Straighter Line


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Imagination, Room 249
Group 2
9:45-10:45 a.m.

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  • Service purchased by educators Barriers to entry (service levels, partnerships, on-the-ground sales force)
  • Straighter Line

    1. 1. April 2010
    2. 2. College Today – Cost Becoming Prohibitive <ul><li>Since 1982-84, soaring college tuition costs have far outpaced even healthcare (!) </li></ul><ul><li>ROI under pressure </li></ul><ul><li>The Next Bubble? </li></ul>
    3. 3. College Today – Escalating Debt <ul><li>Recent College Grads Face Record Debt and Unemployment </li></ul><ul><li>The Project on Student Debt, December 2009 </li></ul><ul><li>In 2008, 67% of students graduating from four-year colleges and universities had student loan debt. That represents 1.4 million students graduating with debt, up 27% from 1.1 million students in 2004 </li></ul><ul><li>Average debt levels for graduating seniors with student loans rose to $23,200 in 2008 — an 83% increase from $12,750 in 1996 </li></ul><ul><li>Pell Grant recipients, who generally have family incomes under $50,000, are much more likely to borrow and to borrow more . Among graduating seniors who ever received a Pell Grant, 87% had student loans in 2008. Those Pell Grant recipients had an average debt of $24,800 — nearly $2,000 more than the average for all seniors graduating with loans </li></ul>
    4. 4. College Today – Completion Shortfall <ul><li>The Completion Shortfall </li></ul><ul><li>Complete College America </li></ul><ul><li>  </li></ul><ul><li>Just over 50% of students who start 4-year bachelor’s degree programs full-time finish – in six years </li></ul><ul><li>Fewer than 3 out of 10 students who start at community colleges full-time graduate with an associate degree in three years </li></ul><ul><li>Once first in the world, America now ranks 10 th in the percentage of young adults with a college degree </li></ul><ul><li>For the first time in US history, current generation of college-age Americans on trajectory to be less educated than their parents’ generation </li></ul><ul><li>In the current recession, unemployment rates twice as high for those with just a high school diploma (9.1%) than for those with a college degree (4.5%) </li></ul>
    5. 5. College Today – Cost is Barrier to Access and Completion <ul><li>Majority of college dropouts cite financial struggles as main cause </li></ul><ul><li>Washington Post, December 9, 2009 (citing a report by Public Agenda, a nonpartisan public policy research firm that conducted a telephone survey of more than 600 people ages 22 to 30) </li></ul><ul><li>  Falling confidence that qualified and motivated students can go </li></ul><ul><li>Joint project of The National Center for Public Policy and Higher Education and Public Agenda entitled Squeeze Play 2010: Continued Public Anxiety on Cost, Harsher Judgments on How Colleges are Run </li></ul>
    6. 6. What We Do <ul><ul><li>General Education Focus </li></ul></ul><ul><ul><ul><li>Commodity-like: standard introductory courses everyone takes Freshman year with little qualitative differentiation across the market </li></ul></ul></ul><ul><ul><ul><li>Relatively few in number </li></ul></ul></ul><ul><ul><ul><li>Represent disproportionate percentage of all college enrollments </li></ul></ul></ul><ul><ul><ul><li>Among highest margin areas of higher ed </li></ul></ul></ul><ul><ul><li>Leverage technology to reduce the cost of delivery and pass savings on to student </li></ul></ul><ul><ul><ul><li>Courses integrate “off-the-shelf” and hosted products and services to provide more affordable, better supported, more flexible general education courses </li></ul></ul></ul>
    7. 7. What We Do StraighterLine Changes the Equation: College for $99 a Month : Greater Access (open top of the funnel) + Low Cost of Failure More Degree Holders Better Outcomes for All
    8. 8. StraighterLine Course Elements
    9. 9. Current StraighterLine Courses <ul><li>StraighterLine focuses on core courses needed for a college degree </li></ul><ul><li>Future courses include calculus, physics, history and others </li></ul><ul><li>Anticipate 9-12 additional courses to be released within next 12 months </li></ul>
    10. 10. Credit Delivery <ul><li>Expanding Partner College Network (all regionally accredited) </li></ul><ul><li>Partner College awards full credit for StraighterLine courses when student enrolls at that institution </li></ul><ul><li>American Council on Education (ACE) recommends StraighterLine courses for credit through its College Credit Recommendation Service (1400+ schools) </li></ul><ul><li>The Distance Education and Training Council (DETC) has said that StraighterLine courses meet or exceed its standards and that DETC colleges can enroll their students in SL courses </li></ul>Partner College Network Potomac College
    11. 11. Value To The Student
    12. 12. Value To A Partner College
    13. 13. Management Who Background Burck Smith CEO/Founder Former CEO and Co-Founder of SMARTHINKING. Frequent consultant and writer about technology and education. Member of AEI’s Higher Education Working Group David Parento COO/CFO Former venture capitalist and attorney. Most recently, focused on education and training sectors with early and growth-stage venture fund. Previously, corporate lawyer practicing in technology sector for nearly 8 years Josef Katz VP Marketing Previously Vice President of Marketing for Trump University where he drove the University's growth and international expansion; prior to Trump, served as the Executive Director of Integrated Marketing for Kaplan Test Prep and Admissions and played integral part of direct mail, email, Internet, and relationship marketing initiatives
    14. 14. Advisory Board Who Where Steve Crow Former Executive Director of North Central Regional Accrediting Agency Myk Garn Director, Educational Technology, Southern Regional Education Board (SREB) Larry Gould Provost, Fort Hays State University Sally Johnstone Provost, Winona State University; former Executive Director of the Western Conference on Education and Technology (WCET) Elise Scanlon Counsel, Drinker Biddle; former Executive Director of the Accrediting Commission of Career Schools and Colleges of Technology (ACCSCT) Carol Twigg Executive Director of the National Center for Academic Transformation
    15. 15. What People Are Saying “ [A] product has just come out…. called StraighterLine that could really change the labor model in education in very disruptive fashion that could allow for far more one-on-one time for students with teachers.&quot; -- Clayton Christensen, Author of “Disrupting Class,” November 3, 2008 Like Craigslist, StraighterLine threatens the most profitable piece of a conglomerate business: freshman lectures, higher education’s equivalent of the classified section. If enough students defect to companies like StraighterLine, the higher education industry faces the unbundling of the business model on which the current system is built. -- Kevin Carey, Policy Director, Education Sector, Washington Monthly, September 2, 2009 “ I am not here to hawk StraighterLine or its courses, but rather to say more power to universities who embrace the position that &quot;we want to offer quality degrees at a low cost -- no matter who does the teaching, be it a for-profit provider, the institution itself, or a series of different providers, each good at what it does.&quot; -- Dr. Richard Vedder, Member Spellings Commission, March 31, 2009 &quot;With StraighterLine what more could a military spouse ask for? Friendly support, cheap prices in comparison to traditional college credits per hour; you can do your coursework at home and still have time to attend to both your family and the duties that come from being a military spouse!“ --Akeesa S. -- Student But, really, all the old school online university efforts, like University of Phoenix, did was to take the traditional college model and move it online. True disruptive innovation is ….about embracing some aspect of that new medium to offer something in a different way that really wasn't possible prior to that. .. StraighterLine …offers online college classes, but it totally disrupts the traditional business model of university learning. -- Michael Masnick, TechDirt, September 11, 2009 The idea of some kind of open-source, online, low-cost revolution in education has become a lit fuse, sparking and crackling its way toward an explosion.…Start-ups such as StraighterLine … are offering online courses for college credit for hundreds of dollars, compared with thousands of dollars at most universities. -- Kevin Maney, Business Week, September 14, 2009