of the colleges that attract the largest numbers of veterans have large online operations, or, in some cases, are entirely online institutions. The top 10 colleges for GI Bill recipients, according to 2008 VA data, are, in order, the University of Phoenix, American InterContinental and American Public Universities, University of Maryland, Central Texas College, Colorado Technical, Kaplan, Strayer, and Grantham Universities, and Florida Community College.

“Obviously, we’re not too pleased with it,” says Michael J. Offerman, vice chairman of Capella University, an online-only, for-profit institution that’s number 16 on that list.

“It’s reasonable to think that as we go forward, people who would have, again with an even playing field, chosen to have come to an institution that’s fully online, would not do so in the future -- if the financial incentives tell them not to do that.”

“When you read about the Post-9/11 GI Bill, you read about all the positive aspects of it,” says Jim Sweizer, vice president of military programs for American Public University System, an online-only, for-profit institution. “It’s nothing but good press. You don’t see a headline, ‘Online learners will not receive housing stipend.’ It’s all about the good things about it, and rightfully so. It’s a great piece of legislation, and it does in fact raise the bar tremendously in terms of giving the service member the opportunity to attend a high-cost school without any out-of pocket expenses. And that’s the vision.

“Whether or not the vision of the GI Bill, of veterans going to schools on campuses materializes, I don’t know,” says Sweizer, who formerly was chief of the education program for the U.S. Air Force. Regardless, he says, learners who study entirely online shouldn't be penalized.

“Unfortunately, when you’re a 100 percent online school and you’re fighting for benefits for online learners, it looks like you have your self-interest at heart. And that’s part of it. But with my background in the Air Force ... and dedicating my life to advancing the educational opportunities and aspirations of these young men and women, I’m for equity.”

Probing into Policy

In describing the Post-9/11 GI Bill, signed into law last summer, those interviewed for this article use the word “romantic” repeatedly. Behind the bill, it seems, was an ideal -- that veterans would move into dormitories and attend college full time, even at the nation's most elite and expensive institutions. There is a sense that by offering such generous benefits -- tuition is covered up to the cost of the most expensive public college in a state, and there's also a government matching program through which private colleges can help make up the difference -- this latest GI Bill could increase access and open up new opportunities.

Those interviewed also describe practical limitations.

“A lot of our veterans are taking these distance learning classes because they have jobs, they have kids, they have all these other responsibilities,” says John Powers, executive director of Student Veterans of America and a graduate student at Rhode Island College. Yet, Powers says, while for some veterans the new GI Bill “limits their opportunities a little bit per se," other veterans "are going to reap the full benefits of this.”

The differentiation between online and in-residence learners was not in the original version of Virginia Sen. Jim Webb's Post-9/11 GI Bill, but was added during the legislative process at others' requests, Congressional aides say.

“The living stipend for online universities was excluded from the final GI Bill at the request of colleagues and interested stakeholders to avoid fraud and to ensure that good use was being made of taxpayer dollars. The new program does acknowledge the growing demand for online learning, and robust tuition benefits are available for these programs through the new GI Bill," says Kimberly Hunter, a spokeswoman for Webb. (In addition to being eligible for the expanded tuition and book benefits under the new, Post-9/11 GI Bill, online learners who originally enrolled in the older Montgomery GI Bill can stick with that program, which currently pays a flat, total monthly benefit of $1,321 per month.)

Under the Post 9-11 GI Bill, the differential benefit rates for students attending courses online versus in-person was originally born out of an administrative matter. Under the new GI Bill, the size of the veteran’s housing allowance varies based on the address of the institution -- which doesn’t work if a veteran is living in North Dakota, taking online courses from a university based in, say, San Francisco (where the cost of living, of course, is much higher).

“When the legislation was being put together, the question was, ‘How do you determine what the appropriate living allowance would be?’ If you place the living allowance based on the residence of the veteran, that means that the VA would have to verify 500,000 addresses,” says Patrick Campbell, chief legislative counsel for Iraq and Afghanistan Veterans of America. (A legislative staffer speaking on background of the decision-making process also cites the question of how to define the housing allowance as a crucial consideration, as well as concerns about possible abuses.)

“The reason why there was any distinction between distance learning and non-distance learning in the beginning was because there was an administrative issue of, ‘How do you identify the residence of the veteran?' ” Campbell continues. “That said, what it became was what I believe was an erroneous belief that people enrolled in distance learning already have full-time jobs…. It was a belief that these students are working anyway, so therefore they don’t deserve the housing allowance.”

Says Campbell, who would like to see the housing allowance extended to all-distance learners, “I’ve never heard this said, but I think ... underlying all this ... is ... a belief that if someone’s full-time distance learning, they’re not working as hard as in brick and mortar. If you believe someone can be working full time and going to school full time, underlying that belief is distance learning isn’t as hard and therefore we don’t need to give them as much money.”

Online Learning and Outcomes

Sweizer, of American Public University System, points out that many veterans who take online courses started distance education programs while on active duty. They're "being subsidized by the government without regard to method of delivery -- why wouldn't you allow them to continue in the same fashion and give them the same benefits that would be due a traditional student?" he asks.

The military has been probing research questions relating to method of delivery, however.

At last year’s Council of College and Military Educators conference, Ann Hunter, the Navy's voluntary education chief, presented on differential outcomes for current service members enrolled in distance learning versus in-person courses. Hunter declined to be interviewed for this article, saying that she would be presenting official results this summer and to comment prior to that would be inappropriate.

However, in her presentation at last February’s conference, she said that while distance learning classes cost the military an average of $80 extra per credit, compared to in-person courses, sailors were twice as likely to fail or withdraw from online courses. The Navy planned to further study the issue. Hunter said at the time, “If we’re going to spend more money for distance learning, we want to make sure we’re getting the biggest bang for our buck.”

Jeff Seaman, survey director for the Sloan Consortium, which tracks online learning trends, says that tracking retention and outcomes for online versus in-person students is particularly tricky. "You don't necessarily have comparable students in the two," he says. What he has found is, "For both the on-ground and the online student, when you look at, 'Why didn't you complete the course?' the reason was overwhelmingly nothing to do with course-related [elements]. It was, 'I had a family emergency, I had to change jobs, I got laid off, my sister got sick,' those kinds of things. And really what you ended up measuring was the frequency with which you had external factors affecting students much more than you were measuring anything about the specific course delivery or mechanism."

He points out, too, that students typically cite access and convenience as top reasons for choosing online courses, with financial considerations further down the list. At some colleges, it's cheaper to take classes online; at others, the online option is more expensive. "Even the ones that charge more, they're not suffering from enrollment, and those that charge less aren't seeing huge increases in their enrollment compared to others. Which makes me think small changes in economics are not going to make radical changes in behavior."

However, the new GI Bill housing allowance is worth between $730 and $2,650 monthly, depending on location -- so it's not chump change. "Whenever you've got something that you have a specific financial benefit that goes in one direction or the other, there's got to be someone that's price-sensitive to that," says Seaman.

To Be Determined...

In interviews, officials at colleges with heavy veteran populations didn't forecast significant changes in how they do business, as far as serving veterans goes.

"I think there's probably going to be an offset," says Randy Plunkett, national director of military affairs at DeVry University, which is split between online and on-campus enrollments. "For example, if we have a significant population of online [students] where we don't have a campus, let's say Louisiana, we may lose some online students there. But Florida, where we've got a campus in Orlando, we've got a campus in Miami, we've got a campus in Jacksonville, I think we'll see an increase in veterans who use that option."

"This is in a state of flux," says John F. Jones, vice president for Department of Defense Relations at University of Maryland University College, which has online and on-campus options. "So I think a number of institutions are watching it pretty closely, and not commenting on it yet."

Several reported that many students are unaware of the details of the bill and its benefits at this point.

Harris N. Miller, CEO and president of the Career College Association, which represents many of the for-profit colleges with heavy veteran populations, says that the group does not plan to lobby for the extension of housing benefits to all-online learners -- unless student veterans start asking for that on their own. "Rather than being out there advocating for the schools, I think our role here would be to advocate for the students. If they're OK with it, I don't think we're going to be up there trying to get things changed."

Miller adds, too, that the expanded benefits could increase demand for more expensive programs even within the career colleges -- in the arts, culinary studies, or nursing, for instance.

"Some veterans who I know thought the existing benefits were so de minimis that they don't even see them as a serious supplement to get them into higher education. Under the new GI Bill, they will."

Advertisement
Advertisement

Comments on Disincentive for Distance Learning

  • Relativity
  • Posted by "petty" Officer on January 23, 2009 at 9:10am EST
  • Students taking online courses are already benefiting from fewer expenses related to educational housing, which is presumably the reason they sign up. So, they don't have the same expenses, and are already saving money, but we should give them more?

    Look, I am all for helping veterans, but they are already often getting additional benefits on top of what economically disadvanted students get. I don't think it is the best use of limited funds.

  • Congress misses the point, as usual
  • Posted by Clint Brooks on January 23, 2009 at 9:41am EST
  • Focusing on retention where online courses are concerned might seem to the layperson to be a wise choice, but what's forgotten is that a lot of students take online courses precisely because they have personal or professional lives that make an on-campus experience prohibitive. Many of those lives make those GIs retention concerns to begin with.

    The new GI Bill will either prevent those students from participating at all or will force them to make drastic changes in their lives to accomodate an on-campus or partially on-campus college career. The rentention risks will either come to campus or give up on a college experience altogether, which hardly serves the overall purpose of the bill.

    Most of all it tells GIs (and to a larger extent all learners) that they are not all equal. Live in a rural area, without a college nearby? Tough. Having to work a day shift to feed a family? Sorry, you'll have to add a campus class to that busy schedule if you want the housing allowance. Disabled because of your service to the country? Sorry, you'll have to get to campus before we'll pay for housing. Appalling.

    Hopefully, the law can be quickly changed so that all of our GIs can benefit from all of its provisions.

  • A quick correction to "Petty Officer"
  • Posted by Clint Brooks on January 23, 2009 at 9:45am EST
  • Actually, housing costs are borne by all students. Living on campus or off, attending online or on-campus, students have to pay for room and board. Online learning means that the school doesn't need a building for classrooms, not that the student doesn't need one for a home.

  • Questionable Policy
  • Posted by Daniel Bennett , Administrative Director at The Center for College Affordability & Productivity on January 23, 2009 at 10:00am EST
  • Regardless of whether a veteran is enrolled at an online or bricks & mortar college, he/she still has housing expenses. Unless of course policy makers are assuming that all veterans who take online classes move back home with "mom and pops" and are void of rent or a mortgage payment.

    The argument that online students are already saving money relative to traditional students is ludicrous policy--if these students are, in fact, spending less taxpayer money by attending online college, then that makes the case stronger that they receive a housing "reward" for being good stewards of the public dollar.

    This policy appears to be discriminatory against online colleges. Rational decision makers will weigh the costs vs. benefits of attending a traditional vs. online college and if financial considerations are a priority, then most will choose a traditional college due to the lower out-of-pocket expense (and subsequently higher subsidy). If there is a major shift in veteran enrollment from online to traditional colleges, then it will come at an expense--detrimental use of taxpayer funds and a probable driver of tuition hikes at the recipient universities.

  • Posted by Bob on January 23, 2009 at 12:15pm EST
  • It seems to me that qualifying for housing outside of campus would have nothing to do with taking classes on campus. They are settled in making a living, paying their bills, etc., and if they are qualified by whatever criteria are used, they get housing. Why would taking online classes have anything to do with suddenly, the government should pay for your existing housing situation? It just becomes a freebie at that point.

  • Who backed this change?
  • Posted by Kelly K , Director, Financial Services on January 23, 2009 at 1:20pm EST
  • I would be curious to know which lobbyist organizations for which segment of education backed and pushed this change to the regulations. Most likely, tradition schools run by state education agencies who are losing money to private educators.

    Second, while I understand variances based on residence, the idea that having to verify reesidence is ludicrous. The university verifies the student's location, and just as they do for the DOE when certifying federal aid, the university can provide verified information to the DOD. Students attending online courses should not be penalized for using the private sector, and a simple verification report would overcome this objection.

  • further clarification
  • Posted by "petty" Officer on January 23, 2009 at 2:30pm EST
  • "Actually, housing costs are borne by all students. Living on campus or off, attending online or on-campus, students have to pay for room and board. Online learning means that the school doesn’t need a building for classrooms, not that the student doesn’t need one for a home."

    Clint, since it does not make a lot of sense to take online courses, but live on campus...the college is not just saving on academic buildings alone.

    Fewer dorms equals more off campus housing...either with parents (cheaper) or with six roommates in an apartment (also cheaper)

    I agree that being a student does not necessitate needing a place to live...shelter is a necessity of life instead. The point is that there overall costs when compared to students living on campus are more than likely lower.

    Given that most students do not get a housing stipend on top of their federal financial aid it is not the best use of resources which was my main point.

  • No Housing Allowance for Online Courses
  • Posted by frankly speaking on January 23, 2009 at 3:45pm EST
  • If the student is working, has a family, lives in rural area and can't/won't move, the gov't pays for tuition and books. If the student moves to campus, then the gov't pays for tuition, books and offers a housing allowance. This is a super educational benefit for both. The logic appears to be that the gov't will help service members with any cost of dislocation if they elect to move to go to school. I wish my Vietnam era GI bill was as generous and flexible as this one. It sounds quite equitable and fair to me to make this distinction, especially with the many millions of dollars involved. Someone who has moved to a campus has certainly shown he or she is very serious about completing school, and likely worth the additional investment. To collect this hefty allowance at home is an open invitation to fraud and "milking the system."

  • Response to "franky speaking"
  • Posted by Craig on January 23, 2009 at 4:40pm EST
  • "Someone who has moved to a campus has certainly shown he or she is very serious about completing school, and likely worth the additional investment. To collect this hefty allowance at home is an open invitation to fraud and “milking the system.”

    You are implying that someone taking only online courses is not serious, which is absurd. Working adults trying to better their lives are some of the most serious students. Retention may be an issue, but not necessarily because they aren't serious. The problem is that they are equally or more serious about work, family, etc., and can't juggle all the balls. They should still get the chance.

    Regarding the second part of your comment, my understanding is that the housing allowance will go to anyone taking at least one course that isn't online. So, students living at home and commuting to campus will get the benefit, even if living with mom and dad. If you want to make this statement, you need to broaden it beyond students taking only online courses.

  • GI Bill Housing
  • Posted by graflexdreams , Student Relations Manager at Non-Profit Scholarship Fund on January 24, 2009 at 7:30am EST
  • First, some of you have made reference to "housing stipends" in Federal educational funds, and there's no such thing, per se. Most students use their Pell Grant, CalGrant, Federal Loans and institutional/outside scholarship aid for whatever -- on-campus housing/meal package, off-campus rent/food/utilities, books, materials, computer, clothing, etc.
    Leading me to support some other points, that housing is housing, whether on campus or off. Yes, usually on-campus housing is less expensive, but the change in this policy DEFINITELY favors the TRADITIONAL student, a young, single, childless student. But I don't know why the GI Bill has to itemize the housing expense. Why don't they just leverage the student's FAFSA results and replace the Pell Grant/SEOG/Loans with whatever percentage of the military funds they are giving out anyway -- regardless of housing situation. Just like avery other civilian student.
    Lastly, what online classes are that much cheaper than state or private schools? I was a high school "Representative" (recruiter/sales rep) for ITT Tech in Idaho during 2003/2004, and their tuition was nearly as much as the private liberal arts colleges in the state -- MUCH more than any of the state schools. They offer virtually no scholarships -- most students take out huge loans.

  • Kind of says it all...
  • Posted by Watching from the outside on January 24, 2009 at 11:25am EST
  • "American Public University System, an online-only, for-profit institution."

    I think VA policymakers are right to be skeptical of an industry where deceit is right there in the naming of institutions!

  • transferability of benefits
  • Posted by Rick Lovell on January 24, 2009 at 10:40pm EST
  • As I understand it, to be able to transfer your 9/11 GI Bill benefits to your children or spouse, you have to be on active duty. Otherwise, if you are retired after 22+ years of service to our country, you are not able to do so. This is a great perk for the active duty person, but absolutely, positively is a slap in the face of the retiree, in that we now receive less benefits than those on active duty.

    What happened here? Did no one think this out? I have two college age kids who could really used this benefit...I was on active duty after 9/11 for one year, where as I have no need for the educational benefit at all as I studied and attended Troy State University extension classes while in Germany on active duty before I retired and received my Masters of Science through them.

    So, what is the rationale here? Those who have served their country and have honorably retired receive less benefits than those on active duty? Who agrees with this?

    I'd really like to get an answer to this question. Please email me at ricklovellsrb@aol.com, or call me at 469-939-0050 so I, and the other retirees that I am in contact with, will have a better understanding of how things really are.

    Thanks;

    Richard B. Lovell III, Major, USAF/R

  • Posted by Dennis Ruhl on January 31, 2009 at 4:10pm EST
  • Why the knock on American Public University? It's open to the public. It's an alternate name for American Military University so someone can get a degree without the dirty word "military" in it. It's a silly name but I'm not sure that deceit went into its selection. It is regionally accredited and, to my knowledge, no-one has ever accused it of being anything other than a good quality school. It is one of the larger online schools and very popular with the military. It offers many programs not available elsewhere online.

  • Relativity
  • Posted by Rolando ferris on February 2, 2009 at 4:30pm EST
  • Wow
    How interesting it for one of our own or someday a veteran to throw us vets under the bus. It is obvious that some have no idea of what a veteran go through after they are release from the military. And they hardship that some face, But its simple for some to take what little vet get and say it too much, before you response to this email you need to hang out at a VA hospital for a while.

  • Need for Balance
  • Posted by Jessica , Marketing at enCircleMedia on April 1, 2009 at 1:45pm EDT
  • I truly believe that online education is the wave of the future. I also believe that when it comes to military benefits there needs to be a balance. The college I went to had excellent veterans benefits and numerous online programs geared towards the military but the benefits didn't go to far as I believe this bill has the potential of doing. I recently graduated from Saint Leo University http://www.saintleo.com with an online degree in business admin. It was a great experience and it was flexible and convenient. I would hope that those in the miltiary would have the same opportunities as us back home and they definitely deserve benefits for their service. A balance is what is important in this situation

  • Just a thought....
  • Posted by Jessica Witherspoon , Law Enforcement at Liberty University on July 28, 2009 at 8:30am EDT
  • Here's a thought....

    A Criminal Investigator working full time, pulling week long duty schedules (that alternate), a single parent, and in the Reserves. On top of that, working to further their education taking classes full time online. Ten years active duty before they seperated from the Armed Forces. Does this sound like someone is not working hard enough or trying to defraud the government to you? Do you think that the convience of an online educated is needed in this situation? Which one have it easier, the college student taking classes full time with nothing to do but focus entirely on their education or the one in the situation mentioned above (with a one year old) trying to juggle both. I do agree that it is the choice of the individual to pick which bill will best suit their needs. And not everyone's situation is the same. If someone only signs up for one class so that they can get the housing allowence, are they more deserving of it than the investigator mentioned above, who lives in an apartment to support his or her child? What about firefighters? Or those working two full time jobs and going to school to move into another career. How many residence students start going to college, can afford it, join the military for the GI Bill, get married, after time served get out, and now they can go to school to take one course to get a housing stripened.

    At least veterans can go to school with all expenses paid and that is very positive regardless of circumstances. Oh and I almost forgot, there are some online schools that are difficult, expecially math and science courses including biology with virtual labs.

  • Online / Traditional are equal
  • Posted by Veteran , Interior Design at Art Institute on November 3, 2009 at 5:00pm EST
  • It is ridiculous to think that one taking classes online is not working as hard or harder than traditional campus bound students. Having been both I can say with confidence that Online is infinitely more time consuming. By virtue of being online there are many more requirements than campus students face. For instance, if one is sitting in a lecture on campus one does not have to raise their hand to answer questions. They can sit there quietly like a wall flower and just take notes. Contrast this with online courses which require the student to post in the discussion group and respond substantively to others. I am fully grown and after having served my country I am certainly not going to move home with mommy. Additionally the cost to live on the economy is more expensive not cheaper than living on campus. If one is taking FULL time courses on line it is the same as FULL time on a campus. FULL time = FULL time... period. Often veterans are married to currently active duty members and are subject all of the PCSing that goes along with it. It is nearly impossible to be in one place long enough to acquire a degree from a traditional institution which makes online the only viable option. So if one is going to school online FULL time, shouldn't they also be able to contribute the modest housing stipend (assuming family is NOT in Gov't housing) to the cost of living... That online veteran should have the same benefit as the campus veteran and NOT have to hold down a job in addition to attending school FULL time. It is a double standard and is ridiculous. Many high end institutions have excellent online programs. Northeastern, Regis, Northwestern, Oregon State, and so on... As a veteran, I feel totally discriminated against because some schmo in congress decided that my time and quality of education is not worth that of those attending a college campus (and probably drinking themselves silly on the weekends at their little frat party... ). It is a slap in the face. My service should count equally. So, I guess I will keep on collecting college credits (I have enough for a double masters) but not receive a degree because we always seem to transfer before I can graduate and every new school requires that a certain amount of credits be taken to receive their degree. If I have to take someone elses version of "intercultural communication" I am going to puke. Talk about a waste of money, re-doing credits to fit a new university is a colossal waste of gov't cash.

  • Why the difference??
  • Posted by Ally on January 13, 2010 at 4:45pm EST
  • I served my country honorably for seven years and served four of those years post 9/11. I qualify for 100% benefits under the new Post 9/11 GI Bill...except for the fact that I am an online student. I work full-time and I am a single parent which is the reason why I chose to go to school online. Why am I being punished?? If going to a campus location was an option - it would have been an option I would have pursued as another commenter mentioned - self-teaching math, statistics, economics and financial anaylsis courses are quite difficult in an online environment. I go to school online because I have to - it is the only option I have to further my education. Why shouldn't I be entitled to housing stipend? I believe the military should pay the housing stipend based on the last location the individual served. Will there be some differences between the BAH of where you were stationed and where you are now? Of course....but at least it would solve not getting a housing stipend at all!!

  • Clarification!
  • Posted by Alex Perrigo , Computer Desktop Support Specialist at WKU FALL 2010 on March 26, 2010 at 12:30pm EDT
  • As a fellow veteran who server 6 years in the Navy, I can say that I see the ups and downs to the post 9/11 Bill.

    1. First an upper, I appreciate that our legislatures increased the bar to allow housing allowances to my fellow vets. Outside that, I believe that the BAH allowance should be allocated on the students state of residence for online students.
    2. Second, There is a misconception that the GI Bill and Post 9/11 Bill is FREE MONEY. No it isn't! Veterans who served after 9/11 or even before it have paid into the program out of their own pockets. I have heard other students whom have never served say that we're getting a free ride. Personally, I would like to see those people serve 1 year, 2 years, or even 20 years, and tell me it was a free ride.
    3. Now here's a downer, as an online student myself. I still pay the on-campus fees for books, paper, lab services, etc... It is the same as the on-campus student. If I switched to the Chapter 33 I would be losing 1/3 of the money versus my current Chapter 30. While still paying for the same services as an On-Campus student.
  • Housing allowance is essential
  • Posted by Jack on April 28, 2010 at 10:30am EDT
  • With the housing allowance I can afford to take on distance learning and still work full time to support my family (2 kids). Without the hosing allowance I need a second part time job to make ends meet and cannot take on the course load and still be a Dad. It's that simple. My plan is to take one on-campus course per semester - I hope it works!!!