USC will take full control over its online programs and tuition finances after cutting ties with 2U, an online education company that provided opportunities for students to get degrees virtually, according to a joint statement released by the university and 2U Thursday.
“Over the next 15 months, 2U and USC will work together to effectively transition the delivery and administration of servicing these programs to the university,” the statement read. “We will ensure that students receive the same high standard of education and support they have come to expect.”
USC was one of 2U’s first college partners, and the company’s CEO told the LA Times that much of their success is attributed to the university.
“You can argue that 2U wouldn’t exist without USC,” he said on a call with his investors Friday, per the LA Times.
2U has provided online courses and digital degree services to the USC Rossier School of Education, Suzanne Dworak-Peck School of Social Work and the Iovine and Young Academy. According to its website, 2U’s goal is to “expand access to world class online education and unlock human potential.”
The university hired its own faculty and administrators to teach the courses while 2U offered the technical platform in exchange for over half of USC’s online tuition. The company took a 60% cut of online tuition from the social work program, thus contributing to a budget crisis at the Dworak-Peck School, according to the LA Times. As of 2022, USC paid at least $166 million to 2U and contributed to 20% of its revenue.
According to Dean of Rossier Pedro Noguera, USC benefitted from the 2U’s resources until they quickly got “on board” with all of the online education applications.
“It’s often the case when you think about advanced technology,” Noguera said. “They are popular at one point and then they run their course.”
During the pandemic, online program managers (OPMs) like 2U offered technological assets that would benefit online education for university students, according to University Business.
Dean of the School of Pharmacy Vassilios Papadopoulos said that USC faculty and staff swiftly adapted to the technological tools for online learning.
“This was a great idea 13 years ago–it worked very well for a few years,” Papadopoulos said. “The time was right for taking over in our hands our own fate.”
Despite their initial success with the university, the organization has had a history of controversies during its relationship with USC.
According to the Wall Street Journal, USC and 2U were sued in 2022 for encouraging students to enroll in the Rossier School of Education by using manipulated data, which drew from rankings affiliated with their in-person programs to uplift their online opportunities, despite having different acceptance rates and student populations.
In a second lawsuit, USC was sued over the misrepresentation of the online Master of Social Work program, which was presented to be of the same quality as on-campus courses. Since the university advertised that their virtual and campus-based programs were equal, they charged more than $85,000 for both programs, according to USA Today.
Both Noguera and Papadapoulos said that ending this partnership was a long time coming.
“Why are we spending so much of our scarce resources on a partnership when we could provide these services online?” Noguera said.
“I saw it from the very beginning as a partnership that didn’t really benefit us,” he continued. “I understood the history of why we entered, but I didn’t think it suited us well.”
“This is one of the few times in my life in a leadership position that I got so many positive messages,” said Papadopoulos, who also serves as the interim dean of the School of Social Work, when discussing the response to the dissolution of the partnership. “The messages from faculty, even staff, even members of the board of the council of the school of social work were very supportive.”
Papadopoulos said that the termination of this partnership will not pose major hardships for online students transitioning between different platforms.
“The [master of social work] is a nationally accredited program,” he said. “This will not change anything, except for the platform that the services are offered, but everything else will remain the same.”
“Sure, we will face some unexpected problems,” Papadopoulos continued. “And we are ready. We are working both with the USC online people and our internal IT to ensure that everything continues seamlessly.”
Although the partnership has ended, USC will continue to build upon the programs they ran with 2U, one being the Organizational Change and Leadership program, which “goes beyond our traditional focus on education” by serving students in health care, small businesses, and the military, Noguera said.
Regardless of what field students pursue, Noguera said that many report back with positive feedback. Thus, USC will expand the program on its own.
“I would not characterize this break up as acrimonious,” Noguera said. “We benefitted to some degree from the relationship, and we will continue to benefit afterward and over time.”
As per the statement, the USC Division of Biokinesiology and Physical Therapy program will continue working with 2U for its hybrid online clinical program.