What's New @ MSU Study Abroad

 

 

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STUDY ABROAD FINANCING: Q&A REGARDING PRACTICES AT MSU
August 17, 2007

A story in the New York Times on 8/13/07 described certain business practices some institutions and organizations use in administering study abroad programs. At MSU, we operate all of our study abroad programs with the highest level of integrity. Following are some basic questions and answers regarding how MSU study abroad is financed and what relationship MSU has with study abroad providers.

Q. What is the basis for the issues that have been raised recently regarding study abroad financing?

A. The current discussion is a criticism of some business practices of some universities and organizations involved in study abroad, particularly practices which have been construed as representing a conflict of interest and/or are at the expense of students. The NYT article focused primarily on the following practices:

Q. What are the typical financial arrangements for MSU study abroad programs?

A. For all programs sponsored by MSU, students pay most fees directly to MSU, and MSU in turn pays for the students’ expenses incurred overseas. Fees typically billed by MSU cover such expenses as tuition, housing, field trips, health insurance, and meals. Students can also chose to participate in a study abroad program not sponsored by MSU. In those cases, students pay $100 to MSU in order to remain registered here and to be covered by MSU’s study abroad insurance policy. All other fees are paid directly to the institution sponsoring the program.

Q. What are the “provider” organizations at the center of the current discussion, and does MSU use any of them?

A. Program “providers” are organizations, companies, or universities that perform services for U.S. study abroad programs and charge a fee for those services. They can either run a study abroad program on their own, or they can assist a U.S. university in managing some of the logistical details associated with that U.S. university’s own study abroad program. At MSU, we do not use providers that exist only to offer complete study abroad programs to U.S. students, with the exception of one program – the Music in Vienna semester program, run by IES: The Institute for the International Education of Students. This program was adopted by MSU because of its unique academic focus which we could not replicate with a faculty-led program.

For some of our faculty-led and MSU-administered programs, MSU does use providers to assist with some of the logistics of the programs. Travel agencies are sometimes used to book hotels, ground transportation, or other travel-related services. Providers are also used to secure and monitor internship placements for our international internship programs, or to provide 24/7 emergency coverage in program locations with large numbers of MSU students. However, in none of these contract arrangements are there special rebates or perks which benefit anyone other than the student participants on that programs.

For example, MSU will receive an occasional free airline ticket or free berth on a ship if a certain number of student participants go on a given program. In all cases where this happens, the free ticket or berth on the ship is used to cover the MSU faculty leader’s expenses of that same program, thus reducing the overall charge to students. Students normally pay a share of the fixed costs of a program, which include the costs associated with sending an MSU faculty member to teach on the program. If the costs for the accompanying faculty member are subsidized or reduced due to travel benefits such as a free airline ticket, then the total fixed costs are reduced and thus the students’ share of the fixed costs are reduced.

Q. Does MSU have any “exclusive” arrangements with program providers that would limit a student’s choice of programs?

A. No, we do not. Although MSU does have programs which we sponsor directly, we do not prohibit students from participating in another institution’s program. As long as a student attends a program at an accredited institution and registers with the Office of Study Abroad, the student will be entitled to access their regular financial aid and to transfer any credit they earned on the program (subject to standing University policies on transfer credit).

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LINCOLN COMMISSION PRESS RELEASE

Michigan State University Leads the Way in Work of National Study Abroad Commission
November 14, 2005

The National Bi-Partisan Commission on the Abraham Lincoln Study Abroad Fellowship Program released its recommendations today in Washington, advocating that one million American college students study abroad annually.

The commission was chaired by former Michigan State University President M. Peter McPherson, who made growth in study abroad a signature characteristic of the university and his presidency at MSU.

The commission report notes that, “What nations don't know can hurt them. The stakes involved in study abroad are that simple, that straightforward and that important. For their own future and that of the nation, college graduates today must be internationally competent.”

Currently about 175,000 American college students study abroad annually while well over half a million foreign students study here each year. To make study abroad a possibility for more American students, the commission advocates a national study abroad scholarship program of $50 million annually, growing to $125 million per year in five years. Scholarship awards would be as much as $5,000 per student.

The commission recommends:

Many of the commission's recommendations had their origins in briefing and analysis materials prepared by a national group of experts co-chaired by John K. Hudzik, former dean of International Studies and Programs at MSU. Hudzik also was the lead author of the briefing materials.

“Federal scholarships alone are not enough to achieve one million participants,” said Hudzik. “Experts recognize that higher education must step up and be accountable by making study abroad affordable, safe, high quality and integrated into the curriculum."

The commission recognized this, he said, by urging American higher education to reduce financial barriers to study abroad through program cost control. The commission also calls for strong higher education leadership to reduce other internal barriers to making study abroad a realistic possibility for students in all majors.

MSU President Lou Anna K. Simon noted that the nation's current awakening to the importance of study and learning abroad began at MSU a decade ago.

“MSU led the way nationally in this essential area of education and learning," said Simon. "We send more students abroad each year than any other public university. Our more than 200 programs cover the world and we are committed to expanding participation in our high quality study abroad programs. Offering broad access to international learning is a core part of assuring that MSU remains one of the world's top universities."

As part of that commitment to expanding opportunities for all MSU students who want to study abroad, the university has made cost containment an important part of the expansion of its program. At least 50 percent of Michigan State 's study abroad programs cost no more than being on campus, excluding airfare.

MEDIA COMMUNICATIONS

Division of University Relations
403 Olds Hall
Michigan State University
East Lansing, MI 48824-1047

Contact:

Geoff Koch University Relations Office: (517) 432-0924 Cell: (517) 648-6682

Deb Hammacher University Relations, Office: (517) 353-1772 Cell: (517) 927-8097

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