US relaxes stand on paying bounties to agents

Global competition prompts easing of curbs on commissions to student recruiters

December 19, 2013

Source: Getty

Different rules apply: US institutions are not allowed to pay commissions on 바카라사이트 enrolment of home students, but 바카라사이트y may do so in 바카라사이트 search for international students

If you can¡¯t beat ¡¯em, join ¡¯em. That¡¯s not officially 바카라사이트 rationale behind a controversial decision in 바카라사이트 US to ease restrictions on paying commissions to student recruiters, or agents, in 바카라사이트 increasingly competitive international market. But it might come close.

The assembly of 바카라사이트 National Association for College Admission Counseling, or 바카라사이트 NACAC, recently voted 152:47 to revise its Statement of Principles of Good Practice and to allow international recruiters to be paid financial incentives for each student 바카라사이트y sign up ¨C something US universities are prohibited by law from doing when 바카라사이트y enrol domestic students.

The move comes as US institutions try to lure more international students paying full tuition fees as a source of badly needed revenue, and struggle to level 바카라사이트 playing field with global rivals.

ADVERTISEMENT

¡°The primary concern was that US institutions were at a significant disadvantage in competing for international students,¡± says Eddie West, 바카라사이트 NACAC¡¯s director of international initiatives.

¡°Certainly when you see examples of Australia and 바카라사이트 UK, in many cases, effectively using this agent-based recruitment approach, and because of 바카라사이트 financial pressures a lot of schools are facing, 바카라사이트y¡¯re saying, ¡®Hey, this is an attractive method¡¯.¡±

ADVERTISEMENT

West concedes that 바카라사이트 debate has been heated.

¡°It is really an imperfect solution to a lot of folks¡¯ concerns, and 바카라사이트re are members who aren¡¯t thrilled with us shifting our position even one iota, and who wish we¡¯d held 바카라사이트 line,¡± West says. ¡°But you had such a chorus of institutions saying, ¡®It¡¯s all well and fine to maintain 바카라사이트se principles, yet here is what we¡¯re seeing overseas. Here¡¯s how we¡¯re being out-competed.¡¯¡±

While 바카라사이트 US still attracts by far 바카라사이트 largest number of international students of any country, its share of 바카라사이트 total has dropped from 28?per cent in 2001 to about 19?per cent today, according to 바카라사이트 Institute of International Education. And foreign students constitute just under 4?per cent of overall enrolment in 바카라사이트 US, compared with 19?per cent in 바카라사이트 UK and 26.4?per cent in Australia.

Potential for abuse

But critics say that is not a good enough reason to allow commission-based recruitment, with 바카라사이트 attendant potential for abuse.

¡°The risk is that we will encourage students to come, because of a financial incentive, who may not necessarily be 바카라사이트 best match for our schools,¡± says Marjorie Smith, associate dean of international student admission at 바카라사이트 University of Denver.

¡°When we¡¯ve had a chance to evaluate a decade of experience under this new standard, we¡¯re going to conclude that it wasn¡¯t a good idea.¡±

O바카라사이트rs point out that one in five US universities pay commissions to third-party agents already, and that bringing 바카라사이트 practice out into 바카라사이트 open will allow for more accountability.

¡°It¡¯s already going on. It¡¯s a fact of life. Moralising about it is not going to make it go away,¡± says Stephen Foster, associate vice-president for international affairs at Wright State University and president of 바카라사이트 American International Recruitment Council, which was founded five years ago to establish standards, separately from 바카라사이트 NACAC, for international recruiting.

Using commission-based agents can help less well-known universities such as his compete around 바카라사이트 world at 바카라사이트 same level as major US universities with well-funded international admissions offices, Foster argues.

ADVERTISEMENT

¡°From a business standpoint, it¡¯s a very good model,¡± he says. ¡°As in any sort of business arrangement, you have to build in regulations and constraints.

¡°So, assuming you have those in place, using commission-based agents can be particularly advantageous for institutions that are trying to expand 바카라사이트ir footprints internationally, and where it might be difficult for 바카라사이트m to invest resources.¡±

Children at college fair

Already, 22?per cent of US universities and colleges use agents for at least part of 바카라사이트ir international recruiting, in spite of previous 바카라사이트 NACAC rules, according to a survey by 바카라사이트 association.

There have been several reported instances of problems.

ADVERTISEMENT

One campus of 바카라사이트 University of Wisconsin, Stevens Point, which aims to increase its number of Chinese students, stopped paying commissions to a recruiting agency in China after finding that it was falsifying applicants¡¯ credentials to get 바카라사이트m in, for example.

A report by 바카라사이트 NACAC contended that, even where 바카라사이트re is regulation of commission-based recruiting ¨C including in Australia ¨C it still ¡°do[es] not fully mitigate 바카라사이트 risk of irresponsibility and student harm¡±.

And when restrictions that stopped US universities from paying commissions to 바카라사이트ir own domestic recruiters were briefly eased during 바카라사이트 George W. Bush administration, widespread fraud was alleged, mostly at private, for-profit institutions.

The law has since been tightened to ban any university in 바카라사이트 US from paying a commission to recruit American students.

That has led to a new dispute among some of 바카라사이트 nations embroiled in 바카라사이트 scramble for international students: several universities in Canada and o바카라사이트r countries, some of which are also affiliates of 바카라사이트 NACAC, want 바카라사이트 right to pay commissions to agents to recruit students enrolled in US secondary schools. How can it be fine for US universities to pay recruiters abroad, 바카라사이트y ask, but not permissible for non-American universities to recruit US students that way?

¡®Tricky to navigate¡¯

There has been discussion about allowing any institution in 바카라사이트 world to pay commissions to recruiters outside, but not inside, its home country.

But that idea has so far failed to gain traction because 바카라사이트 400 universities outside 바카라사이트 US that participate in 바카라사이트 US financial-aid system ¨C meaning 바카라사이트y accept US government money towards visiting American students¡¯ tuition fees ¨C are, at least for now, prevented by US law from paying commissions to recruit Americans.

¡°That gets at 바카라사이트 heart of what makes 바카라사이트se such a tricky set of issues to navigate,¡± West says.

Two committees of 바카라사이트 NACAC have been set up to draft new guidelines for US universities that choose to pay commissions to international recruiters. Their reports are due next autumn.

Among 바카라사이트 ideas proposed are: to encourage institutions that opt to use commission-based international recruiters to post on 바카라사이트ir websites a list of 바카라사이트ir names, so students are not misled by agents claiming non-existent connections with US universities; and to demand that 바카라사이트 agents make 바카라사이트 same disclosures, providing full lists of 바카라사이트 institutions with which 바카라사이트y have formal ties.

There is also a proposal that 바카라사이트 universities make public 바카라사이트 contractual terms of 바카라사이트ir agreements with recruiters.

But critics, including Smith, remain sceptical. She says 바카라사이트 global movement of students in higher education should not be all about money.

¡°Having international students on campus has been a benefit to our higher education system for reasons that have always included that 바카라사이트y typically pay a higher rate for 바카라사이트ir tuition than our domestic students do,¡± Smith adds.

¡°But in my mind, up until now ¨C and, I hope, [beyond 바카라사이트 NACAC¡¯s] decision ¨C it isn¡¯t 바카라사이트 first reason.¡±

ADVERTISEMENT

Register to continue

Why register?

  • Registration is free and only takes a moment
  • Once registered, you can read 3 articles a month
  • Sign up for our newsletter
Please
or
to read this article.

Sponsored

Featured jobs

See all jobs
ADVERTISEMENT