Is higher education about to go the way of newspapers?

College for $99 a month?

But one thing about StraighterLine stood out: it offered as many courses as she wanted for a flat rate of $99 a month. “It sounds like a scam,” Solvig thought—she’d run into a lot of shady companies and hard-sell tactics on the Internet. But for $99, why not take a risk? . . .

Crucially for Solvig—who needed to get back into the workforce as soon as possible—StraighterLine let students move through courses as quickly or slowly as they chose. Once a course was finished, Solvig could move on to the next one, without paying more. In less than two months, she had finished four complete courses, for less than $200 total. The same courses would have cost her over $2,700 at Northeastern Illinois, $4,200 at Kaplan University, $6,300 at the University of Phoenix, and roughly the gross domestic product of a small Central American nation at an elite private university. They also would have taken two or three times as long to complete. . . .

Consider the fate of the newspaper industry over the last five years. Like universities, newspapers relied on financial cross-subsidization to stay afloat, using fat profits from local advertising and classifieds to prop up money-losing news bureaus. This worked perfectly well until two things happened: the Internet made opinion and news content from around the world available for nothing, and the free online classified clearinghouse Craigslist obliterated newspapers’ bedrock revenue source, the want ads. Suddenly, people didn’t need to buy a newspaper to read news, and the papers’ ability to subsidize expensive reporting with ad revenue was crippled. The result: plummeting newspaper profits leading to a tidal wave of layoffs and bankruptcies, and the shuttering of bureaus in Washington and abroad. . . .

UPDATE: Another related piece:

Students starting school this year may be part of the last generation for which “going to college” means packing up, getting a dorm room, and listening to tenured professors. Undergraduate education is on the verge of a radical reordering. Colleges, like newspapers, will be torn apart by new ways of sharing information enabled by the Internet. The business model that sustained private U.S. colleges can’t survive.

The real force for change is the market: Online classes are just cheaper to produce. Community colleges and for-profit “education” entrepreneurs are already experimenting with dorm-free, commute-free options. Distance-learning technology has just hit its stride after years of glitchy videoconferences—and will keep improving. Innovators have yet to tap the potential of the aggregator to change the way students earn a degree—much like the news business in 1999. And as major universities offer some core courses online, we’ll see a cultural shift toward acceptance of what is still, in some circles, a “Phoenix U” joke.

It is hard to predict the precise pace of change—but it’s possible that within 15 years most college credits will come from classes taken online. In 2007, nearly 4 million students took at least one online course, and the numbers are growing. Within a generation, college will be a mostly virtual experience for the average student. The Ivies will be much less affected than the mid-tier and local schools. But colleges that depend on tuition, and have no special brand, will be hit hard. The recession will accelerate this trend, as students become warier of taking on loans, and state schools experiment after fund cuts. This doesn’t just mean a different way of learning: The funding of academic research, the culture of the academy, and the institution of tenure are all threatened. . . .