NEW studentPOLL: DEI and College Choice: Prospective Students Are Listening & It’s Personal August 8, 2020 The (Deferred) Class Of 2020 Archived ← Back to News Published by OZY … Typically, colleges see a deferral rate at around 1 or 2 percent from accepted students — but this year, experts expect that number to be significantly higher, says Craig Goebel, a principal at the higher education consulting firm Art & Science Group. Typically, university administrators use college deposits — minimum fees students send in to secure their place at a university after receiving an acceptance letter — to forecast the size of their incoming class. Those enrollment numbers in turn are a key determinant of the annual revenue colleges earn and shape how they allocate resources. However, those are no longer reliable indicators: A study by Art & Science Group shows 12 percent of students who’ve paid up have since decided they no longer plan to pursue full-time, four-year college this fall. In effect, school finance departments this year are flying blind. “Your deposit rate is really the only thing you have to go on,” says Jamie Ealy, a senior associate at Art & Science Group, who used to work in admissions offices at West Virginia University and Berea College in Kentucky. In the long term, education experts say that reduced enrollments will likely increase the wealth gap between institutions with deep pockets that can weather this storm, and those that do not have the same financial flexibility. And the impact of deferrals could be felt next year too. If the number of deferred applicants who queue up to join college in 2021 is significantly larger than usual, that cuts into the number of seats available for fresh high school graduates next year. … The key for universities, Goebel says, is to think not just of the “here and now” but of what the future could bring. Educational institutions may need to rethink their pricing strategy amid a recession, particularly as families grapple with long-term income insecurity. While dealing with cuts, schools will need to pinpoint — and then double down on — what truly differentiates them from the competition while cutting the fluff. … Most experts believe students will eventually want to return to the in-person classes, sporting events and social calendar that we associate with university life. “Our research shows that one thing students want is the typical on-campus college experience,” Ealy says. So it’s understandable that colleges are loathe to give up their physical model and fully shift online — also because it’s those in-person memories that often drive alumni to donate to campuses long after their college days. None of that helps students currently trapped with the anxiety of deciding whether to defer or not. For some, such as Aquino, higher education might be losing its appeal altogether. “Personally, how I see it now, I would think that just taking up a job would be more effective in the long run,” she says. That dreamy Mediterranean breeze will have to remain a dream deferred. Read full article → Source:https://www.ozy.com/the-new-and-the-next/the-deferred-class-of-2020/366825/#.XzJ7OhxWYD0.twitter Tagged: Pricing, Market Research, Enrollment, Tuition, studentPOLL Share Newer Post What Higher Ed Has Learned From Covid-19 So Far Older Post Rebates and Reversals ARCHIVED NEWS The (Deferred) Class Of 2020 Aug 8, 2020 Rebates and Reversals Jul 24, 2020 Preparing to Poach Feb 6, 2020 After Scandals Explode, Universities Often Raise More Money Than Ever Before. Why? Feb 6, 2020 After Scandals Explode, Universities Often Raise More Money Than Ever Before. Why? Aug 14, 2019 View all → Browse by Tag JOIN THE CONVERSATION Sign up to receive news and updates featuring our latest research and insights. SIGN UP CONNECT WITH US SUBMIT AN INQUIRY We're eager to learn more about your institution's aspirations and challenges. SUBMIT JOIN OUR MAILING LIST Sign up to receive news and updates featuring our latest research and insights. SIGN UP MEDIA REQUEST We're happy to share our insights on the latest trends and research in education. EMAIL 300 E. Lombard St., Suite 610 Baltimore, MD 21202 (410) 377-7880 | hello@artsci.com © 2021 Art & Science Group, LLC CONTACT US ABOUT TEAM SUBMIT RFP CLIENT PORTAL SURVEYS PRIVACY POLICY CAREERS Market-informed strategy for higher education, independent schools and nonprofits.