The first year after the Great Recession, 2010, marked the historical peak of college and university enrollment in the United States. In the decade since, a popular narrative has emerged that the value of a college degree is rapidly declining. As a new wave of well-capitalized educational technology companies arrived on the scene — including massive open online courses (MOOCs) — it became popular to prognosticate about the disruption of American higher education. Badges earned online would challenge and replace traditional diplomas. Renowned business theorist Clayton Christensen forecasted that half of all colleges may be in bankruptcy within 15 years. Others said the degree was “doomed.”
How the Value of Educational Credentials Is and Isn’t Changing
Degrees still matter, but online programs are playing a complementary role.
September 20, 2019
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Summary.
In the last decade, a popular narrative has emerged that the value of a college degree is rapidly declining. As a new wave of well-capitalized educational technology companies arrived on the scene — including massive open online courses (MOOCs) — it became popular in recent years to prognosticate about the “disruption” of American higher education. Yet by many measures, the value of a traditional degree today is as strong as ever in the job market. Innovation in degree delivery is occurring, but it is often being led by traditional, incumbent institutions, often in partnership with technology firms. Rather than sweeping away degrees, new types of online credentials — various certificates, MicroMasters, badges, and the like — are instead playing a complementary role, creating the building blocks for newer, more affordable degree programs. It is still early in the development of this ecosystem, but the receptivity of business leaders to new educational credential offerings and delivery approaches will be key in defining the future shape of the market.