This first ever analysis by Marketdata examines the booming $60 billion “distance learning” or online education industry used by 6.2 million students The industry has grown rapidly since 2002, as lax federal requirements for student loans permitted many consumers to pursue alternative careers or certifications to make themselves more marketable or make a career change. Internet access and heavy advertising also fueled demand. The last recession significantly increased enrollments. However, 2011 is a major transition year, as double-digit growth comes to a halt amid new federal rules regarding Pell grants and Title IV loans, and scrutiny of schools’ recruitment practices. As is true of many high growth sectors, online education has its growing pains—namely “diploma mills” that sell fake degrees and dubious accreditations, prompting critics to question the quality of online courses.
The study examines industry revenues/growth, competitor profiles/rankings, major industry issues, new federal regulations, the impact of the recession, bogus diploma mills, demand vis a vis traditional post-secondary education, etc. Covers national revenues from 2002-2010, 2011 estimates, 2015 forecasts). The study examines major findings of the Babson Survey Research Group and Sloan Consortium annual surveys, combined with proprietary Marketdata research, rankings and interviews.
In-depth profiles included for: The University of Phoenix (Apollo Group), Kaplan Higher Education (Washington Post), Capella University, DeVry University, Strayer University, Argosy University, Corinthian College, American Military University and Career Education.