Paid microdegrees popular but cannot resolve universities' funding problems
Paid microdegree programs offered by Estonian universities are gaining popularity, but the revenue generated from them constitutes a very small portion of universities' total educational funding and does not solve the financial challenges they face.
Since 2021, universities have been offering paid microdegree programs. Each microdegree program consists of coursework equivalent to approximately half a semester's worth of studies.
Tallinn University describes a microdegree as a set of courses that provides new competencies in a specific field, enhancing one's ability to navigate the job market during challenging times.
In most cases, earning a microdegree requires payment, although some programs, such as those for becoming a national defense instructor, are available for free.
The cost of a microdegree ranges from a few hundred euros to several thousand.
Interest in microdegrees has been growing year by year. In 2021, nearly 500 students across various universities enrolled in microdegree programs. Three years later, universities expect twice as many participants compared to the first year.
Microdegrees available for over 150 specialties from this fall
Tallinn University of Technology (TalTech) opened admissions for 49 microdegree programs this fall semester. The university anticipates over 400 students will enroll in microdegree programs this year, which is nearly 100 more than last year.
The University of Tartu is offering 51 microdegree programs this upcoming semester, two of which are in collaboration with other Estonian universities. Over 300 students have registered for microdegree programs at the University of Tartu, according to Tiia Ristolainen, head of the university's Center for Lifelong Learning.
Tallinn University is also launching 49 microdegree programs this fall.
At TalTech, the most popular microdegree programs this year include Strategic Management Accounting and Financial Management, Financial and Investment Analysis and Business Processes in the Digital Society, all of which filled their slots by the end of June. There is also high demand for microdegree programs in programming, information systems development, artificial intelligence, data mining and machine learning, as well as chemical technologies, according to Hanno Tomberg, head of TalTech's Open University.
"There could definitely be greater interest in microdegree programs in engineering and natural sciences, which are more specialized fields with fewer experts in Estonia," Tomberg noted.
At the University of Tartu, the most sought-after microdegree programs this year include Digital Service Design and Customer Communication, Fundamentals of Health Sciences, Data Analysis, Religions in Cultural and Intellectual History, Basic Knowledge and Skills for Career Counseling, as well as Performance Psychology for Practitioners and Music Production.
"For the microdegree program aimed at future television and radio presenters, there were four applicants for each spot, but some programs remained unopened due to lack of interest. Either we haven't made the curriculum appealing enough or efforts to raise awareness have been insufficient. We've treated our work on microdegrees as a pilot project, experimenting with various approaches. In one case, a master's program was even created based on the microdegrees," said Katrin Saks, vice-rector for development at Tallinn University.
TalTech's popular Information Systems Development course costs participants €1,800 – the course comprises 24 ECTS credits, with a cost of €75 per credit. The programming microdegree, which is 12 ECTS credits, costs €900.
"Experience has shown that continuing education students who choose a microdegree program prefer those offering 12-18 ECTS credits (i.e., two to three courses), which can be completed within two semesters," Tomberg said.
At the University of Tartu, the most expensive microdegree programs are Analytical Chemistry (€3,240) and Digital Product Management (€2,700). These are followed by the €2,400 programs: Data Science, Fundamentals of Information Technology, and Systems Analysis. These are also extensive programs, ranging from 24 to 30 ECTS credits.
The University of Tartu representative listed some of the more affordable programs: Creative Entrepreneurship, Religions in Cultural and Intellectual History and Islam Today: From Culture to Conflict. All of these programs are 12 ECTS credits and cost €600.
Ristolainen added that the university hopes to offer free microdegree programs for teachers in the near future, funded by an order from the Ministry of Education and Research.
Estonian universities moving toward shorter study modules
Hanno Tomberg from TalTech noted that internationally, microcredentials, which are similar to microdegrees, often involve even fewer credits. "As a result, Estonian universities are also moving toward shorter learning modules that can be completed within one or two semesters," he said.
According to Tomberg, the number of microdegree programs at TalTech is not expected to increase in the future. Instead, the university aims to focus on microdegree programs that are in demand in the job market and maintain high quality. As a successful example, he highlighted TalTech's Virumaa College collaboration with Enefit Power for retraining employees in the oil shale sector in chemical technologies – 17 Enefit Power specialists completed the chemical technologies microdegree program this spring.
Tiia Ristolainen from the University of Tartu mentioned that the university critically reviews existing programs every year. "Based on feedback from employers, information from partners and demand, new microdegree programs are created. This year, 15 new programs were launched," said Ristolainen.
"I'm quite confident that this form of education will continue to grow in the future because it allows universities to experiment and quickly respond to labor market needs, while also offering people flexible learning opportunities. I don't believe that microdegrees will replace full degree programs, but they will certainly complement them and are primarily intended for working individuals," added Katrin Saks from Tallinn University.
Revenue from microdegrees not enough to alleviate funding concerns
In response to ERR's question about how paid but popular microdegree programs impact universities' financial difficulties, TalTech representative Hanno Tomberg stated, "The university has not set a goal to generate additional income through these programs. Microdegrees complement the already popular open university courses, where interested individuals can select individual courses at the university."
Tiia Ristolainen from the University of Tartu mentioned that while microdegree programs do bring in revenue, they also incur costs. "The goal of microdegrees is not to generate income to cover underfunding in other areas. Their broader purpose is to offer flexible learning opportunities for adult learners at the university. Without funding, this wouldn't be possible." She emphasized that although microdegree programs provide additional income for the university, it constitutes a very small portion of the total educational funding.
Katrin Saks from Tallinn University added, "Microdegrees are not designed to fill a tight budget. This isn't feasible because the main expense here is faculty salaries, and everyone expects to be compensated for their additional work."
Employers: Microdegrees a good way for employees to complement skills
ERR asked how employers perceive microdegree programs.
Veljo Konnimois, a member of the board of the Estonian Employers' Confederation and head of the education working group, stated, "Just as companies must adapt to economic developments and changes, and even stay ahead of trends, the constantly evolving environment places similar expectations on employees' development. This means that continually updating the skills and knowledge necessary for work is increasingly important in the labor market, ideally by balancing work and study. Microdegrees offer a good opportunity for this."
He added that in addition to keeping up with the times, continuously refreshing skills increases an employee's value in the job market and can also lead to higher wages.
Additional admissions for microdegree programs in the fall semester at TalTech are open until August 23.
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Editor: Valner Väino, Marcus Turovski