November 26, 2012

HIGHER EDUCATION BUBBLE UPDATE: Salman Khan on the future of higher ed:

Here’s what I think it could look like in five years: the learning side will be free, but if and when you want to prove what you know, and get a credential, you would go to a proctoring center [for an exam]. And that would cost something. Let’s say it costs $100 to administer that exam. I could see charging $150 for it. And then you have a $50 margin that you can reinvest on the free-learning side.

I think that is consistent with the mission. You are taking the cost of the credential down from thousands of dollars to hundreds of dollars. And the [software] system would tell them they are ready for it. So no paying tuition for community college and then dropping out, or even finishing the whole thing and saying “Oh, I’m $20,000 in debt and what did I get out of it?”

Now you are like, “Look, there is this micro-credential in basic accounting I can get for $150, and I basically know I am going to pass before I invest that money.” That would be a huge positive for the consumers of education, and it could pay the bills on the learning side.

All is proceeding as I have foreseen.