Inside Higher Ed has a long article on this remarkable new venture – “based on interviews and documents, including some that the university provided to Inside Higher Ed following an open records request.” There are 22 pages of internal Georgia Tech docs referenced. Example:
“It is an experiment that no other institution of our caliber has embarked on (yet!) but everyone is talking about moving in this direction, so if we want to do it, we should do it right away,” the report, produced in late February, said. “There is an opportunity to be a leader rather than a follower if we act quickly and thoughtfully.”
There is a glimpse of the financial projections as well:
The Georgia Tech program will have four enrollment tracks for students. Enrollment starts in January, though the first year will feature a small test run of several hundred paying students drawn mostly from the military and the corporate world, particularly AT&T.
Georgia Tech and Udacity expect the program to cost about $3.1 million in its first year. With a $2 million one-time sponsorship from AT&T and about $1.3 million in tuition and fees, Georgia Tech and Udacity
expect to split $240,060 in gains at the end of the first year.
In the second year, without AT&T’s large subsidy, Georgia Tech and Udacity plan to spend $7.5 million and scrape out gains of just $14,848 for the whole year.
By the third year, when the program is expected to be running at full steam, Georgia Tech and Udacity expect to spend $14.3 million on the program but bring in $19.1 million in revenue — for a total gain of about $4.7 million.
Georgia Tech will receive 60 percent of the revenue and Udacity the rest. The money to Georgia Tech will flow through its research corporation. Professors and the computing college both stand to gain from the effort. A professor will receive $20,000 for creating a course and $10,000 for delivering the content — meaning most professors will receive $30,000 per course. Professors will receive a royalty of $2,500 each time the course is offered again.
The posted Georgia Tech document is a wonderful source of insights into how the new degree program will actually operate.