Financial Flows to Online Program Managers: Making “Sense” of the Convoluted Arrangement

Online program managers (OPMs) are third-party companies that work with colleges and universities to develop, launch, and deliver online learning. Despite the prevalence of these companies in higher education, many colleges and universities operate with a high level of financial opacity when it comes to working with OPMs.

Given the limits on financial data access associated with arrangements between OPMs and postsecondary institutions, this report highlights issues with higher education accountability, transparency, and value associated with OPM services. This paper is the third in a four-part series addressing OPM-related accountability and transparency concerns.

In this brief, we extend the discussion by drawing attention to the financial clauses that dictate the flow of money between students and for-profit contractors, as the opaqueness surrounding university finances and the increasing reliance on for-profit companies in core academic areas demands closer scrutiny. To do so, we:

• Contextualize higher education’s relationship with OPMs,
• Present current problems with financial data reporting and availability, as well as general stewardship of higher education resources, and
• Offer policy recommendations to increase accountability, integrity, and transparency.