NEW YORK--(BUSINESS WIRE)--The increase in international students enrolled in U.S. colleges and universities presents an opportunity to help these institutions counter demographic shifts and augment revenues, Fitch Ratings says.
The number of undergraduate and graduate international students in U.S. institutions rose by approximately 7% to a record high 819,644 for the 2012-13 academic year, according to a report by the Institute of International Education and the U.S. Department of State's Bureau of Educational and Cultural Affairs. This is the seventh consecutive year of increases for the international student body.
Growth in international students is important as the heightened focus on affordability has driven many institutions to lower tuition charges and increase discounting. International students tend to receive less institutional aid than their domestic counterparts, which can help to augment student-generated revenues. Despite the growth, international students make up only 4% of total undergraduate and graduate enrollment. As tuition and fee revenues are typically the largest portion of revenues for many private colleges, the revenue boost from foreign students may be greatest for those institutions.
Management teams face a variety of challenges in responding to the growth of international students. The chief risk is on a college or university's operating profile, whereby a shift in the composition of the student body may challenge existing recruiting and retention strategies. However, when leveraged strategically and effectively, international students can also deliver a number of benefits, particularly in helping institutions manage through changing domestic demographics. The total number of U.S. public and nonpublic high school graduates is projected to decrease annually by up to 2.9% between 2011 and 2014, and then remain relatively flat between 2014 and 2020.
Additional information is available on www.fitchratings.com.
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