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Study: Online Learning Enrollment Rising Fastest at Private Nonprofit Schools

Even as fewer students overall pursue a higher education, online courses are rising in popularity — including at private nonprofits, which historically were slower to embrace them, according to a report released yesterday.

More than 6 million students — a large majority of whom were undergraduates — enrolled in at least one online course in fall 2015, according to the first in a series of publications from a research partnership between the Babson Survey Research Group, the blog e-Literate and the education nonprofit WCET.

This year’s report relied on federal data from more than 4,800 institutions.

[Learn how to choose between nonprofit and for-profit online programs.]

For the third consecutive year, online student enrollment fell at for-profits in 2015 but continued rising at nonprofits. And for the first time, private nonprofits enrolled more online students than for-profits, though public universities remained the most popular.

Jeff Seaman, co-director of the Babson Survey Research Group and co-author of the survey, says more students at private nonprofits flocking to online classes might go hand in hand with the decline at for-profits as some seek alternatives. Private nonprofits overall experienced the largest growth in online student enrollment between 2012 and 2015, rising by double digits each year.

“I think we have to think of it as them finally coming of age,” says I. Elaine Allen, co-director of the Babson Survey Research Group and a co-author of the report. “They’ve been growing slowly but not jumping in, and maybe this is an opportunity that they were ready to go into.”

As an example, Allen points to the public, nonprofit Purdue University‘s decision to acquire the for-profit Kaplan University and turn it into a new, public online university mainly for working adults.

Meanwhile, the co-authors attribute falling for-profit enrollment to bigger drops at just a few of the largest for-profit online colleges rather than to declines at many schools. Remo ve those larger institu tions from the equation, Seaman says, and the for-profit sector is “as healthy” as the others.

In fact, the proportion of schools report ing increases in online student enrollment between 2014 and 2015 was similar across the three sectors; about two-thirds of institutions saw more students pursuing online courses in 2015 than the previous year.

When it comes to the larger for-profits, “The issues are slightly different for each one, but they had a lot of negative attention,” says Seaman. “There were issues that came up about lots of things that would impact their ability to attract and enroll students.” Seaman adds that he expects online, for-profit enrollment to stop dropping in upcoming years.

[Discover four facts about for-profit, online education.]

Among more key findings: The total number of on-campus students — those who aren’t taking any online courses or who are enrolled in both online and on-ground classes — dropped by nearly a million between 2012 and 2015. Two- and four-year for-profit schools lost almost a third of their on-ground students in that period, and two-year public universities saw about a 10.4 percent drop.

That’s likely because both the number of students pursuing college and higher-level degrees decreased, along with the growing popularity of online learning, the report’s co-authors say. Online programs that provide alternative credentials like lower-cost certificates and nanodegrees might also contribute, Allen says.

Fewer students on campus will “present a problem for some schools going forward, because they’re no longer going to need big brick-and-mortar classrooms,” Allen says.

The report also lists 50 schools with the greatest number of students in at least one online course for 2012 and 2015, with the University of Phoenix at the top for both years. Overall, the differences in the lists illustrate the ever-changing state of higher education as more universities offer online learning, Seaman says.

[Explore ways to decide whether an online program is legit.]

The report then highlights the 50 institutions that experienced the greatest increases in the proportion of students enrolled in at least one online course from 2012 to 2015. Topping the list is Southern New Hampshire University, a private nonprofit, followed by Western Governors University, also a private nonprofit.

“There are still a lot of differences in institutions in how aggressive they are and how successful they are in trying to add their distance components,” Seaman says.

Trying to fund your online education? Get tips and more in the U.S. News Paying for Online Education center.

More from U.S. News

4 Things to Know About Online, For-Profit Education

4 Questions to Ask Before Enrolling in a For-Profit Online Program

Weigh Online Degrees at Community College, For-Profit Programs

Study: Online Learning Enrollment Rising Fastest at Private Nonprofit Schools originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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