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Nevertheless, literature about online learning more generally suggest at least four ways that<br />

online learning might contribute to cost reduction:<br />

1) Increasing the rate of student learning by increasing motivation and student time<br />

on task and helping students grasp concepts and demonstrate competency more<br />

efficiently;<br />

2) Reducing salary costs by redesigning processes to allow for more effective use of<br />

teacher time, increasing teacher-student ratios or transferring some educational<br />

activities to computers;<br />

3) Reducing facilities costs by leveraging home and community spaces in addition<br />

to traditional school buildings;<br />

4) Realizing economies of scale by leveraging initial development costs as broadly<br />

as possible.<br />

1. Increasing the Rate of Learning<br />

This is a potentially powerful pathway because it could<br />

change the value of student time (Watson et al. 2010). Lovett, Myer and Thille (2008)<br />

Traditionally, course credit and other measures of<br />

found that college students<br />

educational attainment have been tied to seat time—that is, learned statistics online about<br />

how many hours the student spends in a classroom with a<br />

50 percent more quickly than<br />

certified teacher. It does not matter if the student could<br />

did students in traditional large<br />

master the required material more quickly or not. Although<br />

lecture courses. Fletcher and<br />

time is money, the value of student time and its effective<br />

use is often ignored in decisions about elementary and Chatham (2009) found<br />

secondary education. A focus on identifying what students efficiency gains of about 30<br />

already know and what they need to know and tailoring percent for a variety of types of<br />

instruction based on this information to meet student needs online training for the military.<br />

may make instruction more efficient, allowing students to<br />

learn content more quickly or more deeply. For example,<br />

Lovett, Myer and Thille (2008) found that college students<br />

learned statistics online about 50 percent more quickly than students in traditional large<br />

lecture courses. In looking primary at studies of learning in the military, Fletcher and<br />

Chatham (2009) found efficiency gains of about 30 percent for a variety of types of online<br />

training for the military in a study of:<br />

27

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