Within one day of each other Australian and Canadian newspapers have run stories on the drop in international student numbers caused by the global financial crisis.
On 19 January The Australian reported that most Australian institutions are seeing an increase in student deferrals and are anticipating a drop off in international students numbers. The national peak body for English language colleges, English Australia, confirmed a decline in enrollments from Asian markets, with Japanese and Korean markets leading the fall.
On 20 January the Vancouver Sun reported a 5-7% drop in international student enrollments in B.C schools, with Korea leading the decline.
Like most industries, international education is in uncharted waters when it comes to the impact of the financial crisis. The prospect for long term market growth remain strong, but the short term effects of the current crisis will probably only become apparent over the course of 2009.
Monday, 19 January 2009
Friday, 16 January 2009
The Economist: UK international education market
Just came across this interesting article in the Economist which provides a snap shot of the UK international education market.
It picks up the theme of increasing global competition in the international education market which I've looked at in earlier posts. The article discusses how universities in the UK are increasingly turning to the private sector to help them recruit international students.
Increasing global competition is a challenge for all institutions, but it is not all doom and gloom. As competition increases so will demand. IDP predicts that global demand for international higher education will grow from 2.173 million in 2005 to 3.720 million in 2025. This is growth of 71% over 20 years, or compound growth of 2.7% per year.
So the pie will get bigger, but there are more competitors who want a slice.
Tuesday, 13 January 2009
US thawing on education agents?
A recent article in Inside Higher Ed discussed the debate in the US around the use of education agents and noted the work of the American International Recruitment Council in implementing a certification process for agents who wish to work with its members.
An education agent advises students on study options that are the best fit for them and usually helps the student to gain entry to the educational institution of their choice. Agents operating in offshore markets will often also work as quasi immigration and travel agents, assisting students with visas and other pre-departure arrangements. In some countries 60-80% of students who seek to study abroad are assisted by education agents (NAFSA).
Agents typically get paid a commission by an educational institution when a student is placed successfully. Commission arrangements vary widely but can be in the order of 10-20% of the first year tuition fee.
Educational Institutions in Australia and the UK have been using education agents for years to recruit international students. Even the largest and most reputable Australian universities make extensive use of agents, and their web sites will generally point prospective students to agents in their home country. (See for example University of Sydney)
US universities have largely shunned the practice for two main reasons - a belief that it is prohibited by US law (it's not), and a concern that agents motivated by commission do not act in the best interest of students. The second argument is curious because as the AIRC points out in a recent paper on the issue educational institutions already make extensive use of agents in other fields:
The American International Recruitment Council is trying to promote the use of agents by US institutions by establishing best practice standards and a certification process for agents. The proposed six step certification process is as follows:
The proposed certification process is much more rigorous than the processes currently employed in Australia and the UK. It may mean that only larger, well resourced agents will be able to go through the process, which is probably the outcome the AIRC is aiming for. It is probably also necessary to overcome the widespread concern over use of agents in the US.
Competition for international students continues to increase, both amongst the established players like the UK, Australia and Canada and emerging markets like, Malaysia and Singapore. The US will always attract a large number of international students, but if it wants to increase its market share institutions will have to embrace the use of offshore education agents. The AIRC is leading the horse to water. Time will tell if it can also make it drink.
An education agent advises students on study options that are the best fit for them and usually helps the student to gain entry to the educational institution of their choice. Agents operating in offshore markets will often also work as quasi immigration and travel agents, assisting students with visas and other pre-departure arrangements. In some countries 60-80% of students who seek to study abroad are assisted by education agents (NAFSA).
Agents typically get paid a commission by an educational institution when a student is placed successfully. Commission arrangements vary widely but can be in the order of 10-20% of the first year tuition fee.
Educational Institutions in Australia and the UK have been using education agents for years to recruit international students. Even the largest and most reputable Australian universities make extensive use of agents, and their web sites will generally point prospective students to agents in their home country. (See for example University of Sydney)
US universities have largely shunned the practice for two main reasons - a belief that it is prohibited by US law (it's not), and a concern that agents motivated by commission do not act in the best interest of students. The second argument is curious because as the AIRC points out in a recent paper on the issue educational institutions already make extensive use of agents in other fields:
- Headhunters assist with staff recruitment
- Stock brokers manage university endowments
- Real estate agents assist with sale and purchase of property holdings, and
- Insurance brokers assist university risk managers
The American International Recruitment Council is trying to promote the use of agents by US institutions by establishing best practice standards and a certification process for agents. The proposed six step certification process is as follows:
- Apply for Certification (pay application fee)
- IntegraScreen Due Diligence Report (included in application fee)
- Undertake prescribed AIRC-developed professional development (paid by applicant)
- Perform a self-study
- Undergo an external site visit (paid by applicant)
- Certification Board Review (if approved, payment of membership fee)
The proposed certification process is much more rigorous than the processes currently employed in Australia and the UK. It may mean that only larger, well resourced agents will be able to go through the process, which is probably the outcome the AIRC is aiming for. It is probably also necessary to overcome the widespread concern over use of agents in the US.
Competition for international students continues to increase, both amongst the established players like the UK, Australia and Canada and emerging markets like, Malaysia and Singapore. The US will always attract a large number of international students, but if it wants to increase its market share institutions will have to embrace the use of offshore education agents. The AIRC is leading the horse to water. Time will tell if it can also make it drink.
Tuesday, 6 January 2009
Black List Update: Hong Yun International
We've just added Hong Yun International to the education agent black list.
Click here for more info.
If you know of any other candidates for the list - be they agents or institutions - please help us out by completing our anonymous whistleblower form
Click here for more info.
If you know of any other candidates for the list - be they agents or institutions - please help us out by completing our anonymous whistleblower form
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