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Agents of Change E-mail
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Written by Brian Grover   
Thursday, 02 August 2007 05:55

Last year we conducted an extensive survey of Binbo Hima Ari readers and were surprised to find how frequently students change schools. More surprising than the fact that students typically change schools 3.5 times during their stay in Canada were the reasons behind it. Those reasons can easily be summed up by a single word: "dissatisfaction." That dissatisfaction stems from two sources -- bad decision-making back home in Japan and shifting, maturing goals here in Canada.

Side-Stepping Decisions
When planning an overseas sojourn, students are frequently baffled by the wide array of choices. Indeed in the Vancouver area alone there are over 200 schools with half as many again sprinkled throughout the rest of Canada. Many students start out considering the wider picture that includes Australia, New Zealand, the US and England. There are literally thousands of choices out there. Finding a school on the internet is simple but finding an ideal fit may be next to impossible. For that reason, many students sidestep the issue, turning over crucial decision-making to ostensible experts in the study-abroad industry.

Conflict of Interest
There are many situations in life when seeking professional advice is warranted. Lawyers, doctors, tax and investment advisers all have a role to play in their own specialized fields. Unlike these professionals, many study abroad agents are in a classic conflict of interest position as they try to serve two masters.

Skimming Off the Cream
Ryugaku agents make money in numerous ways sometimes charging fees for their "services" but generally they derive a profit from commissions paid by airline companies, schools, insurance companies, airport pickup services, homestays and every other imaginable service students might require.

The Sales Pitch
The key point to note is that the majority of these agents fail to represent their customers because their real clients are the schools and other service providers, not the students who walk through their doors. They pretend to help students understand their options as part of the sales pitch. In reality, agents strive to squeeze as much cash out of each of these "customers" as possible, trading on ignorance and fear. If lawyers represented their clients in the same manner they would be kicked out of the profession.

Highway Robbery
Agencies are not intrinsically bad. In fact there are many good agencies both in Japan and in Canada. The problem is, good ones and bad ones are virtually indistinguishable the first time around. Many students end up paying hundreds if not thousands of dollars in hidden fees and commissions and never even know that they've been robbed.

High Commissions
If the agencies were putting students into the best possible school for their individual needs, then no problem. In such a scenario students would be paying a fee for valuable advice. Unfortunately, schools pay differing rates of commission. Twenty years ago commissions ranged from a low of 5% to a high of 10 or 15%. Nowadays competition among schools has pushed to those rates into the realm of 20 and 25% -- sometimes higher.

Illustration
If an agency represents two schools and those schools are equal in every respect except that one paid out a commission of 15% while the other offers 20% which one do you think would get more recommendations? Now imagine that the schools are similar in many ways, the prices are the same, but the first one is clearly a better school. Many agents will still recommend the second school because doing so is more profitable. The bigger the commission gap, the more attractive the high-end is to agents. So even a very bad school -- whatever that means -- can get students by offering excessively high commissions. Right there is the source of much dissatisfaction. The better schools can still get students through their reputations in the community and the fact that satisfied students stay longer and come back more often.

Recommending the High Road
There is another shameful dynamic at work through the agency nexus as well. If two identical schools offer identical commission rates but have dissimilar tuition rates which one will be recommended most often? Of course the highest priced one. 15% of $1000 tuition is $150 while the same rate returns just $120 on $800 tuition. The higher the price the more likely agents are going to push it as long as it is not outrageous.

Inflationary Forces
In truth, a combination of high tuition and high commission is irresistible to the unregulated study abroad industry. The end result: inflation.

History Lesson
A decade ago a typical Vancouver ESL school tuition fell in the $700 - $850 range with $1000 per month being considered the high-end. During that same 10-year period the inflation rate was just 1.96% which should have yielded present-day tuition fees in the $850 - $1000 range with $1200 being the top end. Nowadays it isn't hard to find tuition rates in the $1000 to $1200 range with $1500 being high end. This doesn't necessarily mean that the schools are getting greedy, though some clearly are. What it indicates is that the growth of the agency industry has resulted in unnaturally higher prices for tuition. Schools have to pay more and more in commissions and consequently have to raise tuition fees in order to make the same amount.

Making the Same Mistake
Once overseas, reality strikes, needs mature and expectations change, dissatisfaction sets in and students decide to change schools. As often as not, students make the same mistake again by sloughing off their decision-making to local school agents or branches of the agency they originally used. In fact, 63% of Binbo Hima Ari readers reported using the services of local agents specifically to find schools. Some students repeat the cycle many times during their overseas sojourn and yet wonder why dissatisfaction follows them wherever they go.

Free Lunch
School agencies locally give "free" gifts and telephone cards and fax and tax services, even free instant noodles in one infamous case. What the student gets for these trinkets is ever-spiralling tuition rates and, all-too-often, dubious recommendations.

A Mean Calculus
Another thing agencies on both sides of the Pacific like to push is multiple months of tuition. When was the last time your agent recommended that you book a school for only one month? They always frame it as a volume discount and from the point of view of the agency it's brilliant. Sell two months and you've doubled your commission, three months and it's tripled, sell 10 and, well, you get the picture.

Logically Flawed
From the student's point of view the logic is supremely flawed. If still in Japan, you have no idea whether your school will turn out good or bad. If it's the latter and you only booked a month then move on and chalk it up to experience. If you booked a year in a school that really doesn't suit your needs you are going to take a terrible loss even if you can get a partial refund. Most schools have refund policies that protect themselves and not their students. If their teachers and programs were so wonderful they would have the confidence to immediately refund any pro-rated leftover portion, no questions asked. They don't.

Caught in the Middle
Dissatisfaction is rampant because of the whole dynamic of agents pushing the most profitable schools. Because of this even a good school will sometimes receive inappropriate placements. Schools typically take a hard line on refunds to protect their own bottom line and who can blame them? The students -- as always -- are caught in the squeeze.

Word-of-Mouth
Students are not the only victims, however. When agencies place students in inappropriate schools just for the money the school makes a short-term gain but that can backfire by damaging the school reputation. Word-of-mouth is a powerful force in the community of international students here in Canada and indeed in the wider global community. No one wins in a situation like this.

Dependable Information
So what can students do to protect themselves? Choosing a school requires dependable information. If you are lucky enough to have a friend or relative who already studied in Canada then they can be a trustworthy source of information. Though [usually] free from the motives of profit making, remember that these people are not you and what may have worked for them may not be appropriate for your needs. Besides Hima Ari Online the other primary sources of information for those still in Japan are suspect. Whether contacting schools directly through the internet or via agencies, keep in mind that these parties are ultimately profit-motivated. They want your money.

The Voice of Experience
At Binbo Hima Ari we understand that first-timers are nervous about travelling to an unfamiliar, foreign land. This is one of the reasons we created this guide. We understand that many rookies worry about getting from the airport, finding a place to stay and choosing a school. Most would like to have these issues already decided before leaving Japan. Veterans disagree.

Super Stars
Drawing on many years in the field, at Hima Ari Publications we have compiled a list of the most trustworthy schools. Check it out here: page XYZ. We suggest you avoid any school that is rated below 4 stars.

Easy Money
Agents love to sell the airport pickup since, with a price tag of $100 or more, it's easy money. Fresh arrivals can do it themselves for as little as $2.25. All it takes is a little knowledge and you can find that on page XYZ. Of course, after a long, tiring flight a warm, friendly face may be exactly what you need. Maple Ryugaku provides an alternative kind of airport pickup service that's both affordable and informative. Check out their website here at XYZ.

Home Sweet Home
The staff at Binbo Hima Ari has collected a range of accommodation options for new arrivals as well. Check out page XYZ for a list of temporary digs. Though ideal for the short-term, many students find these budget accommodations comfortable enough for a more extended-stay. Readers will find these establishments handy as their lives in Canada evolve as well. Whether looking for a place to stay upon arrival, between apartments, between trips or when hosting family and friends from Japan, be sure to make reservations well in advance during high season.

Do-It-Yourself Homestay
If you'd prefer to have more permanent living arrangements settled before arrival then check out this selection of homestay providers: XYZ. Finding a warm family that provides support and meaningful opportunities to communicate can be one of the keys to rapid English acquisition. Unfortunately many homestay families in Vancouver are just out to exploit naïve students. Study abroad agencies like to arrange the homestay for you as it represents another very large commission stream. Once again their focus is on money and not quality. Doing it yourself provides additional control over your Canadian life and English learning experience.

Apartment Living
Finding an apartment or shared living situation can take time and is subject to a variety of pitfalls. The whole topic is detailed here: XYZ.

Student Visa Unnecessary
Many ryugaku agents will encourage students to get their student visa squared away before departure. Doing so enables them to pressure students into a long term commitment to school, homestay, insurance and sometimes membership. In 2004 the visa rules changed. It is no longer necessary to have a student visa in order to study in Canada. [See details here: XYZ] For that reason we recommend that students wait until arriving in Canada before choosing a school. Once you understand your needs better and you've decided on a school you can change your visitor status to a student visa by going to Seattle. This whole topic is discussed here: XYZ.

Shop Around
Most schools will allow prospective students to either take a trial lesson or join an orientation session before making a commitment. Students should visit a variety of schools before deciding. Here on page XYZ you'll find a list of some of the most trustworthy names out there. Also check out page XYZ for some tips on distinguishing the good schools from the bad.

Negotiate
Many schools are willing to discuss a discount if you book with them directly rather than going through a local agent. Feel free to bring up the topic as part of overall negotiations. Generally, the schools dislike the agents, viewing them as parasites, but must play along in order to survive in the industry.

Research
The most important thing you can do while still in Japan is research. If you feel you must go to a study abroad agency then go to several and learn to read between the lines. If they insist that you pay some money up front or join some kind of members club before they begin dispensing advice, then walk out the door. There are plenty more to choose from. If they advertise a lot then you the customer must pay for that advertising.

Cash Cows
When you finally settle on a short list try to determine how interested these agents are in understanding your needs as a student. Are they doing all the talking? Are they saying things like "we've sent hundreds of students to this school and they've all been happy." Never mind how unlikely that scenario is. You are not a herd animal. You're an individual with unique needs and should take this as a sign that they see you simply as one of their many cash cows.

Break It Down
Many agents will not provide an itemized breakdown of costs such as airfare, airport pickup, tuition, homestay, and service charges. This is how they hide grossly inflated charges. Demanding accountability is a great way of indicating that you are savvy consumer. Insist on getting a breakdown and if they refuse, respond to their rudeness in kind: walk out. A trustworthy company will provide that breakdown. Be sure to check and compare their figures with the going rates elsewhere before making a commitment. Commissions should already be rolled into the prices they present to you. If they've gone to extraordinary trouble to meet your needs at a personal level then you should not balk at paying a small service charge as well.

The Upper Crust
Here at Hima Ari Publications we have assembled a list of top tier schools that we feel confident about recommending to our readers. Visit page XYZ to see our selections. Because we listen carefully to what our readers are saying we are able to constantly assess and reassess the reputations of schools within the community. The schools on our short list are given access to Binbo Hima Ari as a platform for advertising their programs to readers. In 2005 we made the difficult decision to turn down half a dozen schools which also wanted to place advertisements. We couldn't, in all good conscience, accept their commercial messages given the scuttlebutt.

No Assurance
One complaint isn't enough to blacklist a school but we do listen as students voices are not being heard anywhere else. In spite of the fact that educational tourism is a $760 million industry in Vancouver alone, the government of British Columbia cut the language school sector loose in 2004. Though the Private Post Secondary Education Commission (PPSEC) was by all accounts seriously flawed it did provide students with a modicum of insurance in the event that disputes with schools could not be settled directly. Now the entire sector is unregulated and students are at the mercy of individual schools when disputes arise. Outside of court action, word-of-mouth is the only counterbalance students have.

On Side
We have also rebuffed numerous requests to make recommendations on behalf of schools for a piece of the action. As the only trustworthy source of Japanese information in Canada, accepting commissions might make good business sense but it would also put us in the same position of conflicting allegiances we have just seen as typifying the study abroad industry. Our allegiance is unequivocally with the students and good schools will understand that as a plus in promoting their programs. The bad schools: they're on their own.

 

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