The Impact of New Business Models for Higher Education on Student Financing

Abstract

Financing Higher Education in Developing Countries Think Tank, Bellagio Conference Centre 8-12 August 2011 The Impact of New Business Models for Higher Education on Student Financing by Sir John Daniel, Commonwealth of Learning & Stamenka Uvalić-Trumbić, UNESCO // The easiest way to help students finance their participation in higher education is to make it less expensive. The traditional view is that this is impossible because universities depend on highly expert academics, who like other professionals such as dentists, are subject to the ‘cost disease’ because of the length and expense of their training. Today, however, some who developed notion of the cost disease are changing their minds. Technology will be a game changer in higher education through its impact on the behaviour of students and for-profit institutions. The paper first outlines the principles behind the use of technology to cut costs and describes trends that indicate a tipping point in the evolution of the economics of higher education. Finally, we explore the components of the proposed Open Education Resource University, which is one example of a radically new business model.