Future Of Free, Open Online College Classes Uncertain


A high school student in Nebraska can take a game theory course at Stanford University. A college student in China can take a Introduction to Psychology class from MIT. Both can do so without setting foot in a classroom in Palo Alto, Calif., or Cambridge, Mass.

The two colleges are among those that offer massive open online courses, or MOOCs. Anyone, anywhere can enroll in such courses. In almost all cases they will not, for now, get college credit without a fee, but anyone can take the courses (sans college credit) for free.

Observers see MOOCs as a solution as the cost of college education soars beyond the reach of many, but as access to computers and the Internet rises.

"We are seeing a problem in this country to make the highest quality of education available to people. MOOCs seem to have some promise in cutting cost and driving equality," said Daniel Greenstein, director of post-secondary success at the Bill and Melinda Gates Foundation.

The foundation has given $50,000 grants to universities such as Georgia Tech and community colleges like Cayuga Community College in New York in order to help the schools offer MOOCs. Such courses can range from just an online syllabus and PowerPoint presentation to full-on lectures, videos and tests.

But the movement brings up many issues, including whether free MOOCs should bestow college credits. While many conventional universities now grant degrees for studies done solely or mostly online, free MOOCs typically do not count for college credit.

California Could Lead

That could change.

A bill in the California state senate could require public colleges and universities to accept credit from courses from other schools — including the free online courses — to help with college overcrowding. Many students are unable to gain access to needed introductory courses because of overcrowding.

If California passes such a law, it will spread to other states, says Trace Urdan, an analyst for Wells Fargo.

"You're going to see that happen in more places. Politicians are concerned, for good reason, about the high cost of higher education," Urdan said. "If California does it, then you'll see other states jumping on board."

Greenstein is cautiously optimistic about the potential of MOOCs.

For-profit universities have been more accepting of the free online course and online classes in general than traditional universities, as for-profit schools look to expand their student bodies to attract more revenue. Granting credit for some free classes could lead to students taking more for-fee classes, the thinking goes.

MOOCs can make money three ways, according to Josh Jarrett, who also works at the Gates Foundation. They can charge students for certificates of completion. They can partner with employers to help feed possible new hires to the employers. And MOOCs can license their course content to other institutions to use.

But MOOCs are still in the early stages, and business models are being developed. It can be touchy. While traditional nonprofit colleges aren't beholden to shareholders, they have to answer to alumni, students and professors who worry that mass acceptance of free MOOCs credits will cheapen their brand. Granting college credits to free MOOCs won't come easy.

As Urdan put it, "You'll see (for-profit college education provider) Apollo (APOL) give credit for a Stanford MOOC before Stanford would give credit for a Stanford MOOC."

When MOOCs began to take off around 2011, U.S. universities touted the free access — but largely as an aid in the developing world, Urdan says.

"When it's making the world a better place for poor kids in Africa, they are all for it," Urdan said of U.S. universities. "But to bring down the cost of higher education is not what they had in mind with these open courses."

He says full acceptance of MOOCs could take faster in some international markets, like South America.

"There is a rising middle class in South America," Urdan said. "DeVry (DV) (a for-profit college provider) is very invested in Brazil. The government only has so much money to spend on education and is focused on K-12 and wants private business to help out with college education."

Coursera, Udacity Emerge

Coursera, a for-profit MOOCs company, has teamed up with 62 universities to offer 341 courses online. The company offers courses from schools in the U.S. and overseas, such as at the Universita di Roma and Universidad Nacional Autonoma de Mexico. Many of the courses are free, but users typically must pay to get certificates of completion. The fees are generally much lower than the cost of a normal class, however.

Udacity, which grew out of free courses offered at Stanford, is another for-profit MOOCs company. Its courses are generally free if not taken for college credit. If taken for credit, then the company charges a fee for final exams needed to get certificates of completion.

As MOOCs develop their business models, a combination of free and low-cost courses, offered mostly by for-profit colleges, might be the future in some developing markets. India, with a highly educated and large English-speaking population, could become a test bed. "India is a good place to offer low-cost education," Urdan said. "You have a talented workforce that commands a lower wage."

No Indian universities offer free online courses, but Urdan says the schools could use MOOCs as a "pathway to actually charging for courses. Indian schools would want to put up free courses because there is some marking benefit associated with it and some positive PR."