Private Online Schooling and Profits

We found this article to be rather fascinating and a good source to explore many other issues of virtual education.  In this article, there are many claims that allow us to focus on the many topics and makes a really good starter article to verify the claims in the article and the actual reality.

Nine for-profit companies run online public schools with more than 200,000 students enrolled.  In its’ 2012 annual report, K12 had revenues of over 708 million dollars, a growth rate of 35.6% over 2011.  This number is a gross number, and not net.  K12’s main rival, Connections Education, had a gross profit of 168.5 million dollars in 2010 and was recently purchased by Person Education, a textbook publisher, for 400 million. However, it demonstrates the high stakes and profitability of online education.

These online charter schools receive federal, state, and local monies.  In fact, they receive the same amount of per pupil spending as do brick and mortar charter schools.  With a lower overhead, profits could be lucrative.  However, the accountability of these online schools is questionable and people wonder if these aren’t just diploma mills; looking at enrollment numbers and not as much as academics.

Allegations of low student attendance, as measured by log-ins, are a problem.  Critics claim there is no true measure academic achievement.  With low test scores, some online school administrators cite that the students were already a grade behind when they enrolled and that academic progress will be slow.

The companies have some historic personalities behind them; William Bennett, the former education secretary helped found K12.  Michael Milken, the junk bond king of the late 80’s was also involved in the start-up.

The article also raises the concept of the work culture.  However, we don’t feel the article was as balanced as it could be, without company officials to address the claims of current and former employees of revising grading policies mid-term, teacher-student ratio, make-up work for “absent” students, parents completing student’s work, etc.

This brief overview of some of the criticisms of online education by for-profit companies scratches the surface of the various issues involved.  Obviously more research needs to be done to substantiate claims.