Benefits/Disadvantages

Effects on students

Benefits for students:

more flexibility in timing, pacing and location of study
less (or no) travel time to go to college
more availability of courses (global market)
often gives more interaction than large classes
success can build self-confidence and responsibility
can interact with a geographically diverse group of learners

Disadvantages for students:

less interaction with teacher than with small class sizes
less social interaction with other students
may face difficulty in communicating in writing
failure can lead to reduced self-confidence and motivation
technology problems can be very frustrating and may inhibit learning
group work can be more difficult due to asynchronous learning 

More reading on this topic.

Effects on teachers

Benefits for teachers:

once materials are developed, future delivery is easier
can deliver courses anywhere, anytime (work from home)
can interact with a geographically diverse group of learners
can interact more effectively with each student than in a large class
may rejuvenate and motivate teachers through innovation

Disadvantages for teachers:

very time-consuming to develop materials initially

less social interaction with students

less social interaction with peers (if working at a distance)

can be very time consuming to interact with individual students

technology problems can cause frustration and may inhibit teaching

may be difficult to convert some effective learning strategies to the online environment

More reading on this topic.

Effects on educational institutions

Benefits for educational institutions:

can reach larger, more diverse target markets

can realize cost savings in the long run

less (or no) need for physical facilities

can develop a global reputation

Disadvantages for educational institutions:

development costs may be high
quality needs to be monitored
requires good infrastructure (e.g. online registration, counseling, grading etc)
poor quality can lead to a diminished reputation

More reading on this topic.

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