You can do almost anything online these days. You can buy a car, apply for a credit card, buy a TV, make new friends and find old ones. Over the past decade earning a college degree without leaving home has become easier and much more accepted, but not universally. Unlike the value of the TV you purchased online, an education is only as valuable as the person reading your resume says it is. What is the value of an online degree when compared to a degree earned from hours of sitting in the classroom? You may know the answer already: It depends.
TUTORIAL: Education Savings Account: Introduction

Remote learning isn't as new as some people think. All the way back to the late 19th century there were correspondence courses where people could learn shorthand by completing lessons and mailing them to the teacher.

When online degrees first appeared they weren't well-received by the educational community because of fear that online education would wipe out traditional education models just as it was threatening to do to brick and mortar retail establishments. Second, degree mills, online programs where life experiences were often used as a means to award an advanced degree became common with online schools. Still today, education experts blame some of the for-profit schools for tainting the validity of online degree programs. (For related reading, see Online MBA Programs: Study From Home And Succeed!)

The Present
Today is largely different. Educational facilities now embrace the idea of online education so much so that they're in the business themselves. Two-thirds of the largest and most well-known colleges and universities have online degree programs. Public schools, feeling threatened by private or charter schools, have started online classes as well.

That doesn't mean that there aren't drawbacks. If you're a parent considering an online education for your K-12 age child, understand that there is a significant amount of data that shows a child who doesn't do well in a traditional setting probably won't do well in an online setting. One of the largest online campuses for K-12 age children, the Colorado Online Virtual Academy, only had a 12% graduation rate in 2010 in part because online campuses have a large percentage of students who weren't showing promise in a traditional setting.

If you're considering an online campus for your post-secondary (college) education, an online campus is much more promising. The two-thirds of college campuses that now have online degree programs had a combined student population of 3.5 million people in 2006, the latest data available. A recent study found that 45% of corporate CEOs found online degrees acceptable, but of those who had knowledge of these types of programs, 83% found online degrees just as legitimate as traditional diplomas.

What Should You Do?
If you're planning to enroll in an online degree program, take note of these four points of caution. First, experts warn that there is still a lot of stock in the name. Since most well-known public and private schools offer online degree programs, look at these schools first. If you get your online degree online from Florida State University, you don't have to disclose the fact that it was done online.

Second, think of your industry. If you're in an Internet/new media field, studies show that 70% of online degrees are seen as legitimate. Contrast that with marketing degrees that only hold a 29% acceptance rate.

Third, master's degrees obtained online are seen as more valuable than bachelor's degrees. This is largely because these "degree mills" offer many more bachelor's degrees than post graduate programs. Consider earning a traditional bachelors and supplementing it with an online master's degree.

Last, online degrees are often more accepted when the person is already in the industry. If you're a teacher who earns an online masters degree in education, this is often regarded as more legitimate than somebody not in the industry. Using an online program to better your knowledge of your field while still working full time is universally seen as the sign of a driven individual. (For related reading, see Should You Head Back To Business School?)

TUTORIAL: Student Loans

The Bottom Line
Online degree programs are growing rapidly and because of this, the sophistication of the degree program now rivals traditional educational environments, but they aren't for everybody. For those who chose to study online, self-discipline as well as a large amount of study time are still required. Don't confuse online with easier or less time consuming. Online degree programs tend to be much more writing based than discussion based, so if you don't enjoy writing, a traditional setting may be better for you.

Related Articles
  1. Savings

    6 Ways to Save Money on College Supplies

    Tuition and room and board are big expenses, yes, but the cost of textbooks and supplies can add up, too, unless you strategize.
  2. Credit & Loans

    Four Ways to Improve Education In America

    U.S. students place 27th in math and 20th in science out of 34 countries. The United States must reform its education system or harm future economic productivity and global trade competitiveness.
  3. Home & Auto

    Millennials Guide: 6 Routes to the Right Roommate

    Choosing the right roommate is key to not risking and ruining your credit history. Some simple precautions can save you from a financial nightmare.
  4. Personal Finance

    8 Profitable Majors For The College-Bound In 2015

    Choose your college major wisely to justify the rising cost of higher education. Here are 8 majors that lead to good jobs and high salaries.
  5. Credit & Loans

    What Does It Cost to Study Abroad in Paris?

    Housing will be your biggest budget challenge as a student in Paris, but the city offers lots of ways for students to save money, too.
  6. Savings

    Using Your 529 Savings to Study Abroad

    With studying abroad no longer cheap, families may find that a 529 plan college-savings account can fund educational travel. Tip: Read the fine print.
  7. Savings

    Which Gets Priority: Retirement or College Fund?

    On a tight budget? Wondering which to contribute to – your retirement or your kid's college fund? Here's expert help on how best to allocate your savings.
  8. Credit & Loans

    Why Fannie Mae And Freddie Mac Might Be In Trouble

    Fannie Mae and Freddie Mac are under increased scrutiny as debates continue about conservatorship, share price, and profit allocations.
  9. Credit & Loans

    Study Abroad: Budget For Brazil

    Interested in study, food and adventure in one of the fastest growing economies in the world? Check out what Brazil costs.
  10. Savings

    College Tuition vs. Investing: Is It Worth It?

    With the rising cost of college and questionable career prospects awaiting college graduates, some are wondering if a college education is still worth it.
  1. Good Student Discount

    An auto insurance policy discount available to young drivers ...
  2. Whartonite

    A graduate of the Wharton School of Business at the University ...
  3. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  4. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
  5. Student Loan Forgiveness

    Under certain circumstances, federally backed student loans – ...
  6. Certified Commercial Investment ...

    A professional designation awarded by the Certified Commercial ...
  1. Can I use my IRA to pay for my college loans?

    If you are older than 59.5 and have been contributing to your IRA for more than five years, you may withdraw funds to pay ... Read Full Answer >>
  2. Can my IRA be used for college tuition?

    You can use your IRA to pay for college tuition even before you reach retirement age. In fact, your retirement savings can ... Read Full Answer >>
  3. Can I use my 401(k) to pay for my college loans?

    If you are over 59.5, or separate from your plan-sponsoring employer after age 55, you are free to use your 401(k) to pay ... Read Full Answer >>
  4. What are the best MBA programs for corporate finance?

    Opinions vary based on which publications you consult, but the best MBA programs for a career in corporate finance are at ... Read Full Answer >>
  5. For which kind of jobs is having Magnum Cum Laude most important?

    Having a magna cum laude degree is most important for jobs in the fields of finance, management consulting and engineering. ... Read Full Answer >>
  6. How does accrued interest work on student loans?

    Using private and federal student loans to finance a college education is a common funding strategy, but students are often ... Read Full Answer >>

You May Also Like

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!