A Look into the Crystal Ball

CONCORD, Mass., Feb. 15, 2012 /PRNewswire/ -- Stealth global competition for American students, the new Net Price Calculator, influential social media, and disparities between "haves" and "have nots" are all issues that will make 2012 a transformative year for colleges and universities, according to Maguire Associates, a leading research-based consultancy for higher education. Here, four of Maguire Associates' most experienced experts offer their insights on the landscape for the coming year, one that's sure to be a game changer.

The Net Price Calculator (NPC) proves to be a defining strategic choice for colleges and universities

2011 marked a major change in the availability of college cost information, with all institutions required to post a NPC on their website that delivered a personalized, estimated price tag to prospective students (and their families). A significant number of them took advantage of this new tool even before the federal law officially went into effect in late October. According to Maguire Associates' and Fastweb's 2011 College Decision Impact Survey (CDIS) of more than 21,000 American high school seniors, approximately one-third (32 percent) reported last spring that they had used a net price calculator hosted on a college or university website.

While the full implications of the availability of this new resource are just beginning to become clear, institutions that have embraced the NPC and consider it a strategic advantage are starting to see significant changes in student traffic and interest. In 2012, these schools will play a productive role in shaping and leading the cost transparency movement.

"In the coming year, this new transparency tool will give institutions an even greater opportunity to engage students and their families in increasingly substantive conversations about the value of a higher education at their institutions," said Kathleen (Kathy) Dawley, Maguire Associates' President. "The NPC presents the chance for institutions to communicate that they are more affordable than many students and families believe." 

Using social media to recruit new students is no longer a "nice to have", but a necessity

Social media channels are now key decision-making tools for prospective students. With 93 percent of students surveyed through the recent CDIS reporting that they use at least one of the three major social networking sites (Facebook, YouTube or Twitter) a couple of times per week, and almost 60 percent using Facebook several times a day, it is imperative that colleges and universities meet these students where they are seeking information.

In fact, nearly 60 percent of the students surveyed said they determined whether or not a school was a good fit for them while they were visiting social networks, using various channels to gather information—from chatting online with professors and current students to watching videos.

"The pressure on colleges and universities to have an engaging, coherent social media presence is increasing as students become more sophisticated about – and perhaps more immune to – institutional attempts to communicate their messages," said Jessica McWade, Executive Vice President of Maguire Associates. "2012 is the year for institutions to become more intentional and strategic in how they deploy social media to attract and interact with prospective students."

Stealth global competition for American students from institutions outside the U.S. will intensify this year

In the face of the withdrawal of government financial support in the United Kingdom, institutions of higher education there are shifting to pricing models that more closely resemble those of the U.S. Although tuition in the U.K. is now at an all-time high of $14,000 (9,000 pounds Sterling), sparking sometimes violent student protests and demonstrations, undergraduate students in the U.S. increasingly view these high prices as a relatively good deal when compared to the cost of an American college education.

Linda Cox Maguire, Vice Chair of Maguire Associates, predicts, "These institutions will increasingly present a powerful value proposition to American students seeking an excellent educational experience. They're saying to students, 'Why not take advantage of the opportunity to study outside the U.S., and gain a global, cross-cultural experience at the same time?'"

And so in 2012, Maguire Associates believes institutions outside the U.S. will step up efforts to recruit American students who consider this an affordable option as degree-earning candidates, and not just for a semester or two of study abroad experience. Full-time recruiters are being established in the U.S. and enrollment plans are likely including in-takes of American students. Savvy colleges and universities in the U.S. are already monitoring the situation and addressing this challenge.

"To Have and Have Not" – the gap continues to widen

Dr. John (Jack) Maguire, Chairman and Founder of Maguire Associates, believes that the impact of the growing economic and social divide on education – between not only "have" and "have not" families, but also institutions of higher education – is an issue that has gained prominence in recent months, as evidenced by the Occupy Wall Street movement. 

As Jack Maguire says, "About 50 private institutions now control more than half of college and university endowment money (the haves), while educating fewer than two percent of the nation's students — a two percent that is disproportionately drawn from wealthy families.  On the other hand, serving the have-not students has become, by default, the disproportionate responsibility of the have-not private institutions and the public four-year and community colleges.  Such institutions struggle to survive even without the added challenge of financially needy students.

Therefore in 2012, I challenge everyone who hears a calling to serve higher education to seriously consider what we can do to restore the equilibrium and ensure access for all.  Let us hear from you at www.maguireassoc.com/contact-us/."

About Maguire Associates

Maguire Associates is a research-based consulting firm that has served over 400 educational clients, from colleges and universities to independent and public schools, consortia, and government organizations focused on education. For 28 years, the firm has helped educational institutions to improve their competitive positioning, increase their net revenues, and strengthen their health and vitality. Maguire Associates applies the latest innovations in market research, analysis, and predictive modeling so that clients can understand the dynamics behind their past performance, and leverage these insights for sound decision-making going forward. For more information, visit www.maguireassoc.com.

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SOURCE Maguire Associates