UNIVERSITY OF ILLINOIS GLOBAL CAMPUS PROGRAM PROPOSAL

Transcription

1 UNIVERSITY OF ILLINOIS GLOBAL CAMPUS PROGRAM PROPOSAL MASTER S DEGREE IN EDUCATION WITH A CONCENTRATION IN ONLINE LEARNING (M301) GRADUATE CERTIFICATE FOUNDATIONS OF ONLINE LEARNING (C201) GRADUATE CERTIFICATE MANAGEMENT OF ONLINE LEARNING (C202) In partnership with: UIUC COLLEGE OF EDUCATION June 29, 2007

2 Program Proposal Master s Degree in Education (Ed.M.) with a concentration in Online Learning and Certificates 1. Executive Summary The Global Campus proposes to partner with the College of Education (COE) at the University of Illinois at Urbana Champaign to create a thirty six credit hour Master s Degree in Education (Ed.M.) with a concentration in Online Learning (M301) and two twelve credit hour Graduate Certificates (C201 Foundations of Online Learning and C202 Management of Online Learning) that will be offered online through the Global Campus. Students that complete the Graduate Certificates will be able to transfer the credits to the Master s in Online Education. The programs will appeal to college and university instructors that would like to teach in or administer an online program, to K12 teachers, and to corporate trainers. The programs will build on the successful and well known ten, eight week Making the Virtual Classroom a Reality (MVCR) online faculty development courses and the four, four week online Advanced Seminars that were created by the Illinois Online Network (ION). Because of ION s activities in faculty development, MVCR is well known in the U.S. MVCR courses offered through the Global Campus will be mature courses from the outset. They have been through multiple iterations to improve and refine the procedures, materials and assignments. The Global Campus proposes to enter into an agreement with the UIUC College of Education by July 15, 2007, and begin development of online courses shortly after that. Instructor recruitment and student recruitment would begin in fall 2007, with the first course being offered in Term 1 of 2008 (January 2008). A more complete timeline is in Section 11 of this document. The COE has offered online programs for several years and faculty have experience teaching online and developing online courses. The online course creation and revision process will be familiar to experienced faculty. ION also has experience creating, teaching, and revising online courses. The Master s Degree will enroll 100 new students annually, with a one year ramp up period and four starting dates each year. New admissions are expected to grow 5% annually in the steadystate. By the end of the second year of course delivery, the program is projected to enroll 100 students. The tuition for the program will initially be $00 per credit hour. Each Graduate Certificate program will enroll 30 new students annually, with a one year ramp up period and two starting dates each year. New admissions are expected to grow 5% annually in the steady state. By the end of the second year of course delivery, each certificate is projected to enroll 30 students. The tuition for the two Graduate Certificates is the same as for courses in the Master s Degree, $00 per credit hour, since all of the Graduate Certificate courses are also required in the Master s Degree. A complete financial analysis of these programs is provided in Section 12. The Global Campus will pay for all the costs of developing and delivering the program, including the key budget items summarized in the following table. Through FY 2012 we project that the GC will make a direct investment of $1.8M (~$360K/year, excludes overhead costs) to create and deliver the M301, C201 and C202 programs. During this same period the fees and profit distributions paid to the COE and UIUC campus are projected to total $1.3M (~$260K/year). 6/29/2007 Confidential Page 1

3 Program Proposal Master s Degree in Education (Ed.M.) with a concentration in Online Learning and Certificates TABLE 1 COE Program Design fee $11,000 COE Course Design and Development fee $55,000 COE Annual Program Oversight fee $15,000 Adjunct Instructor Teaching Stipend $3,00 * ($850/CH) COE Faculty Teaching Stipend* (30% premium) $,20 * ($1,105/CH) COE Faculty Teacher of Record or Master Teacher Stipend* (50% premium) $5,100 * ($1,275/CH) Annual Program Specific Marketing Expenditures $50,000 Tuition (per credit hour) $00 * Assumes a credit hour course (stipend pro rated for courses with other credit). 2. Value Proposition for the Student Graduates of the Master s Degree in Education with a concentration in Online Learning will be equipped to teach in online programs that require certification. They will also have the knowledge and skills to evaluate online teacher performance, create high quality online learning modules and courses, and administer online learning programs. The two certificate programs will provide certification for online teachers, and training in online learning management for educators or instructional designers interested in expanding into the online learning area. Both certificates can be used to satisfy course requirements for the Master s degree. Many online courses in the U.S. are taught by adjunct instructors that are drawn to online teaching because they can work for multiple institutions efficiently from home. Universities and colleges are beginning to require that their adjunct instructors have training in online pedagogies and technologies before they are hired to teach online. At a minimum, applicants with certificates or degrees in online learning have an advantage over instructors with similar academic skills but lacking credentials to teach online. Corporations are increasingly relying on e learning to educate and motivate their employees. While many corporate trainers have a background in teaching or training, they often lack experience and understanding about how to use online pedagogies and technologies in their training programs. The Ed.M. and certificates will help prepare corporate trainers to manage e learning effectively. 6/29/2007 Confidential Page 2

4 Program Proposal Master s Degree in Education (Ed.M.) with a concentration in Online Learning and Certificates 3. Value Proposition for the University Colleges and universities are requiring certification in online teaching and learning for their faculty that teach online. UIUC COE has the opportunity to partner with the Global Campus to fill the need and establish the University of Illinois and UIUC as a leader in fostering online learning. Once this program reaches its steady state enrollment in FY 2010, it is projected to enroll 100 new students and award about 75 Ed.M. degrees in Online Learning per year. The new programs can provide a revenue stream for both COE and GC reasonably quickly since the courses are being adapted from the successful and well known Making the Virtual Classroom a Realty Program currently offered by the Illinois Online Network. The Global Campus will pay for all the costs of the M301, C201 and C202 programs. Through FY 2012 we project that GC will make a direct investment of $1.8M (~$360K/year, excludes overhead costs) to develop and deliver the three programs. During this same period the fees and profit distributions paid to the COE and UIUC campus are projected to total $1.3M (~$260K/year) while GC is projected to earn $293K in total profits (~$60K/year). In addition GC will pay about $690K (~$10K/year) in teaching stipends to COE faculty, TAs and other adjunct instructors. King Fahd University of Petroleum and Minerals in Saudi Arabia has expressed an interest in partnering with the Global Campus to deliver the Master s Degree and Graduate Certificates to students in the Gulf region. The partnership has the potential to generate additional revenue and steer students in the region to other Global Campus programs. Profiles of enrollees in MVCR courses since 1999 suggest that many enrollees in the Master s Degree and Graduate Certificates will be adults currently teaching or working as support staff in schools, colleges and universities. A variety of Master s Degrees in Online Learning are available in the U.S. and Canada. None are available through Illinois institutions. Table 2 below lists several competing programs. 6/29/2007 Confidential Page 3

5 Program Proposal Master s Degree in Education (Ed.M.) with a concentration in Online Learning and Certificates TABLE 2 COMPETING MASTER S IN ONLINE LEARNING AND RELATED SPECIALTIES College Master s Degree Title Required Hours of Study (credits) Number of Courses Tuition Cost (not including fees) Capella University UMUC Florida State University CSU East Bay Athabasca University MS in Education Instructional Design for Online Learning Specialization Master of Distance Education Masters in Instructional Systems with major in Open and Distance Learning Master of Science in Education, Option in Online Teaching and Learning Master of Distance Education 8 12 $17,520 (but depends on the mix of - and 6-credit hour courses) $365 per credit hour $13,356 in-state, $21,7 out-of-state $371 per credit hour instate, $60 per credit hour out-of-state $7,88 in-state, $29,520 out-of-state 5 10 $9,950 $218 per credit hour instate, $820 out-of-state $221 per credit hour Non-Canadians, $9,72 CAD ($8,767 USD) $265 USD per credit hour Jones International University Master of Education in e- Learning Technology and Design $17,100 $75 per credit hour Colorado University at Denver Master of Arts in elearning Design and Implementation 36 9 (3 courses are 6 credits) $2,002 per 6-credit course in-state, $2,102 out-ofstate $33 per credit hour instate, $350 per credit hour out-of-state 6/29/2007 Confidential Page

6 Program Proposal Master s Degree in Education (Ed.M.) with a concentration in Online Learning and Certificates Certificate programs at competing institutions are offered for academic credit as well as for Continuing Education Unit (CEU) credit. In Illinois, Governors State University and Roosevelt University offer certificates in online learning. The public university UMUC offers 6 certificates in a variety of online learning specializations. TABLE 3 COMPETING GRADUATE CERTIFICATES IN ONLINE LEARNING AND RELATED SPECIALTIES Institution Certificate Title Admission Requirements Certificate Completion Course Length Offered Through Courses Credits Cost (not including fees) Governors State Certificate in Online Teaching Bachelor s degree Must complete all courses with B or better and maintain 3.0 GPA Quarters Education and Nursing courses 3 credits per course $2,052 for all students $171 per credit hour CSU East Bay Certificate in Online Teaching and Learning Bachelor s degree B or better in all four courses Quarters courses.5 units each $3,980 $221 per unit New Mexico State Certificate in Online Teaching and Learning Two letters of recommendation, vita and transcripts Complete five threecredit courses with B or higher and GPA of 3.0 Semesterlength courses College of Extended Learning 5 courses 3 credits each $1,855 instate, $3,020 outof state $12 per credit hour in state, $201 per credit hour in state 6/29/2007 Confidential Page 5

7 Program Proposal Master s Degree in Education (Ed.M.) with a concentration in Online Learning and Certificates TABLE 3 (CONTINUED) COMPETING GRADUATE CERTIFICATES IN ONLINE LEARNING AND RELATED SPECIALTIES Institution Certificate Title Admission Requirements Certificate Completion Course Length Offered Through Courses Credits Cost (not including fees) University of Adelaide Certificate in Online Learning None listed Four threeunit courses Semesterlength courses Center for Learning and Professional Development courses 3 credits each $6,000 AUD, or $,573 USD $381 per credit hour New York University Certificate in Online Education None listed Four required courses and two electives Semesterlength courses School of Continuing and Professional Studies 6 courses $3,535, depending on electives Not for credit Appalachian State Graduate Certificate in Online Teaching and Learning Bachelor s degree Fifteen hours of approved study Semesterlength courses Extension/Distance Learning 5 courses $2,100 instate, $9,150 outof state Not for credit 6/29/2007 Confidential Page 6

8 Program Proposal Master s Degree in Education (Ed.M.) with a concentration in Online Learning and Certificates TABLE 3 (CONTINUED) COMPETING GRADUATE CERTIFICATES IN ONLINE LEARNING AND RELATED SPECIALTIES Institution Certificate Title Admission Requirements Certificate Completion Course Length Offered Through Courses Credits Cost (not including fees) UMUC Foundations of Distance Education Distance Education and Technology Teaching at a Distance Bachelor s degree Four courses Semesterlength courses Graduate School of Management and Technology courses 3 credits each $,52 instate, $7,28 outof state $371 per credit hour in state, $60 outof state Training at a Distance Distance Education in Developing Countries Library Services in Distance Education 6/29/2007 Confidential Page 7

9 The instructor stipend of $2,550 per 3 credit hour course ($850/CH or $3,00 for a credit hour course) was selected because ION has been able to hire highly qualified instructors by paying $2,500 per eight week course. All ION instructors have taken six MVCR courses, received the Master Online Teacher Certificate, and learned the specifics of course instruction for one term by shadowing an experienced instructor as she/he taught a course. Thirty two unsolicited applications from qualified instructors have been received in the last three months should ION need a replacement for one of its eleven instructors. Tuition of $00 per credit hour was chosen to make the Master s in Online Learning and the two Graduate Certificates competitive with other programs. While the average tuition in six Master s Degrees in the U.S. and Canada is $319 per credit hour, in state tuition at the University of Maryland at University College is $371 per credit hour. In state Roosevelt University charges $50 per credit hour for courses in a Graduate Certificate in e Learning.. Program Description The Master s in Education with a concentration in Online Learning (M301), Graduate Certificate in Foundations of Online Learning (C201), and Certificate in Management of Online Learning (C202) would be an online concentration that is modeled after the existing concentration that is available on campus.. Students would be able to begin their academic program four times a year. Each course will be eight (8) weeks in length. Upon successful completion of all coursework, students would earn either a Master s in Education or a Graduate Certificate from UIUC. The curriculum of the Master s Degree in Education with a concentration in Online Learning will consist of the nine (9) credit hour courses for a total of 36 credit hours (See Table ). The curriculum of the Graduate Certificate in Foundations of Online Learning consists of three (3) credit hour courses for a total of 12 credit hours (See Table 5). The curriculum of the Graduate Certificate in Management of Online Learning consists of three (3) credit hour courses for a total of 12 credit hours (See Table 6). All certificate courses are also part of the Master s Degree in Education with a concentration in Online Learning. Admission to the Online Learning program requires: Bachelor s degree from an accredited institution 3.00/.00 GPA computed on the basis of the last 60 hours or the equivalent of the baccalaureate degree. A separate grad point average will be computed for all graduate work, then a combined grade point average is tabulated. 6/29/2007 Confidential Page 8

10 TABLE NINE PROPOSED COURSES (TITLES TENTATIVE) FOR MASTER S DEGREE (36 TOTAL HOURS) Course # Course Name Credit Hours Overview of Online Learning (Specialized Foundation Course ) School in Society/Social Foundations of Education (Foundation Course) Learning and Development (Foundation Course) The Internet and Learning (Online Ed Specialization course) Teaching Online (Online Ed Specialization course) Design and Development of Online Learning Content (Online Ed Specialization course) Program Management and Support (Online Ed Specialization course) Online Education Policies Theory and Implementation (Online Ed Specialization course) Portfolio /Project for Online Learning (Capstone Course) 36 Total TABLE 5 PROPOSED COURSES (TITLES TENTATIVE) FOR GRADUATE CERTIFICATE FOUNDATIONS OF ONLINE EDUCATION Course # Course Name Credit Hours The Internet and Learning (Online Ed Specialization course) Teaching Online (Online Ed Specialization course) Design and Development of Online Learning Content (Online Ed Specialization course) 12 Total TABLE 6 PROPOSED COURSES (TENTATIVE TITLES)FOR GRADUATE CERTIFICATE MANAGEMENT OF ONLINE EDUCATION Course # Course Name Credit Hours The Internet and Learning (Online Ed Specialization course) Program Management and Support (Online Ed Specialization course) Online Education Policies Theory and Implementation (Online Ed Specialization course) 12 Total 6/29/2007 Confidential Page 9

11 Content of the Master s of Education with a concentration in Online Learning and the two graduate certificates will be based on three existing foundations courses from the UIUC College of Education and fourteen existing MVCR courses. TABLE 7 Ed. M in Online Learning Course The Internet and Learning Teaching Online Design and Development of Online Learning Content Program Management and Support Online Education Policies Theory and Implementation Portfolio /Project for Online Learning Existing MVCR Course Content to be adapted from existing MVCR Course Online Learning: An Overview Overview of Online Learning and Teaching Models of Online Teaching and Learning (new module) Learning Theories (moved from TPCOC) Instructor s and Student s Roles in the Online Classroom The Successful Online Instructor The Successful Online Student Learning Effectiveness in the Online Environment (new module) Current Topics (new module) Theory and Practice of Communication in Online Courses Assessing Student Learning Online Building Community in the Online Classroom Facilitating the Online Classroom Structuring the Online Classroom for Effective Communications Peer Learning and Group Work Online Course Objectives and Learning Outcomes Online Assessment Methods in the Online Classroom Evaluating Assessment Activities Time Management for Online Instructors Instructional Design Instructional Design Theories Curriculum Design Development and Evaluation of Online Learning (mostly new module) Web Design Web Site Usability and Accessibility Technology Tools Challenges and Benefits of Technology Technologies for Online Teaching and Learning Emerging Technologies Multimedia Types and Uses of Multimedia Multimedia for Online Content Delivery Effective Use of Streaming Media New Content Faculty Support and Compensation Student Support and Retention Program Assessment Quality Assessment Models and Costs of Course Development and Maintenance Costs of Recruiting and Retaining Instructors Student Support Services for Online Programs Copyright, the TEACH Act and Intellectual Property in Education Copyright Basics, Fair Use and Copyright Exemptions Copyright Case Law Applications Intellectual Property Agreements and Materials Ownership New Content Accessibility FERPA and Security Online Learning Practicum Projects and Reflections 6/29/2007 Confidential Page 10

12 All courses must be modified to conform to the appropriate GC course templates and quality standards. Course instructors will model best practices in teaching online, by demonstrating excellent facilitation skills, providing rapid and substantive feedback to assignments, requiring active student participation, and small group work. Courses will be offered in the GC LMS. Asynchronous and synchronous technologies will be used to present content and facilitate interactions among students and the instructor. In addition, students will explore new technologies that they might use when teaching their own courses. Course evaluation will take place both formally and informally. Students will complete a summative evaluation at the end of each course, focusing on quality of instruction, course technology, and their success at meeting course objectives. Formative evaluation will be encouraged in asynchronous discussion forums. 5. Program Assumptions For the Master s Degree it is assumed that students will enroll in 1 course per term until they finish the program, which will require 18 months (1 1/2 years). For program planning purposes, the following assumptions apply: 70 % graduation rate 25 students per cohort starting dates each year 1 year ramp up period 100 new students per year in the steady state 10 % annual enrollment growth rate after ramp up period For the Graduate Certificates it is assumed that students will enroll in one course per term until they finish the program, which will require 6 months. For program planning purposes, the following assumptions apply: 90 % graduation rate 15 students per cohort 2 starting dates each year (note: students in the Graduate Certificate programs will share some courses with students enrolled in the Master s Degree 1 year ramp up period 30 new students per year in the steady state 10 % annual enrollment growth rate after ramp up period MVCR course retention rate for all courses is 90% since (n=3,726). Course retention is defined as (Successful Completions + Fails) / (Successful Completions + Fails + Withdrawn). Successful completion rate since 1999 is 86%. Successful completion is defined as (Successful Completions) / (Successful Completions + Fails + Withdrawn). ION has not determined an overall graduation rate for the six course Master Online Teacher certificate because there is no welldefined entrance requirement, such as an application, or payment of a fee that indicates a student has begun the certificate program. 6/29/2007 Confidential Page 11

13 MVCR courses have historically been offered for free to faculty and staff from Illinois community colleges and the University of Illinois. Members of the general public, and faculty from other institutions, have been able to enroll in these courses for $500 per course.. In addition, the courses are offered for two credits each through the departments of Teacher Education Preparation and Computer Science at UIS where enrolled students paid e tuition rates of $217 per credit hour (Fall 2006). In , 120 students paid ION directly or through UIS to enroll in the courses to receive no credit or credit through UIS. In , 150 students paid to take the courses. Because more than 100 students per year have been willing to pay even when no credit is offered, enrollment in the Master s in Online Learning is likely to equal or exceed 100 students per year, and enrollment in the Graduate Certificate programs is likely to equal or exceed 30 students per year. The following table provides a summary of enrollment projections through FY 2012 (additional details are in the program pro forma): TABLE 8 PROJECTIONS FOR ENROLLMENT & COURSE OFFERINGS M301, C201 AND C202 FY2008 FY2009 FY2010 FY2011 FY2012 Course Enrollments Course Sections Taught Average Course Size Ed. M. (M301) Graduates Program Assessment The Master s in Education with a concentration in Online Learning and associated certificate programs will be assessed using standard Global Campus/Partnering Academic Unit processes. The online courses themselves will be assessed using the Global Campus quality rubric (modified from QualityMatters.org and ION s Quality Online Course Initiative rubric). Students will submit course and instructor evaluations, and these evaluations will be used by Global Campus and Partnering Academic Unit staff in a process of continuous quality improvement. Students in the degree and certificate programs will be surveyed regularly to determine if the entire program (ranging from coursework to student support) is meeting their needs. Graduates of the program will be surveyed to determine the impact on their careers of earning the Ed. M. or certificates. On a different level, the Online Learning programs will be evaluated regularly by the Global Campus Program Manager. As with every Global Campus program, this evaluation will address the following questions: Is the development on schedule and on budget? Is the program meeting its enrollment goals? 6/29/2007 Confidential Page 12

14 Is there a sufficient pool of qualified instructors to teach the online courses? The answers to these questions will be used by the Global Campus staff and the COE to inform their decision making regarding the development and delivery of this specific program. The UIUC COE will provide its own independent assessment of the degree and certificate programs, with particular emphasis on learning outcomes that is, have the graduates of the program achieved the desired learning outcomes? 7. Marketing Plan Overview The Global Campus will market the Master s Degree and Graduate Certificates to prospective students through a number of different venues: website, pay per lead, community college partnerships, professional societies and magazines, etc. The goal of the marketing effort will be to recruit sufficient students and instructors to meet (or exceed) the targeted enrollments each term. The Global Campus will need to recruit 80 students in all three programs during FY2008 and 160 students during FY2009. Since the first course will be offered during Term 1 of 2008, the marketing initiative for students will begin in the fall of All three programs will be marketed as a unit, so marketing costs are no more for all three programs than they would be for only the Master s Degree. It is anticipated that the program specific costs of marketing will be $500 per Ed.M. student or about $50,000/year. The Global Campus will need to hire adjunct instructors to teach additional sections of the online courses. These instructors will be recruited from the Global Campus pool and through specific recruiting efforts for this program. During FY 2010, there will be 52 course sections offered; therefore, the Global Campus will need approximately 25 instructors who are certified to teach in this program. Since the first course will be offered during Term 1 of 2008, instructor recruitment will begin on September 1, 2007, and instructor training will commence on October 1, Past MVCR Master Online Teacher graduates form a pool of potential instructors. As of March 2007 there have been 235 graduates. Graduates that have demonstrated the most skill and who meet the instructor credential requirements established by the UIUC College of Education will be invited to submit applications. 8. Key Features of the Program Development and Support Agreement The Global Campus and the Dean of the UIUC College of Education propose to move forward with the development and delivery of the online Master s in Education with a concentration in Online Learning and the associated two Graduate Certificate programs with the support and approval of the UIUC Provost. The Program Development and Support Agreement (PDSA) includes the following key points: The COE and GC will develop new online courses and modify existing MVCR courses for delivery by the GC. When development is complete the M301, C201 and C202 programs will consist of nine credit hour online courses that will be delivered by the Desire2Learn learning management system in the 8 week GC term format. Development will begin immediately after finalizing the PDSA, and the first course will be offered during Term 1 of The COE will provide appropriate staffing to 6/29/2007 Confidential Page 13

15 assist with course development over a period of time from 30 July 2007 to 1 March This cooperation would include at a minimum: A COE Program Coordinator, with on going responsibilities Sufficient subject matter experts (SMEs) to cover each of the courses; to work with the GC course design team to develop each course, including a faculty handbook, and to provide post delivery evaluation Syllabi, instructional objectives, course measurements, and all other course material The COE will receive a payment of $66,000 for program design and course development work. There will be an annual pool of $2,500 for course revision (this pool will be managed by the Global Campus Program Manager and the COE Program Coordinator). The COE will receive an annual oversight fee of $15,000. In return, the COE would provide on going oversight of the program. Program oversight includes: monitoring of student success, monitoring of adjunct instructors, minor course maintenance, routine assistance with the program (such as identifying new markets and sites for clinical experiences), and regular review of progress toward program s goals. The COE and UIUC campus will receive a profit sharing fee of up to 22% of the net tuition revenues (net of collection expenses), projected to begin in FY 2010, after all development ($123K) and fixed annual operating costs ($109.5K/year) have been recovered. The percentage of profits distributed to COE will be determined by the UIUC leadership in consultation with the President and the UI chancellors and provosts but will be no less than half the net profit distribution. The cumulative profits through FY 2012 are projected to be about $1.M of which nearly $1.2M (80%) would be distributed to the COE, UIUC and President s Office. The Global Campus will pay for all the costs of delivering the program, including those detailed above. Through FY 2012 we project that the GC will make a direct investment of $1.8M (excludes overhead costs) to develop and deliver the M301, C201 and C202 programs. In return the GC is projected to earn about $290K in profits. Students admitted to this program would become UIUC students, and their degrees would be awarded by UIUC. However, students admitted to this program would not have any rights to enroll in the on campus version of this program. If they wanted to enroll on campus, they would have to apply directly to an on campus program. The COE and the Global Campus have agreed that if the online program is eventually terminated, any enrolled student will be permitted to finish the program; that is, courses will be offered for sufficient terms that any enrolled student will be able to graduate in a reasonable period of time if they do not stop out. 9. Support Services The Global Campus will provide exemplary service to support the recruitment, retention and graduation of all students meeting admissions standards. The Global Campus will assume responsibility for providing instructional and technical support to ensure that a student is adequately prepared to enroll in and complete online instruction. 6/29/2007 Confidential Page 1

16 The Global Campus will be responsible for identifying and recruiting qualified student prospects. Students will be guided through the application and enrollment process by trained Global Campus student recruiters. Qualified students will receive financial assistance through a Title IV Consortium agreement managed by a strategic partner and overseen by the Global Campus. Global Campus Academic Advisors will ensure students are enrolled in the appropriate course(s) and in the correct sequence. Since the Master s in Education with a concentration in Online Learning and associated certificate programs will use the normal Global Campus technologies, there will not be any need for additional technical support for the students enrolled in this program. The students in the online courses in the Master s Degree in Education with a concentration in Online Learning and Certificates in Foundations of Online Learning and Management of Online Learning will not need access to specialized library resources. Resources required for course readings and research will be provided by the Global Campus library services. Therefore, there will not be any additional cost of providing these resources to the students. 10. Timeline TABLE 9 KEY MILESTONES FOR THE PROJECT PDSA approved by GC, UIUC COE Dean and Provost 7/15/2007 Instructor recruitment begins 9/1/2007 Enrollment management training begins 9/15/2007 Course development begins 7/15/2007 Development Phase 1(initial three courses) completed 10/5/2007 Student recruitment begins 9/1/2007 Instructor orientation begins 10/1/2007 Instructors certified 11/15/2007 First course offered (Term ) 1/2/2008 First graduate of Master s Degree (assumes students enroll in 1.5 courses per term) 3/2009 First graduate of Certificate Programs 8/ Financial Analysis and Assumptions The proposed tuition of $00 per credit hour was chosen to make the Master s in Online Learning competitive with other programs. The average tuition of six Master s in Online Learning offered in the U.S. and Canada is $319 per credit hour. However, tuition at the high profile program at UMUC 6/29/2007 Confidential Page 15

17 is $371 per credit hour for in state students and $60 per credit hour for out of state students. In Illinois, the Governors State Certificate in Online Teaching is $171 per credit hour, and the Roosevelt University Graduate Certificate in e Learning is $50 per credit hour. The proposed adjunct instructor teaching stipend is $850/credit hour. Adjunct instructors currently teaching eight week MVCR courses receive $833/credit hour ($2,500 per 3 credit hour course), and this stipend has attracted many qualified instructors. COE tenure system faculty will be paid a premium of 30% or 50% when they teach in the program, depending on their responsibilities. The key financial terms including: 1) program development costs, 2) fixed annual program operating costs, 3) GC overhead rate, ) variable program operating cost rate and 5) gross profit margin are summarized in the GC / UIUC COE Term Sheet included in Appendix B. Projected Financial Highlights: COE Fees, Projected Profit Distributions and Teaching Stipends for M301, C201 & C202 M301, C201, C202 Combined FY2008 FY2009 FY2010 FY2011 FY2012 Cumulative COE Program Development Fees $66K $66K COE Oversight Fees $7.5K $15K $15K $15K $15K $67.5K Profit Distribution (80% to COE, UIUC, President s Office) Total COE Fees and Profit Distributions $35K $236K $28K $7K $1.17M $73.5K $50K $251K $3K $89K $1.31M 1 Teaching Stipends $19K $111K $16K $186K $208K $688K 2 1 Return average ~$260K/year 2 Stipend average ~$10K/year Global Campus Investments and Returns for M301, C201 and C202 M301, C201, C202 Combined FY 2008 FY2009 FY 2010 FY 2011 FY 2012 Cumulative Development Costs $123K $123K Direct Operating Costs (excludes overhead) $100K $339K $02K $16K $31K $1.69M Total GC Program Investment $223K $339K $02K $16K $31K $1.81M 1 GC Profit Share (20%) $9K $59K $107K $118K $293K 2 1 Investment average ~$360K/year 2 Return average ~$60K/year 6/29/2007 Confidential Page 16

18 Key Enrollment Thresholds: 3rd Year Required Course Enrollments (M301, C201, C202 Combined) Scenario $375/Credit Hour $00/Credit Hour $25/Credit Hour Projected 3 rd year course enrollment Program development threshold Profit distribution threshold Program termination threshold Recover all costs, including program development costs in 3 years 2 Recover program operating costs + GC overhead costs 3 Recover only program operating costs Intellectual Property: All of the program and course design work will be work for hire and the University of Illinois will own the intellectual property. The University will copyright the online course materials and license the copyrights exclusively and royalty free to the Global Campus and UIC College of Education. Because of this joint exclusive license, written mutual consent of both the Global Campus and the UIUC COE is required before the University may share or sublicense the M301, C201 and C202 programs and course IP with a third party. The COE and faculty involved in course design will retain access to the course materials developed in conjunction with the Global Campus course designers for use in the classes they teach under the auspices of the University. In some circumstances, when a faculty member contributes unique highly specialized content, it may be appropriate to negotiate a different IP arrangement with the content creator. 12. Approvals While the UIUC COE currently offers a concentration in online teaching and learning on campus, this concentration is being developed as a new online option under their existing Ed.M. program. Therefore, this online concentration will require approval by the UIUC campus, but approval by the Board of Trustees of the University of Illinois and IBHE is not required. Tuition approval by BOT is required. 6/29/2007 Confidential Page 17

19 Appendix A. Exit Strategy for an Academic Program Summary: It is possible for the Global Campus and a Partnering Academic Unit to terminate an academic program in a responsible manner in which the enrolled students have an adequate opportunity to graduate. If a Global Campus academic program is not successful, either academically or financially, it might be necessary to terminate the program. This exit strategy provides a framework for how an academic program would be terminated. Guiding Principles The overarching principle guiding this process is that enrolled students must be protected and provided a reasonable time to graduate. Each academic program must be given a fair chance to become successful; for example, time will be needed to evaluate various marketing strategies designed to reach the target population of students. Once the decision is made to terminate a program, no new students will be admitted and no new courses will be developed. Employees of a program to be terminated will be treated fairly and with dignity. GC may provide outplacement assistance to employees whose positions are being eliminated. Criteria for Terminating an Academic Program Criteria for terminating a program will be established in the Program Development and Support Agreement (PDSA). Such criteria might include: o Enrollment falling short of projected; in this case the number of students affected would be small. o Enrollment in the program not sufficient to cover even the direct costs of offering the program, program revenue not contributing to GC overhead, and program not repaying development costs (see Analysis of Financial Sustainability section). o Revenue projections indicate program is not financially sustainable. Analysis of Financial Sustainability For an individual program, the tuition revenue will be used to cover: o Direct (fixed and variable costs) of delivering the program o GC overhead o Repayment of the costs of program development o Profit sharing (GC, PAU, University of Illinois) If a single academic program has enrollments that are much lower than forecast, the revenue shortfall may be so great that it is unable to cover overhead, repayment of program development, and profit sharing. However, at the very least, revenue must be sufficient to cover the direct costs of delivering the program. The costs of delivering a program can be calculated from the GC pro formas, knowing the fixed costs (Program Manager, oversight fee paid to PAU, course maintenance costs, and program specific marketing) and variable costs (student recruiting, post enrollment 6/29/2007 Confidential Page 18

20 advising, instructor recruiting and instructor stipends) for each type of program. The number of students needed for a program to cover its direct and variable costs can be calculated from the above information and the tuition. Summarized in Table 3 are the minimum enrollments needed to cover a variety of costs for the average baccalaureate, master s, and certificate program. Course Enrollments Required to Cover Costs Circa FY 2012 Program Type Annual Course Enrollments Required to Cover Direct Costs Annual Course Enrollments Required to Cover Direct Costs and Overhead Annual Course Enrollments Required to Cover Direct Costs, Overhead, and Repayment of Development Costs in 3 years Baccalaureate Completion 160 (~0 students) 270 (~70 students) 80 (~120 students) Certificate 60 (~20 students) 100 (~35 students) 120 (~0 students) Master s 100 (~25 students) 150 (~35 students) 230 (~60 students) Typically, the GC will proceed with program development and delivery only if it appears that sufficient demand exists to recoup development costs within three years. Only if the program failed to achieve less than one half to one third of the minimum required enrollment would GC consider closing it. Making the Decision to Terminate a Program The decision to terminate a program will be made by the GC CEO, in consultation with the PAU senior leadership and the campus provost. The decision will be made by applying the criteria specified in the PDSA. Managing Personnel A number of GC personnel will have been assigned to perform duties associated with the specific program that is to be terminated. Examples would include program manager, academic advisors, recruiters, and marketing staff. The first response would be to re assign these GC personnel to other functions within the GC (perhaps performing similar duties for other programs). Other measures may have to be considered (personnel that have ties to a campus could transfer back to a campus based position, some personnel may select to retire, less senior personnel may be laid off, etc.); there could be significant costs associated with the payouts for accrued vacation and sick leave. The PAU may have to re assign any of its staff who were assigned to the online program. 6/29/2007 Confidential Page 19

21 Insuring the Integrity of the Program for Enrolled Students The overarching principle guiding this process is that enrolled students must be protected and provided a reasonable time to graduate. The GC Program Manager, in consultation with the PAU Program Coordinator, will have to work to establish a schedule that will let enrolled students complete the program within a reasonable time. Students may have to be assessed on an individual basis to determine if they would be acceptable to transfer to another program within the GC, or to enroll in the equivalent program offered on campus. Disposing of Assets For a single academic program, the main asset would be the online courses that were developed in the partnership between the GC and the PAU. Of course, there may be other intellectual property associated with an academic program that would have value. o o The PAU may want to purchase some of the course materials from the GC. Some of the course materials may have value in the greater marketplace and could be sold to other organizations. Communicating the Decision to Terminate a Program A comprehensive project plan will be essential to managing the transition in as smooth a way as possible. It may be necessary to secure the services of a public relations firm to help craft the strategic message to the public, to enrolled students, and to the university community. 6/29/2007 Confidential Page 20

22 Appendix B. Term Sheet Global Campus / UIUC COE Term Sheet Program Type and Name: Masters Degree, Education, concentration in Online Learning (M301, C201, C202) Partnering Academic Unit: UIUC College of Education Program Development Costs: The development of an academic program is a one time cost that includes expenses for designing the program, preparing instructor teaching guides and student advising materials, developing course content, creating the online courses, facilitating program approval and managing the whole process. Program Development Costs Amount COE Program Development Fee $11,000 COE Course Development Fee (2 new $10K ea and $55,000 7 revised $5K ea) GC Program Manager (salary expenses) $15,000 GC Course Development Cost $2,000 Total Development Costs $123,000 Program Operating Costs: Ongoing costs, such as marketing and instructor teaching stipends, are incurred in operating an academic program. Operating costs can be categorized as fixed annual costs, which are independent of enrollment, and variable costs, which scale with course enrollments. Fixed Annual Program Operating Costs Amount COE Oversight Fee $15,000 Course Maintenance Pool (25% course development costs/year) $2,500 Program Specific Library Services Program Specific Technical Services Program Specific Marketing Costs ($500/student, 125 new students/year) $50,000 GC Program Manager (salary expenses) $20,000 Total Annual Fixed Cost $122,000 Variable Costs Global Campus Overhead Rate (FY 2008 FY 2010) $200/credit hour Variable Program Operating Cost Rate (VOCR) $78/credit hour Total Variable costs $278/credit hour Gross Profit Margin: The profit margin, as a percentage of net tuition revenue, depends on the tuition level, collection expenses and anticipated future tuition increases. Initial Tuition Guaranteed Gross Profit Margin Guaranteed Net * Profit Distribution to PAU, PAU Campus and University (80%) $375 / Credit Hour 23.0% 18.5% $00 / Credit Hour 28.0% 22.0% $25 / Credit Hour 32.0% 25.5% $50 / Credit Hour 36.0% 29.0% 6/29/2007 Confidential Page 21

23 * Net of one time development costs and fixed annual operating costs 6/29/2007 Confidential Page 22

24 Financial Guarantee: The Global Campus guarantees the one time development cost. The Global Campus also guarantees the fixed annual operating cost, variable operating cost rate, overhead rate and the gross profit margin for three years through FY2010. These financial parameters for FY2011 and beyond will be renegotiated with the COE Dean and UIUC Provost in FY2010. Payment Terms: The COE program development fees are paid when each phase of work is completed, as described in the Program Development and Support Agreement. The COE annual oversight fee is paid annually at the beginning of the fiscal year or whenever the first cohort of students begins classes, whichever is later. In this latter case, the oversight fee is prorated for the fiscal year based upon the term that the initial cohort begins classes. Gross profits are first used to recover the one time program development costs and the fixed annual operating costs. Profits are distributed to the COE, UIUC campus and University only after these costs have been fully recovered. Profits are distributed annually at the beginning of the fiscal year, for profits earned during the previous fiscal year. Signatures: Chief Executive, Global Campus Date Dean, UIUC College of Education Date 6/29/2007 Confidential Page 23

25 Appendix C. Budget Pro Forma 6/29/2007 Confidential Page 2