March 30, 2012

HIGHER EDUCATION BUBBLE UPDATE: No Financial Aid, No Problem. For-Profit University Sets $199-a-Month Tuition for Online Courses.

Students are flocking to Western Governors University, driving growth of 30 to 40 percent each year. You might expect that competitors would be clamoring to copy the nonprofit online institution’s model, which focuses on whether students can show “competencies” rather than on counting how much time they’ve spent in class.

So why haven’t they?

Two reasons, says the education entrepreneur Gene Wade. One, financial-aid regulatory problems that arise with self-paced models that aren’t based on seat time. And two, opposition to how Western Governors changes the role of professor, chopping it into “course mentors” who help students master material, and graders who evaluate homework but do no teaching.

Read the whole thing.