As UK universities attract more international students they need to be mindful of the challenges of managing cross border invoices, particularly in relation to tuition fees.
The lure of UK universities still holds a great deal of appeal for international students; in 2018 over 400,000 overseas students undertook their studies at a UK higher education establishment. The attraction is mutual – British universities are understanding the alternative revenue stream that overseas students can offer as they see traditional funding such as grants begin to disappear.
The government recently unveiled its ambitious plans to increase the number of international students by 30% by 2030 and the initiatives – such as visa extensions - will enable them to achieve this. It’s a well thought out strategy – the UK needs the international students to fulfill specialist job roles in the UK and the lure of a UK university degree should not be underestimated. However, this plan does present challenges for universities – the most significant being the processing and payment of tuition fees for overseas students.
One of the most common issues seems to be an underpayment of tuition fees by international students – despite them paying in full. This is often due to cross border payment firms taking substantial commissions on international payments. Offset this against currency fluctuations – the value of the dollar and GBP change by the minute, meaning that a student could – depending on how quickly the payment is processed – unwittingly underpay. And, with the multiple payment methods available globally, universities are ill-equipped to deal with this level of financial administration.
As universities struggle to maintain healthy cash flow, any incoming revenue stream is vital. Forward-thinking universities are already putting processes in place to help them navigate cross border financial administration challenges, and are recognising the benefits of working with external financial companies with expertise in education credit control who can provide cost-effective, timely and fully integrated payment processes which will enable the easy transaction of cross border payments to support both the university, as well as the international students.
For more information on how Controlaccount Plc can help with your university credit control, please contact sales@controlaccount.com
Image by annemcdon from Pixabay
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