byu presentation-forprofited

© 2012 by Anthony A. Piña, Ed.D.

Online & For-Profit Education:A View from the Other Side

Dr. Anthony PiñaDean of Online Studies,


A Personal Journey

• 25 years in Ed Tech– Began 1987 at BYU– 7 yr community college– 18 yr university– Faculty & administrator– Consultant


A Personal Journey

• 35 publications• 150 presentations• 200 workshops• AECT

– Past-President of DDL– AECT Board of Directors

• Editorial Board– QRDE– JOCM


About For-Profit Education?

• Private-sector/proprietary• Not new

– Ancient Greek tutors– U.S. private schools late 1800s

• Decline in early-mid 20th cent.– Increase in public education

• Rise since mid 70s– Sharp rise since 90s


Why For-Profit Education?

• Program development• Entrepreneurship• Decision making• Commitment to students• Business sense• Open to innovation & change


Myths & Misunderstanding

• All are alike• It’s about profit, not education• Public education is cheaper• High tuition/high debt• Unqualified students• High attrition• Worthless degrees


Criticisms

• It’s all about profits, not about education


The Truth About Profits

• Critics do not understand difference– Large public-traded corporation– Small family-owned business

• When did operating in the red become a desirable business practice?


Criticisms

• For-profits soak their students with high tuition and debt


The Truth About Tuition

Institution Undergraduate Tuition (per semester unit)

Sullivan University $377 ($283 quarter)University of Louisville $373 ($903 non-resident)Indiana Wesleyan Univ. $467Strayer University $550University of Phoenix $570Spalding University $645Bellarmine University $730Campbellsville University $846


Criticisms

• Community colleges are better than for-profits


Research Studies

• Parthenon Group Study– Compared 2-year programs over 2,100 public &

private sector schools• NCES Beginning Post-secondary Survey

– Compared 5-year income levels of 19,000 students in 2-year public & private sector schools

• American Institutes for Research– Compared the 5-year cost to taxpayers for

community college dropouts


Parthenon Study

Public(n=1,250)

Private Sector(n=860)

At risk students 33% 50%

Graduation rate 44% 65%

Graduation rate (minority)

36% 64%


NCES Post-Secondary Survey

Public (n=890)

Private Sector (n-600)

Pre-enrollment income

$20,300 $14,700

Post enrollment income

$27,600 $22,500

Income gain $7,300 $7,900Percent gain 36% 54%


American Institutes for Research

Source of taxpayer revenue

Cost for community college dropouts

State & local tax appropriations

$2.95 billion

Total state grants $241 million

Total federal grants $660 million

Total costs $3.85 billion


Sullivan Global e-Learning

• 4,000 SUS students• 58 online programs

– Degrees, certificates, diplomas & concentrations

• 500+ courses• 150+ faculty


Sullivan University Online

Admissions Financial Planning

Student Academic Services

Re-Entry Coordinator

Instructional Services

Faculty

Administration Outside Partners


Why SUS is Different

• Established– Sullivan 50 years old

• Programs based on market research

• Locks tuition– Public colleges raise tuition

• 90% of profits put back into the school


About Sullivan

• Online courses fill at 25– Most have lower

enrollment• Quarterly online

retention 88-92%• Career services


Online vs. Total EnrollmentsTotal Enrollment Online Enrollment %

2002 16.61 million 1.60 million 9.6

2003 16.91 1.97 11.7

2004 17.27 2.33 13.5

2005 17.49 3.18 18.2

2006 17.76 3.49 19.8

2007 18.25 3.94 21.9

2008 18.70 4.61 25.3

2009 19.04 5.58 29.3

Avg. H.E. Total Growth Avg. Online Growth

1.9% 19%

Source: National Center for Education Statistics & Sloan-C


Online & For-Profit Education:A View from the Other Side

Dr. Anthony PiñaDean of Online Studies,

byu presentation-forprofited

Education

education public education

forprofit education

public education rise

sullivan online courses

online retention

online growth1

university of phoenix

spalding university