Online Programs Could Erase Half of U.S. Business Schools by 2020

When Indiana University’s Kelley School of Business launched an online MBA program in 1999, few traditional universities had embraced distance learning. Online degrees were more typically offered by for-profit outfits such as the University of Phoenix, whose television ads featured tired working stiffs eager to escape their income bracket, not the future titans of industry top MBA programs look for.

Fifteen years later, 1,072 students are enrolled in Kelley’s online MBA program, more than double the number in the school’s regular two-year program. Tuition for Kelley Direct works out to $61,200 for two years, compared with $93,000 for the on-campus program. The University of North Carolina at Chapel Hill’s Kenan-Flagler Business School has 551 students in its online program, more than in its full-time MBA program. UNC’s online degree costs $96,775, vs. $111,092 for its regular program.