Cato Institute
Policy Analysis
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dents with courses designed to help students
Online boasts roughly 13,500 students pur-
suing degrees online.8 7
develop the skills necessary to gain entry to
various fields including graphic design, mul-
Through the online program, students
timedia and Web design, computer anima-
can obtain numerous degrees in a range of
tion, video production, culinary arts, interior
subjects including education, business
design, industrial design, photography, and
administration, accounting, computer infor-
fashion marketing.8 1 Like DeVry, Education
mation systems, and nursing. Students
enrolled in the online program receive
Management measures success in terms of
assignments and instruction over the
student employment: approximately 91 per-
Internet. Typically, at the beginning of the
cent of 1998 graduates seeking employment
week instructors send out information
received positions in their desired fields with-
in six months of graduation.82
(which may include a lecture) on the topic of
the week, the assignment (e.g., reading that is
Those and other for-profit postsecondary
accessible through the university's electronic
institutions are changing the composition of
library or from a course textbook or a written
the postsecondary marketplace by serving
assignment), and discussion questions.
the needs of adults seeking new skills.
Students can participate in electronic class-
Distance Learning
room discussions, ask questions, and receive
New technologies are also making it easi-  feedback online. Students turn in assign-
er for adults to continue their education  ments to their instructors and receive grades
through "distance" or "distributed" learning.  and comments online.8 8
Distance learning consists of educational
Tuition for the University of Phoenix
programs that are distributed via communi-  Online is less than tuition at the average uni-
cation technologies such as the Internet,  versity: the cost of obtaining a bachelor's
satellite technology, and video. Those pro-  degree typically runs from $12,000 to
grams allow students to complete course-  $24,000.8 9In contrast, the National Center for
work without ever entering a traditional  Education Statistics estimates that the average
classroom or campus, which makes courses  cost of obtaining a bachelor's degree runs
both more affordable and accessible for  from $13,000 at public colleges to $56,000 at
many workers. The U.S. Department of  private colleges.9 0 However, the low cost of
Education estimated that one-third of higher  public universities is misleading since it does
education institutions offered distance edu-  not include the substantial subsidy provided
cation courses in 1995 and another 25 per-  by taxpayers. For example, Gary Wolfram,
Tuition for the
cent planned to offer such courses within  author of "The Threat to Independent
three years.83 Forbes estimates that approxi-  Education: Public Subsidies and Private
University of
mately 90,000 courses at U.S. colleges and  Colleges," estimates that in-state tuition cov-
Phoenix Online is
universities are offered through some form ers only 28 percent of the costs of providing an
of distance learning.8 4 The International  education in a public college.9 1 Therefore, the
less than tuition
Data Corporation estimates that the number  cost of a public university education is likely to
at the average
of students enrolled in distributed learning  be more than three times the tuition charged,
university.
will increase from 710,000 in 1998 to 2.23  or roughly $9,000 annually or $39,000 for a
million in 2002.8 5
degree. In reality, the University of Phoenix
The University of Phoenix Online, a for-  Online has substantially lowered the cost of
profit university run by the Apollo Group,  obtaining a bachelor's degree.
Kaplan Inc., a wholly owned subsidiary of
was one of the first online degree programs
offered by an accredited university. The pro-  the Washington Post Company, created
gram was first offered in 1989, and by 1999  Concord University School of Law, the only
there were approximately 10,000 students  online law school, in the fall of 1998.92
enrolled.86 Today the University of Phoenix  Concord's curriculum corresponds to the
13