Top Enrollment Challenges of 2017

1State Funding Decreases

For public colleges, a major pain point over the past decade has been state budget cuts.

In fact, 47 out of 50 states have less funding for higher education now than they did prior to 2008’s recession (Center on Budget and Policy Priorities, 2016). Most schools have tried to accommodate for this by hiking tuition, but this has only caused animosity in both current and prospective students.

Since there doesn’t seem to be much indication of if or when state funding will become more favorable to higher education, schools are forced to find other ways to keep enrollment steady. Rather than raising tuition or cutting programs, many have opted to rebrand and invest in more marketing that focuses on their strengths.

This allows schools to tell prospective students about their quality and stresses the idea of education as an investment in the future. Some schools have also gone the route of incorporating more online programs to up their versatility in a market that’s increasingly consisting of more adult learners.

2Federal Immigration Legislation

Although last year was a record year in the number of international students studying in the U.S., 2017 looks to be a bleaker year as far as this statistic goes. The immigration ban enacted at the beginning of President Trump’s term suspended the visas of many current and prospective students from the Middle East, projecting the sentiment that individuals from other countries are not welcome in America. 38% of surveyed institutions reported a decline in the number of international applications they received early this year (Inside Higher Ed, 2017). The general uncertainty and tension surrounding the ban has contributed to the decrease, and many smaller schools that rely on international students are concerned about making up those lost enrollments.

The ban has been blocked from taking full effect, but schools will still need to go above and beyond to build up their international relationships and establish rapport. One way this can be accomplished is by streamlining and simplifying the admissions process to create a less daunting task for prospective international students. Schools will also need to adopt more aggressive strategies of reaching their local markets to compensate for their international losses. For example, by implementing more paid digital advertising or analyzing data patterns of the area, they can see where there is the most potential for student enrollments.

3Declining Number of High School Graduates

This factor is a bit deceiving, as the graduation rate itself isn’t what’s declining – it’s the birth rate. There are overall fewer high school graduates simply because there are fewer in this age bracket in general. This decline is only expected to continue over the next 20 years.

However, as the total number of graduates declines, the demographic is also shifting, revealing that within that number of graduates the percentage of those who are non-white or low-income is increasing. For schools to increase enrollment within a shrinking pool, they will have to redouble their efforts to reach these expanding minorities through marketing that reflects this rise in diversity – both in its imagery and its messages.

4Weak Demand Due to Low Unemployment Rate

In March 2017 the unemployment rate fell to 4.5%, which is the lowest rate since 2007. While this is a fantastic improvement in the economy at large, it has had a negative effect on higher education. When jobs are plentiful, prospective students tend to forego or postpone their education in favor of entering straight into the work force.

For schools to reach this potential market, there must be a consistent focus on conveying the benefits of having a degree, i.e., increased earning potential and better job opportunities. An additional way to reach out to this demographic is by promoting specialized degree programs, as the growing need for industry experts in high-paying fields like business analytics and finance has created a market for these advanced degrees.

5Geography Plays a Bigger Role

Whereas 15 years ago the distance of a college was not considered a huge issue for most students, the average student now is more practical. Many students wish to complete their degrees as relatively inexpensively as possible, and out-of-state tuitions are still an obstacle for these prospectives.

Some schools have jumped this hurdle by offering discounts in tuition rates for out-of-state students, but others have taken the simpler approach of promoting their strong suits. An excellent reputation for particular academic programs and high completion rates go a long way in recruitment, and create a draw that outweighs the geographical considerations.

6Online Pressure

As convenience and flexibility become greater priorities for students, traditional schools are lagging behind the booming online schools (see more on this on page 10). The best solution for brick-and-mortar institutions would be to branch out into online, but that requires considerable time and funding. Nevertheless, the forecast is clear: online schools (and even community colleges with diverse programs and online options) are flourishing, and the best option for traditional schools is to make whatever investment necessary to develop their own online programs. Those that have gone this route have experienced rapid success, proving that the investment is well worth the return.

7Ramped-Up Competition

The changing priorities of younger generations have lessened the appeal of brickand- mortar schools over the past decade, leaving an open avenue for online schools to break through. The diversity of schooling models has increased the competition to the point where many schools are discovering that their brand is mere white noise in the vast expanse of college marketing.

Now, more than ever, institutions are seeing how critical it is to set themselves apart. Many are accomplishing this via brand evaluation  researching and rethinking their image, voice, and what makes their institution unique, recognizable and inspirational. Such appraisals are a highly effective way for established schools to regain their marketing direction without overhauling their academic methodology.

8Lowered Retention Rates

Attrition is a perennial issue for schools. A 2013 study performed by the Educational Policy Institute shows that the average school loses out on approximately $10 million a year due to students dropping out before they’ve finished their programs. If enrollment is continuing to decline, one way to make up this revenue is by halting the exit rate.

Many institutions are calling on technological advancements to assist with this issue. Automated communication systems that analyze students’ performance (both past and present) are an incredibly effective way to keep students on a path to graduation.
These systems guide students into classes where they will have the most success based on their past work, and even notify them when their grades are slipping so they can seek help. Proactive communication is the first step to student retention, and automation can help schools achieve this.

9Effective Communication During Admissions

In the area of higher education admissions, there is a disconnect between how prospective students wish to be contacted, and how schools think students want to be contacted. Admissions staff are turning to social media to engage the upcoming Gen Z audience, but statistics are showing that young people are not thrilled by this method of contact.

Prospective students spend a great deal of time on social media, to be sure. But when it comes to schools, social media is a research source, not a communication method. Instead, students prefer to have personal communication with admissions offices via email or phone. This doesn’t mean that schools should back off their online presence, but rather that they should view it as information providing and brand-building, not a communication tool.

10Reputation Problems

Higher education institutions across the board have been affronted by reputation issues stemming from student loan debacles and rising tuition rates, and the problem only worsened when the Obama administration laid heavy regulations on proprietary schools. The resulting public skepticism bled over into the nonprofit realm just as it had already tarnished the proprietary sector’s image.

Regardless of what happens with these regulations under the Trump administration, the entire education industry will still have the heavy task of rebuilding its image. Increased transparency and accountability would be huge in helping to dispel skepticism – as would marketing that emphasizes student success rates. Boosting the public’s trust will depend entirely on conveying that the institution’s priority is first and foremost to benefit the student.