Average Cost of Online College [2024]: Yearly Tuition + Fees

Report Highlights. The cost of an online bachelor’s degree averages $54,231.

For in-state students, tuition averaged $40,926 for an online bachelor’s degree.
For out-of-state students, tuition averaged $59,011 for an online bachelor’s degree.
Tuition for online college averaged $62,756 for private colleges.
96% of online students would recommend online education to others.
75% of online students feel online education is better than or equal to learning on campus.

Price of an Online Degree

Prices for tuition vary greatly by institution, degree or program, and level of academic achievement. Fee structures are also different for every college and for every program. Nearly every institution will have program-specific fees and tuition rates.

Among 192 public ranked colleges, the average cost per credit hour for online college is $338 for the 2023-2024 academic year.
The average cost per online credit hour at public colleges is 2.11% higher than for on-campus in-state students.
Among 148 private ranked colleges, the average price per online credit hour is $516.
At private colleges, the average cost per credit hour for online college is 117.6% higher than for on-campus students.
In 2023, a survey of college students indicated that 77% considered affordability as one of their top reasons for choosing a school for an online program.
16% of colleges charge more tuition for a degree earned online than in-person.
Most private schools do not differentiate between in and out-of-state status for students so their in-person tuition rates will almost always be high.
The total average net cost (tuition only) for an undergraduate online college degree is $40,926 for public (in-state) and $62,756 for private institutions.
Many online degree programs offer the same advantages for financial aid, grants, and scholarships.
Some institutions have added scholarships specifically for online students.
Federal financial aid generally applies the same to both online and in-person instruction.
Online programs may have specific technology requirements for students studying online, such as software, broadband internet connection, and computers fast enough for both.

Cost of an Online Bachelor’s Degree at Selected Schools
School	Cost per Credit Hour
Valdosta State University	$182
University of Central Florida	$105
Clayton State University	$169
Arkansas State University	$218
Rochester Institute of Technology	$1,291
Arizona State University	$561 – $661
Grand Canyon University	$340 – $485

Price of an Online Graduate Degree

Compared to undergraduates, graduate students are 61.9% more likely to pursue their degrees exclusively online. The online environment sees more part-timers, experienced professionals, and graduate students compared to in-person education. On campus graduate students are more likely to be younger people continuing their studies directly from their bachelor’s degree.

72% of online students are employed.
18% of online students are trying to switch careers.
21% are trying to advance their careers.
The average online student is 31 years old.

Cost of an Online Graduate’s Degree at Selected Schools
School	Cost per Credit Hour
Valdosta State University	$293
University of Central Florida	$288
Clayton State University	$385
Arkansas State University	$340 – $514
Rochester Institute of Technology	$1,350
Arizona State University	$543 – $1,343
Grand Canyon University	$365 – $695

Online College vs. On-Campus

Some of the most popular colleges with online degree programs also tack on per-credit distance learning fees.

36% of schools require students attending online courses to pay all fees for in-person activities and on-campus services.
Community colleges are the most likely to charge a high premium for online instruction, with 22% indicating this was the case for all their online programs.
When comparing online tuition to on-campus instruction, 17% of large institutions indicated they charged more for online instruction.
96% of online students would recommend online education to others.
75% of online students feel online education is better than or equal to learning on campus.

Online College Case Study: University of Florida

Below is a comparison of the University of Florida online tuition rates compared to on-campus rates for undergraduate general studies.

Online learners at UF are not required to pay the various fees required to be paid by residential students, such as the Activity and Services Fee, University Athletics Fee, and Transportation Fee.
If online learners at UF would like to utilize the campus services and attend activities, they can purchase an Optional Fee package.
Online learners at UF are required to pay fees per credit hour for Financial Aid, Technology, and Capital Improvement.
Out-of-state online learners at UF also pay a Non-Florida Resident Financial Aid fee.

Case Study: University of Florida
Online In-State	Residential In-State	Online Out-of-State
Tuition $111.92	Tuition $149.24	Tuition $500
Per Credit Fees $17.26	Per Credit Fees $63.47	Per Credit Fees $52.62
Optional Per Credit Fees $46.2		Optional Per Credit Fees $46.21

Online Learning Technology Requirements

For students learning online, most institutions will charge them a “technology” fee per credit hour or semester whether they are studying online or on campus. Some online programs, such as a nursing program, may require students to spend time on campus. Prospective students should verify what those expenses and requirements might be.

A computer or tablet fast enough for online instruction is critical to a student being able to complete coursework online, participate in classes, listen to lectures and watch videos.
In 2023, 9% of students in a survey of distance learners indicated their biggest challenge to completing an online program was having access to the required technology or internet connectivity.
64% of students did not purchase a required textbook at least once due to the cost.
33% of students said a grade was impacted because of not being able to afford a textbook.

When Online Learning Costs More

Institutions who charged more indicated the biggest reason for charging more was higher delivery and support costs. That is because most colleges don’t actually run their own online or distance learning programs and use a revenue-sharing approach by utilizing online program managers (OPMS).

OPMs are companies that offer plug-and-play courses and modules.
OPMs often handle other areas colleges and universities struggle with, such as marketing and “training” faculty.
61% of schools charge more for online learning because of higher maintenance costs.
60% of schools charge more online because of higher program development costs.
39% charge more because of higher marketing costs.
33% charge more because of higher third-party costs (utilizing OPMs).
Nearly 20% of colleges say they charge more for online instruction to meet their revenue goals.

Online Program Managers (OPMS)

Institutions continue to pay their faculty significant course development stipends, even when using an OPM. This is done even though many online courses increasingly rely heavily on “plug and play” style courses that utilize pre-built modules. These pre-built modules just need to be loaded and customized for each individual faculty member.

48% of contracts with OPMS are based on a percentage of revenue made, while 20% are based on percentage per student or credit-hour.
It is estimated that online program managers locked into long-term contracts are charging colleges typically between 40% and 60% of revenue made from online degree programs.
43% of colleges reported paying their faculty a per-course development stipend.
The number of colleges that signed contracts with OPMs ballooned almost 130% between 2011 and 2015.
Enrollment in online courses increased by 30% between 2011 and 2015.
In 2021, at least 550 colleges offering online programs utilized OPMs to support their online programs.

Staff Confidence in OPMS

21% of chief online officers/administrators surveyed at major colleges indicated they had less confidence in their understanding of the cost of their institution’s online programs compared to the in-person programs. Unfortunately, many institutions leave it to the faculty or specific departments to develop and market their institution’s online programs.

Not even a third of chief online officers/administrators indicated they were completely confident in their understanding of the expense (development, delivery and maintenance) of their institutions’ online programs.
42% of chief online officers/administrators indicated they were fairly confident and 17% indicated they were only somewhat confident in their understanding.
Community colleges are the most likely to have their faculty work independently on online course development (17%).

OPM Case Study: 2U

In the fourth quarter (Q4) of 2023, 2U, one of the biggest OPMs in the nation, reported a revenue increase of 8% ($255.7 million), compared to Q4 2022. 2U offers short courses, boot camps, professional certificates, and undergraduate and graduate degrees.

In Q4 2023, degree program revenue increased 19%.
In Q4 2023, alternative credential revenue decreased 7%.
In 2023, 2U represented 260 of the world’s leading universities, institutions, and industry experts.
In Q1 2020, 60,875 students enrolled in full course equivalent programs.
67,808 students are enrolled in full course equivalent (FCE) programs in Q4 2023.
Of these students, 43,309 were in a degree program.
The other 24,499 students were enrolled in an alternative credential program.
In Q1 2020, each FCE enrollment represented $2,590 in revenue for degree seekers, and $3,766 for alternative credential seekers.
By Q4 2023, that number increased to $3,774 for degree seekers and decreased to $3,500 for alternative credential seekers.

Online Tuition

Tuition everywhere is going up, and 47% of schools indicated they were increasing their budget planning for online program development in 2023. The University of Oregon for example, has consistently raised tuition rates for online instruction for the past five years.

Public two-year (In-District) costs $3,990, which is an increase from $3,240 in 2014.
Public four-year (In-State) costs $11,260, which is an increase from $8,890 in 2014.
Private nonprofit four-year $41,540, which is an increase from $38,620 in 2014.
The Oregon State University’s online College of Business tuition has risen approximately 18% since 2016.
The MBA program at the Oregon State University has increased by nearly 13%.

Difficulties Paying for Online Tuition

In 2023, paying for online college was a difficult part of enrolling for online college.

26% of students in 2023 indicated the biggest challenge to completing an online program was paying for higher education while minimizing student debt.
One of the top two challenges when choosing an online program was applying for financial aid and identifying sufficient funding sources.
30% of online graduates would do more research about cost and financial aid when asked what they would do differently when choosing a program.
26% of students indicated they would be more attracted to a school offering scholarships.
45% of students did not use or have access to employer tuition reimbursement.
44% of students indicated their school did not offer tuition discounts for employees at their company.
21% of students indicated they had incurred debt between $5,000 and $15,000 earning their online degree or certificate.
In 1970, tuition for the University of North Carolina’s MBA program was $87.50 per credit hour (approximately $700 in 2024 dollars).
In 2023, the program costs 220% more: $2,803 per credit hour.
The total tuition and fees to complete the program in 2024 is $109,494.

Most Expensive Online Out-of-State Colleges
State	School Name	Cost per Credit Hour
Utah	Weber State University	$1,422
Indiana	Anderson University	$1,440
Missouri	University of Missouri – St. Louis	$1,298
New York	Rochester Institute of Technology	$1,291
Tennessee	Johnson University	$1,270

Reducing Costs Of Online Study

With affordability being the reason most students enroll in online college courses, students may look for more ways to shave even more off the cost of attendance. Some institutions offer online courses that utilize Open Educational Resources (OERs) which are free course materials available to students and the public. MOOCs on the other hand are massive open online courses, which are usually free for auditing purposes and steeply discounted for students who utilize them for college credit.

MOOCs used platforms such as coursera, edX, FutureLearn, and Udacity.
Students enrolling in un-credited courses may not earn a degree, but can earn certificates for courses, projects, and specializations.
In 2021, MOOC enrollment surged, with over 220 million students online taking classes from 950 universities.
Coursera saw its numbers surge to 92 million learners in 2021 from 44 million in 2016.
Many community colleges offer robust online programs for students seeking to complete general education credits at a lower cost than at a 4-year institution.
Common transfer and articulation agreements with community colleges include 2+2 programs (2 years at a community college, 2 years at a 4-year institution), although transferring may vary by state, institution, and major.

Attending Local or Regional Online College

Tuition at public colleges is typically discounted significantly for in-state students. There are many interstate programs as well, such as the Western Undergraduate Exchange (WUE) that allow eligible students to save on college tuition.

Annually, WUE students save an average of $10,895 on non-resident tuition rates.
There are over 160 public colleges that participate in WUE.
The cost for out-of-state tuition can be as much as three times what in-state tuition rates are.
Public colleges charge less for in-state residents on the idea that the residents’ state tax dollars have helped fund the school.

Most Affordable In-state Online Colleges
School	Cost per Credit	Total In-state Cost
University of North Carolina – Pembroke	$3,490	$11,040
Clayton State University	$5,080	$12,600
University of North Carolina – Greensboro	$5,436	$15,480
Florida Atlantic University	$5,952	$14,520
University of West Florida	$6,360	$14,760

Employer Assistance

Many employers offer tuition discounts, reimbursements, or scholarships for their employees and sometimes even for children of employees. A 529 account is a savings plan that can be used for post-secondary education costs, including student loan debt. Some employers will even pay most or all of the tuition if the student is pursuing a degree in a high-demand field.

48% of employers offered tuition assistance toward an undergraduate or graduate degree.
58% offered scholarship programs for employees.
8% offered student loan repayment assistance.
10% offered a 529 plan payroll deduction in 2019.