Op-Ed: Department of Education Guidance Would Make Online Learning More Costly

This piece was originally published by RealClear Education on March 22, 2023.

The coronavirus pandemic led to a dramatic increase in remote learning in schools, including colleges and universities. As efforts by teachers’ unions to keep schools closed remained successful, online program managers (OPMs) became vital to ensuring that the nation’s college students were not completely neglected. Now, a new Department of Education guidance is threatening these organizations. 

Last month, the department issued guidance that would reclassify OPMs as “third-party providers” of education. Ostensibly, the move is driven by the fact OPMs often enter into revenue-sharing agreements with colleges and universities. But reclassification of OPMs would give the federal government sweeping regulatory authority over them – including the ability to shutter them at will.

Traditionally, revenue-sharing is prohibited because it is considered a form of “incentive compensation” for education. However, the Education department provides an exception if the third party provides bundled educational services, is unaffiliated with educational institutions, and does not have any say in or influence over a school’s enrollment numbers. This is appropriately known as the “bundle services exception” and has provided needed flexibility for OPMs and their clients. The recent proposal would all but eliminate this key exception.

The full article can be found online here.