The widespread impact of the coronavirus has significantly diminished a key aspect of the college experience: learning and living on campus.

With campuses currently inaccessible, athletic competitions suspended, and a natural reluctance among students to fund full tuition for reduced services, student enrollment figures are declining nationwide, placing considerable strain on the financial stability of universities.

East Carolina University has temporarily suspended all athletic activities, implementing salary reductions for personnel. Ohio Wesleyan University has made the difficult decision to discontinue 18 academic majors and consolidate various programs in an effort to achieve annual savings of $4 million. Furthermore, Kutztown University in Pennsylvania experienced a loss of 1,000 students transferring to online learning platforms shortly after reopening, resulting in a $3.5 million decrease in revenue from housing and meal plans.

These developments have unfolded very recently.

As colleges and universities face these challenges, educational technology is increasingly presented as a potential remedy for their most pressing issue: delivering instruction remotely. Coursera, a provider of massive open online courses (MOOCs), has developed a product designed to assist schools in rapidly transitioning to digital course offerings. Podium Education secured substantial funding last month to provide universities with technology-based programs that award academic credit. Eruditus has received over $100 million in recent months to develop specialized programs for prestigious universities. This expansion reflects the continuing growth of the edtech sector during the coronavirus pandemic, as institutions are compelled to integrate external solutions to maintain operational continuity.

Despite the assistance offered by some startups in enabling universities to quickly provide virtual programming, faculty members are advising institutions to carefully consider the long-term benefits of adopting specific technologies.

This challenging situation represents a critical evaluation that may result in significant changes within the edtech startup landscape.

‘We’re talking about the next evolution of textbooks’

Recent experiences have demonstrated that online schooling via platforms like Zoom doesn't compare favorably to traditional, in-person learning. Consequently, colleges and universities are seeking innovative methods to deliver compelling virtual learning experiences to students who may be learning remotely.

Coursera has introduced Coursera for Campus, a solution designed to assist institutions in incorporating online courses – with or without credit – that include integrated assessments. This software is currently utilized by over 3,700 educational institutions globally.

According to CEO Jeff Maggioncalda, instructors require exceptionally high-quality, branded learning materials with embedded evaluations if they are to offer courses for academic credit. He emphasizes that this level of learning isn't readily available on platforms like YouTube.

Currently, Maggioncalda doesn't foresee the complete disappearance of the traditional college campus experience. He believes this product can help institutions reduce faculty expenses and reinvest those funds back into campus improvements.

“Institutions that continue to prioritize a residential experience should emphasize that aspect,” he stated. “However, it’s crucial to also provide robust content and credentials so students don’t feel they are making compromises.”

David Joyner, an educator at Georgia Tech, points out that Massive Open Online Courses (MOOCs) like Coursera are valuable for expanding outreach and access, but are not suitable for granting academic accreditation. He suggests that edtech solutions should be primarily designed to serve the needs of universities to be truly effective.

Podium Education, for instance, develops courses in collaboration with universities to provide accredited learning opportunities. This new company secured $12 million in funding in October and currently partners with over 20 colleges. Similarly, Eruditus, an edtech startup that raised more than $100 million in September, creates courses in conjunction with more than 30 prestigious universities, including MIT, Harvard, UC Berkeley, and IIT, among others.

Coursera, Podium, and Eruditus all indicate a future where universities may adopt a modular approach to curriculum delivery, utilizing pre-built, asynchronously taught courses.

“It may not be glamorous, but I believe we are witnessing the next stage in the development of textbooks,” Joyner explained. “Schools can integrate these programs, tailor them to their specific context, and add their unique perspective.”

Joyner contends that virtual programs can function as a standardized, readily available resource for universities, much like physical textbooks, and then be supplemented by in-person instruction.

“This is the optimal way to utilize edtech,” Joyner said. “However, I anticipate that some universities will use it to lower costs, take shortcuts, and reduce their faculty.”

As Joyner noted, a concern regarding emerging virtual instruction providers is the potential for low-quality, high-volume offerings. College administrators might choose quick and convenient solutions like EdX or Coursera due to necessity, but some in higher education view these as temporary fixes rather than well-considered, long-term strategies.

10 super-universities

Phil Regier, who directs the EdPlus program at Arizona State University, expresses a less radical view regarding a complete overhaul of higher education. He believes that businesses offering resources to enhance student and faculty effectiveness, particularly in the realm of hybrid learning, are more likely to succeed. Several emerging companies fall into this category, including EdSights, which provides a chatbot for student interaction; Signalz from Zovio, a system for universities to monitor student participation and identify those at risk of course withdrawal; and Piazza, a platform designed to boost engagement among college and high school students.

Regier contends that companies aiming to supplant the role of universities are misguided in their approach.

He suggests that while coding bootcamps and alternative educational models may assist individuals in securing initial employment, their long-term benefits are limited.

“Obtaining an initial job is valuable, but lacking a clear path toward degree completion is a disadvantage,” he stated. “Data consistently demonstrates that individuals with some form of college degree generally experience higher lifetime earnings, leading to greater overall success.”

A key consideration is that many mid-level colleges currently lack the capacity for strategic, long-range planning. Instead, confronted with significant enrollment decreases, these institutions are compelled to seek immediate solutions, which can sometimes involve adopting suboptimal online programs – even basic video conferencing – simply to maintain operations.

These challenges will particularly impact colleges without established, prestigious reputations. Universities like Harvard or Stanford are consistently able to attract students due to their strong brand recognition and established prestige. Even if student enrollment were to decline, these institutions possess substantial endowments that can provide financial stability until conditions improve. 

What implications does this hold for the future? One possibility is that a single startup will emerge as the leading solution, assisting mid-tier colleges in adapting to the changing landscape. Alternatively, the future could resemble the prediction made by Sebastian Thrun, co-founder of Udacity, in 2013. He envisioned a scenario where, within 50 years, only ten institutions globally would be responsible for delivering higher education, primarily consisting of Ivy League schools or universities sponsored by corporations. The majority of learning would then occur through online courses or training programs required by employers, signifying a shift away from the traditional significance of four-year colleges and a more expansive understanding of higher education.