Given the pressing demands on state budgets, it is unlikely that funding for higher education will return to pre-2007 levels anytime soon. In fact, analysts predict just the opposite: Financing levels will continue to decrease in the years ahead to the point where a number of colleges and universities may be forced to close. The real numbers tell a drastically different story: Online education holds the promise for universities to not only shrink their deficits but also extend their programs to a vast number of students, all at significantly lower costs. So what is the true incremental cost of serving an online student at a state university today? A study carried out by the University of Texas, comparing online versus on-campus instruction across 15 institutions serving more than 150,000 students, demonstrated a 30 percent to 50 percent cost savings for the Web-based approach. Given that students are asked to shoulder debt for services and amenities that are, objectively, nonessential to their education, people should take notice.
http://www.bloomberg.com/news/2012-12-02/online-classes-mean-no-dorm-gym-or-debt.html
Source: http://recessionreality.blogspot.com/2012/12/online-classes-mean-no-dorm-gym-or-debt.html
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