Economic recession driving growth in online college enrollment

Economy Encourages College Attendance

The Downturn in the Economy is Driving People to Enroll in College

Public Universities vs. Private Universities

As the U.S. economy remains sluggish, more people are expected to apply to public universities (Collins, "Economy Affects"). In fact, both public and private colleges are reporting record enrollment over previous years, which they attribute directly to the recession (Hayworth, "Slow Economy"). Private schools have a harder time attracting students, but financial aid and smaller class sizes make private colleges more appealing to some students (Hayworth, "Slow Economy").

C. Online Colleges vs. Traditional Universities

As the stigma of online degrees has lessened, online campuses are seeing a huge increase in enrollment along with other universities due to the lagging economy (Phillips, "Down Economy"). Around 4.6 million students took online courses last year, which is about 25% of college students, according to the "Learning on Demand" study released by the Sloan Consortium, an organization that aims to integrate online learning into mainstream higher-education (Phillips, "Down Economy"). Professor I. Elaine Allen, the research director of the Arthur M. Blank Center for Entrepreneurship at Babson College, gave a summary of the research noting higher education only grew by 1.2% and that the 17% growth rate of online course enrollment is driving the growth of higher education (Phillips, "Down Economy"). Among the institutions surveyed in the report, 73% saw an increase in demand for their existing online courses and 63% saw an increase in demand for new online programs, which the schools said was caused in part by the struggling economy Among the institutions surveyed, 73% saw an increase in demand for their existing online courses which the schools said was caused in part by the struggling economy. Sixty-six percent of institutions saw an increase in demand for new online classes and programs.

Online colleges have advantages over traditional classroom education because allow for greater flexibility, convenience, affordability and greater options as classes continue to expand (Hosler, "California Enrollment Freeze").

C. Institutions Challenged by Lack of Funding for Increased Enrollment

The biggest challenge faced by universities with increased enrollment in the slow economy is the cuts to funding. California has cut higher education funding, affecting both the California State University (CSU) and the University of California (UC) systems. Schools have responded by raising student fees, laying off staff, eliminating programs, and expanding class sizes (Hosler, "California Enrollment Freeze").