Email advertising blanketed the edublogs community today (I got four) announcing the 'University of the People', purportedly the "the world's first tuition-free, internet-based academic institution." The New York Times, which also got the same press release, channels it uncritically into an article. The term "tuition-free" is just a nicety; students will still have to pay to register and take tests. The term "university" is also a misnomer; it still seeks accreditation. None of this means that the venture won't work. It's just you don't get to call yourself "first" until you've actually done what you say you've done..
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