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Here’s The Amount of Money Colleges Make from Rejected Applications

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Replies to: Here’s The Amount of Money Colleges Make from Rejected Applications

  • tula32tula32 Registered User Posts: 96 Junior Member
    Some colleges don't charge fees, and their application numbers don't go up all that much. It takes time to write a good application, and most students do value their time during senior year. I doubt that anyone would write a ton of applications just for fun or to see if they get in.
  • WISdad23WISdad23 Registered User Posts: 753 Member
    I have no problem with colleges making money.

    However, with highly selective schools that brag they could fill themselves twice over with valedictorians and such I wonder what is the purpose of the rigamarole. The idea that they are "crafting" an ideal class is about like Paul Masson serving no wine before its time. The school could simply throw darts at the top half of its applicant pool and be fine. Why labor over the essays, recommendations, etc? It is splitting hairs. I do feel sorry for the student applicants who pour themselves into the process.
  • vonlostvonlost Super Moderator Posts: 21,669 Super Moderator
    "The school could simply throw darts at the top half of its applicant pool and be fine."

    They really are crafting a class to maintain their culture and reputations. Random isn't good enough.
  • marvin100marvin100 Registered User Posts: 9,014 Senior Member
    That "gross profit" number is extremely misleading as it doesn't reflect the expenses involved.
  • pdlhaenepdlhaene Registered User Posts: 4 New Member
    What a click bait.. this is misleading
  • jrm1ntjrm1nt Registered User Posts: 8 New Member
    Also a lot of people are eligible to waive application fees. I wouldn't be surprised if it was more than half.
  • Sonya LiggettSonya Liggett Registered User Posts: 1 New Member
    That's a lot of money!
  • MITPhysicsAlumMITPhysicsAlum Registered User Posts: 75 Junior Member
    So like, they totally are getting revenue from unqualified students who don't know better than to not throw their money away on an app.

    Yes, they are. Like totally. And they are also incurring expenses from the unqualified students who don't know better than to not throw their money away on an app.
  • amysmomamysmom Registered User Posts: 9 New Member
    Ever since my daughter who is graduating from Vandy this year was applying to colleges, I've been curious about the "College Board" and where the money goes. We paid to take and send SAT, AP, and ACT scores to every college plus application fees for each school. Everything is done electronically, so there can't be that much of an expense anymore. The Common App has make it so easy to apply to additional schools, just check another box and pay another fee. Students applying to selective universities need to apply to several because acceptance rates are so low. Just because they aren't accepted doesn't mean they aren't qualified. Another top student from her high school with similar stats was accepted everyplace Amy was wait-listed and wait-listed everyplace Amy was accepted. It was like they flipped a coin because they have so many qualified applicants.
  • vonlostvonlost Super Moderator Posts: 21,669 Super Moderator
    edited May 9
    ^ Stats are significant at state schools, but may be as low as 20% of criteria at private schools (where they must indeed be high!).
  • MITPhysicsAlumMITPhysicsAlum Registered User Posts: 75 Junior Member
    There is a small college near me - competitive but not very competitive. How much do they spend on admissions? They have eight staff, and if they average $60,000 each - the same as the average 9-month salary for a school teacher, that's $480,000 on salary alone, Add in fringe benefits, space charges, travel, promotional material etc. and this maybe doubles: call it a million dollars. They get 2000 applications last year, so it costs them somewhere around $500 to process an application.

    Their application fee is $40. Clearly this is not a profit center for them.
  • jzducoljzducol Registered User Posts: 67 Junior Member
    Just like any industry these days the rich gets richer the poor gets poorer. With common app the kids are applying to more selective colleges and these schools at the top are definitely doing much better in their bottom line than twenty years ago as they have seen an explosion of applications. If UCLA is getting five times more apps are they hiring five times more staff?
  • user4321user4321 Registered User Posts: 76 Junior Member
    edited June 2
    These guys are so inefficient and they have so much overhead that they probably lose money on every app they reject. But the more exclusive they appear, the more they can charge the people that get admitted and this more than makes up the (minor) loss on the rejects
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