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
Special Education Webinar
Bridging the Math Gap: What’s New in Dyscalculia Identification, Instruction & State Action
Discover the latest dyscalculia research insights, state-level policy trends, and classroom strategies to make math more accessible for all.
Content provided by TouchMath
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
School Climate & Safety Webinar
Belonging as a Leadership Strategy for Today’s Schools
Belonging isn’t a slogan—it’s a leadership strategy. Learn what research shows actually works to improve attendance, culture, and learning.
Content provided by Harmony Academy
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
School & District Management Webinar
Too Many Initiatives, Not Enough Alignment: A Change Management Playbook for Leaders
Learn how leadership teams can increase alignment and evaluate every program, practice, and purchase against a clear strategic plan.
Content provided by Otus

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 Opinion The News Headlines Are Draining Educators. 5 Things That Can Help
School leaders can take concrete steps to manage the impact of the political upheaval.
5 min read
Screen Shot 2026 02 01 at 8.23.47 AM
Canva
School & District Management Q&A When Should a School District Speak Out on Thorny Issues? One Leader's Approach
A superintendent created a matrix for his district to prevent rash decisions.
5 min read
Matthew Montgomery, the superintendent of Lake Forest schools in Ill., during the AASA conference in Nashville on Feb. 11, 2026.
Matthew Montgomery, the superintendent of Lake Forest schools in Illinois, is pictured at the AASA's 2026 National Conference on Education in Nashville, Tenn., on Feb. 11, 2026. The Lake Forest schools established a decisionmaking matrix that informs when the district speaks out on potentially thorny topics.
Kaylee Domzalski/Education Week
School & District Management How Two Award-Winning Educators Created Schoolwide Systems for Academic Support
Boosting student achievement should be a building-wide mission, they say.
3 min read
From left: Office of Candidate Services at University of Central Arkansas Director Gary Bunn; Arkansas Department of Education Secretary Jacob Oliva; LISA Academy North Middle-High School Principal Bilal Uygur; recipient Jaime Garcia (AR '25); LISA Academy North Middle-High School CEO/Superintendent Dr. Fatih Bogrek; and National Institute for Excellence in Teaching Chief Executive Officer Dr. Joshua Barnett.
Jaime Garcia, the dean of academics at LISA Academy North Middle-High School won a $25,000 award from the National Institute for Excellence in Teaching, in part for the work he's done to build community and academic by having students help their classmates.
Milken Family Foundation
School & District Management Q&A How a Leader Developed Farm-to-Table School Lunches Without Breaking the Bank
An Arizona school nutrition director discusses how districts can overcome logistical hurdles and negotiate prices.
5 min read
District poses for a portrait at the Garden Cafe in Phoenix, Arizona, on Jan 21, 2026.
Cory Alexander, child nutrition director for Osborn School District, poses for a portrait at the Garden Cafe in Phoenix on Jan. 21, 2026.
Adriana Zehbrauskas for Education Week