Online Degrees and Future Earnings: Do College Experiences Matter?

• In Event: Pathways to Success: Exploring Student Outcomes, Equity, and Institutional Practices in Higher Education

Abstract

More than a million students enroll in online degree programs every year, but to date, little is known about their financial well-being after graduation. We leverage a newly released panel survey of college graduates to understand this. Our analysis with a matched sample of online and in-person degree holders, who are otherwise similar, finds that online degree holders earn substantively lower income and lag in student loan repayment. A subsequent analysis indicates that about one-fifth of the overall income differences by degree modality can be explained by three types of in-person college experiences: extracurricular activities, senior capstone experiences, and career services. Our findings call attention to the potential pitfalls of online education as an emerging type of predatory inclusion.

Authors

• Kwan Woo Kim, University of California - Merced

• Laura Hamilton, University of California - Merced