The pandemic will hasten a transformation of higher education business models, according to a new Moody's Investors Service report.
The crisis will accelerate many colleges' plans to grow their online footprints, though not all schools have the resources to invest in digital infrastructure, the report notes. They will also likely expand nondegree and certificate programs.
Analysts predict that once the pandemic subsides, some colleges will struggle if they haven't established a strong online presence.
At least 1,400 colleges moved to mostly online or hybrid instruction this fall as confirmed coronavirus cases spiked in the U.S, according to data kept by the College Crisis Initiative at Davidson College. The pandemic accelerated a shift toward online learning that predates the health crisis, Moody's analysts say.
"Some universities previously resistant to change will have to take more expansive steps to adapt to this transformation,"Pranav Sharma, assistant vice president at Moody's, said in a statement. "Not all universities, however, have the resources or culture to move quickly and the coronavirus will expedite existential threats for some."
Several recent deals by public universities indicate they will continue investing in online education after the pandemic ends, the report states.
The University of Arizona announced earlier this month that it's setting up a nonprofit entity to acquire Ashford University, a for-profit online college that enrolls around 35,000 students.
As part of the arrangement, Ashford's parent company, Zovio, will provide the online college with a range of academic and educational services in exchange for 19.5% of its tuition and fee revenue.
The U of Arizona said it views the acquisition as a way to reach more nontraditional students, which will be key for schools that expect demographic declines in traditional-age students over the next decade. But faculty have pushed back against the deal, saying that it could damage the university's reputation and hurt Ashford's students.
The deal is similar to Purdue University's acquisition of for-profit Kaplan University in 2018 to create its online college, Purdue University Global. Although Purdue Global had nearly $400 million in operating revenue in fiscal year 2019, it posted an operating loss of $40 million during its first full year, Moody's analysts wrote. Moreover, Purdue is still working to integrate and manage the two entities' different brands and reputations, they note.
Likewise, the University of Massachusetts revealed plans in June to partner with the private, nonprofit Brandman University to grow its online presence in the state and nationwide. Details about the arrangement are sparse, though UMass officials said neither the state nor the university would make an upfront investment.
Moody's analysts wrote UMass' partnership differs from the Purdue-Kaplan and U of Arizona-Ashford deals because of Brandman's status as a well-established nonprofit and its stronger student outcomes.
The U.S. Department of Education's new regulations governing distance education could encourage more schools to grow their online presence, the analysts note.
For instance, the rules give some online vocational and training programs more freedom to use asynchronous education, such as prerecorded lectures. They also could make it easier for some schools to launch competency-based education programs, which are typically online and allow students to move through coursework as they demonstrate mastery of a concept or skills.
- New consumers driven to the RVing lifestyle fuel solid growth for Winnebago - Minneapolis Star Tribune - October 24th, 2020
- Governor Abbott named Best Governor in the Nation by ALEC, conservative economists - KXXV News Channel 25 - October 24th, 2020
- Freedom Healthcare Staffing Wins Denver Business Journal Fast 50 Award - PRNewswire - October 24th, 2020
- Lawmakers need to get federal funding to ease MBTA woes - Boston Herald - October 24th, 2020
- Classes to resume soon for final-years at state universities - University World News - October 24th, 2020
- Last Week in Slovenia: 16-22 October, 2020 - Total Slovenia News - October 24th, 2020
- Where They Stand: John Jacob - Daily Journal - October 24th, 2020
- Rep. Cynthia Lummis Speaks to Voters in Thermopolis | - mybighornbasin - October 24th, 2020
- Letters to the editor - News - The Hutchinson News - October 24th, 2020
- Taxpayer Tricks and Treats for Halloween 2020 - Business Wire - October 24th, 2020
- Parliament body: Freedom Fighters' monthly honorarium to be raised to Tk20,000 from Tk12,000 - Dhaka Tribune - October 24th, 2020
- Corporate Consultants Set Their Targets on American Universities - The Nation - October 24th, 2020
- Boebert incapable of being an independent voice negotiating on our behalf - The Grand Junction Daily Sentinel - October 8th, 2020
- How USAID Translates The Executive Order On Advancing International Religious Freedom Into Action - Forbes - October 8th, 2020
- The Case Against Trump: Donald Trump Is an Enemy of Freedom - Reason - October 8th, 2020
- D.R. Horton, Inc. to Release 2020 Fourth Quarter and Fiscal Year-End Earnings on November 10, 2020 - Business Wire - October 8th, 2020
- Inslee, Culp meet in first and only governor's debate - Thehour.com - October 8th, 2020
- Everything We Just Learned About The Navy's Dubious Path To A 500 Ship Fleet - The Drive - October 8th, 2020
- Civil society raises alarm about IMF's continued backing of austerity amidst pandemic - Bretton Woods Observer - October 8th, 2020
- NCC to invite experts to CtiTV News hearing - - October 8th, 2020
- Candidates want to represent district in Statehouse - The Herald - October 8th, 2020
- The Toss-up: Virginia's 7th Congressional District race may be one of the nation's closest - Chesterfield Observer - October 8th, 2020
- Waukon City Council hears restaurant proposal for former JCPenney/Tierney's building, leaves trick-or-treat participation decision this year up to... - October 8th, 2020
- Abbotsford West candidates spar on Highway 1, light rail, housing and snap election - Abbotsford News - October 8th, 2020
- Noem urges legislators to carefully follow US Treasury guidelines while deciding how to spend a portion of the state's Coronavirus Relief Fund dollars... - October 8th, 2020
- The Social Cost Of COVID-19 - The ASEAN Post - September 8th, 2020
- Stalwarts who founded and built the UNP must be turning in their graves - NewsIn.Asia - September 8th, 2020
- 2020 could be the year of 'peak Democrat' in Colorado. This is why. - Colorado Springs Gazette - September 8th, 2020
- Trump and the RNC should remind Cuban voters of Fidel Castro, not their political home - NBC News - August 31st, 2020
- Analysis: Will Uzbekistan's Champion of Reform Stay the Course? - Voice of America - August 31st, 2020
- It's Never Been More Clear: Fare Hikes Won't Save the MBTA - Boston magazine - August 31st, 2020
- Libertarians Took Control of This Small Town. It Didn't End Well. - Washington Monthly - August 31st, 2020
- Point-Counterpoint: Benefits will outweigh the consequences for college football this fall - University of Pittsburgh The Pitt News - August 31st, 2020
- Fact-checking the first night of the 2020 Republican National Convention - Poynter - August 31st, 2020
- Corbella: Facts and fairness show public sector workers should have their pay cut - Calgary Herald - August 31st, 2020
- Fred Perpall, CEO of The Beck Group, says Blacks and whites need to be more inclusive - The Dallas Morning News - August 31st, 2020
- Could On-Campus Housing At Local Universities Lead To COVID-19 Outbreaks? - NBC San Diego - August 31st, 2020
- Explained: What to look for in GDP data today - The Indian Express - August 31st, 2020
- 35th District Race Brings Three Options to Clinton, Killingworth, and Westbrook - Zip06.com - August 31st, 2020
- Beware the Chinese Economy Recovery Trap - JAPAN Forward - August 31st, 2020
- At RNC, here's what Trump, Republicans have to say our country and economy if they want to win - Fox Business - August 31st, 2020
- When we went to remote learning I could feel every teacher's eyes on me - Sydney Morning Herald - August 31st, 2020
- Bad bank not only necessary but unavoidable in present situation: Subbarao - THE WEEK - August 31st, 2020
- MORSE denies allegations of INAPPROPRIATE BEHAVIOR State REOPENING is on PAUSE Senate race gets NEGATIVE - Politico - August 10th, 2020
- Austerity: Another officer retires, rehired by Odisha government - The New Indian Express - August 10th, 2020
- Media Training Workshop on Using the Freedom of Information (FOI) Act for Investigative Reports on Campaign Fi - The Nigerian Voice - August 10th, 2020
- Detainees concerned for well-being as COVID-19 cases rise in crowded Hays County Jail - Community Impact Newspaper - August 10th, 2020
- The Endowment is Not the Issue - Harvard Political Review - August 10th, 2020
- DAILY VOICE: Four reasons why IT stocks are hitting 52-week highs - Moneycontrol.com - August 10th, 2020
- Kashmiris Lament the Loss of Their Youth - Foreign Policy - August 10th, 2020
- SLPP has creatively disrupted politics; now it has to do the same to the economy - ft.lk - August 10th, 2020
- More freedom to banks, further rate cut not ruled out: 10 key takeaways from policy meet - Economic Times - August 9th, 2020
- In HBO film, Ken Buck suggests he will leave Congress soon - The Denver Post - August 9th, 2020
- Biden's Climate Plan Would Put Us on the Road to Serfdom - The Heartland Institute - August 9th, 2020
- Krishi Kalyan & Cashew India App: Farmers Breathe Sigh of Relief As Government Aims To Revive Indian Agro Industry - The Indian Wire - August 9th, 2020
- How Attacks on Faith, Family, and Conscience Threaten All Our Freedoms - Daily Signal - August 8th, 2020
- Military Alliances, Partnerships Strengthened Through Defense Strategy Execution - Department of Defense - August 8th, 2020
- @theMarket: The Economy Versus the Stock Market - iBerkshires.com - August 8th, 2020
- UK housing is on the agenda. How do we really build back better? - Big Issue - August 8th, 2020
- Letter: You'd think police would have better things to do than silence street musicians - Seacoastonline.com - August 5th, 2020
- Secretary Michael R. Pompeo Before the Senate Foreign Relations Committee on the Fiscal Year 2021 State Department Budget Request - US Embassy in... - August 5th, 2020
- Brcko District to improve the Fiscal Discipline and Transparency of Expenditure of Public Funds - Sarajevo Times - August 5th, 2020
- How to find a pubmedia job in a pandemic - Current - August 5th, 2020
- Don't tell the separatists but Alberta is lapping up federal aid in record amounts - iPolitics.ca - August 5th, 2020
- Guest opinion: Address to C-SD Class of 2020 - Dorchester Banner - Dorchester Banner - August 5th, 2020
- Making sure the U.S. military remains the best in the world - Brookings Register - August 5th, 2020
- Mailbag: 'Choose life and success' over COVID-19 - Los Angeles Times - August 5th, 2020
- With Trump reelection uncertain, GOP battles over its future - Los Angeles Times - August 4th, 2020
- Leading the Way on Higher Education Reform through Smart Giving - Philanthropy Magazine - August 4th, 2020
- Let's be blunt about it: Russ Diamond is a jerk - The Times of Chester County - August 4th, 2020
- College Football Needs to Change. The Pac-12s Players Are Making That Happen. - The Ringer - August 4th, 2020
- Fiscal Freedom - The Heritage Foundation - August 2nd, 2020
- Gen Z GOP wants to build the Republican Party of the future - Boston Herald - August 2nd, 2020
- Rallying cry: 'There is no reason this statue needs to be moved' - messenger-inquirer - August 2nd, 2020
- No Europe Without the Rule of Law by Harold James - Project Syndicate - August 2nd, 2020
- Today's Headlines and Commentary - Lawfare - August 2nd, 2020
- Faculty push back on how colleges are planning for the fall - Education Dive - August 2nd, 2020
- Wheelchair Accessible Vehicles Converters Market 2020 Analysis by Geographical Regions, Type and Application Till 2026 with Top Key Players - Owned - August 2nd, 2020
- New release shows the value of the Union to the nations of the UK - GOV.UK - August 2nd, 2020
- LETTERS TO THE EDITOR: School administration in Middletown is dysfunctional - The Providence Journal - August 1st, 2020