In December of 2008, the University of Adelaide announced that the base international student fees for 2009 would increase, in some cases by up to 30%.
Justification for the Fee Change
Prior to 2009, the University of Adelaide had the lowest fees of the G8 (Australia’s equivalent of the ‘ivy league’) universities. As such, the fee increase was touted as bringing Adelaide into line with the other universities with which it competes for international students. Fee increases per year of study will increase for commencing students, from the 3-8% paid by students who enrolled prior to 2009 to 5-9% per year. All undergraduate degrees offered to international students at Adelaide from 09 will range from $19,000 to $23,000 annually. Undergraduate international fees at ANU (the highest ranked university in Australia, all rankings used being the SJHT academic ranking) range from $20,400 to $22,800 annually (with the exception of the Bachelor of Medicine and Surgery, which costs $40,800). The University of Western Australia (ranked just above Adelaide) has most courses costing around $19,000 to $22,000 a year, again with the exception of Dentistry and Medicine. As such, it is clear that the latest fee increases bring Adelaide into line with, or slightly above, the other G8 universities. However, given that Adelaide is ranked the lowest of the G8 universities (on all but the THES-QS ranking), our cheaper cost was one of the points in our favour when we competed with the other members of the G8 (the others being Adelaide’s reputation as a safe city, and the fact that our English entrance scores are the lowest in the G8). The price difference, which took university rankings into account, is now largely gone. AUU President Lavinia Emmett-Grey is puzzled by the price change, saying that ‘the University of Adelaide seems to have a peculiar logic that increasing prices will improve their ranking.’ Enrolments for commencing international students show no discernable fall in demand.
A Showdown Averted
In early December 2008, information regarding a 30% fee increase in international student fees was circulated among international students. Outcry quickly followed. Of particular concern was the understanding that this increase in fees would apply to continuing students as well as commencing students. Needless to say, continuing students would be forced to pay the higher fees or drop out, while commencing students are able to weigh up the costs at different universities prior to starting their degree.
The university responded quickly to the criticism. Within days, Judy Szekeres (General Manager, Student Services) sent an email to international students in which she stated that:
‘...fees quoted in the 2009 prospectus… are charged to students who are commencing their programs in 2009. It IS NOT the fees that are charged to students that commenced in 2008 or earlier… when the University of Adelaide makes offers to potential international students to study with us we outline the tuition fees that are to be charged. We also indicate a maximum annual increase (3% to 8%) that may be applied to tuition fees after the completion of the year in which the student is to commence'.The misunderstanding cleared up, international students were able to enjoy the festive season with one less worry on their mind.
International Students at the Univesity of Adelaide
International students made up 27% of University of Adelaide students in 2007. 50% of these students are from Chinese origin. The university is aiming to increase its international student ratio to 30% by 2012. Given the rapid rate of increase for the 2005-2007 periods, and the lack of a slackening in enrolments following the fee rise, this aim is likely to be reached. The Australian Universities Quality Agency (AUQA) identified several issues faced by international students at Adelaide, highest among these the ‘different worlds’ inhabited by internationals and locals, employment difficulties, and the inadequacy of help with English. These difficulties have been recognized by student politicians: in last years AUU Board elections several candidates, as well as an entire ticket (‘Passion’), ran on platforms which acknowledged the added difficulties of being an international student at Adelaide.
Needless to say, there is often a temptation to view international students as little more than revenue-boosters for universities. This view is often reinforced by the social barriers, chosen or otherwise, that often exist between international students and the locals (also, read this). Financial difficulties are prominent among concerns expressed by international students. Often their fees are paid for by parents back home, but their day to day living expenses must be covered by their taking part-time work. SRC President Paris Dean often discusses this issue with internationals. ‘International students have told me that because of visa restrictions on employment many turn to jobs paying less than a third of the minimum wage to supplement their income, just to pay rent and other bills,’ he says.
International students are allowed to work up to 20 hours a week. Prior to June 2008, they had to lodge an application to the government to allow them to work, paying a $60 charge. This is no longer the case: midway through 2008, the visa restrictions requiring international students to work were changed, with internationals applying after this date being automatically granted the right to work up to 20 hours during semester time with their visa grant. Nonetheless, the limit on work hours often leads to difficulties in acquiring adequate accommodation and other essentials. As such, it is of little surprise that the internationals were adamant to ensure that increase must not apply to continuing students, with the Overseas Students Association (OSA), in conjunction with the Students Representative Council (SRC) and the Chinese Students Association, quickly stepping in to try and lobby against the perceived University policy.. Thankfully there was no need, with continuing student fees remaining as outlined on their university offer letters
3 comments:
Our President stated ‘the University of Adelaide seems to have a peculiar logic that increasing prices will improve their ranking.’
One must wonder if their logic perhaps went something along the lines of - with more funds from the higher fees we will be able to invest more in infrastructure, resources, support, and teaching. We could build better classrooms, provide more IT services, better fund the Barr Smith, lower tutorial sizes, or provide more support services like the Maths Drop In Centre, the CLPD, Couselling and Disability Support Services. Perhaps investing funds in these things (or in some of the recommendations from the recent AUQA report) our University could improve itself and its rankings.
I really do wonder how it is that this is a 'peculiar logic'. It seems like a fairly traditional and straightforward logic to me.
I am concerned, Daniel, with your logic.
Of course this is basic economics, but you need to save from income, (since in this climate, borrowing is difficult and costly) invest, and then demand a higher price, than demand the higher price while still supplying the lower level of service.
And then you assume that the university will be so responsible with the additional funds. What gives you this impression?
Tuition fees are paid upfront. Thus, an increase in fees can lead to an immediate increase in service provision (though not the provision of all the examples I provided).
Your argument about not being able to increase prices before improving quality, only holds if there would be a fall in demand from increasing the price. If the university believes that it could increase prices and still sell all available places, then your argument does not hold. I would contend that the university did believe this and that this was in fact the case (as suggested by the statement in the article that there has been no discernible fall in demand).
As for the university spending it wisely, my argument was not predicated on the university actually managing to improve its ratings through increasing prices. It merely requires that the university believe that higher prices will enable it to do more to improve its ratings. I suggest that the university would believe that it would spend the additional funds wisely.