Rising Costs of Online Education Leave Students Questioning Value
As the shift towards online education continues, many students are puzzled by the high costs associated with remote learning. Despite the lack of physical classrooms and the potential for cost-saving scalability, online programs often match or exceed the expenses of traditional in-person courses.
Emma Bittner, a 25-year-old from Austin, Texas, considered pursuing a master’s degree in public health. She was surprised to find that the cost of online programs was comparable to or even more than attending classes in person. “I’m, like, what makes this worth it?” Bittner remarked, questioning why online education costs remain high without the benefits of face-to-face interaction.
According to a survey by Eduventures, conducted for the nonprofits Quality Matters and Educause, 83% of online programs in higher education cost students as much as or more than their on-campus counterparts. Institutions often use revenue from online programs to subsidize other operations, and significant funds are invested in marketing these programs.
Pricing Perceptions and Realities
Many Americans believe online learning should be more affordable. A 2024 survey by New America found that 80% of respondents think online education should cost less than traditional programs. Despite this, universities claim that the need for advising and support for online students, whose performance often lags, justifies the costs.
Research from the Education Data Initiative indicates that online courses at four-year public universities average $341 per credit, surpassing the $325 average for in-person tuition. Private institutions also typically charge more for online courses.
Challenges and Opportunities
The rise of online education is also driven by its flexibility, appealing to those with jobs and families. This year, more American college students are expected to study entirely online than in-person, according to Eduventures’ chief research officer, Richard Garrett.
Despite the high costs, universities are seeing financial benefits. Approximately 60% of public universities and over half of private ones report profits from online courses, with funds often reinvested into general budgets.
Improvements and Innovations
Some programs, like Georgia Tech’s $7,000 online master’s, demonstrate potential for more affordable online education. Competition from nonprofit providers like Western Governors University and Southern New Hampshire University may also drive down prices.
Universities are starting to reduce reliance on for-profit online program managers, who take significant revenue cuts. In 2023, nearly 150 such agreements were canceled, as reported by Validated Insights.
Despite these challenges, the demand for online education persists. Many institutions now see online courses filling up faster than traditional ones, reflecting a shift in student preferences.
