University of the People: The Promises and Concerns of a Free MBA
As student loans rise and today’s business students struggle with the prospect of paying for their degree, the thought of a tuition-free MBA program may seem too good to be true. Nevertheless, last March the non-profit University of the People (UoPeople) opened applications for a tuition-free MBA, set to launch this month.
Run by Israeli entrepreneur Shai Reshef, University of the People would charge just $200 for each of the 12 courses student would be required to take as part of their MBA degree, a 15-month online program that would be available to 100 successful applicants. (In other words, tuition is free, but associated costs would be $2,400—still peanuts compared to most MBA programs.) For many qualified applicants who feel limited in their educational opportunities due to rising costs, the new UofPeople degree is cause for celebration. Many others, however, remain skeptical about what earning a tuition-free degree could mean in the long run.
Why You Should Be Skeptical
When considering whether or not to pursue a free MBA program, it makes perfect sense to be skeptical. How can there be such a significant difference in cost between MBA programs? How can it be possible that the quality is the same if the cost is so different?
The negligible price tag of the UofPeople degree has much to do with the fact that it will be offered online and very lightly staffed. And while instructors from top schools like INSEAD and Wharton will be largely behind curriculum development, they will not themselves be teaching the courses they help to build. Even Russell Winer, leader of the UoPeople MBA program and professor of marketing at NYU Stern, will not be teaching his own marketing course—and doesn’t know who will, according to an article in the Economist.
Perhaps this will change with the program’s official launch this month, but other concerns remain. For example, the online program lacks community, and as a result it lacks the opportunity for networking and forging connections that are a huge component of earning an advanced business degree.
Finally, UoPeople critics question how a tuition-free degree will be perceived by potential employers. Competition for top jobs can be fierce within the business community, and graduating with a degree from a recognizable MBA program can give applicants an edge. However, since UoPeople is not currently accredited by a global business-school agency, it cannot be considered for many rankings and may not be taken seriously by potential employers.
Why You Should Be Excited
While it’s understandable that degree seekers would approach UoPeople with doubt, there are also reasons to be excited about this program. This is a brand-new program, and any new program will take time to be widely recognized by employers. But more than 4,400 applicants from 161 countries have applied already, even though the university will only initially accept 100 students and gradually expand the program from there. Launched in 2009, UoPeople won accreditation for its undergraduate degrees in 2009 and now boasts more than 3,000 students. Of those interviewed, 60 percent said that their education had resulted in an increased salary or promotion opportunity.
Even though the university itself has been around longer than the MBA program, the school is still young, and early reactions to UoPeople have been promising. In April, UoPeople formed a partnership with the University of California, Berkeley, which announced it would accept top-performing graduates from UoPeople’s associate degree program to complete a bachelor’s degree at Berkeley. Such a partnership with a highly ranked university adds value and validation to a UoPeople degree.
Finally, a sustainable model of education is promising not just for UoPeople, but for the effects such an offering may have on other business schools and MBA programs. UoPeople founder Shai Reshef uses his model to anticipate a future in which the “majority of qualified people will have an opportunity for higher education.”
Overall, it is clear that there are still many questions about what a free MBA degree will mean for students and the business community. Nevertheless, the matter at the heart of UoPeople remains an important one: the ability for all qualified students to be able to pursue higher education, regardless of their means.
About the Author
Alanna Shaffer
Staff Writer, covering MetroMBA's news beat for Atlanta, Houston, and Dallas.
