Ithaka S+R recently published a report funded by the Bill & Melinda Gates Foundation and titled, “Barriers to Adoption of Online Learning Systems in U.S. Higher Education.”  I have written extensively on this blog about the economic constraints facing institutions of higher education, issues of student persistence and retention, and the litany of other issues daunting the American higher education system today.  In their report, the authors explore many of these same topics explaining why they believe online education could be a boon for higher education in general and students, faculty, and individual institutions specifically. 

Though the authors state in the Introduction that, “We believe such [online] systems have the potential to improve faculty productivity and lower instructional costs without sacrificing educational quality,” online education continues to face staunch critics.  Fundamentally, the report notes that the onslaught of online education in the higher education landscape has the potential to completely transform our concept of and basic approach to educating the nation’s college students.  The concept of online education is so foreign to many that there is some resistance based solely on it being “different.”  The authors conducted interviews with a variety of institutions utilizing online education in a variety of ways.  Not surprisingly, considering the relatively recent arrival of online education on the higher educational scene, institutions are still working to figure out how best to utilize new technologies to reduce instructional costs, improve student learning outcomes, and maximize faculty effectiveness.

Online education is becoming such a disruptive force (to use Clayton Christensen’s terminology) in education that the authors state, “Online learning is taking place at just about every college and university in the nation.”  In their interviews with administrators and faculty at institutions implementing online education in some way, there were some common themes uncovered discussing the rationale for the introduction of online education.  Many institutions, for example, see online offerings as a revenue generator.  Online education has the ability to reach non-traditional students (adult learners who are not able to attend class in a physical, more traditional setting) as well as students who would otherwise not enroll with the university due to geographic location.  While there are significant startup costs associated with implementing an online environment, many schools anticipate eventually recouping that initial investment through decreased use of facility space, increased enrollments thanks to the online offerings, and more effective use of faculty time.  Interestingly, some universities have seen cost savings as well as increased revenue yet the authors point out, “Very few institutions are using either the savings from online education or the net incremental revenue to reduce the price of education to students.”

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I recently had the chance to read a research report titled “With Their Whole Lives Ahead of Them,” published by Public Agenda with financial support from the Bill & Melinda Gates Foundation.  The authors of the report surveyed over 600 young adults between the ages of 22 and 30.  The purpose of the survey was to compare the answers of students who dropped out of college to the answers of students who graduated within the three year (for community colleges) or six year (for four-year colleges) standards as measured by the U.S. Department of Education.  Jean Johnson and Jon Rochkind, along with Amber Ott and Samantha DuPont, wanted to validate the reasons why students depart from colleges before graduating and see if the students themselves offered reasons different than many of the recent research studies.

The authors point out that according to the U.S. Department of Education, only 20 percent of community college students graduate within three years and only 40 percent of four year college students graduate within six years.  In fact, only 27 percent of college students attend the traditional residential college that most people envision as the idyllic college environment.  Even more telling of the changes in college student profiles, 45 percent of students attending four year colleges reported working more than 20 hours per week and 60 percent of students attending two year colleges reported working more than 20 hours per week.

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In July, Richard Stengel, editor of Time Magazine, interviewed Bill Gates about his theory of Creative Capitalism.  A six-minute video from this interview is available on Time’s website.

Gates passionately believes that technology provides solutions to many of the world’s key problems.  He also believes that life changes due to technology can only occur where people can afford the technology.  In a speech that he delivered at the World Economic Forum in Davos, Switzerland in January 2008, Gates spoke about Creative Capitalism. In that speech, he defined it as “creative capitalism – an approach where governments, businesses, and nonprofits work together to stretch the reach of market forces so that more people can make a profit, or gain recognition, doing work that eases the world’s inequalities.”  Some examples of companies engaging in creative capitalism include:  (1) Microsoft – provides low cost or free technology to those who do not have access; (2) Crucell, a Dutch company that holds the patents on a cholera vaccine in the developed world but shares those rights with drug manufacturers in developing countries so that the drug can be manufactured and delivered at very low costs ($1/dose in Vietnam); (3) Iscar, an Israeli metalworking company, that locates its plants in areas where it can employ minorities such as Israeli Arabs; and (4) other companies such as Converse, Gap, Armani, Dell, and Apple that participate in the RED Campaign started by Bono.

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