Fee Structures and Student Services for Online and On-Campus Students

Transcription

1 UNIVERSITY BUSINESS EXECUTIVE ROUNDTABLE Fee Structures and Student Services for Online and On-Campus Students Custom Research Brief April 15 th, 2011 RESEARCH ASSOCIATE Lady Adjepong RESEARCH MANAGER Josh Albert TABLE OF CONTENTS I. Research Methodology II. Executive Summary III. Tuition and Fee Models IV. Services for Online and On-Campus Students Networking Contacts THE ADVISORY BOARD COMPANY WASHINGTON, D.C.

2 II. EXECUTIVE SUMMARY Project Challenge: Leadership at a member institution approached the Roundtable with the following questions: How are tuition and fee models structured for students enrolled in online versus on-campus courses? What challenges have institutions faced when formulating tuition and fee models and how have they addressed these challenges? How do institutions ensure that fees charged raise enough revenue to fund the provision of online courses, and other essential student activities? How have institutions addressed student concerns and questions about fees charged for online courses? Project Sources: Education Advisory Board s internal and online ( research libraries The Chronicle of Higher Education ( National Center for Education Statistics [NCES] ( Research Parameters: The Roundtable interviewed distance and online learning administrators at public institutions. Institution A Guide to Institutions Profiled in this Brief Location Source: National Center for Education Statistics Enrollment (Total / Undergraduate) University A Midwest 2,700 / 2,200 University B Midwest 2,800 / 2,600 University C Midwest 25,100 / 20,000 University D South 2,500 / 2,300 University E Midwest 7,100 / 6,100 University F Midwest 30,400 / 25,200 Classification Baccalaureate Colleges--Diverse Fields Baccalaureate Colleges--Diverse Fields Research Universities (high research activity) Master's Colleges and Universities (smaller programs) Master's Colleges and Universities (medium programs) Research Universities (high research activity) 2011 The Advisory Board Company 2

3 II. EXECUTIVE SUMMARY Key Observations: At all contact institutions, students taking courses exclusively online pay in-state tuition regardless of where they are located. According to contacts, this model encourages students from afar to enroll in online courses at institutions, and contacts report that any revenue that may be lost from providing this discount to out-of-state students is regained as a result of the large numbers of students who enroll in online courses. Although students taking online courses at contact institutions typically do not pay fees for on-campus services they cannot access, they may be charged for resources such as legal services, library fees, and financial aid counselors. These fees may not necessarily be separately identified in students bills. Contacts highlight the importance of providing students who are off-campus and taking online courses with resources that will facilitate their learning process, including access to electronic libraries and to programs and software that complement distance learning. Although some contact institutions outline these additional fees on students bills, most prefer not to, instead opting to distribute the fees to different departments internally. Alternatively, some contact institutions simply charge standard tuition and add a distance or electronic learning fee on students bills. This fee covers the cost of providing online courses. Across contact institutions, students living on campus may take online courses in addition to face-to-face courses. Bills for on-campus students taking online courses typically itemize tuition for on-campus courses, amenities fees assessed per credit hour, online course tuition, as well as any other fees that the institution may charge. Contacts report that students bills need to be documented in this way in order to correctly outline fees. Some contact institutions pay third-party vendors to manage online course, while others perform this function internally. Regardless of whether institutions outsource this function or manage online courses in-house, contacts emphasize the need to accurately determine the costs of providing online courses and to ensure that online tuition rates reflect this cost. Whether students enroll exclusively in online courses or in a mixture of online and faceto-face courses, contacts report that they have received few complaints about tuition rates. Indeed, students from out of state who take courses online are satisfied with receiving in-state tuition rates, and on-campus students, who may sometimes pay higher fees for online courses than for face-to-face courses, acknowledge the convenience of being able to take some of their courses online. Contacts report that when there are complaints about online tuition rates, reminders of the convenience typically placates students The Advisory Board Company 3

4 III. TUITION AND FEE MODELS Tuition and fee models for online courses differ across contact institutions; some institutions apply standard tuition rates for online courses and add a distance or online learning fee, and others charge a flat rate for online courses. Fee structures also depend on whether students taking online courses are also enrolled in face-to-face courses. Contacts report that their primary concern is ensuring that students taking courses online do not pay for services to which they do not have access, and that students on-campus are paying for, and therefore can access, on-campus resources. In order to ensure that this balance is achieved, institutions such as University B do not bill online students for amenities or university fees, and therefore do not provide any additional services to online students besides support for the courses that the take. Conversely, University E charges all students all fees, regardless of whether they take courses exclusively online or face-to-face. The university selected this model because the majority of students taking online courses at the institution live on campus, and therefore have access to all resources for which they are billed. The table below highlights the different ways in which contact institutions bill students for distance learning courses and on-campus courses. Tuition and Fee Models at Contact Institutions Charge a Flat Rate for Tuition and Fees At University A, University B, and in the School for Information Studies at the University F, students pay tuition per credit hour for online courses. This fee is higher than tuition for face-to-face courses and is distributed internally to support the administrative cost of providing online courses. Students taking online courses at these institutions have access to tutoring services, academic advisors, financial aid counselors, electronic libraries, and other essential student services. At these institutions, on-campus students who take online courses must pay amenities and fees to cover the costs of services they use on campus. These typically include dormitory fees, health services fees, and activities or events fees. University C and University E assess a distance learning fee and online college at University D charges a technology fee to students taking online courses. Include a Distance Learning or Technology Fee At University C and University E, students pay the same tuition rate whether they are taking online courses or face-to-face courses, whereas at the University D, the tuition rate is higher than for students taking face-to-face courses. The distance learning and technology fees cover the cost of providing online courses. Both University C and University E outsource course management to thirdparty vendors, and contacts report that the distance learning fee pays for the cost of using these vendors The Advisory Board Company 4

5 III. TUITION AND FEE MODELS Fees for University-Wide Initiatives Although University E charges a distance learning fee, students taking courses online also pay university fees which are distributed towards scholarships, capital improvements, and technology, among other administrative areas. Contacts at University E report that regardless of their mode of study, all students benefit from the areas these fees are distributed to, and as such all students should help pay for them. Just as at other institutions, students taking online courses have access to academic advisors, support from faculty, and help from the writing center. Assessing Distance Learning or Technology Fees Distance learning or technology fees are billed to students taking online courses in order to cover the cost of providing these courses. Although not all contact institutions may charge these fees upfront, those institutions that do not will typically include fees to manage online courses in the tuition rates that students pay. At University C and University E, this fee is assessed for all courses that include an online component, even blended courses. According to contacts, the distance learning fee allows the institution to make additional investments in the services provided to online students, such as hiring staff exclusively dedicated to online course delivery and management, engaging IT support technicians, web-conferencing services, and additional online testing security. Student Reactions to Distance Learning Fees and Online Tuition Rates Across contact institutions, contacts report that complaints about distance learning fees or higher online tuition rates typically come from students who take both online and face-to-face courses. These students resist higher online tuition rates and distance learning fees because they prefer to pay the same rates for online courses as face-to-face courses. Nonetheless, contacts When we explain t o them that online courses have separate costs that are different from face to face delivery, concerns are abated. Furthermore, it is a relatively small amount for the convenience. - Roundtable Interview report that students acknowledge the convenience of being able to take courses online and therefore accept higher tuition rates and distance learning fees. According to contacts, students who take courses exclusively online typically have no criticism of fee structures, especially those students from out-of-state who pay a flat tuition rate similar to in-state students The Advisory Board Company 5

6 III. TUITION AND FEE MODELS Outsourcing Online Course Management Course management systems allow institutions to organize online learning, and contacts acknowledge the benefit of using these systems. At University C and University E, outsourcing the management of online courses to external groups influences how online fee structures are established, since both institutions must ensure that fees cover the cost of using course management systems. Embanet Compass Knowledge Group University C Currently, University C outsources online course management to Embanet Compass Knowledge Group for some of the fully online degree programs. Embanet facilitates online delivery of courses by providing institutions with services such as capital, program and course development, marketing and enrollment services, online faculty training, student services, and technology hosting and support. Contacts report that the institution does not have the internal capacity to market and manage some of their online courses, and this is why Embanet is helpful. At the same time, the Office of Distance Learning hopes, eventually, to be able to handle course management processes internally as, according to contacts, doing so will give the university greater autonomy in handling marketing processes. Until then, the distance learning fee helps the institution pay for Embanet s services. Pearson ecollege University E Leadership at University E decided to outsource online course management because the university is located in a rural area, and it sought to avoid any difficulty in finding the expertise needed to manage delivery of online courses. The distance learning fee charged to students helps the university pay for the Pearson ecollege software, which works with administrators to provide a customized delivery mechanism for online courses. Contacts report that outsourcing has been beneficial to facilitating online course management because the institution can concentrate on the actual coursework, rather than on managing the technical details of providing the courses online The Advisory Board Company 6

7 Contacts largely agree that students should not be paying for services they do not use. In the case of students taking courses exclusively online, contacts note that they do not have access to oncampus resources such as student activities and health services. For this reason, fees at contact It is important not to charge distance learning students for services they are not using. At the same time, you have to be realistic about what the costs of online courses are, and charge appropriately. - Council Interview institutions reflect the services to which students have access, including online tutoring, academic advising, financial aid counselors, and electronic libraries. Sampling of Services Received by Online Students at Contact Institutions University A Students taking online courses pay a flat rate which includes tuition and fees. They have access to resources including: Online Tutoring Services Customer Service Financial Aid Counselors Electronic Library Student ID Numbers University B Students at University B are exempt from paying amenities or university fees, and have access to the following resources: Online Tutoring Services Online Writing Lab Academic Advising University F Although University F s students taking courses online do not pay amenities fees, they have access to the following resources: Academic Advising Career Guidance Online Writing Center Student ID Cards 2011 The Advisory Board Company 7

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