The For-Profit Side of Public U: University Contracts with Online Program Managers

Author:

Hamilton Laura T.1ORCID,Daniels Heather1,Smith Christian Michael1ORCID,Eaton Charlie1ORCID

Affiliation:

1. University of California–Merced, Merced, CA, USA

Abstract

Online enrollments in public universities have soared, in part because of universities’ increasing reliance on for-profit online program managers (OPMs) for everything from instructional design to student recruitment. However, scholarship has indicated that OPMs may play a role in producing predatory forms of inclusion in higher education for marginalized students. To identify mechanisms through which this might occur, the authors conduct a mixed-methods analysis of 161 contracts between OPMs and two- and four-year public universities, an original database of third-party financing structure, and university webpages. The analysis identifies several contract features—targeting, extraction, opacity, and captivity—that may help concentrate marginalized students in extractive or exploitative online programs at public universities. The authors also show that OPMs funded by private equity or venture capital are most likely to include contract features that incentivize aggressive revenue production and promote the recruitment of marginalized students in online, but not in-person, programs.

Funder

Arnold Ventures

Publisher

SAGE Publications

Subject

General Social Sciences

Reference53 articles.

1. Allen Elaine I., Seaman Jeff. 2013. “Changing Course: Ten Years of Tracking Online Education in the United States.” Babson Park, MA: Babson Survey Research Group and Quahog Research Group.

2. Carlson Scott. 2019. “The Outsourced University: How Public-Private Partnerships Can Benefit Your Campus.” Washington, DC: The Chronicle of Higher Education.

3. Predatory Inclusion in Consumer Credit: Explaining Black and White Disparities in Payday Loan Use

4. Examining the OPM: Form, Function, and Policy Implications

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