Average Cost of Online College

Understanding the True Cost of Online College in 2025

If you're wondering how much does online college cost, the answer might surprise you: probably more than you think. The average American online college student pays approximately $1,000 per class, and contrary to popular belief, online degrees often cost the same as—or even more than—traditional on-campus programs.

This contradicts what most Americans expect. According to a 2024 survey by New America, 80% of Americans believe online learning should cost less than in-person programs. Yet the reality is quite different.

In fact, 83% of online programs in higher education cost students as much as or more than in-person versions, according to an annual survey of college online-learning officers conducted by Quality Matters and reported by The Hechinger Report.

This comprehensive guide breaks down online college tuition costs, examines why digital education isn't cheaper, and helps you understand what you'll actually pay for an online degree in 2025.

How Much Does Online College Cost? The Numbers Breakdown

Average Cost of Online College by Institution Type

The cost of online college varies significantly depending on whether you attend a public or private institution, and whether you qualify for in-state tuition rates.

Cost Category	Public In-State	Public Out-of-State	Private
Per Credit Hour	$337	$491*	$516
Per Semester (15 Credits)	$5,055	$7,365*	$7,740
Full Bachelor's Degree (120 Credits)	$40,536	$59,011	$63,185

*Out-of-state costs calculated using proportional increase from Education Data Initiative's $59,011 total bachelor's degree cost (public out-of-state). This represents a 45.6% premium over in-state rates, applied consistently across credit hour and semester calculations. Source: Education Data Initiative

These figures represent the average cost of a bachelor's degree for students taking exclusively online courses during the 2024–2025 academic year, based on data from 199 public colleges and 142 private colleges.

Key Takeaway: Public in-state online degrees average $40,536—but prices vary dramatically by institution type and residency status, with out-of-state students paying 46% more.

Online Tuition Cost Per Class

When asking "how much is online college" per individual class, the answer depends on credit hours. Most college courses are 3 credit hours, which means:

• Public in-state students: $1,011 per class (3 credits × $337)
• Private university students: $1,548 per class (3 credits × $516)
• Graduate students: Average of $1,099 per class (based on 3-credit course; approximately $366 per credit hour)

This aligns with data from the U.S. Department of Education's National Center for Education Statistics, which tracks postsecondary education costs nationwide.

How Much Does Online School Cost Compared to On-Campus?

One of the most common questions prospective students ask is: "How much does it cost to do online school versus attending in-person?" The surprising answer reveals a paradox in higher education pricing.

The Cost Paradox: Online Often Costs More

According to the Education Data Initiative, online instruction at four-year public universities averages $337 per credit hour for in-state students—which equals the average cost for on-campus students at public institutions.

While the averages are equal, many institutions charge significantly more for online programs. The Hechinger Report found that these statistics reveal a surprising disconnect between consumer expectations and market reality.

Online vs. On-Campus Cost Comparison by Institution Type

Institution Type	On-Campus Cost Per Credit	Online Cost Per Credit	Difference
Public (In-State)	$337	$337	Equal
Private	$1,170	$516	-$654 (-55.9%)

Source: Education Data Initiative, based on U.S. News & World Report data. Private on-campus cost per credit hour ($1,170) from U.S. News analysis of 109 private colleges.

Notably, while public institutions charge the same for online and on-campus on average, private university online programs can offer significant savings compared to their on-campus counterparts—though they still remain more expensive than public options overall.

Key Takeaway: Contrary to expectations, 83% of online programs cost the same or more than in-person—eliminating campus costs doesn't mean lower tuition for students.

Real-World Examples: Online College Tuition Comparison

What Major Universities Actually Charge for Online Degrees

To answer the question "how much do online colleges cost" at specific institutions, here's an online college tuition comparison of popular programs for the 2024–2025 academic year:

University	Undergrad per Credit	Graduate per Credit	Est. Bachelor's Degree Total
University of Central Florida	$105.07	$288.16	$12,608
Clayton State University	$174.00	$395.00	$20,880
Southern New Hampshire University	$330.00	$637.00	$39,600
Ball State University	$346.00	$464.00	$41,520
University of South Dakota	$354.75	$470.45	$42,570
University of Northern Iowa	$357.00	$569.00	$42,840
Liberty University	$390.00	$565.00	$46,800
Grand Canyon University	$485.00	$600.00	$58,200
Arizona State University	$574.00	$576.00	$68,880
Purdue University Global*	$371.00	$485.00	$44,520

Bachelor's degree totals calculated based on 120 credit hours. Rates reflect listed online undergraduate tuition as of October 2025; excludes fees unless noted. Sources: Individual university websites as linked.

*Purdue University Global uses a per-course pricing model ($1,484 per 4-credit course). Rates shown are converted to per-credit hour ($371) for comparison purposes. Graduate rate similarly converted from $1,940 per 4-credit course.

Note on UCF pricing: University of Central Florida's $105.07 per credit hour reflects Florida's competitive in-state public university pricing structure, making it one of the most affordable online bachelor's degree options nationwide.

The range is striking: the cost of an online bachelor's degree can vary from approximately $12,600 at the University of Central Florida to $68,880 at Arizona State University among the schools surveyed.

Key Takeaway: Online degree costs at specific universities vary by more than 5X—from $12,608 at UCF to $68,880 at ASU. Institution selection has a more significant impact on total cost than choosing online vs. in-person.

Why Does Online College Cost So Much? The Hidden Economics

The question, "Why does online college cost more?" puzzles many students and families. If there are no physical classrooms, dormitories, or campus facilities to maintain, shouldn't online school cost less?

Universities Use Online Programs to Subsidize Other Operations

According to research from The Hechinger Report and Quality Matters:

• 60% of public universities and more than half of private universities take in more money from online education than they spend on it (Quality Matters CHLOE Survey, reported by The Hechinger Report)
• About 50% of institutions put online program profits back into general operating budgets
• Universities use online revenue to subsidize in-person programs, research, athletics, and infrastructure

When Online College Costs More: The Business Reasons

Among institutions that charge higher online tuition costs, the Changing Landscape of Online Education (CHLOE) Report found:

• 72% cite higher delivery and support costs
• 61% point to higher maintenance costs
• 60% blame higher program development costs
• 48% have contracts with Online Program Managers (OPMs) based on percentage of revenue, with some taking up to 80% of tuition (Guilbault, 2023, Socius)

According to a Sage Journals study (Guilbault, 2023), at least 550 institutions have utilized OPMs to support 2,900 online programs, with these for-profit middlemen taking substantial cuts that get passed on to students.

Massive Marketing and Advertising Expenses

One of the most surprising cost drivers revealed in reports reviewed by the U.S. Government Accountability Office:

• The University of Arizona Global Campus spent $11,521 in advertising and marketing for every online student enrolled
• The online University of Maryland Global Campus committed to spending $500 million on advertising over six years
• With online programs competing nationally rather than locally, marketing budgets have exploded

When Online College Costs Less: Market Competition

Schools that do charge less for online courses cost than on-campus programs cite different reasons, according to the CHLOE Report:

• 77% of schools charging less cite market-based price constraints (up from 60% two years prior—a 28.3% increase)
• 60% point to lack of campus-related costs
• Some institutions utilize Open Educational Resources (OERs) and MOOCs to reduce costs

The Perceived Value Premium

Higher education has borrowed from traditional luxury pricing strategies. Richard Garrett, chief research officer at Eduventures, explained to The Hechinger Report: "Market success and reputation can support higher prices."

In other words, it's not what online degree cost to provide that determines the price—it's what consumers are willing to pay, especially at brand-name institutions.

Key Takeaway: Online degrees often cost the same as traditional ones because of marketing expenses ($11,521/student) and OPM contracts (up to 80% of revenue)—not technology costs.

How Much Does Online College Cost Per Semester? Breaking Down Payment Schedules

For students asking "how much does online college cost per semester," the answer depends on your course load:

Full-Time Enrollment (12–15 Credits per Semester)

Institution Type	12 Credits/Semester	15 Credits/Semester	Annual Cost (2 Semesters)
Public In-State	$4,044	$5,055	$10,110
Public Out-of-State	$5,892	$7,365	$14,730
Private	$6,192	$7,740	$15,480

Source: Education Data Initiative

Part-Time Enrollment

Many online students attend part-time while working. A majority of online undergraduate students (45%) work full-time while taking classes, often enrolling in 6–9 credits per semester.

• 6 credits per semester (2 classes): $2,022 (public in-state) to $3,096 (private)
• 9 credits per semester (3 classes): $3,033 (public in-state) to $4,644 (private)

Paying for Online College: Financial Realities and Student Debt

Understanding how much is online school is only part of the equation. How students pay for it reveals important financial challenges.

Online Student Debt Statistics

According to Education Data Initiative research, cost is of significantly greater concern among online students than college students in general, with the majority taking on substantial debt.

How Online Students Are Financing Their Education

Data from EducationDynamics and Lumina Foundation reveals:

• 77% of students at online universities considered affordability as one of their top reasons for choosing a school
• 45% of students work full-time (at least 40 hours per week) while attending online classes
• 45% of students do not use or have access to employer tuition reimbursement
• 26% of students indicated they would be more attracted to a school offering scholarships
• 42.3% of all prospective college students consider affordability to be very important when selecting a school or program

Key Takeaway: While 68% of online students take on debt, nearly half work full-time to offset costs—yet 45% lack access to employer tuition assistance that could reduce their financial burden.

Online Degree Costs by Level: Associate's, Bachelor's, Master's, and Doctorate

The cost of online degrees varies significantly by degree level. Here's a comprehensive breakdown based on Education Data Initiative data and analysis of individual institution pricing.

Online Associate's Degree Cost

An associate's degree is a popular entry point for online learners, with 35% of online undergraduates pursuing this credential. Associate's degrees typically require 60 credit hours (half of a bachelor's degree).

Institution Type	Per Credit Hour	Total Associate's Degree Cost (60 Credits)
Public In-State	$337	$20,220
Public Out-of-State	$491	$29,460
Private	$516	$30,960

Source: Calculated from Education Data Initiative per-credit hour rates for 2024–25. Based on standard 60-credit associate's degree program.

Key considerations for online associate's degrees:

• Community colleges often offer the most affordable associate's degree options online
• Many students complete associate's degrees while working full-time (45% of online students work full-time)
• Associate's degrees can serve as a cost-effective pathway to bachelor's completion through transfer

Online Bachelor's Degree Cost

45% of online undergraduates are pursuing a bachelor's degree, making it the most common online credential. Bachelor's degrees require 120 credit hours.

Institution Type	Per Credit Hour	Total Bachelor's Degree Cost (120 Credits)
Public In-State	$337	$40,536
Public Out-of-State	$491	$59,011
Private	$516	$63,185

Source: Education Data Initiative, 2024–25 academic year data from 341 institutions (199 public, 142 private).

Note: While total cost remains the same, students who take longer may face annual tuition increases and opportunity costs (delayed earnings).

Online Master's Degree Cost

57% of online graduate students are seeking a master's degree, making it the most popular graduate credential online. The average graduate student pays $1,099 per class (based on 3-credit courses; approximately $366 per credit hour).

A typical master's degree requires 30–36 credit hours. Based on actual graduate tuition rates from surveyed universities:

Institution Type	Avg. Per Credit Hour	30 Credits	36 Credits
Public Universities	~$288	$8,640	$10,368
Private Universities	~$637	$19,110	$22,932

Source: Calculated from graduate tuition rates at surveyed universities including UCF ($288.16), SNHU ($637), and others listed in university comparison table above.

Popular online master's degree programs by cost:

• Georgia Institute of Technology: $7,000 total (online computer science master's) — one of the most affordable options
• University of Central Florida: ~$8,645 (30 credits × $288.16)
• Southern New Hampshire University: ~$19,110 (30 credits × $637)

Online Doctorate Degree Cost

10% of online graduate students are in doctoral programs, though specific nationwide cost data for online doctorates is limited in current research.

Estimated online doctorate costs (based on available graduate tuition rates):

• Public universities: $17,280–$34,560 (60–120 credits × ~$288/credit hour)
• Private universities: $38,220–$76,440 (60–120 credits × ~$637/credit hour)
• Note: Many doctoral programs, especially Ph.D.s, offer assistantships, fellowships, or tuition waivers that substantially reduce actual costs.

What Students Are Pursuing Online

According to Education Data Initiative enrollment data:

Key Takeaway: Online degree costs scale by credential level—associate's degrees average $20,220–$30,960, bachelor's $40,536–$63,185, and master's $8,640–$22,932. Choosing the right degree level and institution type can result in cost differences of 300% or more.

Most Popular Online Degree Fields and Their Costs

According to Statista Education & Science data, online course cost varies by field of study:

Top Fields of Study Among Online College Students

Tuition rates can vary by field of study, with some programs commanding premium pricing based on market demand and career outcomes. Education programs may qualify for specialized grants and teacher loan forgiveness programs.

The Hidden Costs of Online Education

When calculating "how much do online classes cost," students must consider expenses beyond tuition:

Additional Fees and Expenses

Beyond tuition, online students should budget for:

• Distance learning fees: 25% of schools add these, which can range from $50–$300 per semester
• Technology fees: Typically $100–$500 annually for learning management systems and technical support
• Proctoring fees: Often $20–$30 per exam for online proctoring services
• Digital course materials: E-textbooks and required software can cost $100–$300 per course
• Technology requirements: Students need a reliable computer, webcam, and high-speed internet connection
• Application fees: Generally $50–$100 per institution

What Online Students Save

Despite high tuition, online students avoid many campus-related expenses. According to The Hechinger Report, these savings often constitute the primary financial advantage of online education, rather than lower tuition itself:

Key savings include:

• Room and board: No dormitory or apartment costs near campus (can save $10,000–$15,000 annually)
• Transportation: No commuting or relocation expenses
• Campus fees: Often exempt from recreation center, student activities, and athletic fees
• Parking permits: No on-campus parking costs
• Flexibility to work: 45% of online students work full-time, offsetting education costs with steady income

Return on Investment: Are Online Degrees Worth the Cost?

Academic Outcomes and Success Rates

Research from Auburn University economist Duha Altindag and colleagues at American University and the University of Southern Mississippi, reported by The Hechinger Report, reveals concerning trends:

• Online students receive lower grades than face-to-face students (though the gap is narrowing)
• Online students are more likely to withdraw from or repeat courses, increasing total costs
• Online students are less likely to graduate on time
• Students who learn entirely online are less likely to have graduated within eight years than students in general (who have a 66% eight-year graduation rate)

University of Central Florida research found that taking all courses online reduces the odds that community college students will ever graduate.

Graduation Rates at Major Online Institutions

Eight-year graduation rates for exclusively online students at major providers, according to National Center for Education Statistics data (most recent period ending 2022):

Lower-income students fare especially poorly online, in part because many come from under-resourced high schools or are balancing classes with work and family responsibilities.

Employment Outcomes

Post-graduation career prospects present a mixed picture:

Earnings: Research from Eduventures shows:

• Online-only students earn more than in-person counterparts for the first year after college (possibly due to being older and more experienced)
• That advantage disappears within four years, when in-person graduates overtake them in earnings

Hiring challenges: University of Louisville research found that job applicants who listed an online (vs. in-person) degree were about half as likely to get a callback for the job, suggesting persistent employer skepticism.

Key Takeaway: Online students face lower graduation rates (ranging from 11%–52% vs. 66% national average) and reduced employer callback rates (about half that of in-person graduates), potentially diminishing ROI despite paying equivalent tuition.

The Future of Online College Costs: Will Prices Drop?

Encouraging Trends Toward Affordability

Several developments could reduce the average cost of online college:

1. Innovative Low-Cost Models

Some programs have proven that dramatically lower pricing is possible:

• Georgia Institute of Technology: $7,000 online master's degree in computer science (vs. $43,000 in-person)
• Western Governors University: $8,300 per year average
• University of Central Florida: $105.07 per credit hour ($12,608 for bachelor's degree)

2. Decreasing OPM Contracts

Universities are cutting ties with expensive Online Program Managers:

• Nearly 150 OPM deals were canceled or not renewed in 2023 (per Validated Insights)
• OPMs typically take up to 80% of revenues, reported by Sage Journals
• Universities bringing programs in-house could pass savings to students

3. Reduced Startup Costs Over Time

As online programs mature:

• High upfront technology investments have been made
• Course materials can be reused and updated rather than created from scratch
• Institutions can save on "downstream costs" offering same courses multiple years, according to University of Florida's Institute of Higher Education

4. Increased Competition

Market pressure is building:

• 77% of schools that charge less for online cite market-based price constraints (up 28.3% from two years prior)
• More institutions entering the online space creates price competition
• National providers like Western Governors and Southern New Hampshire are forcing price awareness

Headwinds Against Lower Prices

However, several factors work against price reductions:

• Declining enrollments: Traditional-age student populations are projected to plummet, forcing institutions to rely more on online revenue
• Cross-subsidization: 50% of institutions use online profits for general operations
• Marketing arms race: Competition drives up advertising costs (recall the $11,521 per-student marketing spend)
• Price-quality perception: Consumers may distrust dramatically cheaper programs

The latest CHLOE survey found only a tiny, statistically insignificant decline in the proportion of universities charging more for online than in-person classes.

Making Online College More Affordable: Practical Strategies

Choose the Right Institution Type

Your choice has massive cost implications:

• Public in-state online: $40,536 average for bachelor's degree
• Public out-of-state online: $59,011 average
• Private online: $63,185 average

Savings opportunity: Choosing in-state public over private saves $22,649 on average.

Look for Programs Without OPM Markups

Ask admissions offices:

• Does the program use an Online Program Manager?
• Are there revenue-sharing arrangements that increase tuition?
• Universities managing programs internally often have lower costs

Compare Total Program Costs, Not Just Per-Credit Rates

When doing an online college cost comparison:

• Calculate total credits required (some programs require 130+ credits, not standard 120)
• Factor in distance learning fees and technology fees
• Consider graduation rates—a cheaper school where you don't graduate costs more
• Check transfer credit policies to reduce total credits needed

Maximize Financial Aid Opportunities

• FAFSA: Complete it even for online programs—many students qualify for Pell Grants and federal loans
• Employer tuition assistance: 55% of students have access; use it if available
• Scholarships: 26% of students are more attracted to schools offering them; search for online-specific scholarships
• Income-share agreements: Some schools offer alternative financing
• Military benefits: GI Bill covers online education

Consider Competency-Based Programs

Schools like Western Governors University charge by six-month term, not credit hour:

• Complete as many courses as possible in each term
• Fast learners can finish bachelor's degrees in 2–3 years
• Dramatically reduces total cost of online degrees

Start at Community College

Strategy for maximum savings:

• Complete general education requirements at community college online (significantly less expensive than four-year institutions)
• Transfer to four-year institution for major-specific courses
• Can substantially reduce total degree cost
• Note: Community colleges charge online students the same as or more than in-person students, but overall rates remain lower than universities

Key Takeaway: Strategic enrollment decisions—choosing in-state public over private ($22,649 savings), avoiding OPM-managed programs, and starting at community college—can reduce total degree costs by $20,000–$40,000 or more.

Key Takeaways: What Online College Really Costs

After analyzing comprehensive data from the Education Data Initiative, The Hechinger Report, and Quality Matters, here's what you need to know about online college tuition:

The Bottom Line on Costs

• The average online class costs approximately $1,000 for undergraduates
• A complete online bachelor's degree averages $40,536 at public in-state institutions and $63,185 at private universities
• 83% of online programs cost as much as or more than in-person equivalents
• At public universities, online tuition averages $337 per credit hour—equal to on-campus tuition
• However, 16% of colleges charge more for online than in-person, and 25% add distance-learning fees

Why Costs Remain High

• Universities use online programs as profit centers to subsidize other operations
• Marketing and advertising costs are substantial—up to $11,521 per enrolled student
• Online Program Managers take up to 80% of tuition revenue in revenue-sharing agreements
• Technology infrastructure, faculty support, and student services require significant investment

Value Considerations

• 68% of online students incur debt, with most owing $5,001–$15,000
• Online students have lower graduation rates than in-person students
• Job market outcomes show online graduates initially earn more but are overtaken within four years
• Employer callbacks for online degree holders are about half that of in-person graduates

Savings Still Exist

• Students save $10,000–$20,000 annually on room, board, and transportation
• The flexibility to work full-time (45% of online students do) can offset tuition costs
• Low-cost options exist, ranging from $12,608–$68,880 for a bachelor's degree among surveyed schools

Conclusion: Navigating Online College Costs in 2025

The question, "How much does online college cost?" has a more complex answer than most prospective students expect. Despite the elimination of physical campus costs, online education remains stubbornly expensive—and often costs more than traditional programs.

With over half of all postsecondary students now taking at least some courses online, understanding the true cost of online school has never been more important. The average online bachelor's degree cost of $40,536 at public universities represents a significant investment that requires careful consideration.

However, armed with data about pricing structures, an understanding of why costs remain high, and strategies for finding affordable options, students can make informed decisions. The online college tuition comparison data shows dramatic variation—from $12,600–$68,880 for a bachelor's degree among major universities—proving that affordable options exist for those who research carefully.

As Emma Bittner's story illustrates, the disconnect between expectations and reality regarding online tuition costs leaves many students confused and frustrated. But awareness of the economic forces at play—cross-subsidization, OPM contracts, marketing expenses, and revenue optimization—helps explain the pricing paradox.

Looking ahead, competitive pressure, technological maturation, and increased scrutiny from regulators like the U.S. Government Accountability Office may gradually push prices downward. Until then, students must be savvy consumers, comparing total program costs, investigating revenue-sharing arrangements, maximizing financial aid, and choosing institutions with strong completion rates and employer recognition.

The average cost of a bachelor's degree online may not be cheaper than traditional education, but with strategic planning, it can still offer valuable flexibility and career advancement for working adults, parents, and students in remote locations—if you choose wisely.

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Sources and References

1. Education Data Initiative - Average Cost of Online College
2. The Hechinger Report - Why Online Higher Education Costs So Much
3. Quality Matters - Changing Landscape of Online Education (CHLOE) Report
4. U.S. News & World Report
5. Statista Education & Science
6. U.S. Department of Education, National Center for Education Statistics
7. EducationDynamics - Insights in Higher Ed
8. Lumina Foundation Resources
9. Sage Journals - The For-Profit Side of Public Universities: Contracts with Online Program Managers
10. U.S. Government Accountability Office - Higher Education and Online Program Managers
11. University of Central Florida Online Tuition and Fees
12. Clayton State University Tuition
13. Southern New Hampshire University Online Tuition & Financial Aid
14. Ball State University Online
15. University of South Dakota Online Tuition & Costs
16. University of Northern Iowa Admissions & Cost
17. Liberty University Online Tuition and Fees
18. Grand Canyon University Online and Evening Tuition
19. Arizona State University Online
20. Purdue University Global Tuition and Fees
21. New America. "Americans' Views on the Value of Online Higher Education." 2024 National Survey. (Cited for consumer expectations on online pricing.)
22. Quality Matters & Eduventures Research. "Changing Landscape of Online Education (CHLOE) Report." Annual survey of chief online learning officers. (Primary source for institutional pricing strategies.)
23. Guilbault, Marc. (2023). "The For-Profit Side of Public U: University Contracts with Online Program Managers." Socius: Sociological Research for a Dynamic World, Vol. 10. Sage Journals. (Cited for OPM revenue-sharing data.)
24. University of Louisville College of Business. "Employer Perceptions of Online Degrees Study." Research on callback rates for online vs. in-person degree holders. (Cited for employment outcome data.)
25. Validated Insights. "OPM Contract Landscape Report: Cancellations and Market Trends." 2023. (Cited for OPM deal termination statistics.)
26. University of Florida Institute of Higher Education, Justin Ortagus, Director. "Online Education Cost-Efficiency and Completion Research." (Cited for downstream cost savings analysis and community college completion rates.)
27. The Hechinger Report / NPR. Marcus, Jon. "Most College Students Are Taking Online Classes, But They're Paying Just as Much as In-Person Students." March 15, 2025. Interview with Emma Bittner, Young Invincibles. (Cited for student perspective and testimonial.)