The key excerpt from this insightful post by education policy analyst Kevin Carey is the following: “The clear implication is that the higher education models that would eligible for federal financial aid through the alternate accreditation system wouldn’t have to be colleges at all. They could be any providers of higher education that meet standards of “performance and results.”
If this prediction proves correct, the new accreditation model may well hasten the demise of the for-profit higher-ed business as well as small, regionally accredited colleges that exist on the margin of the post secondary sector. If the vast pool of motivated, but financially challenged students will be able to choose between taking out five figure student loans to attend a mediocre institution, or can cobble together a program of study from the top universities in the world for free, and get an equivalent accreditation which will lead to gainful employment, then the existence of such esteemed places of higher learning as South Harmon Institute of Technology is indeed in doubt. Further, if the requirements to qualify for Pell Grants (the $40B federal voucher system for low-income students) are expanded to include these alternative models of a college education, it opens a barn door sized opportunity for purveyors of MOOC offerings to build a sustainable revenue model. The VCs are already salivating at the possibilities. Stay tuned.
The rest of the blogpost is here: