Thursday, June 14, 2012

Paying for Performance - Steve Kolowich, Inside Higher Ed

As more college students have found themselves adrift and in debt following graduation, colleges have found themselves under increasing pressure to prove their value to stingy legislators and cost-conscious shoppers. Now one university is working with a major educational content company to shift some of that accountability from the institutions that enroll students in courses to the companies that supply them with educational texts and tutoring software. McGraw-Hill, which sells textbooks, course modules and e-learning software, announced that it will provide those resources for a dozen courses at Western Governors University (WGU), an online, nonprofit university. But instead of selling licenses to WGU based on enrollment, in several of these courses McGraw-Hill will only get paid if students attain a grade of B or higher on WGU's competency exams. While McGraw-Hill is announcing the model today, Pearson officials said that it too has "performance-based agreements" with the university.


http://www.insidehighered.com/news/2012/06/06/mcgraw-hill-wgu-announce-deal-would-shift-accountability-content-provider