This paper opens by summarising the case for student-directed learning in online higher education as a means of bringing about the development and use of higher-level cognitive and interpersonal abilities such as critical and creative thinking. The writers refine their conceptualisations of student-direction, different to, but flowing from student-centred learning, by scrutinising a progressive series of face-to-face examples offering some autonomy in learning. Nine features are identified as essential in a student-directed programme. They review Garrison's recent account of learning-centred Communities of Inquiry (CoI), identifying aspects of the teacher/instructor's role that would need to be altered for student-directed online communities. Guidelines are suggested for creating a student-directed CoI including programme design addressing the development, and use, of generic abilities. Finally, the writers provide an example programme structure incorporating preparation of learners for the responsibilities expected of them and the changing role of the tutor in an online student-directed CoI.