The Navy's Tuition Assistance (TA) program subsidizes the tuition costs of off-duty college classes for Navy personnel. Although prior studies have investigated the effect of completing college courses via TA on enlisted retention and promotion (Mehay and Pema, 2009), no prior study has examined the effect of the instructional methods in the courses taken via TA. Interest in course delivery methods has been stimulated by the rapid growth in online TA classes. This study analyzes the effects of completing TA-supported college courses on promotion and retention, and whether the mode of instruction in the courses is important. We also analyze how student learning and course completion varies by mode of instruction. Our analyses recognize the potential biases that arise from self-selection of students into courses, and we statistically adjust for individual heterogeneity in estimates of the impact of online and traditional classes. We find that completion rates and student grades are lower in online classes than in traditional classes. Overall, reenlistment rates are higher for those who complete their TA classes, versus those who fail or withdraw from their classes. However, reenlistment effects are greater for TA students who pass online courses than for those who pass traditional classes. Similarly, we find that the probability of promotion to E5 is higher for those who pass online classes, compared to those who do not complete their TA classes. On balance, the shift to online classes in the TA program appears to generate net benefits for the Navy.Contract number: 10MP4S001.Approved for public release; distribution is unlimited
