QSIU HE Digest – Traditional University Revenue Sources Questioned

  • Funding: University Revenue Sources
  • India:Study Abroad Trends
  • US:Credit for MOOCs in California
  • UK:Universities to Go to Schools

If colleges and universities thought they could ride out the current revenue challenges by becoming more like some other institution, Moody’s Investors Service has a bit of bad news for them: The grass isn’t greener on anybody else’s quad. Not even Harvard University’s.In a report the ratings agency outlines how every traditional revenue stream for colleges and universities is facing some sort of pressure, a finding Moody’s uses as grounds for giving the whole sector a negative outlook. The agency has been pessimistic about much of the sector since its annual outlook in 2009 after the economic downturn began, but Wednesday’s report contains a downward shift in how analysts view even market leaders, the elite institutions with high demand and brand recognition. The pressure on all revenue streams is the result of macro-level economic, technological and public opinion shifts, the report states,noting that these changes are largely beyond the control of institutions. Moody’s analysts caution that revenue streams will never flow as robustly as they did before 2008. The change will require a fundamental shift in how colleges and universities operate, they say, one that will require more strategic thinking.

Full Story: Inside Highered

Four year enrolment trends of leading destinations indicate a stagnancy or decline, except with Canada. What explains this trend? What are the future enrolment trends expected for 2013? The post-recession scenario hit the mobility of Indian students quite hard and uncovered two primary segment of students-immigration-driven and career-driven. Each destination has a mix of these two segments. It ranged from majority career-driven Indian students going to the US at master’s degree level, to majority of immigration-driven students going to Australia and enrolling at vocational and technical colleges. Due to recession, the US as a destination lost some of its attractiveness due to a lesser availability of financial assistance from universities and poorer prospects of finding jobs after completion of education. This is the time when one-year master’s programs in the UK became quite attractive for Indian students who were ready to pay for shorter duration master’s programs and a higher potential for immigration as compared to the US. At the same time, Australia hit its peak with Indian students in 2009, with a large wave of Indian students using education as a pathway for immigration through vocational program.In 2013, I expect Australia to start recovering from its bottom primarily due to negative perceptions in the UK and reversal of some immigration policies including new post study work visa arrangements.

Full Story: Dr Education Blog

State universities in California, looking for creative ways to reduce education costs at a time of budget stress, are turning to MOOCs to offer low-cost options for students.On Tuesday, San Jose State University announced an unusual pilot project with Udacity, a for-profit provider of the massive open online courses, to jointly create three introductory mathematics classes. The courses will be free online, but students who want credit from San Jose State will be able to take them for just $150, far less than the $450 to $750 that students would typically pay for a credit-bearing course.If the project continues beyond the pilot, the university will keep 51 percent of any revenue after costs are covered and Udacity will keep 49 percent, said Mohammad Qayoumi, president of the university, in
an interview on Monday.

Full Story: The Chronicle

Universities must begin working with children as young as seven to prepare them for the challenges of being a student, a UK equity expert has ruled. Academics should host campus visits by groups of primary school pupils and visit classrooms to give children “a taste of university life” and develop their interest in academic subjects, he says. All British universities will be expected to follow this guidance as a condition of being allowed to charge anything above £6,000 ($9000) in tuition fees from autumn 2014.

Full Story: The Australian


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