On tuition fees and free courses

A core value of Shoshin College is generosity. One could ask: Why don’t we offer our classes for free?

We want them to be gifts anyway. The whole purpose of this operation is to provide a service to the world. Not only that: charging tuition fees is one of the principal ways that current universities maintain the status quo. We would much rather change this than add to it.

In one sentence: we differ with existing learning institutions in that we commit to charging low fees.

What’s considered low is naturally debatable. We accept, though, that we live and operate in London, UK: a city in which a bus trip costs £1.75, a meal at McDonald’s £8, and a one-bedroom apartment rent £1,800 per month (prices from Numbeo). A typical salary is £36,000 per year, which amounts to £2,400 after-tax take-home monthly pay.

Tuition fees make sense in multiple dimensions.

(a) First, it’s a simple business model with no surprises: teacher and school provide a service, student receives value and pays for it. This transaction-based model sets a clear frame and expectations. Student expects guidance and help on knowledge access in return for a monetary reward. If there was no value for the student, they can ask for a refund. This is useful both for the college and the student.

(b) Charging money enables higher accountability. Consider the case in which we offer classes for free; assume there is a student dissatisfied with a class; they complain in a non-constructive way; teacher responds “this is a free class, take it or leave it”. Instead, the monetary transaction keeps us accountable to the students but also equally if not more importantly: it keeps us accountable to ourselves. We made a deal (exchange money for knowledge) so now we have to deliver what we promised. This strategy is conducive to quality.

(c) Financial sustainability. Service-based transactions are somewhat inherently more sustainable than charity-based donations. Capitalism may reward maximisation of profit yet fair transactions are a core idea of market mechanics. Markets and transactions have been fundamental to human societies long before capitalism emerged.

(d) Appreciation. Free offerings are often underappreciated.

It’s easy for a business to outline its intentions, then forget them as other motivators come into play. We aim not to be such a business. We employ various mechanisms for this purpose but most importantly: we have a legal structure that prevents us from forgetting them.

We are incorporated as a nonprofit social enterprise; limited by guarantee: i.e. there can’t be dividends for stockholders; and as a community interest company: all assets we acquire are locked for community use and cannot be sold (among other requirements).