Diversify Income

Today, colleges are encouraged and challenged to think creatively about expanding and developing new revenue streams to support their short- and long-term goals. Moody’s Investors Services has outlined in its published reports how every traditional source of income for colleges and universities faces some pressure.

Unfortunately, the pressure on all revenue streams and sources is the result of macro-level shifts in economic, technological, and public opinion, and these shifts are largely beyond the control of institutions.

Moody analysts have warned that revenue streams will never flow as much as they did before 2008. It found that the change will require a fundamental change in the way colleges and universities operate; one that requires more strategic thinking.

In its studies, Kampus Unggul Moody’s states that colleges and universities must rely on strategic leaders who are willing to address these challenges through better use of technology to reduce costs, create efficiencies in their operations, demonstrate value, new markets to develop and prioritize its programs. However, many of these efforts can lead to disputes with faculty members or other institutional components unless they are able to obtain the collective consent that is the basis of university governance. But with the setting of goals and the development taking place as part of the process, hopefully there will be a broader understanding on all sides.

Greater revenue constraints can be attributed to major changes in the economic landscape, including lower household incomes, changes and fluctuations in economic and governmental patterns, declining numbers of college graduates, the advent of new technologies, and a growing interest in getting the most out of a college education – particularly in terms of employment after graduation. A stable fiscal picture and outlook would require improved pricing power, a sustained and truly measured decline in the unemployment rate, improvements in the housing market, and several years of consistent stock market returns.

The traditional higher education model has been disrupted by the possibility of massive open online courses, particularly by legitimizing online education and other technological innovations. In many ways, this has signaled a fundamental shift in strategy on the part of industry leaders to confront these technological shifts that threaten to destabilize the long-term business model of residential colleges and universities.

There are other related challenges for higher education: growing student debt, which has surpassed $1 trillion nationally, default rates, and pressure on politicians and accrediting agencies to ensure the value of degrees. In addition, alarms continue to sound about a possible student loan bubble and the declining affordability of higher education.

One way for colleges and universities to get students and their parents to pay higher tuition is to show that the results—including their campus experience, postgraduate employment, graduate school enrollment, and long-term success and satisfaction—are there worth are tuition and future wages. Students and their parents want to know, “What am I getting for my investment?” As a result, recruiters are having a harder time “selling” traditional training as training costs continue to escalate.

But the education on campus and the life and learning experience are the “door openers”. As I like to say, “We are a product of our environment.” Finding the right friends, forming relationships with influential professors, administrators, parents and relatives of friends and fraternity brothers or sisters, all of these are factored into the student’s environment equation. In retrospect, students may forget or never use half of what they learn, but the connections and friends they make and the experiences they gain while studying are priceless.

Over 1/3 of the country’s colleges and universities are in some sort of financial crisis. Many have gone from a full operating budget to a comfortable black to a severe red. And cash reserves have fallen, as have endowments.

Without a doubt, the university needs to find new sources of income. Attracting more foreign and international students is an additional source of income for these institutions.

We must never lose sight of the importance of investing in higher education. The training of young people is in the foreground. Developing ways to maximize time and money, such as B. Integrating classroom projects and research that could lead to publication is another alternative to consider.

Permitting and/or expanding on-campus commercialization may provide additional revenue streams. Examples of this could be the granting of naming rights to companies at sports facilities or increased advertising signage in arenas and stadiums. This may seem drastic, and some may even say, “You must choose your poison” when being creative to increase your revenue streams.

One way is to try to reduce the university’s “discount rate,” which is the percentage of total tuition that the university waives to provide financial assistance to its students. But that can be a risky business. Any attempt to lower the discount rate potentially upsets an extremely delicate balance. The goal is to attract families who are able and willing to pay full or near full tuition, while also making school more accessible to less affluent students and achieving the right grade by providing merit subsidies to help students Attracting high potential who could later benefit the school and the wider community can be a way of achieving a better balance among the many factors that drive enrollment. In addition, it may help to increase fundraising efforts to offset a potentially rising discount rate.

Another factor to think about is the amount of construction work the institution may have on campus, particularly during campus tours, to determine the impact it may have or is causing any dips in the recruitment process. While building on campus is a sign of growth and improvement, in the short term it’s not always the most appealing thing for students to see and hear on campus or experience during a campus tour with their parents.

The universities must also reckon with the upcoming demographic change. You may have to deal with an economic and social environment where more families are haggling for the best deals between different schools. If this is the case, institutions should consider putting forward their best offers first and try to avoid lengthy negotiations.

Students create more choices and have more access to more choices. The Internet makes it easier for students to research and apply to more colleges.

Some of the private institutions have held back from the tuition increase trend, and some have even lowered tuition fees to attract more students. Other schools have taken more unconventional measures, such as For example, freezing tuition fees, offering three-year courses, or granting students four-year graduation guarantees. They do this with the goal of increasing enrollment numbers that will more than offset the cuts made, generating more overall revenue without sacrificing student education.

But even since the economic downturn, private colleges and universities across the country have redoubled efforts to lower operating costs, improve efficiency, and increase affordability to remain accessible to families of diverse backgrounds. You mustn’t lose sight of that. It has to work on both ends; Reduce costs and increase revenues.

Other strategies that might be considered to increase college enrollment and revenue streams might include the following:

  • Search segmentation to target high-profile students with different messages;
  • increasing scholarship levels (while maintaining net income needs);
  • Targeting out-of-state students or students outside of traditional markets;
  • Alignment with high school honors programs;
  • implementation of a scholarship recognition day;
  • emphasizing off-campus opportunities such as internships and study abroad;
  • Promotion of graduate school internships and outcomes; and
  • Development of high-quality academic majors, pre-professional programs or new majors and programs to support enrollment growth.

Additional considerations for increasing revenue streams may include:

  • Review each existing educational program and the revenue provided by each, as well as how direct costs are covered, and determine what changes, if any, should be made;
  • Accelerating 4-year degree programs to 3-3 ½ year programs to save on tuition and use them as a marketing tool for recruitment without changing the student’s education;
  • Providing an automatic 2-year University Graduate Scholarship for students who enroll in a 4-year undergraduate program and meet and maintain a defined GPA level and other predefined University standards and goals. Use as a marketing and recruitment tool;
  • Having a full-time university application assistant/searcher who seeks state and federal funding, as well as working with faculty and staff to develop research projects for funding and use as educational programs for the students;
  • Establishing joint and collaborative programs with other universities in the US and abroad for recruitment;
  • Consider a general reassessment of the recruitment process to identify and “mentore” prospective students, expanding horizons and outreach.
  • Achieve more presence at “national and interstate” level;
  • determining whether any new programs should be added, programs removed, or improved and/or expanded;
  • Development of tools to “present a plan” and a “comprehensively designed package” to finance and pay for education costs;
  • Reach out to alumni and friends to find better ways to contribute to the university through pensions, insurance, and other charitable giving techniques and products; and
  • Developing relationships with corporate sponsors for scholarships and grants and internships for graduate students.


For the mentioned proposals to consider possible new revenue streams to support the institution’s short- and long-term goals, it will be important to develop predictive financial modeling tools to test the proposed changes and outcomes for enrollment rates and the projected impact on revenue streams and the overall result.

In all of this, we must never lose sight of the fact that education prepares graduates to lead lives of accomplishment, contribution and meaning. And as I like to say, “The students become a product of their environment.”

Campus debit cards benefit both schools and students

Campus debit cards are changing the way colleges do business—from paying student loans to spending on and off campus to reconciling accounts. Used as a dual debit card and identification card, campus cards are gaining popularity among colleges, students, and their parents because of their versatility, ease of use, savings, and security benefits.

Because campus debit cards can be loaded with funds rather than linked to a bank account, students have a quick and easy way to buy just about anything they need, and higher education institutions make more money in the process.

Campus debit card benefits for students

These cards are a great alternative to cash. They offer students the ability to track and view their spending – something they can’t easily do with cash. They can also avoid costly last-minute trips to the ATM since they already have their money loaded on their card.

Campus debit cards are handy for parents to add money to, and if the card is ever lost or stolen, it’s easy to replace and the money is protected — something cash can’t offer either. Student benefits include:

  • Accessibility – Students can use it just like a regular debit card wherever they shop
  • Convenience – Students can buy what they need without using cash.
  • Availability – Money is available immediately and students don’t have to worry about going to the bank or ATM.
  • Money Management – Parents and students can easily monitor their spending and ensure they stay within budget.

Instead of dealing with paper paychecks or waiting for deposits to clear at the bank, campus debit cards also allow paychecks and student aid payments to be loaded automatically and the money is available immediately.

Benefits for colleges

Campus debit cards also offer many benefits to higher education institutions, including: • Reduced costs – Schools can eliminate the costs associated with paper checks and streamline and reduce the cost of reconciliation. • Increase Sales – You’ll make it easier and more convenient for students to buy everything they need on campus, making them more likely to keep their money closer to home. • Enhancing Security – Your cards can serve as student ID cards required for access to secure campus facilities. • Simplified Financial Aid – They are also fully integrated with the Department of Education’s Title IV for Financial Aid disbursement requirements.

Campus debit cards make it easier, safer, and cheaper for everyone to buy, spend, and receive payments. With unmatched convenience and flexibility, they are the best all-in-one solution for higher education institutions, students and parents alike.