the rise of “alt credit” - council for higher ... presentations/burck smith...the rise of “alt...
TRANSCRIPT
Sections
SERIES C September 20142
I. Why? Economic Drivers of Alt Credit
II. Categories and Examples: StraighterLine, Bootcamps, Certificates,
Corporate
III. StraighterLine, DCCCD, CHEA EQUIP Submission
$$
$914
$646
20151999
$300
$150
Govt. Support
List Price
Cost of Delivery
Online Course Profit Margins at Accredited Colleges
4
Rise of Alternative Providers
ACCREDITED COLLEGES
Academic CreditNo Credit/Certificates
ACCREDITED COLLEGES
5
Types of Alternative Providers
Certificate
ACCREDITED
COLLEGESDegree
Face To FaceOnline
• Offers nearly 60 well-supported, self-
paced, online general education courses
to about 20K adult students.
• Free trial. $99 /mo. membership + about
$49 per course started. “Freshman Year”
for $1299.
• ACE Credit recommended, DEAC AQC
approved, College Board approved, over
100 articulating partner colleges.
StraighterLine
Helps Students Reduce Risk of Starting College
Low Price ✓ Low Risk ✓ Not on Record ✓
• $99 per month +
about $49 per
course
• College can give
discount codes to
students
• Free Trial
• Subscription pricing.
Cancel anytime
• Incomplete or
failed courses not
on transcript
• Does not count
against Title IV
caps
8
2010
4 Colleges,
Serving ~ 50k Students
2016
100 Colleges,
Serving ~ 2MM Students
*At least 600 other colleges have accepted
StraighterLine courses for credit.
Partner College Growth
SERIES C September 20149Confidential and Proprietary
Attract and Retain Students
Credit Equivalency Agreement (Free)
• Students taking SL courses know that credit is guaranteed to transfer.
• College is part of selection set from which students choose
• Nearly 100 partners including best known public, private and for-profit online programs.
• Students starting with StraighterLine are more likely to persist than those that don’t.
Scholarship Program (Optional)
• Willing colleges provide a tuition discount to SL
students that complete four or more courses.
• College is given “Scholarship” status on website.
Greater marketing power to attract the students most
likely to persist.
• Over 20 scholarship partners
Refer and Re-Enroll Students
SERIES C September 201410Confidential and Proprietary
Co-branded, Closed Loop Marketing
● Developmental
● Financial Aid Caps
● Enroll No Shows/Fails
● Credit Fulfillment
● Pre-req. Fulfillment
● Dormant/Old Leads
● Degree Completion
● Capacity limitation
● Scheduling conflicts
Referral Populations
College
StraighterLine’s Online Courses
• Highly supported with academic tutoring, student advisors and success coaches.
• Psychometrically valid and reliable end-of-course assessments
• Courseware from McGraw-Hill, Rosetta Stone, Acrobatiq and more.
• Anti-plagiarism and on-line exam proctoring
• Continuous improvement methodology using A/B testing on completion rates and NPS scores.
• Self-paced, competency based.
SL Population vs. WGU Undergrad Population
SERIES C September 201412Confidential and Proprietary
January, 2014 and later enrolled students with StraighterLine transcript
Straighterline WGU
Number of students 767
7 month retention 95% 87%
13 month Retention 93% 79%
On Time Progress 86% 56%
Certificates
SERIES C September 201413
Types Prices Notes
Coursera
Specializations
82 across wide
range of topics
4-6 courses at
$50 - $75 each
Raised $60
million in Fall
2015
Udacity
Nanodegrees
12 focused on
tech.
$200 per month.
Students spend
$700 on average.
Raised $105
million in
November
EdX X-Series19 across wide
range of topics
3-6 courses at
$50 - $75 each
* Lynda.com bought by LinkedIn for $1.5 billion; Udemy raises $61.5 million; Pluralsight filing to go pubilc
Bootcamps
SERIES C September 201414
*
• Estimate 16K grads in 2016
• 10-12 week sessions; average $1,000 per week as high as $1700 per week.
• Advertise 90%+ placement rates, but no standards for measurement
Internships/Corporate
SERIES C September 201415
EQUIP Ex Site Submission
SERIES C September 201416
• Letter of Intent from DCCCD, StraighterLine, CHEA “Quality Platform”
• 75% of four AA degrees
• Need to be adapted for Regular and Substantive Interaction
• Need to integrate systems and processes
Burck Smith
Twitter: @burck
Blog: http://www.straighterline.com/ceo-corner
Questions?