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Economic and demographic shifts in the United State are transforming higher education. With substantial reductions in state funding, increasing campus energy and operational costs, endowments generating reduced returns, and a national economic readjustment of unprecedented proportions, higher education must re-examine and reposition itself to meet new and emerging challenges. This paper identifies ten economic factors and ten demographic factors that are confronting colleges and universities and driving online and blended program enrollments. While traditional face-to-face programs will always play a critical role in higher education, online and blended programs provide new opportunities to expand current student markets by offering quality programming that supports the institutional mission, increases brand recognition, and expands an institution’s alumni base.

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