Online degree programs continue to become more popular and more widely accepted. Traditional universities are increasing their online college classes and courses. Many people are attracted to the flexibility these options offer and wonder about the economics of taking classes online. Does taking classes online really save you money? Like many things, “it depends.”
The online courses themselves are typically less expensive even though the lessons are the same. When traditional on-site universities offer online courses, there is usually a slight discount of 5% or so versus the traditional course offering. This is to encourage students to opt for online classes. Exclusively online universities are typically less expensive than traditional universities due to the lower overhead, absence of prestigious faculty members, and lack of extensive facilities.
• Commute to and from campus
• Cost of notebooks and other supplies
• Parking fees
By eliminating a commute, the student saves on the cost of gasoline and avoids additional wear and tear on his/her automobile. Students also saves a lot of time; time that could be spent at work, studying, or taking additional courses. Many online courses provide online materials, eliminating the need for expensive textbooks. Parking fees are also eliminated, as well as parking tickets. Try to find a college student that hasn’t paid for at least of couple of parking tickets. The sum of these savings can be significant.
One of the great advantages of online courses is the flexibility. Since the student doesn’t have to be in a specific location at a specific time, students have options not available with traditional programs. While technically not a cost savings, it is far easier to maintain a regular work schedule while enrolled in online courses. The student can simply attend to the coursework outside of work hours and maintain his income. Online programs will frequently allow a student to graduate more quickly and return to full-time employment sooner. The time away from employment is an opportunity cost that can be minimized with an online degree program. By retaining the ability to work or allowing the student to return to work more quickly, online courses can minimize the significant financial impact of attending college.
On the downside, many employers are still a little skeptical of the quality of education provided by exclusively online universities. This may potentially result in lower salaries than would be earned with a comparable degree from a traditional university. It may also be more difficult to find employment with a degree from an online university. These potential disadvantages should be considered when evaluating the financial implications of an online education.
A Real Example
Many people can say this saves you and that saves you this, but let’s take a real world example. I live in the State of New York. The State University of New York offers online classes via Empire State College. Let’s say I wanted to earn a Bachelor of Science in Mathematics.
The Cost to Get the Degree Online
To receive a Bachelor of Science in Mathematics degree requires 128 credits. The cost is $207 per credit online. That amounts to $26,496 for the entire program. I could get a discount by purchasing blocks of credits, but let’s stay on task her. As I read through all of the other associated costs I would need to pay, it comes out to an additional $1,300 over the course of 4 years. That’s a grand total of $27,796 for the whole package. They require the same textbooks as the in campus schools, so that cost is negligible.
The Cost of a Traditional On Campus Degree
Let’s compare the total cost to the same program at the closest State University of New York that offers this same program (Bachelor of Science in Mathematics). For me that would be the State University of New York at New Paltz.
The total costs would $6,081 (all fees included) per year. For all 4 years that would be $24,324. This looks promising, at this point I’m saving a little of $3,000 by commuting.
Let’s say I was going to commute to this school that is approximately 29 miles from my home. My car gets approximately 23 miles to a gallon. So it would require 2.5 gallons of gas each trip. Gas is current $3.43 per gallon. So I am looking at $8.58 round trip. The route I would take requires me to go on the New York State Thruway. This is a toll road and costs me $4.70 round trip. Every time I went to class, it would cost me $13.28.
There are approximately 30 weeks in the college calendar. Let’s say I lucked out and only had to go 4 days a week to classes. That would be a grand total of 120 round trips I would need to make each year. So our total travel costs each year would be $1,593.60. Let’s also add the $75 annual parking fee. So our total yearly cost to commute is $1,668.60. For four years that would be $6,674.40.
The Numbers
The cost of an online degree would be: $27,796
The cost of an on campus degree would be: $30,998.40 ($24,324 + $6,674.40 commuting)
The Verdict
Yes, in my case I would save $3,202.40 by taking online classes. I would also expect my car to fall apart by the end of 4 years. Seriously, you have to see my car. If I were on a traditional campus, the cost of overpriced coffee alone would send me to the poor house. At home I stick with my 10 cents a cup Folgers.
This definitely would not be true for all people though. What if I lived a mile from the classroom and hated coffee? The outcome would be reversed.
While online courses offer many advantages in the form of lower costs, more flexibility, and the potential for an abbreviated time to graduation, there are also potential disadvantages. These disadvantages include a potentially lower salary and more difficulty in finding employment after graduation. Online courses at a traditional university will likely offer a cost savings without the possible future financial penalties. Evaluate the above information and make a decision that best supports your situation and needs.
Guest Bio: Teach-nology.com The Online Teacher Resource has been serving educators for over twelve years by providing free online resources.
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