"After long research, Edu, short for Eduardo, finally decided to apply to several universities. What stroke him was the very different approach to the fees he had to pay and at what stage of the process:
- University A didn't charge him anything. The application was short with basic details, and the outcome he received in a couple of days after a 15-minute call from somebody from the university.
- University B had an application fee when he submitted his application. The process was very structured with indicated timelines and they met all of them to date.
- University C didn't charge him anything, but only at the beginning of the process. When he got a confirmation to progress in the process, they asked him for payment to proceed. Then he learned of another fee to issue his enrolment confirmation for the embassy.
Though he hasn't decided yet, why do universities charge so many fees given their high tuition?"
Most universities are charging application fees. In a nutshell, it is a way to deter random applications from candidates who "try their luck." It helps to generate a minor income to cover the cost of managing the applications through the process. When charging application fees, universities should be guided by the following principles:
Reasonable
You don't want to discourage candidates from applying when they tick all your boxes. The application fee ranges between 100-200 USD/EUR for top-tier universities and between 30-80 USD/EUR for many other universities. There can be differences in fees for local or international students. There is no correlation between the application fees and the overall tuition. Check with your direct competitors or those you wish to see as competitors as benchmarks.
Simple
Keep the payment process simple. Request only one payment along the process. Credit cards are the most common form of payment. However, note that credit cards might not be so easily available in some countries. Find other cost-efficient alternatives. Bank transfers should be the last resort as the administration of these transactions is complex, and fees for both sides are high.
Transparent
Be transparent with your fee structure and communicate it clearly. If there are different charges, explain them in detail. You don't want to confuse the candidate at this process stage. S/He is in buying mode but hasn't bought yet, so you want to avoid surprises along the way.
Some institutions are working with Fee Waivers for certain events or occasions. It definitely can be attractive if you wish to drive applications from candidates with defined profiles. You might wish to use this tool for only a limited period of time; otherwise, you will create the impression that you are in desperate need of applications.
If your margins and processes allow, keep your fees in line with those of your competitors. It's a minor amount in comparison with the overall investment. However, it can become a deal-breaker when your university stands out for the wrong reasons.
If you wish us to review this process, contact us or join one of our Workshops.
About this blog: EDU, short for Eduardo, is a great guy! He is your lead, candidate, student, and alumni. He helps you see things from his perspective. You will understand why things matter to him. On his blog, he will pose questions to which you hopefully have answers - or we help you to find them! So, go ahead and explore more stories at Eduardo, or get the latest stories directly delivered to your inbox by subscribing here.
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