IMPACT OF DOJ AGREEMENT ON ED & ADMISSION “POACHING”

excerpts from article by Mark H. Sklarow, CEO, IECA

By now, most independent educational consultants (IECs) who work with college bound students have heard that NACAC has reached an agreement with the Department of Justice that eliminates several provisions of the NACAC SPGP. The DOJ argued that some of these rules—those requiring colleges to restrict recruitment efforts—constituted collusion or restrained trade.

Many IECA members have asked for guidance on what they might expect or “what to tell client families” so they are not blind-sided as the rules that colleges have followed for years become relaxed. I think there are two specific bits of information IECs and families should know:

1. Colleges for years have agreed to a universal response date, the date by which students would commit to a college for the fall. Colleges had agreed to rules that prohibited them from trying to “poach” a student who had made a commitment elsewhere. Meaning, colleges would not pursue a student who committed to attend elsewhere, including a prohibition of incentives to change their mind (like a last-minute bump in financial aid).

This rule will end. So, what will happen? We really don’t know. Most organizations, like the National Association for College Admission Counseling (NACAC) and IECA believe most colleges will, at least initially, voluntarily keep to this rule. Yet we know that any college that fails to achieve enrollment numbers may feel compelled to recruit past a student’s personal decision or beyond the May 1 deadline. Like the proverbial leak in the dam, what we don’t know is if a few colleges pursuing students will result in an all-out effort to recruit already committed students.

We also don’t know yet if colleges will take actions proactively to protect students that commit. For example, I predict that deposits may well increase from the hundreds to a thousand dollars or more, all to make it less likely that students will casually accept offers late in the year with a new pursuer, post-commitment. Likewise, housing deposits and fees could increase. Thus, while some colleges may pursue students who have committed elsewhere, other colleges may work to make a student think hard before making an expensive decision to change their commitment.

Other questions will be left to IECs to consider. If colleges can seek to recruit students who have already deposited, will our advice that students may not double deposit or admonitions that once you accept you must withdraw applications elsewhere, still be valid? Will this lead to a “second season” of admission where students are free to negotiate for their best deal?

2. The second area that the Justice Department secured a change was in recruitment of students applying under a binding “Early Decision.” The rule had been that colleges could not use special incentives to entice students to apply early—and commit—since this was binding. For example, colleges were precluded from using special Early Decision scholarships, or early decision priority for dorms or classes.

These rules, too, are now gone. Colleges may begin to offer incentives to apply under a binding ED, and there are signs that colleges are exploring this. Again, we hope that such incentives don’t become widespread, but I suspect it will happen. We know that Early Decision is a serious commitment, and as such, a decision should be done upon thoughtful and careful planning with an IEC when there is a clear first choice, not merely because an incentive is put on the table.

Once again, IECs will have to ponder the advice they give to students. Such incentives could become one more variable to consider in the process.

 

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