San Jose State University is launching a partnership with a Silicon Valley startup to create a lower-cost option for students needing course credits.

Under the pilot program, each three-unit course will be offered online for $150 -- significantly less than the university's regular tuition. Governor Jerry Brown approached the startup, called Udacity, to help find solutions for the state's overcrowded and under-funded university system.

At a press conference on Tuesday, Governor Brown said if successful, the partnership could help more students graduate on time and help reduce the overall cost of higher education.

Host Stephanie Martin talks with computer science professor Armando Fox, academic director of UC Berkeley's Online Education Program.