For the second time in the past four years, Penn Foster College is being sold. When I first enrolled at PFC in 2005, the school was known as Education Direct, which I admit wasn't a very catchy name. Now, the company which purchased Education Direct and renamed it to Penn Foster is selling the school to the Princeton Review, a company which produces test preparation material. The purchase price is $170 million in cash. The sale involves Penn Foster College, Penn Foster Career School and Penn Foster High School.
According to a press release, Penn Foster will retain its current management team and will continue to be headquartered in Scranton, Pennsylvania. As for what changes will be ahead in the future, the press release states "The transaction will combine two of the most-recognized educational brands in the United States to create an organization that can capitalize on a diverse range of opportunities in the secondary and post-secondary markets, and can be a scale player in online education. The acquisition will also enhance The Princeton Review's ability to grow through the addition of new test prep services and partnerships with educational institutions, professional and trade organizations and others."
As a student, the sale raises a few questions for me:
Will the tuition price increase? After Education Direct was sold, the price did increase after a couple of years, from about $52 per credit hour to $90 per credit hour. School officials cited an increase in the cost of textbooks and shipping the textbooks to students. The tuition is still a good deal, considering it includes textbooks, but if the price increases again, distance learners will lose a true "bargain basement" priced online educator.
Will Penn Foster offer new programs? PFC just recently started offering bachelor degree programs. With the sale to Princeton Review, could graduate degrees be far behind?
Will Penn Foster seek regional accreditation? Education Direct was a candidate for regional accreditation prior to its sale to Penn Foster College, but dropped that bid just before the sale. If the school is seeking to become "a scale player in online education," does that mean it will seek regional accreditation? Currently, PFC is nationally accredited by the DETC.
Will there be a name change (again)? I do like the Penn Foster name much better than Education Direct, although nobody really recognizes the name Penn Foster, either. Of course, Princeton is already taken (Princeton Review is not affiliated with Princeton, the university).
Time will tell!