International Student Heartland or Schitt’s Creek?

Aggregators, pathways, universities and Governments tend to be relentlessly upbeat in their promotional material for international students but its worth considering things from the other end of the telescope. A sceptic might include information suggesting which countries have a record of over-promising, whose ability to assimilate students is coming unravelled or where are the warning signs of exploitation. What you can bet is that this information is not concentrated in an aggregators top five list in their sales pitch or the “Why Choose….” website page of a college that has been investigated for “questionable recruitment practices”.

Canada has had a period of unrivalled growth and has consistently bucked the trend of most traditional international student destinations by having, at the end of 2021, more than twice as many students from India than from China (217k versus 105k).  At the end of 2020 commentators claimed it had become the third largest recruiter of international students in the world after a tripling of international students in a decade.  There were some obvious concentrations – Ontario had nearly 50% of the numbers with British Columbia and Quebec trailing at 23% and 14% respectively.

It’s popularity seems undeniable but there has been a drip feed of less palatable news which seems to be gathering pace.  The confluence of cash-strapped public universities and profit motivated private entities seems to be leading to students being poorly informed and having little recourse when their time, money or health is under threat.  There is no doubt that there are some fine institutions and well meaning authorities in Canada but the collection of news items suggests problems that need urgent attention.    

‘The Just Society’?

John Stuart Mills’ famous question was borrowed in 1968 by new Canadian Prime Minister Pierre Trudeau to outline his vision for the country.  But international students may be beginning to wonder ‘just what?’.  Are we just in a place where a route to a permanent visa is promised, just in a place that makes it easy to get work post study or just in a place where private money has taken advantage of a system which can’t cope? (note 2)

Getting a job while studying is not easy and there are suggestions that this is why in Windsor, Ontario 90% of food bank visitors are Indian students.  Getting a visa in the first place may be harder for students from certain countries as a Canadian Parliament Committee found evidence of “racism within the Immigration, Refugees and Citizenship Canada.”  International student deaths were a cause for concern before the pandemic and more recent reports suggest the situation may have worsened.

Quebec has recently closed the immigration pathway provided by unsubsidized private colleges, New Brunswick has closed its express entry route for new immigrants with some arguing, “the number of applications, is just far more than can possibly be taken in” and a commentator in the Toronto Star accuses Canada of a “decades-old tradition of exploiting Punjab’s working class.”

Quebec’s latest efforts are not the first time they have taken action to restrict the activities of some of the colleges in question because back in 2020 the province suspended the ability of ten designated learning institutions (DLIs) to issue Quebec Acceptance Certificates (CAQ) enabling international students to study in Quebec.  A DLI is an institution approved by the Quebec government to welcome international students and such students are then eligible to obtain post-graduation work permits.  The suspension was for “questionable recruitment practices.”

Canada was also the starting point for one of the stars of the aggregator firmament, ApplyBoard, which became the poster child for private investment with $475mUSD raised and a post-money valuation of $3.2bn in 2021.  Lead investor in the latest round was Ontario Teachers’ Pension Plan Board (Ontario Teachers’), through its Teachers’ Innovation Platform (TIP), who believe that the platform is “…creating greater opportunities for education globally.”  Several of the private colleges featured on ApplyBoard’s site are among those subject to the action in Quebec and it would be interesting to know if the Ontario Teachers’ are in favor of their approach to recruitment.   

This may be important because some commentators have argued that aggregators have reduced the accountability institutions feel they have for fully informing potential students as well as encouraging an unregulated sub-agent culture which is less committed to student service and support than longer standing agencies.  Another reasonable question may be whether coming from a relatively low and possibly inexperienced base has left Canada unprepared for some of the problems that can come with such rapid international student growth.  Overshadowing or perhaps underpinning this is the possibility that “the entire system in Canada is built around the false premise that education, not work and immigration, is the primary aim for most students.”              

Added to all this are the reported backlogs in processing visas with the inevitable stress this places on applicants.  Put together it seems reasonable to conclude that there is a lot of clearing up to do.  It will be interesting to see if more draconian action is required to root out the underlying causes and whether universities and their recruiting partners will take some responsibility for the issues. 

For now, Canada may be the country that should come with the biggest health warning to unwary students.(note 3)

Notes

  1. The title of this piece is a reference to the two Canadian TV series Heartland and Schitt’s Creek which outperformed the global behemoth Squid Game on American TVs in 2021.
  2. For the sharp eyed and politically aware this sentence does have a small pun relating to current Canadian prime minister Justin Trudeau who is the eldest son of former prime minister Pierre Trudeau.
  3. It is reasonable to note that other countries have issues which rarely make it into the promotional material. If time permits a future blog will take a look at some of other contenders.
  4. This blog draws on publicly available information and provides links where this has been sourced. The author welcomes authoritative feedback if there are factual inaccuracies and will note these in amendments to this page.  

Image by Clker-Free-Vector-Images from Pixabay

Do Aggregators Match Up?

There’s significant interest in the higher education community about the rise of websites claiming to match students to degree programmes and what they might mean for student choice.  The websites and public comments of these aggregators are strong on claims about transparency, choice and putting the interests of students first.  This blog gets close and personal with a couple of websites of main players and gets granular enough to suggest that there might be room for improvement.

As a disclaimer I should note that, despite a philosophical preference for all education to be free, I appreciate the value that private investment can bring to expanding choice and opportunity.  If investors can employ people and make a return while offering good value to students, it seems to me to be an acceptable trade off.  I also have no reason to disbelieve the claim of aggregators that they aim to make global student choice easier and more accessible.

To ease the flow of the blog I have put a note of search terms used at the bottom of the text.  As with all research there is an element of subjectivity in my choices but they serve to explore some points about the way the system works. The two operators chosen reflect their scale and profile rather than any value judgement about their quality compared to other operators in this increasingly crowded space.

Before plunging into that detail there are a couple of general points that emerge from looking at several aggregator websites: 

–  The word ‘partner’ occurs often without a full explanation of what the relationship is or what due diligence has been done to ensure quality or appropriateness.  There is usually even less   insight into the nature of the commercial relationship with their partners and the ways that this might skew presentation of information.    

An example of that the Studyportals Bachelorportal top level search* produced 839   courses on the ‘Our Picks’ list.  The first 10 were the University of Lincoln and the first 253 were flagged as ‘Featured’.  The site says, “the university partners with us for this programme to reach students like you”.  Studyportals have confirmed that being featured represents ‘paid exposure services’ for the universities in question.

It is common for internet search engines to tell the user which results are adverts.  But when an aggregator lists ‘Our Picks’ it might be taken to imply that they take some responsibility (other than being paid) for the selection.  While Studyportals gives details about its organizational partners and its student partners it does not do so about university partners.       

–   There are many claims intended to satisfy students about the choice the site offers and the lure of counselling about those options. For example, ApplyBoard claims to have “built partnerships with over 1,500 primary, secondary, and post-secondary educational institutions, and work with 5,000+ recruitment partners”.  It’s difficult to know the breakdown of these and the website gives no indication of how many universities in each of the four countries  – Canada, USA, UK and Australia – can be searched on the site.

Using the ApplyBoard Quick Search and asking a broad query to study Business in the United Kingdom offered 10,000+ programs in 100+ “schools”.  My count was of only 70 institutions named with the 100 being achieved through branch campuses – including the most, eight, from University of Law.  At least 40 of the 100+ links led to pathway operations from Study Group, Kaplan, INTO, Navitas or CEG.

With over 140 degree bearing institutions in the United Kingdom it seems arguable that ApplyBoard is some way short of offering a critical mass of choice for students using the service. One of the arguments levelled against student recruitment agents has been that their choice is restricted to institutions who they have commercial terms with.  The strength of this may be that they usually have the benefit of familiarization trips and visits from university or pathway staff to enhance the advice they give students.  The extent to which an aggregator offers counselling         advice based on direct personal knowledge of an institution may be an area for development.      

To an extent none of that would matter if the much-vaunted machine learning, artificial intelligence and algorithms were providing good matching between the student and the university.  A student would put their information into the system and it would throw out carefully calibrated responses that reflected the student’s personal needs as well as their academic capability.  Testing across the aggregators is complex and cannot be consistent because search terms are rarely the same but a look at Apply Board and Studyportals gives some indication of what the student experience looks like.  The analysis took place between 8 and 11 May.

Apply Board

Even for a native English speaker the process is tough to navigate so I decided to go with being a US citizen who had studied in the UK to A-level.  After my experiment with a top-level query (discussed above) I filled out both the eligibility and school filters on the page to give a more precise search for a UK university**.  It provided 1000+ programs at 45 schools but the results were less than inspiring.

As I wanted to go direct to a university BA degree programme it was unhelpful to find the Relevance list populating only with pathway operations or foundation courses offered by a university through another route. The top option on the list was “2-Semester Pathway – International Year One in Business and Management – Bachelor of Science – Business and Management (Year in Business)” at Royal Holloway’s International Study Centre run by Study Group.  This suggests that the algorithm does its best but may not always reflect what students are searching for.

When I tried to view the list by the “school rank” option I presumed it would be indicative of university rankings although there was no source indicated.  Given this expectation it was surprising to find the universities of Manchester, Durham and Lancaster further down the list than Anglia Ruskin University.  There would be merit in clarifying what the ranking system is and also, what the progression rate to the university is if a pathway option is shown. 

When I entered the same search terms for study in Canada (changing my visa status to Canadian Study Permit or Visitor Visa and the duration to a four-year bachelors) I got 25 schools and 139 programs with direct entry options at universities at the top.  Presumably, this reflects the lower number of pathway operations in Canada or the strength of ApplyBoard connections in the country.  

For the USA (visa status F1 and as a UK national) it was 91 schools and 1000+ programs but with INTO’s Undergraduate Pathway at George Mason University at the top and their two-semester business pathway at Suffolk University third on the list.  Digging further down the list it became clear that the pathway operations were featured relatively heavily rather than the ‘direct admission’ I had searched for.  This, couple with the UK experience, might suggest that pathway operators are early investors in the aggregator model in countries where they have a foothold. 

Studyportals

The recent linking of Studyportals with Times Higher Education Student is one of the most apparent signs of league table compilers looking for ways to exercise their aggregator power over student interest.  Studyportals pages currently appears to favour the QS World University Rankings as a yardstick for university ranking and it will be interesting to see if the allegiance shifts.  It’s the sort of decision that reflects the impetus behind deciding what information to present to students and how transparent an aggregator is about who is paying to be represented. 

A helpful feature is the ability to adjust the information received to reflect a currency of your choice and also the actual rate being charged for your nationality. This is particularly important for EU students who, in 2021, will be charged Home tuition fees by some UK universities rather than international fee rates. This is available on the home page but it might be better if elevated to make this more apparent – I totally missed it in my original analysis.3   

I signed up and completed most of my profile in the Mastersportal*** (there is some personal information I preferred not to share).  When I looked at the ‘Recommended for You’ section of my profile I was offered 18 programmes of which all 10 in the UK were through online delivery.  This seemed to ignore my stated preference for on campus study. 

There was no explanation of how these had been selected or favoured but three were from Nottingham Trent University.  So, I returned to the main Masters portal to search for Business and Management at the top level and found that Nottingham Trent University was a ‘featured’ university.  When I searched at this level with ‘on campus learning’ enabled the online NTU options disappeared.

Some Thoughts

The mystery shopping was not comprehensive or even exhaustive but serves to highlight some of the issues that emerge in a complex and dynamic sector where nuance can mean a lot.  My insights are likely to be better informed than a non-native English-speaking student encountering the systems for the first time and the world of HE as a newcomer.  My contention would be that the limitations of the systems and their biases could be made clearer to users.

On the upside, both sites were relatively easy to use and the links to information about the universities were generally well managed.  I did not research aspects of the service that students pay for and it is possible that these would remedy some of the points I have highlighted.  The volume of information on the sites is overwhelming and there would seem to be scope for agents to offer a service that moderates the information on behalf of students.

The sector is becoming familiar with operators showing quotes and testimonials from students who have done well through using the sites but this is a drop in the bucket compared to the volumes looking at them.  It might be more interesting to know the extent to which they are mystery shopping their own sites (rather than drinking their own bathwater) with non-native English speakers.  Students who have succeeded are a much more forgiving audience than those who did not make it through the system.

The march of the aggregators will not be disrupted and probably does bring benefits in offering greater accessibility to students.  But the potential to overclaim coverage, distort perceptions of quality and act as a limiter of student choice rather than an enabler is obvious.  As this part of the sector matures it is to be hoped that, as with recruitment agents, the best operators prevail and become the choice of most potential students.        

It is also to be hoped that universities recognise that they have responsibilities when lending their brand names to third parties and that their very presence as part of an aggregator portfolio lends credibility to the entire endeavour.  They may prefer the word ‘featured’ to something like ‘promoted’ or ‘advertised’ but they should accept that honesty and integrity in the way they are represented is their decision rather than that of the aggregator.  For universities in the United Kingdom the option of making UCAS a wholly-owned, comprehensive and managed service for students remains an option that could become an exemplar of responsible self-regulation.

NOTES       

1.            As with all my blogs I am happy to have authoritative comment on the outcomes and where these add value or correct a clear error will reflect any resulting changes.  The purpose of doing the work and writing it up is to try and improve things for students while making observations that colleagues in the sector might consider.    

 2.           Search Terms Used

*Business and management in the UK, 3-year, full-time on campus, Bachelor of Arts. 

**US Citizen, educated to high school level in the UK with B/C GCE A-level grades, with a Tier 4 UK student visa and 9 IELTS in all categories.  I confirmed my interest was direct admission to UK universities for a three-year bachelors in business, management or economics starting between August and November 2021.  I placed no constraints on tuition, living costs or admission fee.

***UK citizen resident in the US.  Interested in Masters level study in Business and Management in the UK starting in between 6 months and one year.  Preference for attendance on campus.  Tuition fee and living cost budget set at 150,000 (so not a barrier). Bachelor’s degree in Business and Management securing a 2:1. With 5 years of work experience.  Native speaker English level.

3. In the original of this piece it was indicated that rates on the Portal were quoted in Euros and showed international rates and that this might have particular implications for EU students looking to study in the UK (where some institutions have chosen to offer EU students lower tuition fees than other international students in 2021). This has been removed to recognize that at the base of the home page of the Portal you are able to adjust your results to reflect the actual rate being charged and can do so in a denomination of your choice. If this information is put into your individual account it is also adjusted.

Image by Hier und jetzt endet leider meine Reise auf Pixabay aber from Pixabay

Canadian Pathway Drive – Back to the Future?

Interesting times in Canada as Navitas and others try to muscle in on international student interest in the country’s lure of immigration and citizenship.  The latest to cross my desk is in Newfoundland and Labrador where Memorial University of Newfoundland (MUN) looks to be in discussions with Navitas.  A response to the proposition from the university’s alumni network is a little like being transported back to the union and faculty resistance to UK pathways in the early 2000s.

It’s also a good moment to look at the prospects for pathway growth in Canada over the coming years. This is about the likelihood of resistance by faculty being successful and the possibility that the private operators may get diverted. History has also shown that, for either side, short term gains and potential may not always convert into long term success.

A Canadian Problem or Opportunity?

The scant MUN’s Minutes of Vice President’s Council from October 2020 confirm that a Pathway Proposal feasibility with Navitas has been ‘endorsed’ by the Council.  A response by the MUN Faculty Association Executive (MUNFA) at the end of March 2021 highlights seven ‘concerns’ as a sighting shot.  To borrow from a son of Canada one side of the discussion might be “rockin’ in the free world” but the other are suggesting “there’s a warnin’ sign on the road ahead”1.

Drivers behind MUN’s interest may be varied but the economic case for international recruitment is likely to be high on the list.  From 2012/13 to 2019/20 it saw operating budget cuts of $39.5m along with further capital budgets being lost.  Since 1999 the provincial government has had a tuition fee freeze for students from the province but out of province and international students can be charged more.

Reports suggest this is a scenario that is also being played out in Ontario, Alberta and Manitoba as provincial government’s reduce funding for higher education.  The conditions are ripe for pathway operators to find partnerships from hard-pressed institutions.  Magnifying this attraction is the benevolent visa, work rights and immigration policies that has driven international student interest in Canada over recent years.   

The Past In A Different Country

The MUNFA arguments are all very familiar to anyone who followed the progress of INTO University Partnerships (IUP) in the UK as it took its new 50/50 partnership model into discussions with potential partners in the early days.  Much of the debate is played out in the media but another good source is the website of the University and College Union (UCU).  There may be something for all sides to consider in the arguments made and what eventually happened.

The campaign against IUP at the University of Essex is well documented and laid out in a triumphant Fighting Privatisation Toolkit summary.  It charts the story (from the UCU point of view) from first skirmishes in December 2007 to a university announcement in October that the teaching would be kept in-house.  But as American baseball legend Yogi Berra told us, “It ain’t over till it’s over” and in 2017 the University announced a partnership for a ‘pathway college for international students’ with Kaplan.

Defences were also mounted at other institutions and some university management, for example at De Montfort, even expressed trenchant views about the potential dangers of private providers becoming partners.  It was, however, only two years later (in 2013) that De Montfort, under ex-Vice Chancellor Dominic Shellard, teamed up with Oxford International Education Group for an international pathway college on campus.

It may be that INTO’s 50/50 partnership model with its associated terms was the real problem and later deals were modified to make them more acceptable to universities.  But it is also true that some institutions in the UK have successfully developed alternative approaches to providing pathways for international students.  Institutions that have moved so rapidly to deliver universal online education in the past year might care to consider how they apply that agility to accepting international students who are short of requisite language skills.          

Lessons from the US and UK for Canada

UK universities have, to a greater extent, fully embraced the pathway model with long established groups Kaplan, Study Group, Navitas and Cambridge Education Group having around 50 universities in their portfolio.  Newer players such as QA Higher Education, GUS and Oxford International are growing and well ranked universities continue to gravitate towards private partners with Aberdeen, Cardiff, Aston, Southampton and Queen Mary all finding pathway partners in the past two years.

In the US, however, the story is quite different with many pathway closures in recent years from Navitas (5), Study Group (6), Cambridge Education Group (4) and INTO (3) more than counter-balancing Shorelight’s slowing growth in new partnerships.  It’s always difficult to be certain from the outside what is driving a closure but it’s reasonable to assume that the decline in international students going to the US has made it less viable for the commercial partner to continue.  At its worst that exit leaves a university with no infrastructure, no foothold in the market for international students and potentially a poor reputation overseas that will be difficult to overcome.

There are material differences in the number of institutions and the private/public make up of the university sectors in the two countries.  It’s arguable that Canada is more like the UK in terms of numbers of institutions, it has a degree system that offers flexibility, and it is relatively inexpensive.  But the progress for the pathway providers has been very slow and success may not come quickly enough to ensure rewards.

Riding the Roller Coaster

As the world emerges from the pandemic there is almost certainly going to be a renewed appetite for student mobility but it is a quite different higher education landscape to just two years ago.  The US administration has changed, the UK has seen growth from India outpacing that from China, and Australia, while wounded, is looking for ways to recover.  Past performance is no guarantee of future results should be a watchword for pathways looking to Canada as much as caveat emptor should be a guide for Canadian universities talking to private providers.

Colleagues have speculated on Canada as being in the ‘squeezed middle’ as the US and UK open their doors more widely to students.  It may also be of interest that while the numbers of scholars in the US from China were lower in 2015/16 than 2019/20 the number from India was slightly higher.  There is also every reason to believe that the attractiveness of the US has already increased amongst potential students and this could pay big dividends as the country’s vaccination program increases pace.         

The historical evidence from the UK, and to a lesser extent from the dash for growth of pathways in the US, is that resistance from faculty and friends of MUN may succeed in the short term but is futile over the longer term.   It could, however, be enough for them to delay the seemingly inevitable because the private providers will turn their attention to other opportunities if the attraction of Canada begins to fade.  Universities that have already signed on the dotted line may find that, as happened in the US, pathways are as willing to walk away as they were to sign up in the first place.

Notes

1. Frank Sampedro/Neil Young, Rockin’ in the Free World lyrics © Wixen Music Publishing, Silver Fiddle.

2. Image by Gerd Altmann from Pixabay

Fatal Four Way Match for Universities?

Economist John Maynard is famous for saying, “In the long run we are all dead”, but he also wrote, “there will be no harm in making mild preparations for our destiny”.  Universities might consider this as they struggle to encourage international students to overlook the near-term uncertainties of the pandemic in 2021. The real winners will be those readying for 2022 when all four of the major receiving Western countries are likely to be competing from a position of strength.

There is no point in the last twenty years when the US, UK, Canada and Australia have, at the same time, been growing aggressively or had in-country conditions enabling them to promote themselves effectively.  While globally mobile student numbers have grown there has always been a country operating with at least one hand tied behind its back.  It seems likely that this is about to change, which is going to bring unusual pressures to bear on recruitment efforts.   

If there is significant headway on vaccination rollouts, the pandemic recedes and internal country politics align it will be time for a revitalized UK, a desperate Australia, a confident Canada and a Biden-powered USA to do battle.  Those familiar with World Wrestling Entertainment’s Fatal Four Way match up may think it could be a contest that makes equally interesting viewing.  For international students it will mean a smorgasbord of opportunity, offers and opening doors.        

Overview and Trends

Data from individual countries are not standardized but the graph below focuses only on students identified as bachelors, postgraduate taught and doctoral for each country.  This eliminates the language only, non-degree and/or OPT registered elements that provide wider fluctuation and distortion between countries.  For example, significant elements of the recent Canadian international student growth are concentrated outside degree level programs.

The data indicates that when the US has done well Australia and the UK have been steady or in decline.  It also demonstrates the increasing place of Canada in degree level awards with every likelihood that the explosive growth at lower levels will feed through over time.

A starker way of visualising the pattern is to consider each country’s percentage share of the aggregate enrollements of all four and show how it has risen or declined year on year.  Changes in the US share correlate reasonably well to the shifts in the fortunes of other countries and particularly the UK and Australia.  The Canadian share is relatively stable but is likely to have an increased impact as the volume increases.

From 2002/03 to 2011/12 the US consistently lost market share against the other countries.  The burst of growth, which underpinned the expansion of investment in pathways in the US came from 2011/12 to 2015/16 when its share of the market grew.  The subsequent decline of US enrollments from 2016/17 has correlated with accelerated growth from Canada and Australia and latterly, the UK.  

Country by country factors broadly match the numbers and suggest that it was not competition alone that caused the ebbs and flows.  US growth in the 2000s was sluggish as the country proceeded with caution after the terrorist attacks of 9/11.  The UK stagnated after removal of post-study work visas in 2012.  Australian visa restrictions, from 2009 were followed by significant benevolent changes from 2013 onwards.  And Canada’s focus on growth came with particular emphasis from the 2011 Economic Action Plan and 2014-2019 International Education Strategy although its relative share was undermined by the US growth between 2011/12 and 2015/16.

The Global Picture

At a global level, the OECD measure of globally mobile students pursuing tertiary education gives an indicator of the competitive threats and opportunities that exist.   What seems most clear is that the trend has been for the non-OECD countries to increase their share of the market over time.  In 2018 they had 30% of the market while in 2000 they had only 24%, which suggests power is gradually moving away from the traditional receiving countries.

The big four will also suffer from the success of countries like Germany, the Netherlands and Russia taking an increasing share of OECD country growth.  A by-product of that may be the way that pathways – which have come to be a dominant part of the UK and Australian landscape – have to respond to the new era.  Pathways operations in Europe have become commonplace and Brexit may be another factor that accelerates their growth. 

Number of international or foreign students enrolled in OECD and non-OECD countries

Source: Education at a Glance 2020.  Figure B6.1. 

With growth likely to come from more price sensitive markets it may also be worth universities taking account of the relative changes in costs that may be coming around the corner.  It is interesting to watch foreign exchange predictions and there seems to be a view that the US dollar may weaken over the coming 18 months and increase the competitiveness of its services.  Alongside this there are voices suggesting strengthening of the UK pound, the National Bank of Canada expects the Canadian Dollar to appreciate, and there seems to be plenty of confidence in the future value of the Australian Dollar.

Conclusions

It seems reasonable to conclude that over the past two decades each of the main four recruiting countries has, from time to time, benefited because one of the main competitors has struggled to create the conditions for growth.  But no country with a thriving higher education section is going to willingly shut its doors forever and all the signs are that universities will need growth to offset economic conditions and government cutbacks in their home country or state. While it is easy to feel smart when things are going well; it is wiser to be smart about what is happening to the competitive set and what you can do to prepare for changing conditions. 

2021 remains uncertain but there is every reason to believe that 2022 will see greater competition across the globe.  In a head-to-head match, where the quality of the universities, visa availability and the possibility of post-study work become more equal, it will be interesting to see who wins.  The US has all the tools to win and its fall from being the most favored destination owes as much to its decrease in popularity as the increase in desire to go elsewhere.  

The time to prepare is now, and there is nothing to stop a smart US university giving real consideration to establishing a market-priced offering to students from the most rapidly growing source markets.  Establishing a high-profile recruitment platform in early 2021 would take advantage of the market sentiment towards the Biden administration supported by the gradual re-opening of visa offices.  Carpe diem may summarize 2021 but audentes fortuna iuvat should be on everyone’s lips for 2022.

Footnote

Data on international enrollments are not consistent across the main recruiting countries.  The data used takes sources where it appears to be possible to secure an aggregate number for total enrollments of international students undertaking a bachelors, postgraduate taught or doctoral degree.  The sources for each country are itemised below and any insights or corrections to my assumptions are welcome.  The data are also subject to other anomalies which make comparison a subjective business.  The main points to make in that regard are:

i) Australian data appears on a calendar year.  Placing this against sources reporting academic years requires making a judgement about which year compares to which but is not material in the context of the main line of argument in this blog.

ii) UK data used are from the latest HESA release (27 January 2021) for the most recent five years and use historical data for the years before.  In building the spreadsheets I noticed that the numbers in the most recent release differ slightly from those in prior releases.  These differences are not significant enough to make a difference to the main argument.

iii) EU student data has been omitted from the UK data because the economic incentive to recruit them is not the same as international students who can be charged higher fees than home students.

iv) The timing of data collection is likely to be an increasingly important factor as universities increase their number of entry points in the year.  This is likely to be a contributing factor to the HESA data noted above. 

v) Sources

– US data from IIE Open Doors download of historical data and analysis of Undergraduate (Bachelors and Associate), and Graduate only:

– UK data from Higher Education Statistics Authority.  Latest release for most recent five years but historical data before that time.  Non-European Union, all levels (UG and PG) and all modes of study:

– Australia data from Department of Education, Skills and Employment, Higher Education Statistics, uCUBE, Enrolments Overseas, Sum of Postgraduate and Bachelors, 2001-2019 (removed enabling and non-award):

– Canada data from Statistics Canada, Postsecondary enrolments, by registration status, institution type, status of student in Canada and gender. Selected University,   International Students, all fields of study, 2000/2001 to 2018/19.  Sum of International Standard Classification of Bachelors, Masters and Doctoral (and equivalents) for Canada:

Image by Gerd Altmann from Pixabay

Canadian HE Pathways – An Open then Shut Case?

The recently announced ten-year contract between Ryerson University and Navitas raises questions about the fate of pathway discussions with the University of Western Ontario (commonly known as Western).  The interest of both universities may also be indicative of emerging financial pressures that could make Canada a land of opportunity for pathway operators. But some recent closures suggest it’s not always going to be plain sailing in “the True North strong and free”.

Even before the pandemic, there was increasing pressure on university budgets in Ontario, Alberta and Manitoba.  Alberta plans to reduce post-secondary institution funding by 20 percent over three years and Ontario plans to make up to 60 per cent of funding tied to performance-based metrics over time.  This has echoes of the State budgetary cuts that forced many public US universities to consider, and in some cases work with, commercial pathway operations.

But there is evidence that even in Canada pathways groups will have to pick their partners wisely to achieve sustainability. Study Group’s partnerships with Stenberg College and the Center for Arts and Technology were announced in February 2019 but will not be admitting students after the Fall 2020 intake. They do not seem to have flourished despite Canada’s general popularity with globally mobile students.

Western May Need “Urgent Assistance” To Recruit  

For anyone who thought that life was good for the university sector in Canada the specter of budget cuts and performance-based metrics may come with a touch of schadenfreude. There seems little doubt that Western has had to take the matter seriously and that its achievements in attracting international student interest have been limited. Fortunately for those who are interested the debate in the university is played out largely in public documents.

At Western’s March 2020 Senate meeting the President, when asked when the Navitas proposal might come to Senate, “indicated the timeline had not yet been determined. If the University needs urgent assistance to recruit students that could impact the timing of the proposal.” Western’s international enrollment has been patchy with their 2018-19 their international first year undergraduate intake being 855 compared to 508 in 2015-16 but then dropping back to 639 in 2019-20.  Perhaps more troubling in terms of concentration was that 75% of the 2019-20 intake was from China.

A potential block to any deal was the reminder that, “Senate notes that the potential partnership with Navitas involves the academic work of the University, which explicitly falls under the remit of Senate in the UWO Act; and therefore the articulation agreement/partnership/credit transfer/affiliation agreement/ contract to engage in the academic work of Western must come to Senate for approval.” In the manner of university turf-wars a representative of the Operations/Agenda Committee then noted “that it would support details relating to the academic components progressing to Senate, with the financial arrangements not being within Senate’s remit.” 

For those who enjoy the knockabout nature of university meetings the minutes are well worth a read and particularly so at S.20-59 where Question 2 noted that Navitas had agreements with Simon Fraser University and the University of Manitoba.  The discomfort was evident, “should Western proceed with a partnership with Navitas when two and possibly three other Canadian universities have such partnerships (which will make us one of four Canadian universities for which those vaunted Navitas recruiters are recruiting, so not obviously set apart from the other Canadian universities)”.

Sadly, and perhaps because of the pandemic, no further Senate meetings have been reported this year so it is difficult to say whether discussions went any further.  But Exhibit IV, Appendix 4 of the February Senate Agenda outlines the enrollment background and the shape of the Navitas deal being proposed. It’s also worth noting that Ryerson might have insisted that Navitas do not engage another Ontario partner in the near future so Navitas’s loss could be someone else’s gain.

The Bigger Picture and the Potential Trap

Anyone following developments in Canada will have seen the explosive growth in international student enrollments.  That has been tracked by the desire of pathway operators to find a way into the market, and Navitas appears to have got a small edge.  But the Ryerson deal and Western’s apparent need or willingness to engage may suggest we are seeing the thin end of a wedge that will see more Canadian universities joining with commercial partners to drive their international growth.

Movement in recent years has largely been in what may be considered secondary brands and non-degree bearing institutions. A recent announcement saw GUS expanding its Canadian network with the Trebas Institute but the Study Group experience noted above is a cautionary tale. Perhaps this is a good moment for all investors to pause and consider the history of pathways in North America.

Some believe, along with Marx, that history happens the “first time as tragedy, the second as farce”.  The United States was considered the El Dorado of pathway opportunities for several year with over a $1bn of private money flowing into expansion and start-ups.  The recent, rapid decline of pathway numbers, with more than ten closing in the past year, suggests that there is virtue in considering how to position yourself to be sustainable over the longer-term.

However, a resurgent United States could rapidly reassert its dominant position over Canada in terms of attractiveness to international students.  It would not take much for a loosening of visa constraints, an improvement in post-study work availability and a more welcoming administration to turn things around.   It is a reasonable bet that the change in post-study work opportunities in the UK has already slightly dampened interest in Canada as a destination.

Seasoned observers of international student mobility know that what goes round tends to come round.  Just as the step back taken by Australia and the UK in the early 2010s helped fuel growth in the US it seems reasonable to believe that the current US situation is helping to drive interest in Canada and the UK.  Quality universities will always recruit best under difficult conditions, so the right answer is to build a portfolio of decent brands and acknowledged specialist institutions while having a fall-back position for students who don’t meet those standards.

Image by Clker-Free-Vector-Images from Pixabay

Another Canadian University Pathway Coming Soon?

Pathway operators have been focused on getting contracts with universities in Canada for several years but there has been little real momentum.  All the more interesting to catch rumours of Navitas nearing a breakthrough with Ryerson University.  It’s worth having a look at whether there’s any strength to them.

Exhibit one would be the university’s Senate Meeting Agenda of 1 October 2019.  Pages 78 to 83 have a summary of meetings ‘from the President’s Calendar’ and there, hiding in plain sight on page 82, is the entry:

Jul 29, 2019: Over dinner, I met with Rod Jones, group CEO for Navitas worldwide; Scott Jones, nonexecutive chair of the board for Navitas worldwide; and Brian Stevenson, president and CEO, university partnerships, Navitas North America. We discussed the potential for Ryerson to bring in international students through the pathways to university education that Navitas offers.

The information had previously been shared at the Board of Governors meeting on September 20, 2019.  So we know that Ryerson’s President Mohamed Lachemi has been meeting with senior people from Navitas although that might not be considered unusual.  But there’s a little bit more to report.

Recent social media shows President Lachemi escaping the Canadian winter in the past couple of weeks and ‘expanding Ryerson’s relationships with leading universities’ in Australia.  This might be unexceptional but the twittersphere also suggests visits to Griffith College and Deakin College – two Navitas centers – arranged by Navitas.  And it sounds like there have been more meetings with senior Navitas folk.

There’s no way of confirming the market gossip and I am always happy to clarify the situation if an authoritative source gets in touch. Ryerson has certainly been in conversation with at least one external operator in the past but given the rise of Canada as an international student recruitment magnet it’s questionable what benefits such a relationship brings.  Some commentators might argue they could organize themselves to take advantage of the momentum behind enrollments.

Once clue might be that Ryerson looks to have been left lagging despite the surge in interest for the country with the world’s longest bi-national land border.  There are thirty Canadian universities listed in the THE 2020 World Ranking top 1000 and the percentage of international students at Ryerson is the lowest of all.  At 4% it is well behind other, admittedly higher ranked, Toronto institutions like the University of Toronto (21%) and York University (24%).

Ryerson’s global ranking in the THE ranking 601-800 bracket places it behind the other Navitas partners in Canada.  The University of Manitoba is ranked in the 351-400 bracket and has 17% international students and Simon Fraser University is in the 251-300 bracket with 30% international students.  This might suggest that there is plenty of scope for Ryerson to grow with the right sort of support.

It would be the third public research university to partner with Navitas and would give the portfolio added depth.  The only other pathway provider with representation in Canada is Study Group who have one public research university in Royal Roads and two sub-degree colleges in Stenberg and the Center for Arts and Technology. 

With US enrollments still struggling and the maturity of the UK and Australian pathway markets it’s easy to see why there is interest in Canada.  Interest remains strong amongst students and agents with little sign of applications slowing.  But everyone with a history in international recruitment knows that past performance is no guarantee of future success.

The international student boom in Canada has come with some issues that are increasingly grabbing the headlines.  There are allegations of students being ‘duped by unscrupulous agents’, scarcity of part-time work and up to 39% of study visa applications being rejected.  It’s difficult to believe that interest will slump quickly or precipitously but it may be time for wise heads to consider what a sustainable rate of growth might look like.

Image by David Peterson from Pixabay

Changing Fortunes and Futures Across Major Recruiting Countries

Another extraordinary year in higher education around the globe and a good moment to review some of the highlights and possible future directions of the main four recruiting countries.  There’s plenty to consider as the established recruiting heavyweights fight off emerging challenges, the shake-up of pathways continues, and India’s rise as a market becomes an obsession for recruiters.       

USA

A year of reckoning for pathways with four closures each by Study Group and CEG while EC Higher Education exited the market totally.  All of which reminded us of the chill wind blowing through international student enrollments in the US.  It added to the uncertainty around a sector which is seeing changing demographics and growing competition lead to longstanding institutions closing. 

IIE reported overall international student enrollments for 2018/19 down 2.1% on the year before and 3.4% down on the peak of 2016/17, with the number of new undergraduates falling for a third year in a row (down 10.4% over three years).  For the press release to claim,  “we are happy to see the continued growth in the number of international students in the United States”, seems either complacent or misguided.  It’s fair to say that the quote reflects the inclusion of OPT (a form of post-study work) numbers in the overall count but even when they are included growth was a measly 0.05% which hardly seems a basis for contentment. 

A microcosm of the problem and its impact on pathways was highlighted by student newspaper The University Daily Kansan which showed the University of Kansas and Shorelight partnership falling short of expectations.  It indicates that in 2014 Shorelight intended to double the number of international students at the University.  But between 2014 and 2018  the number enrolled fell from 2,283 international students to 2031 – an 11% decrease.  

 Shorelight parted company with their Chief Commercial Officer, Sean Grant, in October after just over a year in post.  At INTO University Partnerships, Cagri Bagcioglu, Senior VP Partners North America, left after 16 months and has turned up at Cintana Education.  Reports of job losses at Navitas were in the news and Study Group have yet to announce the replacement of their North American MD.

Looking forward there seems to be little likelihood of the news improving any time soon.  Changes to post-study work in the UK may further undermine recruitment from India and there is already good evidence that some Chinese students are putting the UK ahead of the US.  It will be worth watching to see whether INTO, buoyed by bumper recruitment in the UK, will invest heavily to make life even tougher for the US-centric Shorelight.

UK

The world of international student recruitment in the UK changed in September 2019 with the announcement that a two-year post-study work visa was being introduced for students from the 2020/21 academic year.  Foundation courses are already doing huge business for January 2020 entrants looking to go on to the full university degree later in the year.  The British Council is predicting growth of ‘just under 20%’ across the sector in the year ahead.

The announcement lifted the gloom that had been felt since post-study work was ended in 2012.  While many big brand names have done well in the intervening years, the new Government policy opens the door for more universities to maximize their intakes.  The news built on statistic showing that the UK had already seen a 63% year on year increase in Tier 4 visas granted for Indian students in the year to September 2019.

It was a good year overall for pathway providers with Study Group picking up Aberdeen and Cardiff while Navitas secured Leicester.  Given the renewed recruitment opportunity, it’s ironic that INTO’s pathway with Gloucestershire was closed during the summer period.  With growth guaranteed for a couple of years the year ahead may be the right moment for some of the smaller players to get a good price for their pathway activity from one of the big players.

The coming year is also likely to see interest focusing back on the implications of Brexit with the probability of the Government inserting a clause to ban any delay beyond December 2020.  Plenty of reason for universities to be nervous about enrollment from Europe if students are obliged to pay international fees when the deal is done.  And there may be a resurgence of interest in new, European based campuses to try to ameliorate the problem.

Australia

The battle for the Ashes has nothing on the intensity of competition for international students, and it took Australia less than a month to respond to the UK’s post-study work change.  They decided that Perth and the Gold Coast would be classified as regional which gives international graduates an  additional year of post-study work rights.  The federal government added that student in regional centres and other areas would have access to up to six years of PSW.

All this on top of an Australian enrollment juggernaut that has seen double-digit growth in international higher education students for each of the past four years.  Enrollments year on year to October 2019 were c45,000 up at 434,756.  Despite arguments about lack of diversity their percentage of Chinese students is 28% compared to the US at 34% (including OPT) and the UK at 33% (of international fee paying).

There could be plenty more gas in the tank which may have been the reason Rod Jones and his colleagues took Navitas into private ownership with BGH.  It would also explain new kids on the block (or old kids who’ve been round the block) Camino Global Education, founded by John Wood, former CEO of university partnerships at Navitas, and Peter Larsen, who co-founded Navitas (then known as IBT) with Rod Jones in 1994.

Australia has led the way in developing transparency on student recruitment agencies, and its Government recognizes the value of the higher education sector to the economy.  One would guess that the potential of trans-national education is well within their sights as they embed their network in the vibrant Asian economies.  For the casual observer they also provide the best, most up-to-date and detailed data on international student enrollment and that’s a model most other could do with replicating.

Canada

‘O Canada…with glowing hearts we see thee rise, the True North strong and free’.  Those words from the national anthem must be how the country’s higher education sector and national Government feel about international student recruitment.  But it’s far from over because the federal government recently pledged nearly $30-million a year over the next five years to diversify global recruiting efforts in the postsecondary sector.

Remarkable to believe that just five years ago a headline of ‘When it comes to foreign students, Canada earns ‘F’ for recruitment’ accompanied the release of a report by the Council of Chief Executives and the Canadian International Council.   It provoked action and the launch of the EduCanada brand in 2016, which drove the number of international students in college or university from about 120,00 to 260,000 from 2015 to 2018.

Canada is also unusual in having more students from India than from China.  In December 2018 India surpassed China as Canada’s top source of foreign students, across all sectors, with more than 172,000 study permit holders. Each country represents slightly more than a quarter of the total of 570,000.

It’s no secret that every pathway operator has been trying to access the Canadian higher education sector for years.  The reality is that the sector had organized itself and was making progress while most of the attention was on the US.  There seems little need for outside help as they launch their  International Education Strategy 2019-2024.

Anyone who has worked in the international recruitment field knows that bets on long-term success are likely to lead to embarrassment. It’s less than a decade since Australia’s years in the doldrums, this article notes Canada’s ‘F for failure’ and just three months ago the UK wasn’t competing on post-study work options. It’s also only ten years ago that the lure of the US market was driving extraordinary valuations of pathway companies.

But it seems pretty reasonable to say that when the enrollment numbers for 2019/20 and 2020/21 are in there will be smiles in Canada, Australia and the UK. For the US the road to growth is unclear and may be several years in the building. And there remains the possibility that higher education in Asia will reach a tipping point to upset the old order even more fundamentally. Happy holidays.

Photo by Element5 Digital from Pexels