The Naval Postgraduate School's (NPS) Strategic Plan for 1998 addresses the significance of distant education in NPS's future. Network Based Instruction (NBI) utilizes new technology and the Internet to provide education at a distance. This thesis provides a framework which identifies the costs and benefits associated with converting, administering and maintaining a traditionally taught course using Network Based Instruction. Conversion, hardware, administration and maintenance costs to provide an NBI course are examined in the cost analysis section. The benefit analysis examines benefits of reduced NPS residency, a career learning continuum, online reference, and short course savings in addition to other intangible benefits. This study finds NBI to be a viable option for future learning at NPS. It is recommended that NPS proceed with conversion of courses into an NBI format Knowledge gained during conversion of initial courses will be instrumental in the subsequent design of efficient and effective distant education programs.