As the cost of higher education continues to climb, the promise of a “low-cost” or “tuition-free” online degree can sound like a dream come true for prospective students. These programs offer significant savings and the flexibility to learn at your own pace. However, despite their appeal, they may also have hidden costs and less prestige than traditional institutions.
Key Takeaways
Low-cost and tuition-free online schools offer significant savings on tuition compared with traditional colleges.
There are concerns about how employers view degrees from these institutions.
Programs at these universities may have hidden fees.
How Do Low-Cost and Tuition-Free Online Schools Work?
In 2024, the average annual tuition cost was $48,591 for students at private universities, $29,454 for out-of-state students at public universities, and $12,308 for in-state students at public universities.
By contrast, low-cost universities charge less than $10,000 in tuition per year, and tuition-free universities charge none at all.
While traditional universities often charge tens of thousands of dollars annually, a growing number of online institutions offer dramatically lower-cost alternatives, relying heavily on state or donor funding and affordable online or hybrid teaching models. For example, many tuition-free programs substitute some or all live instruction with prerecorded videos, lightening instructors’ workloads. They may also cut costs by teaching a limited choice of majors and not offering research programs or extracurricular activities like sports.
For instance, University of the People is a tuition-free, accredited nonprofit that charges only administrative fees, totaling about $6,400 for a four-year undergraduate degree. Western Governors University, another fully online institution, offers a flat-rate tuition model averaging around $8,300 per year for undergraduate degrees. Meanwhile, Calbright College, a public, online community college in California, offers free programs to state residents, including waived tuition, fees, and technology costs.
These models illustrate the diversity of pricing strategies among low-cost schools and the importance of reading the fine print, as many “tuition-free” programs still charge for assessments, materials, or support services.
Pros and Cons of Low-Cost Universities
Pros
Lower tuition costs
Often self-paced courses
Available online
Cons
Hidden fees
Fewer choices of majors
Less prestige
Pros Explained
Lower tuition cost: Save thousands of dollars on your college education so you can come out of school with zero or little student debt.
Self-paced courses: Most programs let you complete coursework at your own pace, offering more flexibility for students who work or have family responsibilities.
Available online: By taking online classes, you don’t need to live near the institution or even in the same time zone.
Cons Explained
Hidden fees: Although a university may advertise itself as tuition-free, it typically charges additional fees. For example, the tuition-free University of the People charges application, assessment, and transfer credit fees.
Smaller selection of majors: Many low-cost and tuition-free institutions have a limited selection of majors. For example, low-cost Newlane University only offers five programs, three of which are liberal arts degrees.
Less prestige: While any low-cost and tuition-free programs you choose should be accredited, employers may not perceive them as having the same value as a degree from a traditional institution.
The Bottom Line
Low-cost and tuition-free online schools can offer a compelling path to a degree, especially for students seeking affordability and the ability to do their coursework around their work hours.
However, these benefits must be weighed against potential drawbacks like limited program offerings, hidden fees, and questions of recognition and prestige. As with any investment, prospective students should carefully evaluate whether these programs align with their academic goals, career aspirations, and financial circumstances.
Tuition FREE universities exist?
A bit of a misnomer. Some say no tuition, but you have to pay for stuff to be graded. I got to Newlane University, which is a monthly flat fee of $39. But I wouldn’t say it’s tuitionFREE, but it’d say it’s the most inexpensive option mixed with quality that I was looking for. I like the idea of University of People, but i hate the name of it, and I hate the user experience, and I hate the grading system there. They like to say they are Tuition-FREE, but you do have to pay to get your course graded. Still cheaper than most. But man, I hated my everyone single person I dealt with there. That was a couple of years ago, so they may be much different now.
That’s still quite a good deal. Maybe I should look into this. I’ve thought about going back to College.
What they are doing is pretty radical. I don’t know if it will work long term or not, but I love it and I only have 9 more courses to go until my B.A. in Liberal Arts–Psychology Specialization.
Bascially after registration of around $300, you pay a flat fee $39 a month up until you hit the $1600 mark (or you can pay off early if you want). Once you hit that, no more payments for the BA, but you can keep going if you haven’t finished by then. All online. They are accredited with US gov, for distance ed. I wish more schools would do it like this.
So far, so good. I have no complaints and I love it. But def do your research and check it out first: https://newlane.edu/tuition-and-fees/
I’ve always had great reponse times and interaction with the instructors and everyone there.
