University Business - September 2011 - (Page 30)

money m at t e r s students studying abroad can mean empty dorm rooms, especially if the numbers going abroad aren’t balanced between the semesters. That’s why some institutions are beginning to reconsider study-abroad financial aid policies. For example, beginning next year, all Taylor University (Ind.) students enrolled in off-campus programs will be billed as though they were on campus, plus an extra fee of $750 and up, depending on the cost of the program. Furthermore, explains Tim Nace, director of financial aid, “They will receive all financial aid, including institutional aid, for their first off-campus experience based on our normal cost of attendance, not including the extra fees. For the second off-campus experience, the student will only receive federal and state aid, not institutional aid.” Taylor does not set up any individual consortium agreements with other schools. “Since we don’t provide any financial aid for these students, we don’t have many students attending these non-Taylor programs,” Nace says. As a means of encouraging study abroad and yet not negatively impacting net tuition revenue, some institutions have set up satellite programs in other countries. For example, the Florence, Italy branch campus of Marist College (N.Y.) offers full bachelor’s degree programs, a master’s degree in museum studies, traditional study-abroad opportunities, and a full-year Freshman Florence Experience. These programs allow Marist to accomplish its mission and strategic objectives without taxing the limited classroom and residential space on their main campus in the United States. “These unique opportunities … have played an integral role in allowing the college to establish new markets across the United States and around the world,” says Sean Kaylor, vice president for enrollment. “The Freshman Florence Experience, in particular, a highly selective first-year abroad program, allows Marist to accommodate 60 additional students in its entering freshman class.” 30 | September 2011 Even when the student is working (rather than paying tuition) abroad, some institutions are providing financial assistance to enable students to take advantage of the opportunity. Northeastern University (Mass.) has established a special scholarship fund to enable students to accept overseas co-op jobs that may not pay as well as opportunities at home. The Presidential Global Scholars Program, notes the institution’s website, “supports outstanding students seeking international co-op and will help to ensure that our students have the support and opportunities they need to continue taking co-op around the world.” These grants of up to $6,000 support more than 200 students annually in pursuing an international coop experience. An increased value proposition will build willingness to pay among all constituents. Given that Northeastern’s co-op program is an integral part of the university’s brand, and that the university describes itself as a “global, experiential research university,” such an investment is clearly strategic, and mission critical, but not every institution has thought about the costs and benefits of investments in global education so thoroughly. AvoidiNg UNexpeCTed iMpACTs So, what should leaders at institutions interested in globalizing the undergraduate experience do to avoid unexpected impacts on net revenues? 1. Take a look at the difference in average net tuition revenue (NTR) currently generated by international versus domestic students. Assume it’s likely that any differential would increase if international enrollments were to be increased. This will help develop a realistic picture of how a shift in the mix of international versus domestic enrollments could impact the overall discount rate. At some institutions, international students have lower discount rates than domestic students, and the shift could improve NTR. However, if international students currently have a higher discount rate than domestic students, the shift would be of particular concern at institutions that are at capacity, where higher-cost students would be replacing lower-cost students rather than adding to overall enrollments. 2. Determine whether increasing international enrollments will have implications for staffing in administrative offices. Often, international students need help with language skills; transitioning to a new culture; integrating with other students; etc. So it may be necessary to rethink services and increase staffing and programming to meet new demands. 3. Analyze the amount of institutional financial aid currently going to students studying or working abroad compared to the tuition and fee revenues generated by those students. This discount rate will likely be higher than for those students studying on campus. Again, this analysis will enable the institution to understand how increasing the number of students studying abroad will impact the overall discount rate and NTR. Officials at institutions not at capacity in their residence halls also need to consider the impact on auxiliary revenues. 4. Understand how best to market the institution’s growing globalization of the undergraduate experience to ensure that it positively impacts the value proposition. An increased value proposition will build willingness to pay among all constituents, thus helping to counteract the cost of “going global.” Many institutions are starting to refer to themselves as having an international emphasis, so being able to demonstrate how that impacts the undergraduate experience and the outcomes of graduates is becoming increasingly important. universitybusiness.com http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - September 2011

University Business - September 2011
Contents
Editor's Note
College Index
Ad Index
Behind the News
Viewpoint
Financial Aid
Money Matters
Internet Technology
Shared Governance
Acknowledging Achievement
Looking Back
Spotlight on Procurement
EduComm 2011
End Note

University Business - September 2011