Penn Foster College has officially been bought by Princeton Review. What does this mean for online students?

For the second time in the past for years, Penn Foster College has been sold. A few years ago, the college was known as Education Direct, but changed its name when it was purchased by The Wicks Group of Companies, L.L.C. Princeton Review, a leading provider of test preparation material, has bought Penn Foster College, Penn Foster Career School, and Penn Foster High School for the price of a cool $170 million in cash.

According to a Reuter’s press release, Penn Foster will keep its current management team and will continue to be headquartered in Scranton, Pennsylvania. The press release states, “he 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.”

This purchase is interesting for several reasons. Penn Foster is famous for being a good, low cost option for students who are looking to reach their educational and professional goals with a nationally accredited degree. Will this change for future Penn Foster students? Many education experts that Princeton Review might raise its tuition, since the test-prep company will be lending its famous name to give online colleges like Penn Foster more credibility.

Penn Foster is one of the least expensive schools out there, and since there are few colleges that are competing at their price range, students might expect a tuition increase. The Inside Higher Ed reports that Penn Foster’s high price tag makes it even more likely that Princeton Review will try to get as much revenue as possible from the school.

Princeton Review’s CEO Michael J. Perik is also toying with the idea of obtaining regional accreditation for Penn Foster College. The college has a national, rather than regional, accreditation, which means that Penn Foster is recognized by the U.S. Department of Education and the Council for Higher Education Accreditation. However, students at regionally accredited schools have an easier time transferring their credits.

How does this effect Penn Foster’s price tag? Making the switch to regional accreditation would gain the more credibility for the school. Perik is also said that he hopes to develop closer relationships with community colleges, so that they can help him develop more online programs. All these changes might come at a higher price to the students. Penn Foster just started to offer bachelor’s degrees—could graduate degree programs be far behind?

When Penn Foster was sold for the first time, students did see an increase in price, going from $52 per credit hour to $90 per credit hour, textbooks included. While this is still a very good deal, distance learners are concerned that the purchase will increase the school’s price tag.

However, this is only speculation. Only time will reveal what the Princeton Review has in store for Penn Foster College. But we hope that the school will continue to provide affordable and accessible college classes regardless of any new changes they make!