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Online Education's Great Unknowns

October 22, 2009

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Distance learning has broken into the mainstream of higher education. But at the campus level, many colleges still know precious little about how best to organize online programs, whether those programs are profitable, and how they compare to face-to-face instruction in terms of quality.

That is what Kenneth C. Green, director of the Campus Computing Project, concludes in a study released today in conjunction with the Western Cooperative for Educational Telecommunications.

The study, based on a survey of senior officials at 182 U.S. public and private nonprofit colleges, found that 45 percent of respondents said their institution did not know whether their online programs were making money. Forty-five percent said they had reorganized the management of their online programs in the last two years, with 52 percent anticipating a reshuffling within the next two years. And while a strong majority of the administrators surveyed said they believed the quality of online education was comparable to classroom learning, about half said that at their colleges the professors are in charge of assessing whether that is true.

On the question of profitability, many of the colleges — 45 percent — reported turning a tidy profit from online education (with just 1.6 percent registering losses). But just as many officials said they have no idea whether their online programs made or lost money.

“The fact that many of campus officials couldn’t say their programs were profitable, I found interesting,” said Green. “Because the lure of this for the past decade has been, ‘We’re going to make a lot of money on distance ed.’ ” But despite the buzz, he said, profitability has been hard to gauge, since some campus information systems are not configured to undertake relevant accounting measures, such as tagging online students or parsing faculty and staff time devoted to online course delivery. (Nor does it help that the U.S. Education Department’s Integrated Postsecondary Education Data system does not require colleges to track technology expenditures, Green added.)

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The growth of online programs, especially at public institutions, continues to be based largely on the anticipation that such programs are the wave of the future in terms of broadening access and increasing enrollment — and they will be at least solvent, if not cash cows. Duplicating programs online is not seen as a big risk, despite such notable failures such as the ill-fated University of Illinois Global Campus. John Bourne, executive director of the Sloan Consortium, noted that colleges generally prefer to be ahead of the curve on building the infrastructure to accommodate widely anticipated shifts, even if there is no way to demonstrate profitability in the short term.

And then there is the question of the quality of online programs as compared to traditional ones. A study released earlier this year by the Sloan commission and the Association of Public and Land-Grant Universities found that many in higher education — particularly professors — still had doubts about whether Web-based learning measured up to the kind that happens in the classroom. What Green found in his survey was that, irrespective of educational merit, many students are paying just as much, if not more, to earn their degree online than on campus.

Bourne said that despite the reservations of some faculty members (most of whom, he suggested, have little experience with online teaching or learning), the question of whether online teaching produces similar learning outcomes to traditional methods has been settled by 15 years’ worth of research saying it does. He said he was heartened to learn that according to Green’s findings, most campuses do not appear to be studying whether or not this is true anymore. “They’re unlikely to find out anything different than what’s been found out already,” Bourne said.

But Green contended that institutions’ complacency with respect to scrutinizing online learning outcomes is misguided. “I don’t think the campus conversation about quality is over by any means,” he said. The reason, he said, is that broad-lens studies cannot offer insight on the effectiveness of a specific online program at a specific institution. “The burden still falls on the campus” to find out whether the online equivalents of its degree programs measure up to their face-to-face forbears, Green said. “If you’re teaching the same course and not using common assessment, then you just don’t know. And for too many of these things, we just don’t know.”

Among the survey's other findings:

  • Tech support for online programs: 36 percent provide 24/7 coverage; 25 percent provide coverage on weekdays, evenings and limited weekends; 22 percent cover weekdays and limited evenings; and 17 percent provide coverage only from 9 to 5 on weekdays.
  • Projected enrollment growth: Almost half (47 percent) of colleges project enrollment increases in online programs of more than 15 percent over the next two years. Hardly any colleges project flat online enrollments.
  • Roadblocks: Asked to identify factors that impede the growth of online programs, colleges cited (in this order): faculty resistance, lack of key resources, program accreditation and federal regulations as the top hindrances.

Green’s own study, while “OK” in terms of statistical robustness, also suffered from a dearth of available data, he said. Despite the high demand for hard math on online education, he said, “It was pulling teeth to get people to do this questionnaire.” The response rate was only 23 percent, although he said there was no pattern in those who responded that would lead him to discredit the findings. Green said he plans to make the survey a yearly event. “I know people are hungry for this,” he said.

“Hopefully people won’t freeload off the survey” next time, Green added.

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Comments on Online Education's Great Unknowns

  • Cost of education
  • Posted by Administrator , Biomedical Sciences at Univ of Minnesota on October 22, 2009 at 10:00am EDT
  • So where do we stand in public higher education? Do we truly know the costs of education? What does a public university do with infrastructure (ex: classrooms) built for traditional course delivery? What are the costs of tech support? course design teams? website maintenance? online security systems? I wonder if the universities that claim they are making money on online education are factoring in all costs. As taxpayer support of higher education gets slashed, and tuition keeps rising, when is the value pendulum going to swing away from higher education? Will online education be the savior?

  • "If you can't measure it, you can't manage it"
  • Posted by Jim Hanlin , Chief Marketing Officer at Training Industry, Inc. on October 22, 2009 at 1:34pm EDT
  • Great article. It reminds me of the often used quote from Peter Drucker, “If you can’t measure it, you can’t manage it.”

    We work primarily in the corporate learning space and the same financial analysis problems exist in our world. However, there are several companies that are focusing on applying new and more comprehensive analytical methodologies to determine the financial return on training and educational delivery methods.

    As institutions develop ways to measure the financial return from distance learning, they will be able to find ways to continuously improve the effectiveness of the learning as well as the financial results. It might be prudent to take a look at how some of the proprietary institutions of higher education measure the financial return on their distance education programs. There are some real success stories among them.

  • Ill-Informed Slam at U of I
  • Posted by GC Supporter on October 22, 2009 at 11:30am EDT
  • It's typical, but ill-informed, that you slam the "ill-fated University of Illinois Global Campus" in an article on measuring the profitability of online education. As someone closely involved with the initiative, I can assure you of the following:

    1) Had we been allowed to continue, we would have reached break-even in 12-18 months.

    2) We built a culture of analytics that allowed us to measure the cost of acquiring students, just like our for-profit competitors do.

    3) When other public universities sought to build online units and wanted to know how to structure their organizations, they sought our advice, and some of those universities are now succeeding in online education.

    The University of Illinois Global Campus was not ill-fated because we didn't conduct business properly. (In fact, I doubt many of our counterparts on our residential campuses can tell us how much it costs them to acquire students, or whether they are profitable.) Global Campus was ill-fated because the university failed to come together behind the initiative, to bring a wide array of programs to the initiative, and to fend off the usual nonsense (which you site) about online teaching being inferior to traditional methods. And yet despite all these forces, I repeat: we would have reached break-even in 12-18 months. If only the hysteria created by a small group of opposition faculty and administrators had been brought to a Board of Trustees that wasn't already weakened by a much more damaging admissions scandal, the Board might have had the foresight and guts to proceed with the initiative. If only.

  • Lets understand the real benefits of online programs
  • Posted by Bernard Luskin , CEO and Senior Provost at Touro University Worldwide on October 22, 2009 at 12:00pm EDT
  • Kenneth Green is one of the most significant and reliable researchers in higher education and his reports are valuable. One contribution to this analyis that can be helpful is to help understand some of the real and additional benefits of the online programs that are rarely acknowledged. The first is the need for a new definition of the use of money, and the second is a 21st century expanded definition of time. Online programs reach a population that was prevdiously disenfranchized because of age, family requirements, and the simple requirement to make a living. Flexible asynchronous programs that are fully online allow people to have more flexibile schedules so they can have jobs and even better jobs so they can earn more money to pay for their educations. Time allows them the luxury to think and study and communicate with peers when can find the time to do it and still work to support their families, take care of other responsibilities or overcome distance and overwhelming traffic obstacles. My point simply is that we also include new values in our thinking and stop the chronic battle about cheaper and quicker. Maybe cheaper and quicker is the wrong goal for the online obsession. Maybe helping people that have had their opportunity and access obstructed is a real 21st century social benefit now that the world is shrinking and the media and tecnoloty has arrived. The next new field to boom may the learning psychologyies of distance and distributed learning in the context of more evolved thinking.

  • Online Education
  • Posted by Jeff Olson , VP of Operations at DSA on October 22, 2009 at 1:00pm EDT
  • Look no further than Grand Canyon University to see that online education can be very profitable. Like most public universities, GCU has land and buildings, sprawling lawns, dorms, sports facilities, etc. In other words, they have the same trappings as the publics and other non-profits. As a non-profit, GCU was in financial ruins and near extinction.

    Now GCU is publicly traded and highly profitable. They still have only about 1,500 students on campus, but more than 25,000 online. It is those online students that have pushed the profitability.

    As a side note the Department of Education recently released a report that online education is more effective than face-to-face but blended delivery was the best yet. Public institutions aren't really about profit, but if the programs are run correctly, they should generate revenue above expense.

    It was interesting that the researcher didn't include the for-profits in the analysis.

     

  • Posted by Matt DeForrest , Assistant Professor of English at Johnson C. Smith University on October 22, 2009 at 2:00pm EDT
  • I don't suppose you have the link to that study, Jeff? I'd love to see it and I suspect others here would as well.

  • A new learning psychology
  • Posted by Jerome Feldman , Teacher/Author "The Science of Learning and the Art of Teaching" on October 22, 2009 at 2:15pm EDT
  • I appreciate very much the points, made by Bernard Luskin, especially the last thought about a new learning psychology focused on e-learning. I believe this is critical. We defiinitely need to tre-examine how we define money and time and the value gained from e-learning in terms of learnes, as suggested. But we also need to reconsider how we define and measure learning. Te studies that address student outcomes from e-learning need to be explicit about the concept of learning that is the basis of the studies. Is it seen in terms of short-term retention of information or course-specific learning goals, for example,or broader measures of learning based on the ability to apply what is learned in a course to contexts outside the course in flexible and complex ways? Basically, the results we see and get are often only the results we are looking to find.

  • Online learning article
  • Posted by SLJ on October 22, 2009 at 3:00pm EDT
  • Here is the link to the study Jeff was talking about:

     

    http://www.insidehighered.com/news/2009/06/29/online

  • We have a lot of work to do!
  • Posted by Myron Curtis , instructor/computer science at Butte Community College on October 23, 2009 at 11:45am EDT
  • It is important that colleges and many other institutions begin taking a more pragmatic look at the return on investment (ROI) of virtualized education and services. This includes more than just financial returns. Concern for the effectiveness of these programs must be intense and constant. If not, the coming changes to these environments will overwhelm us, and create havoc instead of sustainable, quality training systems.
    There are new, exciting, and rich developments being made in virtual relms that are revolutionizing the way we interact online. These include virtual world technology, and augmented reality. We have a chance to get them right from the start, if we use what has been learned in the past, and actually develop plans and standards that maximize their potential benefits. This means that our schools, our government departments, and businesses need to start testing them. Ask yourself how many institutions have failed or nearly done so because they were unprepared to evolve as needed, and you will understand the risk that also comes with these new toys. The virtual worlds and augmented realities are developing more rapidly than just about any new technologies ever have, and their integration with our lives will be more intimate than even I want to accept, and I like shiny new toys a lot.
    The costs for these systems in terms of dollars will be minimal. I can put up thousands of smart classrooms on a single server. The savings can be astronomical because the need to maintain expensive buildings with parking, and traffic control simply evaporates. With these systems, a college can have a face to face like classroom environment that includes real-time language translation allowing that school to truly become a global campus and opening up vast new economic resources. So, economically, this is a done deal. We not only will use these new tools, we already are. (There is an app for that.)
    The costs in terms of social impact may be beyond imagining, especially if we don’t start preparing our world to mitigate those costs. How many individuals do you know who are falling desperately behind life simply because they never learned to use a word processor, or an Email program? They still get by for the most part. When this next wave of chane hits, they will be devastated. We need to have a plan for that

  • Measuring Classroom Learning
  • Posted by Catherine Beise , Professor of Information Systems at Salisbury University on October 27, 2009 at 9:15am EDT
  • My experience is that when I took our campus course in On-Line Learning, I learned a lot more about teaching and learning in general, such as identifying measurable learning objectives and structuring active and interactive learning for students, than I had ever done in traditional classroom learning. My point is that I suspect that many instructors and institutions do not really know how much their students are actually learning in traditional classrooms - why don't we question this as much as we question it in on-line learning?

  • online learning article
  • Posted by Distance learning admin , Director of Online and Distance Learning at Montana State University on October 27, 2009 at 2:00pm EDT
  • http://www.ed.gov/rschstat/eval/tech/evidence-based-practices/finalreport.pdf is the URL for the federally-funded study referred to by Jeff. (SLJ's link goes to the Inside Higher Ed report of the study.) It was a meta-analysis of published studies of the comparative effectiveness of online vs. traditional education. As a meta-analysis, it could only cover those studies that were published in the time frame of their project. For-profits tend a) to regard much of their internal research as proprietary, not to be made public, and b) not to have an on-ground component to compare their online activities to.