Online Degrees: What to Look For and What to Avoid

Online enrollment has grown steadily. The National Center for Education Statistics reports that over 40% of postsecondary students took at least one online course in recent years, and fully online enrollment has increased significantly since 2020. Many traditional nonprofit universities now offer full degree programs online alongside their on-campus programs.

But the growth of online education has also created space for low-quality programs that charge high tuition, provide minimal instruction, and produce graduates who struggle in the job market. The difference between a strong online program and a predatory one can be tens of thousands of dollars in debt with nothing to show for it.

The good news: the same government data sources that help you evaluate on-campus programs work for online programs too. IPEDS, College Scorecard, and accreditation databases give you the tools to separate legitimate programs from expensive certificates that won't get you hired.

Accreditation is the process by which an independent agency evaluates a college and confirms it meets minimum quality standards. There are two types that matter:

• Regional accreditation (now called institutional accreditation): Granted by agencies recognized by the U.S. Department of Education, such as the Higher Learning Commission (HLC), Middle States Commission on Higher Education (MSCHE), or WASC Senior College and University Commission (WSCUC). This is the gold standard. Credits from regionally accredited schools transfer to other accredited institutions, and employers generally recognize these degrees without question.
• National accreditation: Typically granted to vocational, career-focused, or religious institutions. Credits from nationally accredited schools often do not transfer to regionally accredited institutions. Some employers view these credentials with skepticism.

Before enrolling in any online program, verify its accreditation status through the Department of Education's Database of Accredited Postsecondary Institutions and Programs (DAPIP) at ope.ed.gov/dapip. If a school is not listed, do not enroll.

IPEDS tracks graduation rates separately for students enrolled exclusively in distance education. This is important because online-only graduation rates are often lower than on-campus rates at the same institution. That does not necessarily mean the program is worse; online students are more likely to be working adults attending part-time, which naturally extends time to completion.

What to check:

• IPEDS distance education graduation rate: Compare the online graduation rate to other fully online programs at similar institutions, not to on-campus rates at the same school.
• College Scorecard program-level data: Scorecard now provides earnings and debt data broken down by program (CIP code) at each institution. Check whether graduates of the specific online program you are considering actually earn enough to justify the cost.
• Retention rate: A high first-year dropout rate in an online program can signal poor student support, inadequate instruction, or misleading marketing.

If an online program cannot show you its graduation rate, median earnings, or loan repayment data, treat that as a red flag. Legitimate programs have nothing to hide.

Online programs should cost the same or less than on-campus programs at the same institution. You are not using campus facilities, dining halls, or dormitories. Some schools price online programs competitively; others charge a premium for "convenience."

Watch for these cost traps:

• Per-credit pricing that exceeds on-campus rates: Some schools charge 600 to 800 dollars per credit for online programs while their on-campus tuition works out to 400 dollars per credit. There is no justification for this.
• Technology fees: A flat fee of 50 to 100 dollars per semester is reasonable. Fees of 500 or more per semester for "online platform access" are not.
• Required proprietary materials: Some programs require expensive textbooks or software that only work with their courses, driving up costs beyond tuition.
• Out-of-state tuition for online students: Some public universities charge out-of-state rates for online students even though you never set foot on campus. Others charge a flat online rate regardless of where you live. Check before you enroll.

Run the school's net price calculator and compare total program cost (not just per-credit price) across several options before committing.

Steer clear of online programs that show these warning signs:

• No regional/institutional accreditation: Non-negotiable. Without it, your degree may not be recognized by employers or other schools.
• Aggressive recruiting: If you fill out one online form and immediately get bombarded with calls and texts pressuring you to enroll, the school is spending more on sales than on teaching.
• Graduation rates below 20%: Even accounting for the challenges online students face, extremely low graduation rates signal systemic problems.
• Earnings below high school graduates: College Scorecard shows some programs where median earnings of graduates are below what high school diploma holders earn in the same region. That degree is not delivering value.
• Lawsuits or sanctions from the Department of Education: Check whether the school has faced federal sanctions, loss of Title IV funding, or state attorney general actions. A quick search can save you years of wasted effort.
• "Guaranteed" job placement: No legitimate school guarantees employment. Schools that make this claim are misleading you.

The best online programs share common traits:

• Same accreditation as the on-campus program: The online degree from Arizona State University, Penn State World Campus, or University of Florida carries the same accreditation as the on-campus version.
• Transparent pricing: Clear per-credit costs, minimal fees, and straightforward financial aid information.
• Student support services: Academic advising, tutoring, career services, technical support, and library access available to online students.
• Asynchronous and synchronous options: Flexibility in when you complete coursework, with some real-time interaction for discussion and collaboration.
• Faculty who also teach on campus: Programs where online courses are taught by the same faculty as on-campus courses, not adjuncts hired just for the online section.

Online education can be excellent, affordable, and career-advancing. But you have to do the same due diligence you would for any other major financial decision. The data is available. Use it.