Massive open online courses (MOOCs) bolster a university’s credit rating by creating new revenue avenues and international recognition, according to a report from the credit agency Moody’s.
Moody’s Investor Service, which has released at least two reports on the impact of MOOCs on a school’s credit rating, said in a June 24 report that colleges and universities that embraced the use of MOOCs could benefit financially in the long term, while schools with lesser brand name recognition could be negatively impacted by the proliferation of MOOCs in higher education.
Moody’s grabbed headlines in May when it said Georgia Tech could see significant credit rating bump after the release of the university’s low-cost MOOC computer science master’s degree program, available for about one-sixth the price of a traditional computer science degree at Georgia Tech.
Moody’s, in a September 2012 report, predicted that MOOCs’ financial incentives would partly drive the spread of MOOCs across institutions of every size, with schools that remain committed to traditional college education.
“Most universities will likely gravitate to a ‘mixed’ model that combines residential learning with the new technology, some will increasingly feature online course delivery, and some colleges may choose to create a niche by remaining focused solely on the traditional residential-classroom experience,” the report said.