Flickr:M.Keefe

By Katrina Schwartz

The sudden growth of free, top-shelf online education sites has the potential to democratize high-caliber education that’s long been reserved for only those who could afford it.

But as these new sites begin to blaze a new path to the possibility of a level playing field, it’s still unclear whether taking courses in subjects like artificial intelligence or game theory will eventually lead to employment.

Are certificates of online course completion from venerable institutions viable substitutes for diplomas and degrees from the same brick-and-mortar four-year universities? Though professors who teach these Massive Open Online Courses are well respected in their fields, is their stamp of approval enough to land a job?

If any job market would be receptive to a non-traditional educational path, one might think it would be Silicon Valley. There are plenty of examples of tech tycoons like Steve Jobs, Bill Gates, and Mark Zuckerberg who dropped out of school or otherwise bucked the system only to become wildly successful. It’s a hub that values creativity and technical skills and might seem a likely environment where a company might be willing to hire a person on the basis of their knowledge rather than where where they got their degree.

If that’s somewhere on the horizon, it’s not necessarily happening yet. When contacted about these online education sites — courses taught by professors at MIT, Harvard, Stanford, Princeton, Berkeley — many companies directly refused to talk about how their human resources departments would view a non-traditional candidate. Many had never even heard of Coursera, edX, or Udacity.

But recruiters who did agree to go on the record said that, for the most part, companies big and small looking for computer engineers want employees with college degrees from schools known for their computer science programs. “I couldn’t personally help them,” said Robert Greene, founder of technical recruiting firm GreeneSearch, when he heard the profile of a potential job applicant who had taken all the courses for a computer science degree, from a free site like Coursera or edX. “I work with startups so they want someone with experience and if not that, then a degree from a top school,” he said.

In fact, for start-ups, it’s especially important for programmers to have high pedigrees because those big-name degrees play a big role in acquisition negotiations, he said. “They will value at a top notch engineer at $1 to $3 million in evaluation,” said Erin Wilson, division manager of Jobspring Partners, Silicon Valley. “In that sense I think Coursera will take a long time to catch up to a top-notch degree.” Wilson himself is enrolled in a Coursera Computer Science 101 class — just for fun. He’s “stoked” to learn from Stanford professors, but has no illusions that it will lead him to a different job.

Still, Wilson said there are anomalies in the Valley — not all great programmers went to the top 25 computer science schools. And although he doesn’t think that getting in the door will be easy without an official degree of some kind, he said the idea that down the road when educational models are less fixed, a hard worker with a free online education that comes with practical skills could make the cut.

In the meantime, large, well-established can afford to be picky – places like Google, Groupon and Facebook mostly take applicants from the top 25 computer science programs. Wilson said there’s an “element of elitism in the Valley” that would be hard to overcome.

The skepticism was palpable from those interviewed who know the Silicon Valley job market well. There’s a sense that free education could not be great education. “If you are a smart student some school will take you and you’ll get a degree,” Greene said. “In the Valley, the education is usually a pretty good barometer.”

Companies in finance and banking had similar responses. “Generally we would not look at someone without college experience,” said Rebecca McGovern, executive assistant at the global private investment firm H.I.G Capitol, and the person in charge of recruiting for their San Francisco office. “A college degree is very fundamental — a weeding out process,” she added. She said no H.I.G office would take someone without a four-year degree.

It’s possible that these nascent education sites, many of which offer more than computer science and engineering classes, are too new to have gained traction. Instead, they are being confused with for-profit certificate programs that don’t always have a good reputation.

In this anecdotal and limited survey, the current conclusion seems to be that employers don’t trust these new educational sites yet. Regardless of the names behind them — whether the school or the professor — the four-year degree and the on-campus experience are still highly critical.

As the current generation of college graduates wrangles with an unprecedented amount of debt, a sea change is underway in higher education. More and more elite universities are offering free online courses that might characterize the next iteration of the college experience for the forthcoming generation of students.

Will students be able to receive the equivalent of a bachelors degree for free? How will brick-and-mortar institutions be used in the future? Will academic rigor suffer? How will credentials or tuition apply to those who come to campus and those who complete courses online?

At the moment, students of these online courses receive certificates of completion, but no university credit. But the movement is still in major flux as we speak, as day by day, yet another development in free online education is announced. What started 11 years ago with MIT’s OpenCourseWare — the syllabi, lecture notes, problem sets and solutions, exams, reading lists, and event video lectures from more than 2,000 MIT courses — has amassed into an explosive movement that’s compelling venerable institutions to reconfigure their education platform to an online audience.

Last fall, a group of Stanford professors decided to offer a few courses online free of charge and were overwhelmed when hundreds of thousands of students signed up for their courses. That experiment has spawned the growth of similar endeavors. Here’s a guide to some of the newest free education sites and what they offer, with the big caveat that this will soon change, as more institutions come aboard.

• COURSERA. Coursera is an interactive online learning system that offers free courses from Princeton, Stanford, University of California, Berkeley, University of Michigan—Ann Arbor and University of Pennsylvania. Their courses span the range from humanities, to social science, computer science, business, biology, medicine and mathematics. Andrew Ng, one of the Stanford professors whose class drew an astounding 100,000 students, and his new business partner, Daphne Koller, announced that they received $16 million in investment capitol from two prominent Silicon Valley firms to launch the project. Students will have access to lectures, interactive elements like quiz questions interspersed throughout lectures to help students recall and retain information, and peer-grading for homework, essays and tests. They plan to use crowd-sourcing algorithms to help ensure accuracy in peer grading, a move that will also  help professors manage such large-scale classes. What’s more, Coursera’s partner institutions will use the online learning platform to enhance in-class teaching. Based on a Department of Education study that shows online learning can be as effective as classroom learning, the participating universities will offer a mixture of interactive and static learning to explore the best way for students to retain the information. CERTIFICATION: As with the popular Stanford courses, students will not get academic credit from the participating institutions, but will receive a certificate of completion from the professor.

• MITx –> edX. MIT took its OpenCourseWare platform to the next level with MITx, which offers full professor-taught courses online (not just class materials), but after just one course this spring (Circuits and Electronics), MITx entered an agreement with Harvard, and is now part of edX. The two universities will use the MITx platform to bring in a wider array of classes to the site. What’s key here is the software for the platform is open-source, so other universities can use it too. The more universities add content, the more compelling a choice edX becomes amidst the growing number of offerings. Both schools have invested heavily in the project — each gave $30 million to a non-profit organization that they will co-manage. Edx will feature video lectures, embedded quizzes, interactive learning, online labs, and a lot of peer interaction. CERTIFICATION: Certificates of mastery will be given to students who demonstrate knowledge of course material.

• UDACITY. Sebastian Thrun, one of the professors who offered the first set of free online Stanford classes last year, which drew 160,000 registrants (22,000 finished the class), left a tenured position at the university to start Udacity, which focuses on computer science. Thrun taught an online artificial intelligence course for free at Stanford last fall with Dr. Peter Norvig, another artificial intelligence expert. Their course drew 160,000 students, with 22,000 students finishing the class. That inspired Thrun to start Udacity, which pulls in outside experts like Reddit co-founder Steve Huffman, to teach courses. They do not operate under the auspices of a university, although some of their guest-lecturers do teach at other universities. Their course offerings are aimed at practical computer science skills, like how to build an app or search engine. CERTIFICATION: Students receive a certificate of completion at the end of the course signed by the instructor.

• UDEMY. Staying away from high-profile academic names, this site tagline is “the university of you.” Courses can be taught by anyone, and most are free, though some cost a small fee ranging between $5-$250. Whether or how much to charge is up to the instructor. The course offerings on Udemy are broad; they’ve got non-traditional courses like “Tournament Poker Theory” (cost $39) or “Yoga For Weight Loss” (cost $39), in addition to traditional academic subjects like computer science, business, and marketing. The site encourages anyone to become an instructor and build name or brand recognition.
• P2PU. Similar to Udemy, Peer-2-Peer University uses the open education model to allow users to learn from others on the web or design and teach courses. Course offerings are broad, but there is some attempt to categorize by offering “schools” of web development, mathematics, social innovation, and education. The courses are totally free and P2PU gives out badges in recognition of completion. Again, the model requires a significant amount of participation and collaboration from students, including grading each others’ assignments.
• MINERVA PROJECT. Billing it as the “first elite American University to be launched in a century,” Minerva CEO Ben Nelson, who was formerly CEO of Snapfish, intends to launch a full-fledged, “Ivy League-quality” online university by 2014. Rather than offering separate courses, the university will offer a complete college education with an accompanying degree. The cost is yet undetermined, though Nelson has said it will cost significantly less than most college degrees cost today. The Minerva Project has drawn attention from investors and is trying to draw the best professors possible by giving out Minerva Prizes to the best college-level teachers that come with a cash reward.