Eduscope Start-Up

Eduscope Start-Up

July 14 2016

Online Education Companies Make Big Money From Programs at Nonprofit Schools

The Atlantic published a damaging
piece illustrating how online program
managers (OPMs) make millions of
dollars a year from tuitionsharing
deals with nonprofit colleges and
universities. Most schools that use
OPMs pay for those services by sharing
tuition with the companies, which take
an average cut of 50 percent of tuition.
Since these OPMs profit based on how
many students enroll, it's in their best
interest to find more students who can
pay for these programs. “The result is a
very lucrative but nearly invisible
education market in which students
pay, companies profit, costs escalate,
and the prospect of scandal lingers,”
Derek Newton reports in The Atlantic.
OPMs, including some traditional
providers, are moving to
feeforservice
models, in which they
take a flat sum to run online 33 in
2015.

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