UK Universities Investing in Agents to Acquire International Students

UK universities are spending a lot of money on agent fees, usually in the millions. These fees are used to pay education agents who are important when it comes to getting international students. The competition for international students is so fierce that universities are willing to spend a lot of money to make sure they keep a steady stream of students. The Guardian's recent reports say that UK universities, which represent 144 institutions, are paying agents a lot of money. This shows how much they're relying on outside recruitment channels. It's no secret that UK universities are competing hard to get international students since tuition fees for international students are way more expensive than for domestic students. The use of agents is becoming more and more common, and it shows how important they are in helping UK universities get more students from all over the world.

1. Drivers for Investment

The main objective is to attract more international students, enriching the campus culture and improving the institutions' international profile. The main drivers of UK University to invest heavily in agent fees are:

• Education agents play a vital role in student recruitment, and universities are prepared to pay high fees to attract a steady stream of students. The financial incentive for agents creates a win-win situation. According to the Guardian Report, UK universities spent £28m last year on agent fees, as education agents are earning record commissions from international student sourcing.
• UK universities are looking to diversify their student population, and recruiting agents is a great way to attract students from different countries and cultures. Investing in agent charges is a smart way to create a more diverse and inclusive academic environment.
• The international student market is a key driver for UK universities that are willing to spend on agent fees. This investment is seen as a worthwhile expense considering the long-term financial potential of having a diverse and international student population.

‍2. Dependency on International Students

International students contributed £42 Bn to the UK economy in 2022. The student recruitment sector grew at a CAGR of 23%, with sponsored UK study visas reaching almost 500,000 last year in recent UK news. There are questions about the transparency of the student recruitment industry and some ethical issues, as one-fifth of university revenue now comes from international students.  

• Today, tuition fees from international students account for one-third or more of total revenue at some institutions, and many are seeing a significant increase in the share of revenue from overseas students. Furthermore, Overseas tuition fees have increased by 71% in the last six years, reaching £9.7 Bn in 2021-22.

• International student tuition fees are higher than the fees of domestic students. As per the British Council, international undergraduate students cost an average of £22,500 a year, and postgraduate students cost even more.

• According to High Education Statistics covering data from 155 universities, the study finds that a dozen universities grew by more than 15% due to a significant increase in International students.

• Concerns are growing. According to the Guardian report, people are starting to worry that UK students might not be able to get into universities because international students' higher fees are taking a bigger chunk out of universities' budgets. However, if international students are worrying and searching for affordable universities in the UK, they can check out our blog affordable Universities in the UK for International Students.

• According to the Russell Group, which specialises in research-focused universities that attract a large number of international students highlights that international fees support education and research in the interest of all students.

‍3. Financial Commitments by UK Universities

UK universities are making considerable financial commitments to secure international students through agents. Education agents are earning record commissions from this. According to the data provided by universities, the agents are paid between £2,500 and £8,500 per student. A decade ago, the number was estimated at £1,000.  The spending was made public after freedom of information requests were sent to UK universities. Many universities declined to comment on their spending on commercial grounds. While others, usually the world’s renowned universities like Oxford and Cambridge, claimed not to have worked with any education agents at all. Let's have a look at some of the financial investments made by UK Universities.

• The University of Greenwich paid over £28.7 million to education agents in 2022-23, according to data obtained by the Observer. This was an increase of £18.3 million from 2021/22 and of £3.3 million from 2017-18. The money was paid to 230 agencies and was used to recruit 2,986 postgraduate students and 500 undergraduates. On average, the London university paid £8,235 per student in agent fees in 2022/23.

• De Montfort, another university in Leicester, paid agents a total of £17.1 million in commission, an increase of £10.5 million from 2021/22. Payments were made to 4,457 international students, with an average per student of £3829.

• In 2022/23, Leeds Beckett spent £9.5m compared to £8,71,000 five years ago, while Manchester Met spent £4 million compared to £650,485 in the same period.

‍4. Concern about Transparency

Critics have expressed concerns that universities are not honest about how much they spend on agent fees. Questions arise as to whether the significant expenditure on agent fees is in line with the fundamental purpose of higher education or if it is simply a matter of prioritising financial gain over academic excellence.

• Kishore Dattu, general secretary for the Indian National Student Association, who represents Indian students in the UK, said, “Sometimes, the agent does whatever they think is best for the student, regardless of whether it's a good fit or not. They even try to tempt students with offers such as: ‘We’ll provide you with a laptop or phone.’
• Lord Jo Johnson, former universities minister, said earlier that "rogue agents" posed a major threat to universities' licences. Some gave students with false bank statements or “recycled” the same funding to help them get around visa rules that require a minimum savings threshold. 

However, the universities surveyed by the Observer said they have strict rules in place to vet agents, and there are no allegations of wrongdoing by intermediaries acting on their behalf. The universities cited a variety of reasons for increasing agent fees, including an increase in student numbers due to the launch of the graduate visa routes in 2019.

‍5. Role of Education Agents

Lots of education agents are seeing an increase in commissions as they help UK universities find international students. This shows how important they are in the recruiting process and how much universities value their services.

• Greenwich explained that the increase in spending was due to “a significant increase” in international students, which had increased by 179% since the 2019/20 academic year. In addition to an increase in students from within the UK, its basic commission rates remained unchanged. The company also stated that it had worked closely with UK Visa and Immigration to ensure compliance with regulatory requirements and that its procedures and agent partners were audited regularly. 
• De Montfort University stated that agents help overseas students with their applications, visas, and accommodation and are “crucial” for establishing relationships with international educational institutions. The university added that the fees paid to its agents are “in line with student tuition fees, which have increased for EU students”. “As a result, agents have naturally received more remuneration,” Further, it stated that it did “extensive due diligence” on all agents before signing any contracts and that if the “high standards” were not met, “we will terminate the partnership”.

In conclusion, UK universities are spending millions on agent fees in an effort to attract and retain international students. This huge investment, often in the millions, shows how competitive universities are in recruiting students from all over the world. This investment is a strategic answer to the increasing importance for universities of international student enrollment. Despite the financial impact, the practice shows how important it is for UK universities to focus on diversity and inclusion in order to build their global reputation and influence.
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