Like millions of other Americans, Barbara Solvig lost her job this year. A fifty-year-old mother of three, Solvig had taken college courses at Northeastern Illinois University years ago, but never earned a degree. Ever since, she had been forced to settle for less money than coworkers with similar jobs who had bachelor’s degrees. So when she was laid off from a human resources position at a Chicago-area hospital in January, she knew the time had come to finally get her own credential. Doing that wasn’t going to be easy, because four-year degrees typically require two luxuries Solvig didn’t have: years of time out of the workforce, and a great deal of money.
Luckily for Solvig, there were new options available. She went online looking for something that fit her wallet and her time horizon, and an ad caught her eye: a company called StraighterLine was offering online courses in subjects like accounting, statistics, and math. This was hardly unusual—hundreds of institutions are online hawking degrees. But one thing about StraighterLine stood out: it offered as many courses as she wanted for a flat rate of $99 a month. “It sounds like a scam,” Solvig thought—she’d run into a lot of shady companies and hard-sell tactics on the Internet. But for $99, why not take a risk?