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Another Presentation on Post-Secondary Disruption

In this impactful presentation from October 2011, Burck Smith, CEO of StraighterLine, delves into the pressing questions surrounding the disruption in higher education. He explores the current state of the industry, the potential role of government in online education, and offers policy recommendations. Drawing on his extensive background in education and technology, Smith uses StraighterLine as a case study to illustrate how online learning can transform course delivery and address challenges such as rising costs and student debt. This presentation is essential for anyone interested in the future of post-secondary education.

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Another Presentation on Post-Secondary Disruption

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  1. Or “Benevolent Collusion” Another Presentation on Post-Secondary Disruption Burck Smith, CEO, StraighterLine, October, 2011

  2. Topics • Introduction • The Big Question and Disruption Theory • Higher Education Today • Higher Education Tomorrow • StraighterLine as Case Study • Should government have a role in online education? • Policy Recommendations

  3. About Me… • Background in non-profits and public policy. • Masters “thesis” helping a consortium of MA community colleges develop an online learning financial model. • Founded SMARTHINKING in 1999 • Founded StraighterLine in 2008 • Kept asking the question…

  4. Despite massive investments in technology in post-secondary education and K-12, why have costs gone up and quality gone down?

  5. Disruption Theory 101 • Existing providers compete on features • Some new technologies change entire industries • Disruptive technologies are attractive to markets ignored by existing providers • Eventually new technologies compete with existing providers. • New technologies require a new business model

  6. Why Were Colleges Created?

  7. Higher Education in 2011

  8. Course Delivery Is Really Cheap

  9. Online Learning Business Models • For-Profit Accredited Colleges • Turn-Key Private Labeled Programs • In-House Online Offerings Subsidize Other Units • Everyone looking to starting online programs

  10. The Iron Triangle

  11. Barriers are Eroding • Internet enables dramatically more competition at the course level. • Student debt load is becoming unsustainable. • Tuition growth is more rapid than ever. • Sources of student support are drying up • Online courses are cheaper to deliver and more scalable. Trends: Growth of dual enrollment, co-enrollment, AP, CLEP, StraighterLine, community college enrollment growth.

  12. Current StraighterLine Courses

  13. How does StraighterLine Help STUDENTS?

  14. How does StraighterLine Help PARTNER Colleges?

  15. Credit Delivery • Partner College Network — Almost 20 regionally accredited partner colleges. • “Shadow Partners” – Over 180 non-partners have awarded credit for SL courses. • ACE —StraighterLine’s courses have been reviewed and recommended for credit by the American Council on Education’s (ACE) College Credit Recommendation Service. • Independent Survey Results – SL Courses as rigorous as other options, more convenient, more affordable, students persist at greater rates. • “Good Housekeeping Seals of Approval” – DETC, College Board • General Research – Students that start college with credit are more likely to complete.

  16. Potomac College

  17. Arguments Against • “Fine Wine” Fallacy • “Platonic Form” Fallacy • Institutional Control of Credit Acceptance • Competes With the Public Sector

  18. Susceptible Segments

  19. What does this mean for colleges? • Erosion of most-profitable courses • Need to re-think pricing models • Need to re-think business models • New marketing and student recruitment opportunities • Controversy around new partnerships • 3 year Ivy’s?

  20. Predictions • Selective, high-priced colleges will be unaffected. • Non-selective colleges will loosen transfer restrictions. • Course prices will be variable and will reflect the cost to deliver the course. Subscriptions may become more common that flat tuition. • Residential will cost a lot more than online courses. • Highly efficient specialty course providers will emerge. • College marketing strategies will begin to resemble retail marketing strategies. • The rising cost of college will become a non-issue.

  21. Policy Suggestions • Create minimum outcomes where possible, let the market set the rest. • Create course-level accreditation. • Require any college accredited by a DoE recognized agency to accept any other similarly recognized college’s credits. • Create a more level economic playing field. • Let private sector fund online learning. • Let student loans be dischargeable at bankruptcy

  22. Thought Exercise… Deregulate Online “Appropriate” Reasons for Market Intervention

  23. Thought Exercise… Online Institution?

  24. More Reading… Public Policy Barriers to Post-Secondary Cost Control – Book chapter in Accountability in Higher Education published by Palgrave Macmillan. January, 2011. Price Competition and Course-Level Choice in K-12 Education: Lessons from Higher Ed – Book chapter in Customized Schooling published by Harvard Educational Press, January, 2011. College by Subscription -- AEI, September, 2009. Disrupting College, Lessons from iTunes – Pope Center for Public Policy, April 2011.

  25. Contact Info Burck Smith bsmith@straighterline.com

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