Application Fees: 3 Key Principles To Consider Before Charging

Application fees can be a valuable tool but also impact accessibility and applicant perception. Before implementing them, universities should consider three guiding principles to balance revenue, fairness, and enrollment strategy.

After long research, 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 and had basic details, and the outcome was that he received it 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, which have been met 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.

Most universities are charging application fees. 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 30-80 USD/EUR for many other universities. There can be differences in costs 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, credit cards might not be so readily 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. 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.

Some institutions are working with Fee Waivers for specific events or occasions. It can be attractive to drive applications from candidates with defined profiles. You might wish to use this tool for only a limited period; otherwise, you will create the impression that you need applications.

If your margins and processes allow, keep your fees in line with 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 this blog, he will pose questions to which you hopefully have answers - or we can help you find them! Go ahead and explore more stories at Eduardo, or get the latest stories directly delivered to your inbox by subscribing here.