What's Happening?
Southern New Hampshire University (SNHU), once a small nonprofit school, has transformed into one of the largest universities in the United States through a significant expansion of its online degree programs. Over the past two decades, SNHU has invested
$1.6 billion in advertising, resulting in a substantial increase in enrollment. As of the last fiscal year, approximately 300,000 students were taking at least one class for credit, with the majority participating in online courses. This growth has been driven by the university's strategic response to the decline of large for-profit colleges, which faced allegations of fraudulent marketing. SNHU's online programs are designed to be flexible, allowing students to complete coursework asynchronously. The university's expansion reflects a broader trend in higher education, where nonprofit institutions are increasingly entering the online education space traditionally dominated by for-profit schools.
Why It's Important?
The expansion of SNHU highlights a significant shift in the higher education landscape, where nonprofit institutions are capitalizing on the decline of for-profit colleges. This shift is important as it offers students more affordable and accredited degree options, particularly for those who cannot attend traditional in-person classes. The growth of online programs at nonprofit universities like SNHU provides an alternative to the often criticized for-profit sector, which has been plagued by legal issues and allegations of predatory practices. This development could lead to increased competition in the higher education market, potentially driving down costs and improving access to education for nontraditional students. However, the rapid expansion of online programs also raises concerns about graduation rates and the quality of education, as these programs often have lower completion rates compared to traditional institutions.
What's Next?
As SNHU continues to grow, it may face increased scrutiny regarding its advertising spending and profit margins, which are higher than those of many other nonprofit institutions. The university's ability to maintain its growth while addressing concerns about graduation rates and educational quality will be critical. Additionally, SNHU's model could influence other nonprofit and public universities to expand their online offerings, further transforming the higher education landscape. Policymakers and educational leaders may need to consider regulations and standards to ensure that the expansion of online education benefits students and maintains high academic standards.
Beyond the Headlines
The rise of SNHU and similar institutions could have long-term implications for the traditional college experience, as more students opt for online education. This shift may lead to changes in how universities allocate resources, with a greater focus on technology and online infrastructure. Additionally, the success of SNHU's model could prompt a reevaluation of the role of advertising and marketing in higher education, as institutions seek to attract and retain students in an increasingly competitive market. The ethical considerations of profit margins and advertising spending in nonprofit education may also become a topic of debate among educators and policymakers.
