School & District Management

Report Estimates Cost of Virtual Education

By Katie Ash — January 17, 2012 2 min read
  • Save to favorites
  • Print

The per-pupil cost of educating a student through virtual education is significantly less, on average, than the national average for brick-and-mortar schools, a paper from the Thomas B. Fordham Institute says.

The report also says that fully virtual programs are less expensive, on average, than blended-learning programs, which combine face-to-face and online learning, but the paper does not address whether student outcomes are equal.

The fourth in a series of papers called Creating Sound Policy for Digital Learning, it found that virtual schools spend about $5,100 to $7,700 for each student, compared with $7,600 to $10,200 for blended-learning programs, and $10,000 per student for regular brick-and-mortar schools.

However, the authors of the paper, Tamara Butler Battaglino, Matt Haldeman, and Eleanor Laurens, all of whom work for the Parthenon Group, a Boston-based global strategy advisory firm, caution readers against settling on a price tag for online learning because of how widely the cost of such education varies from program to program. The cost of online learning also does not take into account student outcomes, say the researchers, who gathered data from public documents as well as in interviews with entrepreneurs, policy experts, and school leaders.

Some e-learning experts not involved in the Fordham analysis also expressed notes of caution about drawing conclusions from it.

“A careless reading of the report will lead some policymakers and educators to believe that online and blended should be pursued with cost-savings goals front and center,” said John Watson, the founder of the Evergreen Education Group, a Durango, Colo.-based organization that researches online learning.

“A closer reading reveals that such an approach will overlook the need for an initial investment of time and resources, leading to poor outcomes,” he said. “I’m concerned that policymakers will focus on what appear to be the bottom-line numbers, ... without acknowledging the numerous caveats that appear throughout.”

The paper identifies five cost drivers that outline the way different types of schools allocate resources: labor, content acquisition and development, technology and infrastructure, school operations, and student-support services.

While more than half of regular schools’ financial resources typically go toward labor costs, virtual schools can often reduce those costs by increasing the pupil-teacher ratio or by reducing teacher salaries by hiring only part-time teachers or paraprofessionals, says the report.

A version of this article appeared in the January 18, 2012 edition of Education Week as What Is the Cost of Virtual Ed.?

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Assessment Webinar
Measuring What Matters: How District Leaders Are Redefining Student Assessment
In this panel discussion, district leaders and systems experts will examine the gap between the outcomes we want and the systems in place.
Content provided by Otus
Early Childhood Webinar Selling Into Early Learning: New Survey Data and Strategies for Marketers
Selling into PreK? Get fresh EdWeek Research Center data and strategies to position your products and reach the right early learning buyers.
Artificial Intelligence Webinar AI and 'Techlash' Are on a Collision Course. How Should Schools Respond?
Learn what strategies and tactics schools can develop to encourage smart and responsible AI use, while also enforcing tech guardrails.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School & District Management Quiz Quiz Yourself: What's Driving the Early Childhood Education Market?
Test your knowledge of early childhood education funding, curriculum trends, purchasing decisions, and market opportunities.
Watercolor illustration of a diverse group of young kindergarten through 3rd grade school children all holding their own digital device.
Illustration by Gina Tomko/Education Week + Canva
School & District Management Teachers' Unions Face More Competition for Influence in School Board Elections
A study suggests that parents are perceived as more influential by board members than unions.
4 min read
Yair Lev, center, attends a Lower Merion Board of School Directors meeting in the Lower Merion School District Administration Building on Monday, May 11, 2026, in Ardmore, Pa.
A school board meeting of the Lower Merion school district in Ardmore, Pa., is shown on May 11, 2026. A new study finds that teachers' unions are competing with a growing array of actors for influence in school board elections.
Joe Lamberti/AP
School & District Management Download Fire Drill? Reheated Coffee? You Just Won Principal Bingo!
School leaders, this game is for you.
1 min read
A ghosted bingo card, random shoe, and coffee mug stains in the background with scrapbook-style letters spelling out the word BING and an overhead shot of coffee in a mug that is taking the place of the "O" to spell out BINGO.
Illustration by Gina Tomko/Education Week + Canva
School & District Management Q&A Principals Are Stressed Out. Here's What's Plaguing Them—and What Can Help
Principal mental health is suffering from ‘work spillage,' a new study finds.
5 min read
Man in suit, collaged with thorny branches in front and behind him.
Collage by Laura Baker/Education Week + Canva