School & District Management

Report Estimates Cost of Virtual Education

By Katie Ash — January 17, 2012 2 min read
  • Save to favorites
  • Print

The per-pupil cost of educating a student through virtual education is significantly less, on average, than the national average for brick-and-mortar schools, a paper from the Thomas B. Fordham Institute says.

The report also says that fully virtual programs are less expensive, on average, than blended-learning programs, which combine face-to-face and online learning, but the paper does not address whether student outcomes are equal.

The fourth in a series of papers called Creating Sound Policy for Digital Learning, it found that virtual schools spend about $5,100 to $7,700 for each student, compared with $7,600 to $10,200 for blended-learning programs, and $10,000 per student for regular brick-and-mortar schools.

However, the authors of the paper, Tamara Butler Battaglino, Matt Haldeman, and Eleanor Laurens, all of whom work for the Parthenon Group, a Boston-based global strategy advisory firm, caution readers against settling on a price tag for online learning because of how widely the cost of such education varies from program to program. The cost of online learning also does not take into account student outcomes, say the researchers, who gathered data from public documents as well as in interviews with entrepreneurs, policy experts, and school leaders.

Some e-learning experts not involved in the Fordham analysis also expressed notes of caution about drawing conclusions from it.

“A careless reading of the report will lead some policymakers and educators to believe that online and blended should be pursued with cost-savings goals front and center,” said John Watson, the founder of the Evergreen Education Group, a Durango, Colo.-based organization that researches online learning.

“A closer reading reveals that such an approach will overlook the need for an initial investment of time and resources, leading to poor outcomes,” he said. “I’m concerned that policymakers will focus on what appear to be the bottom-line numbers, ... without acknowledging the numerous caveats that appear throughout.”

The paper identifies five cost drivers that outline the way different types of schools allocate resources: labor, content acquisition and development, technology and infrastructure, school operations, and student-support services.

While more than half of regular schools’ financial resources typically go toward labor costs, virtual schools can often reduce those costs by increasing the pupil-teacher ratio or by reducing teacher salaries by hiring only part-time teachers or paraprofessionals, says the report.

A version of this article appeared in the January 18, 2012 edition of Education Week as What Is the Cost of Virtual Ed.?

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Webinar
Closing the Practice Gap: Essential Insights for Leaders
Three instructional experts will share strategies for making students’ reading and math practice more engaging and impactful this year.
Content provided by Renaissance

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School & District Management Why Superintendents’ Top Concerns Changed Fast in 2026
Budgets and enrollment are now top of mind for district leaders, a big change from last year.
3 min read
House Education 26161628416540
San Francisco Unified School District Superintendent Maria Su, right, testifies during a House Education and Workforce Committee hearing on parental rights and school content policies on June 10, 2026 in Washington. More superintendents are pointing to financial pressures and enrollment as top concerns.
Kevin Wolf/AP Photo
School & District Management Opinion This Is What Teachers Want From Their Leaders
School and district administrators should take note of this feedback from educators.
1 min read
Collage of one image of a teacher working in a planning book, an image of two teachers looking at a document together and sticky notes with the words "training" and "strategies" on them.
Illustration by Emily Wright for Education Week + Getty
School & District Management ICE Raids Are Making Emergency Contacts Essential for Schools
Educators say schools can help families plan for what happens if parents are detained by ICE.
5 min read
Signs reading "NO ICE ACCESS" taped to the front doors of Valley View Elementary School, on Feb. 3, 2026, in Columbia Heights, Minn.
Signs taped to the front doors of Valley View Elementary School declare that Immigrations and Customs Enforcement agents can't enter the building, on Feb. 3, 2026, in Columbia Heights, Minn. District leaders across the country are now regularly requesting emergency contact information from families in the wake of heightened immigration enforcement.
Liam James Doyle/AP
School & District Management Video Two Principals, One Agenda: Keep Kids Safe From Immigration Action
Two principals talk to Education Week about how to work through the fear and chaos of ICE action.
1 min read