GAO report on online program managers was only a start (opinion) – Inside Higher Ed

Congress’s investigative arm accurately diagnosed the problem outside providers play in driving online tuitions higher, but the government needs to act more aggressively, John Katzman argues.

Last week’s report by the U.S. Government Accountability Office takes appropriate aim at online program management companies, noting several concerns many of us have warned about for years. As the Department of Education considers solutions to these problems, it must act forcefully to address both those problems and, more importantly, the ballooning marketing and recruiting spend for all online degree programs.

The current regulatory environment dates to 2010, when the Department of Education moved to help traditional universities build and scale online programs that could compete with those of for-profits. A Dear Colleague letter created an exception to incentive-compensation regulations, allowing universities to partner with OPMs—companies with the capital and expertise to do this (in 2008, I…

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