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OK - the article's title is wrong, but I like the concept of inexpensive outsourced education. I am a big proponent of online education as well. In some ways I think (hope) the spiraling costs of college will be a self-correcting problem. In many ways universities are shooting themselves in the foot. One day virtual universities (and it may start with hybrids) will be dirt cheap compared to today's universities and they will offer a far superior education. Imagine having the greatest, most talented, gifted teachers in every subject, available to teach a nearly limitless class size with customization for the student's personal interests and aptitude.
How many more years before the inevitable becomes reality? My state already has not just one, but several 100% online k-12 schools (costs the parents nothing, includes free laptop and broadband connection). These are essentially an alternative to home schooling right now, but I can see this moving OUT of the home in the future, so that children will still "go to school" but the experience, teaching methods, and content, will be optimized to their benefit. The way I see it the online schools we have now are a shadow of what is to come. The traditional high priced school is going to either change or die.
Of course there will other challenges such as replacing the social aspect of going away to college or k-12 schools. But there are solutions to every problem.