In an industry that runs on money, the University of the People comes up with an audacious idea: put college-level education online — and tuition-free at that.

Envisioned by Israeli entrepreneur Shai Reshef, University of the People (UoPeople) treads uncharted territory in distance learning. As an online academic institution, it is decidedly the first in the world to offer tuition-free, university-level services.

Millions can easily access UoPeople, but not all are admitted. To be so, prospective students must wield a high school certificate and a solid command of English.

When accepted, UoPeople students would have to learn autonomously, through a peer-to-peer teaching method. In this setup, students are required to study the course material and discuss them in online forums. Instructors monitor such discussions and butt in if needed.

Students are absolutely required to participate in these discussions, not the least by making comments. It is just as important that students ask questions from peers, if not email or chat with the instructors.

A typical class is manned by one course instructor. Instructors derive course materials from a pool of volunteer educators, currently numbering around 800. Comprised of professors and students with advanced degrees, this community puts together courses using open courseware, from venerable institutions like the Massachusetts Institute of Technology.

Each term at UoPeople lasts for 10 weeks, covering eight learning weeks and two weeks for preparing, proctoring, and processing the final exams. One learning week begins at a Wednesday or Thursday and ends seven days thereafter. Students are expected to spend four hours a week to earn a credit.

Sans revenues from tuition, the University of the People makes money by charging anywhere between $10 and $100 for the final exams. The school also prices its admission fees at $10 to $100, depending on the country.