Future Ed : New tech meets old models and price controls (no free mkt for University)

From Campus Technology:

 NMC Horizon Report: 2012 Higher Education Edition, researchers and analysts identified six technologies that have the potential to break down linguistic and cultural barriers, make education more affordable and efficient, open up new modes of learning, improve students’ chances of success and satisfaction in school, and connect us with the everyday objects in our lives.

From the National Review – a grim forecast:

 many universities may bankrupt themselves by clinging to an educational approach that confuses lecturing with learning and protects highly paid, tenured faculties and administrators from a tsunami of technological change that soon will deliver transformational learning at a fraction of today’s costs.

From the Chronicle:

The problem is, the current financing mechanism for college is far from a free market. Government subsidies account for close to 90 percent of revenues at some colleges when you add up grants, loans, and research funds. Also, nonprofit colleges are exempt from paying many taxes, and they receive tax-exempt gifts from donors.

“In the absence of a government subsidy, most colleges could not fill up their seats,” argues Ronald G. Ehrenberg, a higher-education economist and professor at Cornell University. “It’s silly to think that this is a free market.”

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