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

Dave_BerryDave_Berry CC Admissions Expert Posts: 2,139 Senior Member
"... An example is Harvard University which earns $3 million in gross profits from rejected applications every year, and that is according to UCEazy. The data from the study also show that universities are able to make over $200 million in total from rejected applications because applicants are not prepared and unqualified ...

... Here are the five schools that earn the most from rejected applications.

1. University of California-Los Angeles: $5,369,840

2. University of California-Berkeley: $4,681,320

3. Stanford University: $3,632,130

4. University of California-San Diego: $3,608,290

5. University of Southern California: $3,419,440" ...

[Video]

http://www.universityherald.com/articles/72481/20170416/here-s-amount-money-colleges-make-rejected-applications.htm
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Replies to: Here’s The Amount of Money Colleges Make from Rejected Applications

  • happy1happy1 Registered User Posts: 15,030 Senior Member
    edited April 16
  • vonlostvonlost Super Moderator Posts: 20,294 Super Moderator
    What reporters will say to make a profit!
  • TooOld4SchoolTooOld4School Registered User Posts: 2,411 Senior Member
    Those articles are all clickbait.
  • OHMomof2OHMomof2 Registered User Posts: 8,748 Senior Member
    ^^^^^ this
  • DaveMcBobDaveMcBob Registered User Posts: 17 New Member
    Is this actually "gross profit" or is it revenue?

    I didn't see where all the costs were estimated. Is that somewhere else?
  • otoribashiotoribashi Registered User Posts: 503 Member
    not to mention a lot of students get a fee waiver so you can't just do "# of applicants - # of accepted" x application fee

    i applied to 4 UC's and a private school that has a $90 fee. didn't pay a dime (thankfully! if not i wouldn't have applied. i wanted to apply to more UC's but $70 for a "what if" is too much for me and my family)
  • EyeVeeeEyeVeee Registered User Posts: 293 Junior Member
    Stanford for example has 30 territory managers. Those managers have salaries, offices, bosses and out of pocket expenses (lots of travel). At $3.6M, I wouldn't be so sure they aren't losing money after fee waivers.
  • mikemacmikemac Registered User Posts: 9,323 Senior Member
    edited April 17
    I didn't see where all the costs were estimated. Is that somewhere else?
    That's the whole point.

    The original "analysis" I linked to in post #2 that formed the basis of the article consisted of multiplying the number of rejected students by the app fee. Period.
  • vonlostvonlost Super Moderator Posts: 20,294 Super Moderator
    ... and this nonsense sensationalism just keeps getting passed around.
  • philbegasphilbegas Registered User Posts: 2,309 Senior Member
    This is dumb. Depending on the school, an admissions counselor makes around 40k. At a top school it's probably higher, something like 50 or 60 k. If an admissions counselor spends an hour looking at your file, That's around $25 bucks right there. And that's not counting the salary costs related to filing the paperwork you mail/fax in, answering the phones when you inevitably call them every day to ask when your decision will be returned, and small costs like postage, paper, etc. I'm sure they make a small margin on rejected applications, especially at schools like CSUs where the admissions processes are much less holistic and don't have an essay component, but wow that's some click-bait journalism.
  • CourtneyThurstonCourtneyThurston Registered User Posts: 1,216 Senior Member
    edited April 17
    I mean maybe I'm missing the point here but it is true that a TON of unqualified students apply to schools that they have no business applying to. Like, the kid who has 0 ECs and a bad GPA and bad test grades but knows nothing about college admissions and has only heard of Harvard and other much-talked-about schools so applies to them "just to see" is totally a thing that happens. It happened multiple times in my graduating class.

    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.

    I know we're all really informed here on CC but a LOT of kids/families don't know the first thing about how college admissions works.

    EDIT: changed "profit" to "revenue" for clarity (i.e. not trying to imply they net positive. Probably not. But there IS money coming in.)
  • CourtneyThurstonCourtneyThurston Registered User Posts: 1,216 Senior Member
    I think there was once an MIT blog post from an admissions counselor that even roughly approximated the number of apps they get that are actually "qualified" apps. And from there, they widdle down. The obviously-not-going-to-go-here apps just get thrown away outright.
  • DaveMcBobDaveMcBob Registered User Posts: 17 New Member
    That's the whole point.

    ... and ...
    .. and this nonsense sensationalism just keeps getting passed around.

    i find it "interesting" that CC this article and quote the statement that this is "gross profit"

    Would be good to debunk these things out of the gate so they don't take a life of their own.

    Sort of like "fake news" that perpetuates the wrong message that applications are a big profit source because colleges are all mean and evil.
  • byadg123byadg123 Registered User Posts: 148 Junior Member
    If they didn't charge a fee applications would go increase dramatically.
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