Kolowich, S. (2010) Tuition-free, online education? Try University of the People USA Today February 22
This provides a good update on the progress of the global, tuition free University of the People. So far it has just over 300 students, and is likely to have major problems getting accreditation in the USA (which might say more about US accreditation procedures than it does about the UofP). It is heavily dependent on volunteer instructors, around which there have been some obvious difficulties.
However, in my view it is far too early to judge the success or otherwise of this project. I think the key is to find an existing high quality university partner who will accept credits from the University of the People. This will then open a route for formally recognized qualifications. This partner is less likely to be in the USA, but may be one of the nationally recognised open universities in other countries.
This article is well worth reading in full if you are interested in open education.
See also: Everything You Need to Know About University of the People and Free Online Education, April 6, 2010