American university pays for exclusivity in demand for international students

The hunt for international students is usually done on a shoestring budget, with college administrators heading over to recruiting fairs in India in the hope that some of the prospective (full tuition-paying) students will yield a return on their investment.
The National University set themselves apart from this norm by securing a more immediate financial return. An educational management company made a US$2.5 million donation to the California-based university as part of an agreement in which Global Campus Management gained the exclusive right to recruit international students and provide administrative/student services (including assistance with housing, non-academic advising and cultural programming) to incoming students upon their arrival at the university.
Thomas Kerr, Global Campus Management President and CEO, said the exclusivity and ten year contract term were “worth a financial commitment to the university.” The management company derives its profits through revenue or tuition sharing agreements, in which it keeps a proportion of international students’ fee.
The $2.5 million payment was intended to offset a cost to the university of exclusivity, as on-campus management responsibilities and tuition revenue for all international students would be shared with the company going forward, explained Richard Carter, National’s Vice President.
Data submitted to the Institute of International Education’s Open Doors survey, the university’s international student enrolment has climbed from 492 in 2005 – when the agreement was established – to 750 in 2006-7. The goal is to reach 800 by the end of 2008 and 1,100 in 2009.