Impact and Nonimpact of Online Competition

A federal rule change that opened the door to more fully online degree programs has not made college tuition more affordable, according to a working paper from the National Bureau of Economic Research, but at some place-based institutions, enrollment has declined and instructional spending has increased as a result. The paper, written by David J. Deming, Michael Lovenheim and Richard W. Patterson, explores what has happened in the postsecondary education sector in the years following the removal of the 50 percent rule. The rule change, which occurred in February 2006, meant colleges that enrolled more than half of their students in fully online programs could participate in federal financial aid programs.

・ From Inside Higher Ed