Universities spend a lot of money on commissions to attract international students

Many universities spend tens of millions of pounds on consulting firms to attract international students, averaging £2,000-10,000 (VND60-250 million) per student.

According to Big Issue magazine, British universities spend £500 million (over $620 million) on study abroad consulting companies every year. On average, 50% of international students apply through consulting companies. For Chinese students, the rate is 70%.

For example, in the 2022-23 academic year, the University of Greenwich paid £28.7 million to 230 consultancy firms to recruit nearly 3,000 master's students and 500 undergraduates. This is up from £18.3 million the previous academic year. Compared to five years ago, the spending has increased by nearly 8.7 times. On average, the commissions received by consultancy firms abroad are more than £8,200 per student ($10,000). Another example is De Montfort University, which spent £17.1 million and recruited more than 4,400 international students, with an average commission of about £3,800 per student.

A survey of 20 UK universities by The Observer , a newspaper owned by the Guardian Media Group, found that the average commission that consultancy firms receive ranges from £2,000 to £8,000 per international student. This figure is much higher than the £1,000 level 10 years ago.

International students on campus at the University of Bristol, UK. Photo: University of Bristol — International students on campus at the University of Bristol, UK. Photo: *University of Bristol*

The reliance on consultancy firms shows how important international students are to the pockets of British universities. This is because international students pay tuition fees many times higher than domestic students. The British Council estimates that international undergraduates pay an average annual tuition fee of £22,000 (nearly $27,500), compared to £9,250 for domestic students. For medicine, the figure is nearly £68,000.

Nathan Brennan, international admissions officer at the London School of Economics and Political Science, one of 22 universities that did not work with the consultancy, said that due to inflation, domestic student fees had lost a third of their value since 2012. Schools were looking to diversify their international student intake. The reliance on international student fees was also growing each year.

Brennan said the demand for study abroad consulting services will certainly continue to increase as the number of international student applications shows no signs of slowing down.

International students contributed a fifth of total university income in the UK in 2021-2022. Red shows the contribution of international students, blue is domestic students. Photo: The Guardian — International students contributed a fifth of total university income in the UK in 2021-2022. Red represents the contribution of international students, blue is domestic students. Photo: *The Guardian*

Study abroad consulting companies are accused of enticing students to follow study programs that have been agreed upon with schools.

According to a report by the British Universities International Liaison Association (BUILA), 24% of international students who used an education consultancy said their chosen firm was biased towards certain universities. More than 30% of employees surveyed agreed that their consultancy steered clients to the universities where they received the highest commission. However, in the UK, there is no mandatory public listing of consultancy firms, so applicants cannot verify the firm’s connection to the university before using the service.

Schools surveyed by Observer all recognised that consultancy firms helping candidates complete applications, obtain visas and accommodation were essential to creating a positive relationship between students and schools.

Explaining the cost to study abroad consulting companies, Greenwich University said that its commission rate remained the same but the sharp increase in the number of students had pushed up costs. De Montfort University was similar, saying that the commission rate corresponded to the tuition fees of students, with tuition fees for students within the EU increasing, so the commission rate was higher.

There are around 680,000 international students studying in the UK in the 2021-22 academic year, according to the Higher Education Statistics Agency (HESA). This is an increase of 12.3% on the previous year. International students also contributed £42 billion to the UK economy this academic year, up from £31.3 billion four years ago.

Huy Quan (According to The Guardian, Big Issue)

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