Online Students Shelling Out Same Tuition as In-Person Peers: Is It Fair?

Emma Bittner, a 25-year-old Austin resident, considered pursuing a master’s degree in public health but was deterred by the high costs of in-person programs. While searching for affordable options online, she was surprised to find that remote degrees were equally expensive or even more so. “What makes this worth it?” Bittner questioned, highlighting a growing concern among prospective students about the value of online education.

The financial model for online higher education has come under scrutiny. Universities are increasingly leveraging online programs to subsidize other areas of their operations, according to Kevin Carey, vice president of education and work at New America. This financial strategy is — perplexingly — at odds with the notion that online learning should be more affordable.

For the first time, projections indicate that the number of students enrolled in fully online courses will exceed those engaged in in-person instruction. Despite this unprecedented growth, a 2024 survey revealed that around 80% of Americans believe that online learning should be cheaper than traditional formats. Yet reality tells a different story, with 83% of online programs costing the same or even more than their in-person counterparts.

Cost discrepancies arise from various factors. Many universities are allocating significant investments in marketing and student support, which, while essential, inflate the price tags of online courses. Institutions must contend with the challenges of supporting distance learners who often achieve lower academic outcomes compared to their in-person peers.

Currently, online instruction at public universities averages $341 per credit hour, slightly surpassing the in-person tuition rate of $325. At private institutions, online programs can reach as high as $516 per credit. Disturbingly, the very community colleges that often enroll the most online students charge similar or higher tuition rates, despite claims that these programs could reduce costs.

Online instructors are finding that developing remote courses can be as time-consuming as traditional formats, with 80% of faculty reporting increased demands for course planning. Despite the higher costs, many online courses still cap enrollment numbers, stunting potential growth that could lead to cost reductions.

Concerns about graduation rates persist. Evidence from various studies reveals that online students often graduate at rates lower than their in-person counterparts, particularly at for-profit institutions where the disparity is sharply pronounced. As a consequence, lower-income students frequently struggle, facing obstacles that challenge their ability to complete degrees successfully.

High tuition rates for online programs contrast starkly with the affordability many anticipated. Notable examples of institutions charging much less include the $7,000 online master’s degree in computer science from Georgia Tech, which has attracted significant enrollment. However, these instances remain the exception rather than the norm.

Despite industry criticisms, shifts are occurring. Universities have begun severing relationships with for-profit online program managers, enabling them to retain a larger share of revenue. This trend could potentially lower costs in the future, as more educational institutions gain experience with online course delivery, reducing initial expenses associated with program launches.

Bittner eventually enrolled in a newly established online master’s program that proved more affordable than others she evaluated. Nevertheless, she remains perplexed by the prevailing online pricing structure. “I’m still confused about it,” she remarked, reflecting the sentiment of many students navigating this complex landscape.