Summary

A philanthropic initiative led by Steve Klinsky, founder of New Mountain Capital, is expanding access to higher education by offering free online courses designed to prepare students for College Level Examination Program (CLEP) exams. Through the nonprofit Modern States, more than 800,000 learners have been reached, with the program covering both coursework and exam fees. By enabling students to earn college credit without traditional tuition costs, the initiative aims to reduce financial barriers and accelerate degree completion, particularly for low-income and nontraditional students.

The model leverages widely accepted standardized exams to bypass conventional classroom pathways, allowing students to demonstrate competency at a fraction of the cost. Participating institutions accept CLEP credits, making this approach a scalable alternative to rising tuition expenses.

Original Article: https://fortune.com/2026/03/31/finance-steve-klinsky-new-mountain-capital-modern-states-free-college/

Commentary

The initiative aligns with broader trends toward unbundling higher education, where credentialing is increasingly separated from instruction. Standardized credit-by-exam systems, online learning platforms, and employer-driven credentialing are collectively challenging the traditional four-year degree model.

However, scalability depends on institutional acceptance of alternative credits and student awareness of these pathways. While cost barriers can be reduced, completion rates and long-term outcomes still depend on guidance, support systems, and alignment with labor market needs.

There is also a structural tension: universities benefit financially from tuition-based models, which may limit widespread adoption of credit alternatives. As a result, programs like this may expand access at the margins rather than fully disrupt the existing system in the near term.