Soft-spoken education revolutionary Sal Khan has a few ideas for how to radically overhaul higher education. First, create a universal degree that’s comparable to a Stanford degree, and second, transform the college transcript into a portfolio of things that students have actually created.

Khan is the founder, executive director, and faculty member at the Khan Academy, an online education provider.

Speaking at the Atlantic’s Navigate tech conference, Khan said that the online education providers and independent technology “boot camp” schools will end up playing an important role in pressuring legacy universities to change their outdated ways.

“I feel like society is ripe for challenging the model of school” he told The Atlantic’s editor, James Bennett, earlier this week.

Credentialing

“The credentialing piece is somewhat broken now,” Khan said. “A very small fraction of the population has the opportunity to attend a university that is broadly known.”

To that end, Khan said that he is working on a universal credentialing system that could compare a graduate of “Stanford or Harvard” by their raw abilities. Presumably, this credential would have to be some type of evaluation that would test and measure the abilities of all students, thereby making the granting institution irrelevant.

Last year, Sebastian Thrun, the CEO of online education provider Udacity, and California Lt. Governor Gavin Newsom announced a tech industry credentialing system, the Open Education Alliance, with Khan Academy as partner.

Since then, Udacity has developed its own credential for the tech industry, the nanodegree. Similarly, Coursera, another online education provider, started awarding a “signature track” certificate to the graduates of some its tech courses.

Khan has not developed its own credential yet. Most important, neither Udacity nor Coursera has developed a degree or certificate that is comparable to a Stanford Degree. Both rely on the reputation of the granting organization — as opposed to some kind of test score. So, until Khan develops something more objective, a Stanford degree is still going to be a lot more valuable than anything else on the market.

Portfolios instead of transcript

At one point in the talk, a mother with children attending the University of California Berkeley expressed her frustration that her kids were having to turn to Khan Academy online videos to learn real world skills. She wondered how a $60,000 ultra-selective tier I degree could somehow not teach those skills.

Khan, who holds a Master’s in engineering from MIT, said that schools have dropped the ball on preparing graduates for the real world. Instead of graduating with a list of courses and a GPA, each student should have a portfolio of products.

“The transcript coming out of engineering school should essentially be the things that you’ve created,” he said.

Exams and grades are much (much) easier to administer to thousands of students. Having each student create some type of product (like a gadget or program) for graduation would require far more faculty time. There’s a lot of institutional inertia against doing anything that complicated.

Despite the fact that top tech companies like Google have publicly admitted that they don’t care very much about college degrees, colleges have not been moved to equip graduates with a portfolio of products for graduation. Khan suspects that online providers, like his Academy and others in the education space, will ultimately pressure colleges to change.

Here’s to hoping they do it soon.