All recruitment agent aggregators are not created equal

Alan Preece and Louise Nicol  First printed in University World News, 12 April 2021

A flood of private money into the education sector is not necessarily a bad thing. Providing students with choice and value is positive and doing so with maximum effectiveness and efficiency makes sense. When a single ship in the Suez Canal can disrupt international trade and a pandemic makes global movement risky or near impossible, there is even more reason to use technology to bring people together.

That is the siren call of the ‘aggregators’ in higher education, but there have been recent challenges questioning their transparency, efficacy and level of genuine concern for students.

The possibility of consolidation to create an ‘Amazon of aggregators’ or a ‘Weibo of wannastudy’ leaves the prospect of market manipulation that is far from the interests of applicants. Regulation, compliance, oversight and the personal link between a university and its potential students are all good questions in this brave new world.

A rapidly evolving network

A clarification about different types of aggregator in the context of this article is needed: ‘Agent aggregators’ provide a platform that allows universities and agents to interact while ‘university aggregators’ provide a means for students to search and apply for universities directly.

The two types are a simplification of a complex and rapidly developing network where the lines are already blurring as different models prove more, or less, successful.

It’s partly a recognition that in some markets and at some levels of study, agents are dominant, while in others many students feel comfortable enough to proceed without a friendly hand guiding them through the process.

Agents themselves have also been ‘aggregators’ for many years, with sub-agency networks feeding into the main players or middlemen establishing themselves and coordinating dozens of geographically separated ‘mom and pop shops’. Pathway operators and universities have become particularly familiar with this environment as the only way to extend their reach without the overhead of an army of travelling salespeople.

The need for a quality framework

The reality is that an education institution often has no idea who first advised a student on their application or whether it was done in good faith.

The recently published BUILA (British Universities’ International Liaison Association) and UKCISA (UK Council for International Student Affairs) reportA Partnership for Quality: A route to a UK quality framework with education agents, produced by education consultancy Edified was commissioned prior to the meteoric rise of the aggregators, but provides a strong foundation for thinking about this development in the global higher education landscape.

Given the current pace of change, it’s troubling that a ‘route’ to a quality framework is only emerging when agents have been increasingly influential for three decades.

That is really the point that emerges from consideration of the risks and challenges of a rapidly developing new approach to recruiting students. Universities are ill-prepared to engage effectively to ensure that they are not being misrepresented or that students are not being misled.

The report’s timing is a little like the United Kingdom publishing a treatise on how to do better with horse drawn artillery in the 1914-18 war just as planes are fighting out the Battle of Britain in the skies above London in 1940.

Nothing new

Having established that aggregation is not really new, it’s important to note that neither is the notion of universities allowing commercial third parties to use their brands in the hope and expectation of lucrative recruitment from international markets.

Deals signed directly with agents have been common for decades and commercial pathway operators have made significant gains in the UK, Australia and the United States, while Canada is catching up. An example on the ‘student aggregator’ side is Studyportals which has been running since 2007, has over 3,700 participating universities and has branched out from ‘Mastersportal’ to have eight portal brands.

The real question is how universities should approach the new world of ‘agent aggregators’. It is possible to build upon the framework provided by the BUILA-UKCISA report to provide some direction.

The report identifies ‘Education Giants’ – Kaplan and Navitas – who have an international network of agents as well as other education business interests, ‘Multi-Nationals’ such as UKEAS and IDP which account for 10% of agents, and ‘Market Specialists’ which account for 5% of agents, for example, TC Global, which focuses on India, and Golden Arrow, which focuses on China.

Agent aggregators might be thought of as an ‘Exchange’, a ‘One Stop’ and a ‘Pathway’.

In the Exchange approach, taken by Adventus, the aggregator behaves like the ‘Booking.com’ for international higher education where agents receive 100% commission, students get more choice and institutions more applications.

In the One Stop approach, taken by ApplyBoard, the aggregator brings an agent network together with their university partners to offer students breadth of choice, but also takes a slice of the agency commission. They have additional services like English language testing, visa applications and advice to create a ‘one stop shop’.

In the Pathway approach, aggregators have a network of agents feeding their pathway programmes into universities. This is where the best known and longest standing commercial names sit – Study Group, INTO University Partnerships and Cambridge Education Group as well as parts of the Kaplan and Navitas operations.

The Outsourcers, such as MSM Media and Sannam S4, operate offices overseas for university partners to engage more effectively by using technology and streamlining services and agent engagement.

There is, unfortunately, one more group that could be called the Pretenders, who do not have the global office infrastructure, investment in training, technology platform, network of agents or university partners that they claim. A slick website purporting to have high levels of student traffic, a comprehensive network of agents spanning the globe and a multitude of university partners does not mean this is the reality. Strong marketing ‘does not an agent aggregator make’.

The need for oversight

The next and most urgent steps for the sector are to embrace the new world, but to act cautiously and coherently to ensure that both students and financially challenged institutions are not disadvantaged.

It is self-evident that they should steer clear of organisations copying others’ marketing campaigns and dressing up to look like legitimate outfits. But a degree of oversight by the Office for Students (in the UK) and similar bodies in other countries might be helpful in creating a level, legal and equally lucrative playing field.

It may even be a good step for aggregators to be obliged to capture and publish the views of students who are placed through their services.

Technology has provided a wonderful opportunity for students to have greater transparency, accessibility and support with finding the right university than ever before.

The biggest agents have long argued that they rely on reputation and repeat business to grow their organisation and that they invest heavily in supporting applicants. It is something that aggregators should be obliged to formalise and standardise.

Alan Preece is an expert in global education, business transformation and operational management and runs the blogging site View from a Bridge and Louise Nicol is founder of Asia Careers Group SDN BHD.

Image by Gerd Altmann from Pixabay 

Jeopardy for UK Universities Giving EU Students Financial Preference

Anyone who thought that “Brexit means Brexit” or that all UK universities would accept that EU students no longer have special protection on tuition fee levels should think again.  Some institutions are publicizing that EU students starting in Autumn 2021 will pay Home student fees for the duration of their studies.  Some suggest it may be illegal and for international students from other countries it will reinforce a suspicion that Euro or Western-centric policies, pricing and priorities continue to prevail in some English institutions.

The straightforward fact is that if you are a student from China, India, Nigeria, Brazil, Canada or anywhere outside the EU, there are at least six universities in England who have decided to charge you a significantly higher tuition fee to sit alongside an international student from a European Union country in the 2021/22 academic year.  It is a distinction not based on that student’s language capability, their government’s contribution to English higher education, their intelligence, or their capacity to pay.  The privileged treatment applies, without any form of means testing, to students from some of the wealthiest countries in the world.      

A review of the 40 English universities with the most European Union students (HESA, 2018/19) shows that five have either maintained EU rates at the same level as UK students or put in place special ‘scholarships’ that have the same effect. 

UniversityNumber of EU StudentsUniversity Statement
Bedfordshire1,725Approved-schedule-of-mainstream-fees-2021-22-081220.pdf (beds.ac.uk)
Solent1,310Following the UK government’s confirmation that EU students will no longer be eligible for home fee status benefits, we’ve made the decision to keep EU tuition fees the same as UK tuition fees for 2021 entry.
West London1,240No statement – shown on fee schedules
De Montfort1,175DMU recognise the challenges this brings for our prospective EU students, and therefore for undergraduate EU students commencing their course in the academic year 2021/22 an automatic discount will be applied to reduce their undergraduate fees to £9,250 for the duration of their course.
Portsmouth1,120If you’re an EU, EEA or Swiss national or an EU national with settled status in the UK, starting a course in the academic year 2021/22 or later years, you will no longer be eligible for the same fees as UK students. You’ll pay the same fees as an international student. But a Transition Scholarship will be applied to your fees reducing them to the same amount as UK students. 

A sixth, the University of Kent, which dubs itself “The UK’s European University”, has put in place a blanket 25% reduction on the international fee level.  Seven others currently either indicate that they cannot confirm fee liability or do not have any 2021/22 academic year fees shown on their websites.  Among these is Coventry University which, with over 3,600 EU students in 2018/19, has a lot at stake.

Beneath the top 40, Royal Holloway, University of London, was among the first universities to indicate its intention to maintain EU student fee levels in 2021/22.  Their online statement suggests good intent as they note, “At Royal Holloway, we wish to support those students affected by this change in status through this transition. For eligible EU students starting their course with us in September 2021, we will award a fee reduction scholarship which brings your fee into line with the fee paid by UK students.”  The institution is keeping its options open for the 2022 intake and a cynic might suggest it will see how enrollment goes before deciding whether to extend the reduction.

While the argument about support through transition sounds good universities do not, generally, take on wholesale financial risks incurred by students as circumstances change.  Students often find that the currency exchange rate goes against them during the course of undergraduate study, in the case of Indian students by around 18% between September 2017 and July 2020, but universities don’t cover the cost.  Giving a blanket dispensation on fees to favour students from 27 countries is unheard of and a cynic might argue that it is driven by enrollment objectives more than anything else.

It also raises the question about the nature of the cross-subsidy that non-EU international students might be giving to the new class of “EU international” students.   The Migration Advisory Committee report of September 2018 made the point that, “There is no doubt that international students offer positive economic benefit, including cross-subsidising the education of domestic students and research.” This suggests that allowing EU students to continue paying “home” fees will mean that their full-rate international student peers will be subsidizing them.

Relatively little has been written about the legality of this type of favouritism for one group of international students over another.  In July 2016 Elizabeth Jones, a senior associate at Farrer & Co, wrote for Times Higher Education that  “Universities are required by the Equality Act 2010 to treat students in a way that does not discriminate on the grounds of any “protected characteristic” such as race (which includes nationality), age, sex and disability.”   She noted that providing students from the rest of the EU with the same fees as UK “home” student fees was, at the time, an allowable exception because it was mandated by legislation.

A statement by Michelle Donelan, Minister of State for Universities made it clear that this mandate no longer existed. “Following our decision to leave the EU, EU, other EEA and Swiss nationals will no longer be eligible for home fee status…for courses starting in the academic year 2021/22.”  In July 2020, Gerrit Bruno Blöss, CEO of Study.eu, commented on the damaging impact this could have but noted that, “A few institutions are also evaluating potential legal loopholes to charge different fees.”  Perhaps they found them or simply decided that nobody would notice or dispute their decision.

The UK Council for International Student Affairs (UKCISA) is simply publishing Donelan’s statement and reflecting that further guidance on regulations from Government may not come before the Student Loans Company (SLC) system launch in February 2021.  It is surprisingly coy, given its remit as “the UK’s national advisory body supporting international students” about whether maintaining a significant price differential between two groups of international students is fair, decent or appropriate.  It claims every UK university as a member and must know that some institutions are publicising their 2021/22 academic year pricing strategy on that premise.

UKCISA’s 2020 Policy Position Paper notes that a key part of delivering a world class student experience is communicating “a clear message of welcome to all international students in the UK, at every level of study”.  That seems quite difficult if the system becomes underpinned by preferential treatment for students from the EU without real clarity on what makes such exceptions equitable or even reasonable.  This is particularly so when so many other institutions have made it clear that the ‘international’ fee will apply to EU students from the 2021 academic year.

Perhaps unsurprisingly, the Office for Students (OfS) is silent on the issue.  It has been pointed out elsewhere that the OfS shows a level of disinterest in whether international students get value for money from a UK education.  Perhaps they could provide comparative information to at least fulfil their promise to “ensure that all students are provided with the necessary information, advice and guidance so that they can make informed decisions about where and what to study.” 

It’s also not clear where the National Union of Students stands on this anomaly.  Back in 2013 their position was that, “It is scandalous that non-EU students are charged fees that can be thousands of pounds higher than those for other students.”  One would think that they would at least expect everyone designated an international students to receive equal treatment from universities.

With the pandemic and Brexit diverting attention it may not seem important that a handful of universities have gone out on a limb to preserve a point of privilege for EU students.  But reputation is hard to gain and easy to lose.  It’s time for the UK authorities to clarify the situation and possibly for Messrs Sue, Grabbitt and Runne to become involved. 

NOTE

In principle I am in favour of all education being free and would welcome a situation where universities were able to focus only on teaching, learning and research in the interests of students and broader humanity.  This blog reflects the realities of international student fees and the potential for preferential treatment to emerge when universities make decisions driven by economic factors.   

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