Dive Brief:
- The University of Florida is reconsidering its 11-year contract with Pearson for UF Online program management, ostensibly because out-of-state enrollment numbers are not meeting targets.
- Inside Higher Ed reports that the University of Florida has given notice of intent to terminate the contract, but as negotiations are ongoing about how to proceed, all could end up with Pearson in a continued but changed role.
- The Gainesville Sun has reported that Pearson stands to earn up to $186 million over the life of the contract from a combination of direct payments and a share of tuition revenue.
Dive Insight:
The Florida legislature gave the University of Florida six months to put together a four-year online degree program that could be offered at 75% of its standard tuition for residential students. The university got $35 million in startup costs and hired Pearson, in part for content creation, program support, marketing and recruitment, and student support. Overall, enrollment at UF Online is exceeding expectations, but the number of higher-paying out-of-state students lags behind.