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Article on the SJSU/Udacity failure rate.
#1
San Jose State University teamed up with Udacity to provide online courses that were worth actual college credit. The experiment was a disaster. The failure rate was over 70% for one of the courses. As a result SJSU pulled the plug and put the courses "on hold". For those of us who wanted to see more MOOC courses offered for credit, this was very disappointing.

I just read an article on what happened with these courses and found it pretty interesting. (Here is a link to the article.) It appears from the article that many of these students were lucky enough to be in college at all. It sounds like many of the students didn't know how to subtract a larger number from a smaller number or even how to divide. No wonders so many failed.
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#2
That's pretty much what you can expect with anything that's open enrollment.
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