Dean Shackelford, CEO, North Carolina discussed on Motley Fool Money
We're going to talk about that more to help us on the bear case side because people don't realize that we actually do spend quite a bit on scholarships inside the system. But creating more affordable options for people to enter is one thing you also have to remember that online versus campus. What makes it tricky? One of the aspects. That's tricky about being public for me as CEO, is that anything I say, in a public earnings call or setting like this. I have to be comfortable with all of my clients hearing. And that's tricky so very often the reason we Kerr tale, something that we might think it'd be easy to say is not because its material non public information than we can't say it anyway, it's because it could upset the client and so conversations about how things happen at the client side. That's a very tricky place to be. I have to be careful about how much I say publicly so an example of that is online versus campus. We don't compare ourselves in our online programs to our campus. Grams because in some ways we are the campus program. We're just the online expression of it. And an example of where that matters is debt burden where, if you've picked up your life, quit your job and moved, and you're physically at the campus. If you're taking out loans, you typically have to do it for both the room and board and for the opportunity cost of your lost income, whereas at the online program almost everybody stays employed. I mean that's a big part of the value problem so down in North Carolina. Another thing I heard last week. It was the dean say, our model's broken, we know it. How we get paid just doesn't make sense anymore. This is a guy who's more from business now, from academia, and he's running a business school, but has really compelling what he was saying he was saying, we're not gonna change this next year. It's just too sudden. But he said it makes no sense. In this regard. We're asking people who don't have money at that stage of their life for a lot of money. And then later on when they have money, we don't ask or get anything. From them, unless they want to be generous and donate. And so he was saying it makes more sense. He was saying dean Shackelford to move to subscription model where maybe you subscribe over a longer period of time you have a longer association. So that was very disruptive that kind of thinking, and probably it's overdue for all of higher education, and I'm just curious what you think when he says something like that, and how you think about that for to you. I get very excited. So the career Kerr curriculum continuum if you look on our on our investor disclosures, you'll see that we think it starts with sort of bite-size opportunities for somebody to learn skill and goes to these highly certified longer form degrees. And there's a lot in between longer term, I would love to be able to provide ascriptin by discipline over the life of a student. We think it's very powerful. Now, we're at the early stages still building all of the different product sets until you have enough. You really can't do that. But I think it super powerful another thing that relates to maybe what Doug was. Talking about is you'll see more and more news over time about something that's called an income share agreement. Now, I hate that income share agreements have barely even launched and they're already controversial because it tends to be anything in higher. Ed finance tends to be controversial. But the idea behind an income share is instead of having a larger amount of tuition upfront. You defer the tuition and then over time you pay a percent of your income. So there are some. Startups, and some traditional schools that are doing it. We sort of take an approach to it as deferred tuition can be a lever in improving the marketability of the program..