MOOCs can add value to higher education in three ways. First, MOOCs can benefit students and their families by improving the 'value proposition' of the investment in higher education. Second, MOOCs can help colleges and universities cut costs and generate additional revenues, and thus improve their financial condition. Third, MOOCs contribute to the shift from the conventional paradigm of higher education to a 'Higher Education 2.0' paradigm where outside-the-system learning, documented by badges, certificates and nano-diplomas, and other verifiable experiences are packaged in searchable digital portfolios. Higher Education 2.0 offers a revolutionary pathway to employment that augments or even bypasses conventional universities and their associated costs – and MOOCs can play a significant role in this higher education revolution.

Keywords

rate of return · university revenues · value proposition