Online Education and Paying for College

The credit rating agency Moody's revised its outlook for the whole U.S. higher education sector from "stable" to "negative" in a report released last week.

According to the report, universities and colleges funding and revenue sources all face increasing pressure. Moody's analysts cite one destabilizing trend, the growing popularity of "Massive Open Online Courses," or MOOCs. These are free, online, university-level classes and millions of people around the world are signing enrolling.

Just last week, Udacity which offers the online courses, announced it's teaming up with San Jose State University to offer MOOCs for credit, a first in the industry.

This week on New Tech City, host Manoush Zomorodi talks with Nicholas Carr, a technology writer and the author of The Shallows: What the Internet Is Doing to Our Brains, about the influence of MOOCs.   

Then, the New York City start-up Pave is offering money to young people who want to pursue their dreams. The only catch?  They have to pay their backers five percent of their salaries for 10 years. 

Indentured servitude? Or a revolutionary new way to fund your dreams, from higher education to starting new company? WNYC's Ilya Marritz reports. 

Plus, a check-in with Dan Huttenlocher, dean of the newly opened Cornell NYC Tech, currently housed at Google's New York headquarters.

Huttenlocher explains why the eight students in the school's inaugural class are taking a course called "Entrepreneurial Life."