In this report, Christensen and his co-authors (hereafter abbreviated as Christensen) discuss the potential for online education to be a disruptive influence on higher education with a total cost of education per student 40 percent less than the traditional universities (when you combine the state and federal subsidies with the cost of tuition). 

Probably the most relevant parts of Christensen’s paper are the recommendations at the back for policymakers and traditional universities.   Christensen says that state and federal officials must “honestly ask and answer” two questions.  The first question is “is the traditional universities’ business model sustainable?”  Christensen believes that there are few traditional universities that can answer yes to this question, particularly given the evidence that online education represents a scalable disruptive technology.  The second question is “is the primary stewardship to facilitate the best possible postsecondary education and training for the people in their state or whether they are appointed to be caretakers of the specific institutions that have historically provided higher education.”  If the answer is the former, then officials must include the disrupters in their partnership to ensure that as many as possible receive higher education.  If the answer is the latter, then low cost universities must be framed as “competitors and enemies.”

Christensen recommends that policymakers must remove the barriers to allowing low cost disruptors to gain share and cites Indiana’s partnership with Western Governors University that comes at no cost to the state because Western Governors is self-funded on tuition alone.  He and his co-authors also recommend that policymakers should encourage the move toward competency-based and next-generation learning models and not focus on traditional inputs such as seat time that lock in the traditional measure of a credit hour.  Christensen also states that we need to move beyond measuring degree attainment as a standard of achievement.  He states that focusing policy on degree attainment versus learning will have the impact of deflating the value of a degree and force people to focus more time and money on achieving advanced degrees which is not necessarily in the country’s best interest.

Christensen states that accreditation is a barrier but also states that it is not productive to fight accrediting bodies.  Instead, he recommends finding pathways around accreditation barriers.  As president of an institution that has worked hard to earn our accreditation, I am not sure that I agree with all of his recommendations with regards to accreditation but also understand why disrupters who have not achieved accreditation view it as a barrier.  I believe that accrediting bodies are an easy target when policymakers and disrupters choose not to understand the bigger picture, particularly when the accrediting bodies are not always transparent about their processes and policies.

The federal financial aid system is complex and many researchers avoid writing about it in great detail, choosing to focus on the macro issues instead.  Christensen and his co-authors not only state that the “all-or-nothing access to federal funds for institutions does not compel students to make rational quality-cost trade-offs” but they recommend an alternative system that would provide access to funding based on quality and student satisfaction measures relative to cost.  They call their new system the Quality-Value (QV) Index and propose measuring four items:  job placement, increase in graduates’ earnings relative to the institution’s tuition cost, whether alumni would choose to repeat the experience, and whether students are able to repay their loans.  Colleges would have access to these new funds based on a sliding scale relative to the QV Index.  A ranking in the top 25 percent would allow colleges to draw 100 percent of their revenue from Title IV programs, ranking between 50 and 75 would allow them to draw 90 percent from Title IV, a ranking between 25-50 would allow them to draw 75 percent, and a ranking between 0-25 would allow them to draw 50 percent from Title IV.  I find this proposed system much more creative than the proposed gainful employment regulations and much more appropriate to implement across the board in higher education regardless of the sector.  The only metric that I would alter would be the cohort default rate as currently measured since it measures repayment over three years versus looking at the higher percentage of loans that are eventually repaid and looks at overall defaults with no weighting on the dollars involved.

As mentioned earlier, Christensen provides recommendations for traditional university leaders as well as online university leaders.  First, Christensen recommends that the correct business model must be applied for the task.  He states that online universities are organized to optimize the flow of students rather than the faculty’s ability to do their research.  The authors also recommend that traditional universities develop a strategy of focus and to choose in what area they will be excellent, thus reducing complexity that allows a reduction in costs.

Lastly, Christensen and his co-authors recommend that administrators at traditional universities frame online learning as a long-term innovation that will allow them to use it to disrupt the traditional classroom experience.  Peer-to-peer teaching employed in many asynchronous online classes allows for students to learn more deeply because they have to adapt the material to fit their individual experiences and cognitive abilities.

The authors state that their intention was not to study higher education as a whole but to examine the industry’s challenges as “problems of managing innovation effectively.”  I think that their lens is a worthy examination that policymakers should consider when looking at the funding challenges that are occurring in many states.  Higher education is complex, but as the authors point out, complexity increases costs and a focus on teaching and outcomes can point the way to a reduction in costs allowing for a more affordable tuition for students.

Online education has gained tremendous momentum in the last several years.  A November 2008 report titled, “Staying the Course: Online Education in the United States, 2008” published by the Sloan Consortium notes that during the fall 2007 semester, some 3.9 million students were taking at least one course online, representing a twelve percent increase over the previous year.  During the same semester, twenty percent of all college students were taking at least one course online.  An Eduventures report from November 2006 predicted this growth; that report found that half of the 2,000 potential students surveyed indicated that they would be interested in completing a degree online.

Though the recently released Department of Education report focuses on online formats for K-12 education, the findings are relevant for online education in general.  The 2006 Eduventures report notes that online education was most popular among adult learners.  The Department of Education report, however, notes that “the number of K-12 public school students enrolling in a technology-based distance education course grew by 65 percent in the two years from 2002-03 to 2004-05.”  In total, the report states that more than a million K-12 students took online courses during the 2007-2008 school year.  Such statistics are promising for online colleges and universities like APUS.  If K-12 students excel in online education in their early education, it seems likely that they may continue with the online format for undergraduate, graduate, and even doctoral degrees.  In Disrupting Class, authors Clayton Christensen, Michael Horn, and Curtis Johnson predict that 25 percent of K-12 classes will be online by 2014 and 50 percent by 2019.  (For a review of Disrupting Class, see my August 2008 blog article.)

In considering the reasons why online courses are growing in popularity, the Department of Education report notes that the ability for students to use their time in a flexible manner boosted online education’s popularity.  According to the study, “learners in the online condition spent more time on tasks than students in the face-to-face condition” finding “a greater benefit for online learning.”  There are obvious cost-saving benefits to online formats and some that are not as obvious including the ability to attend class from one’s home and saving money on the gas a traditional student needs to commute to classes at a brick and mortar institution. 

Additionally, online education expands access to many who may otherwise lack educational opportunities.  Online education could provide significant benefits to those living in rural areas, for example.  The diverse student population found in online classrooms promotes a meaningful exchange of ideas and points of view that is often absent in more traditional classrooms which, especially in traditional K-12 schools are comprised of students from a particular geographic location.  Christensen and his co-authors argue that advances in technology will allow K-12 educators to meet the needs of their students more than ever before.  In the event of smaller school districts with limitations of special teachers, foreign languages like Arabic and Mandarin Chinese could be offered online.  Already, there are providers who offer online advanced placement courses for school districts unable to find qualified teachers.

The implications of the report’s findings for the online education industry are significant.  A recent article in Inside Higher Ed quotes Secretary of Education Arne Duncan as saying of the meta-analysis and its findings, “’This new report reinforces that effective teachers need to incorporate digital content into everyday classes and consider open-source learning management systems, which have proven cost effective in school districts and colleges nationwide.’” 

Today’s students are embracing technology in almost everything they do.  Cell phones, MP3 players, laptop computers, and portable gaming devices are the norm for anyone who can afford them and the cost of technology continues to decrease every day.  The online education market is a part of the technology revolution.  Institutions that embrace online degree programs are expanding access to education for many of America’s students.  Higher education is notorious for its perceived conservation of traditional pedagogies and unwillingness to utilize new technologies to transform the ways that students learn.  With the advent of online education, however, the world of higher education is breaking out of that mold and students are benefitting in the process. 

In addition to affording students some flexibility in their schedules, opportunities for learning are dramatically increased in the online format.  Because students are not tied to classrooms and able to complete work on a more flexible schedule, they are also able to dedicate time to even more non-traditional educational opportunities including volunteer work, memberships in clubs and organizations, and other extracurricular activities that certainly provide invaluable experience.  Working individuals often find that earning a degree online allows them the ability to continue with their careers while working toward attaining their degrees.  In general, I believe that such opportunities help encourage the development of a more well-rounded student and individual.

The meta-analysis released Friday by the Department of Education is not the first study that recognized the advance of online education for students’ learning outcomes.  Coming from the arm of the federal government, its recognized stature makes this report more significant.  As the nation struggles to develop citizens who can effectively compete in our globalizing world, online education is becoming an appealing alternative to traditional brick and mortar classrooms.  With the current economic crisis unfolding as it is, many more individuals will find the economic benefits of online education (ie: lower tuitions, no commuting costs, etc.) worthwhile, allowing online program providers the opportunity to enhance the technologies offered in their classrooms.

Some of the prescient points that the authors make in the book are:  increasing spending on the wrong items (like more computers) won’t necessarily help improve K-12, blaming the problems solely on the teachers’ unions won’t improve K-12, and unless students and teachers are motivated, problems won’t necessarily get solved.

I have already recommended this book to several people I know who serve on Boards of Education at the state and county levels.   My reason for recommending the book is that it presents a well-organized and researched approach to resolving some of today’s biggest educational dilemmas.  The authors provide cogent reasoning about students learning in different ways, the positive force behind disruption, and how K-12 education in America is constantly changing.  They provide examples of how technology can be harnessed to develop student-centric teaching, tailoring the education program to a specific student’s learning style.  Christensen’s expertise is in innovation, and he and his co-authors discuss the difficulties in getting to stage two learning by implementing the disrupting technologies outside of K-12 education before bringing them inside the K-12 classroom. 

A fascinating read for me was the research supporting the fact that changes in education need to occur before individuals reach the age of three, primarily citing the work done by Drs. Betty Hart and Todd R. Risley.  The authors add that education research in schools of education in higher education have not consistently supported consistent results with consistent improvement.  Lastly, they provide a toolkit for administrators to implement a successful improvement plan.

For those of you looking for a thoughtful read on K-12 education improvements, this is one of the best that I’ve read.  With improvements in technology leading to disruption in how children are educated, Christensen and his team predict that by 2019, half of high school classes will be delivered online and 25% will be online by 2014.  Reading the book will provide an understanding of the factors influencing his prediction, but it will also provide educators with some thought-provoking ideas that are not out of the realm of practical possibilities for implementation.