Strictly Business

Overview & Synopsis

When Jackson State University opened for classes this year, it marked its fifth anniversary in the online education business by adding a full four-year, undergraduate degree program in early childhood education to its offerings. Jackson State is among a growing number of historically Black colleges tying part of their future survival and growth strategy to the online education industry. A variety of forces are converging to make the online education business appealing to historically Black colleges and universities (HBCUs) and other minority-serving institutions this decade, say higher education experts and online education services vendors. With increasing competition from other higher education providers like community colleges and for-profit universities, HBCUs have seen their traditional student base shrink, leaving them scrambling to find new sources of students and revenue. In such a landscape, online education can become a powerful lure, providing a near global reach to thousands more potential students--if the startup costs can be conquered. Full-degree online programs have since become more affordable for cash-strapped schools via the emergence of online learning management companies. While the presence of external online management companies means online degree programs are now more affordable, it also means colleges lose some degree of autonomy over the programs they offer. Online education is a business, and in many cases that business is being run as much by the companies as by the educators. For schools and the online learning management companies that serve them, offering full-degree online programs is more than just an academic pursuit.