The Increased Cost of Distance Education
posted by Dave Hoffman
For uninteresting reasons, I just read Indiana University’s Strategic Plan for Online Education. Here’s a fact I didn’t know, and haven’t seen well-advertised in the blog discussion on the cost transformative effects of distance learning:
IU (and the remainder of higher education) needs to educate policy makers and the public that online education generally is more, not less, expensive than on‐campus education at both undergraduate and graduate levels. The biggest reason for this is that a universal experience is that equivalent quality online education requires greater individual student attention than on‐campus education at all levels. Units deal with this either by decreasing class sizes, increasing the credit given to faculty teaching online in calculating their teaching load, or providing additional instructional assistants; all of these increase cost per student.
Additional factors that increase the cost of online instruction are the technological infrastructure needed to support it, the need to support student access 24/7, and the greater costs to develop and maintain course materials. The main factor that generally is cited for a decreased cost of online instruction relative to on‐campus is that it doesn’t require classroom space. This is valid; a careful computation by Associate Vice President Steve Keucher calculates this savings at $8.68 per credit hour, or roughly $26 per three credit course. While significant, this savings is not enough to offset the additional costs of online education, such as class sizes that often are 20‐35% smaller.
As pointed out by IU Vice President and Chief Financial Officer Neil Theobald, an important factor in pricing online education is pricing by peers in this market. As shown by the pricing summary for other universities in Appendix B, this pricing offers some guidance but is highly variable.
This seems to pose a challenge to those who would say that distance learning will drive costs out of higher education, no?