Graeme Wood in The Atlantic:
Minerva, which operates for profit, started teaching its inaugural class of 33 students this month. To seed this first class with talent, Minerva gave every admitted student a full-tuition scholarship of $10,000 a year for four years, plus free housing in San Francisco for the first year. Next year’s class is expected to have 200 to 300 students, and Minerva hopes future classes will double in size roughly every year for a few years after that.
Those future students will pay about $28,000 a year, including room and board, a $30,000 savings over the sticker price of many of the schools—the Ivies, plus other hyperselective colleges like Pomona and Williams—with which Minerva hopes to compete. (Most American students at these colleges do not pay full price, of course; Minerva will offer financial aid and target middle-class students whose bills at the other schools would still be tens of thousands of dollars more per year.) If Minerva grows to 2,500 students a class, that would mean an annual revenue of up to $280 million. A partnership with the Keck Graduate Institute in Claremont, California, allowed Minerva to fast-track its accreditation, and its advisory board has included Larry Summers, the former U.S. Treasury secretary and Harvard president, and Bob Kerrey, the former Democratic senator from Nebraska, who also served as the president of the New School, in New York City.
Nelson’s long-term goal for Minerva is to radically remake one of the most sclerotic sectors of the U.S. economy, one so shielded from the need for improvement that its biggest innovation in the past 30 years has been to double its costs and hire more administrators at higher salaries.