Dodgy agents sacked

Melbourne based vocational education provider, Cambridge College recently sacked four education agents due to unethical practices or poor service levels.

Melbourne's Age newspaper reported that one of the agents was Mauritius based GRS. See full story

The story identifies the broader problem of dishonest or unethical agents whose main focus is placement numbers rather than the provision of good advice and service to their clients.

This story highlights the importance of ensuring that you are dealing with an honest and competent agents. This goes for both students and institutions.


Students need to ensure that they are working with a good education agent to ensure that they get the very best advice possible. After all, deciding to study abroad is a big decision.

For institutions the reputational cost of having your name associates with a dodgy agent could be very high. In a very competitive international recruitment market. This is a risk not worth taking.

How do you know if you are dealing with a good agent?

There several things you can do:

1. Ask if the agent is registered as an education agent in the country in which they are operating. If they are, ask for their registration number and check it with the relevant authorities.
2. Do a Google search on the agent's name and business name to see if anything concerning comes up.
3. Ask the agent for references and check them. You might be able to save time if the agent is listed on my edagent and has had their references independently checked.
4. Ask the agent for a list of the institutions they act for. If necessary ask for proof in the form of letters of authority. Students - at the very least you should ensure that the agent is authorised to act for the institution/s you want to attend.
5. Be clear up front about the fees that the agent charges. If the agent is going to charge you a fee, ask what it is for and shop around.

Whether you are a student looking for advice, or an institution looking to establish relationships with agents, following these steps will help you ensure that you are working with a reputable agent.

Currency volatility - implications?

The global financial crisis has brought with it significant volatility in the foreign exchange markets.

We've been watching this volatility with interests, with a particular eye on the interplay between the currencies of key source markets, particularly China and India, and those of the key providers of education to international students, namely the US, UK and Australia.

Perhaps the most striking characteristic of the recently currency market activity has been the rapid decline in the value of the Australian dollar against other leading currencies. The recent fall was so swift and steep that London's Financial times dubbed the Aussie Dollar the "whipping boy" of the foreign exchange markets.

Importantly the Australian dollar has fallen markedly against both the Chinese Yuan and Indian Rupee.

The fall is great news for Australian education providers seeking to recruit international students because Australia once again becomes a great choice for cash strapped parents looking to get value for money when sending their kids overseas to study.

UK institutions may also get some benefit from a strong Yuan that has made good gains against the pound.

US institutions may not be so well placed. Both the Rupee and the Yuan have depreciated significantly against the US dollar which makes as US education an increasingly expensive option.

Australian and UK institutions should think about capitalising on the the current exchange rate situation by actively marketing the value-for-money benefits of their courses to students in their key offshore markets.

US institutions turning to agents?

A recent article in the Times Higher Education predicts that US institutions will increasingly begin to use recruitment agencies in coming years.

In the past US institutions have generally made less use of agents than their counterparts in key competitor markets, including the UK and Australia. Part of the explanation is that the practice of using agents is widely viewed as unethical in America.

Predictions of increasing use of agents will be music to the ears of agents in key offshore markets. Institutions in the UK, Australia and elsewhere who are already using agents will need to consider the implications of more competition for the attention of their education agents.

Education Agents - your reputation in their hands

Most institutions seeking to recruit international students look to education agents to assist them.

The strategy can work very well, particularly when institutions are able to build strong relationships with professional agents.

But there are significant risks too. Reputational risk, and what we'll call "turn over risk" are probably the two biggest concerns.

It only takes one bad agent acting unethically or dishonestly to seriously damage an institution's reputation. A serious incident in a key offshore market could have a very serious impact on future student enrolments.

Turn over risk is the risk that a student recruited to your institution by false or misleading claims will find that the reality is much different from the marketing spin the agent gave them. They may choose to go elsewhere.

In a highly competitive market, institutions must be proactive in managing their agent relationships. The common approach of requesting references at the outset of the relationship is insufficient on its own. Institutions should implement a system of regular agent review in order to protect their reputation in their key foreign markets.

The other important point to note is that for Australian institutions agent monitoring is a legal requirement under Standard 4 of the National Code.

A 2007 paper by Ms Virginia Pattingale of Flinders University explains the risks involved in the relationship with education agents and relates some real life incidents involving rogue agents. It is worth reading if you use agents to recruit students.

ESOS compliance - don't get caught out

Between 2001 and 2007 the Department of Education, Science and Training conducted 405 compliance monitoring visits and issued 252 notices. See full report.

The breaches that were of most concern to DEST were:

• Misleading information provided on duration or cost of courses, or nature of facilities.
• Provider unable to deliver course or pay refunds to students.
• Delays in processing requests for refund of fees, and/or not informing students of their entitlements.
• Advertising courses not registered on CRICOS.
  

Most common breaches found by DEST:

• Delay or failure to report students whose attendance or academic progress is unsatisfactory.

Failure to meet your ESOS obligations is likley to cost you significant time and money. Don't get caught out. Use ecomply to meet your compliance obligations.

Weaker Aussie dollar good for business

Just a few months ago many market pundits were predicting that the Australian dollar would reach parity with the US dollar in the very near future. That was until the Aussie currency fell off the proverbial cliff against the green back in July. On 5 September the Australian dollar hit US81.5 cents, its lowest level in a year. This represents a slide of over 17% from its July peak of US98.4 cents.

The steady rise of the Aussie dollar prior to July had many in the Australian international education sector very concerned. A key attraction for international students considering Australia as a study option has traditionally been its lower cost when compared to the US and the UK. This selling point is obviously diminished by a strong Aussie dollar.

So the rapid weakening of the local currency against the US dollar is great news for Australian education providers. Once again Australia can market itself as offering the very high quality education at a lower cost than its key international competitors - the US, UK and Canada.

Devaluation of the Australian dollar against the green back is not the end of the story either. Importantly, the Aussie dollar has also weakened significantly against the majority of the currencies of the top 10 source markets for international students coming to Australia, including, China, India, Korea, Thailand, Malaysia, Hong Kong, Japan, and Brazil.

Education providers should be jumping for joy. It will be interesting to see what impact these currency moves will have on international enrolments in Australia in the coming months.

Student visas: changes to assessment levels

The Australian Department of Immigration and Citizenship has advised that changes to assessment levels for Australian student visas will take effect from 1 September 2008.

Education agents will need to be aware of the changes when advising students about Australian student visas.

Click here for detailed information on the changes.