Refers to companies that help higher education institutions set up virtual programs in exchange for a large slice of the tuition revenue. A more specific definition: For-profit, third-party companies that enter into a contract with an institution of higher education to provide bundled products and services to develop, deliver, or provide managed programs, when the services provided include recruitment and marketing.

OPMs have increased over the last decade. Through contracts with higher education institutions, OPMs are often in charge of recruiting students into online programs and paid only if those students enroll. This factor has led to situations in which OPMs pressure students into signing up, sometimes using deceitful practices (some represent themselves as institution, not company officials). Students, therefore, are unaware that an outside party is recruiting them into what could be a potentially poor-quality program.

In response to growing concern about OPMs, beginning in the fall of 2023, the U.S. Department of Education expanded its interpretation of federal regulations to place OPMs under closer scrutiny. Under this guidance, many OPMs are considered “third-party servicers,” subjecting them to a new set of rules.

Some states are also considering barring such contracts through legislation. In May 2024, Minnesota became the first state to ban its public colleges and universities from tuition-share contracting with OPMs, effective January 2025. Many lessons learned from Minnesota’s policy work can inform other states wishing to pursue legislation that restricts tuition-sharing arrangements:

• Faculty unions which represent educators at the state’s public institutions must be engaged in these considerations.
• Barring OPM tuition-sharing raises related concerns such as barring OPMs from the rights to faculty members’ intellectual property and from having governance power at institutions.
• Legislation must address the role of institution governing boards in the review of OPM contracts.
• Legislative language must consider implications that could apply to other vendors/contractors that institutions work with, such as ed tech companies that offer online platforms where students can access course materials, submit assignments, and receive grades.