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College Marketing Budgets Could be Slashed by Senate Bill


Democratic Senators Kay Hagan of North Carolina and Tom Harkin of Iowa have proposed a bill that would prohibit institutions of higher education from spending any federal student aid money on marketing or advertising.

The core tenet of this proposition being that tax payer dollars should only be spent on the direct costs of education: such as instruction, career-placement services, and other initiatives that would improve students’ postsecondary experience and elevate their possibilities after graduation.

Currently, institutions are allowed to use federal student aid to recruit students, and according to the data, some allocate large percentages of these dollars to attract new students:

  • Fifteen of the largest for-profit higher-education companies receive an average of 86 percent of their revenues from federal student-aid funds, and spent an average of 23 percent of their budgets on marketing.

Opponents of the bill argue that some institutions need to spend more money on marketing in order to reach the nontraditional talent they target, which they argue is harder to engage. Research shows that there is a significant divide between the marketing budgets of for-profit institutions when compared to those of nonprofit schools:

  • While marketing budgets in the for-profit sector can approach 40 percent of revenues, nonprofit institutions spend an average of 0.5 percent of their revenues on marketing. 

Today, for most postsecondary institutions, marketing and advertising drive applications and inevitably keep their doors open.  ConnectEDU offers admissions and recruiting products that make attracting the right students and enrolling them easier and more efficient.  Our products enable schools to spend more money on the direct costs of education by saving money spent on increasing the number of applicants and enrollment yield. Our eCRUIT product increases recruitment yield by discovering talent, executing marketing campaigns, tracking results, and making data-driven recommendations. EYOp increases Enrollment Yield by allowing accepted students to interact with the postsecondary institutions they are interested in, before choosing to enroll.

Increase Enrollment YieldTalk to an expert today to learn more.


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