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Legal Test of Study Abroad Fee Structure

February 12, 2008

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On Friday, a lawyer and parent filed suit against Wheaton College, in Massachusetts, challenging its policy of charging full institutional tuition and fees for students studying abroad -- often on significantly cheaper programs -- as “unlawful and deceptive.” The lawyer is asking for a declaratory judgment that he hopes will clear the way for other students and families to seek reimbursement.

The suit represents a direct confrontation of a widespread practice that some in the field say will only become more common as education abroad is increasingly integrated into the curriculum. In fact, those contacted Monday largely defended an anticipated spread of the practice, arguing that charging full college tuition and fees is necessary to extend institutional financial aid to overseas study and invest in expanding the college’s quality control and advising infrastructure.

In a lawsuit filed in Attleboro District Court, James P. Brady charges that Wheaton’s bill came to $4,439 over the cost of the program in South Africa that his daughter, who graduated in January, attended last spring. The Vermont-based School for International Training (SIT) managed the South Africa program.

On its Web site, Wheaton says that all students attending Wheaton programs -- including “Wheaton With SIT Abroad,” through which students can choose from among more than thirty of the third-party education abroad provider’s offerings -- must pay the Wheaton comprehensive fee, currently $22,762.50 per semester. While, as this resource from NAFSA: Association of International Educators makes clear, the Higher Education Act stipulates that study abroad program fees are eligible for federal financial aid, Wheaton also extends its institutional need and merit scholarships to students abroad on Wheaton-approved programs. Students on these programs are guaranteed Wheaton credit for courses completed, while those who study on non-approved programs must petition for credit on a case-by-case basis, a spokesman explained.

In the complaint, however, Brady alleges that Wheaton's designation of SIT as a "Wheaton program" is misleading.

“Wheaton provided absolutely nothing in the way of any services to SIT. They provided no teaching, no housing, no food, no medical insurance, no transportation, no books. They’re completely divorced from SIT ... they didn’t review courses my daughter took,” Brady said in an interview. He added that his daughter had one advising session with a Wheaton study abroad official and that he would have been happy to pay a nominal study abroad fee up to $500 for overhead costs (the amount Wheaton charges students who attend non-approved programs).

“I said to Wheaton, 'Why don’t I simply pay SIT directly for everything?' They said if I did that, my daughter could not receive any credit for studying with SIT. They’re basically bullying parents and students and they’re in a power position to do that. By the time you go overseas, you’re usually a junior, you’re committed to Wheaton College, your educational experience is linked to the school, and you’re already numbed by the staggering bills you’re receiving from them,” Brady said.

“This is what we lawyers call a contract of adhesion. It’s a classic principle of contract law, where one party is in an inferior bargaining position, where you really don’t have any choice, any real choice, but to accept the deal that’s thrust upon you.”

Wheaton’s assistant vice president for communications, Michael Graca, said that the college’s policies regarding study abroad fees are clearly outlined and consistent with overall tuition policies. “We don’t charge students based on the number of courses they enroll in; nor which courses they enroll in…. A literature survey course may not cost as much to offer as an advanced science class, but we don’t distinguish.”

Also, Graca stressed that the college’s Center for Global Education offers support services that go beyond the cost of the actual overseas program and that students can apply their institutional aid to their programs abroad. According to Wheaton's written policies, paying the college's comprehensive fee covers the cost of an approved study abroad program's tuition and fees, round-trip airfare from a designated gateway city, an International Student Identity Card, and, though it varies by program, housing and meals. Students cover passport and visa fees, transportation to and from the gateway city for the group flight, study abroad insurance, local transportation, personal travel, and, in the case of some approved programs, room and board.

But unrest about such tuition policies -- called “price gouging” by Brady -- has been a consistent undercurrent of the recent scrutiny of study abroad policies and practices. An October survey of members of the Forum on Education Abroad found that while the most common financial model (at 35 percent of colleges) is for students to pay the cost of the program directly, a wide variety of payment structures are in place. For example, at 29 percent of colleges surveyed, students pay full home college tuition and their own room and board for the program; at 18 percent, students pay full home tuition and fees and the institution pays all program expenses, including room and board. Thirty percent of colleges charge an administrative fee over and above any other charges to benefit the education abroad office; 21 percent charge an administrative fee that benefits some other on-campus office.

While developing ethical guidelines for the field -- still an ongoing process -- forum members stressed the importance of transparency, said Brian Whalen, president of the group. "We didn't want to dictate a specific way that colleges and universities should set study abroad fees."

But if anything, Whalen said it doesn’t seem that colleges are shying away from charging full tuition and fees for study abroad amid the scrutiny, but instead are more likely to look toward it as they prioritize study abroad as an essential educational endeavor. “What I see happening is institutions focusing more on the development of their study abroad programs and study abroad offices. That’s I think all to the good. But it costs money to do that,” Whalen said.

Speaking more broadly and not specifically on the Wheaton case, other international education administrators echoed the argument that charging full tuition and fees promotes study abroad's integration into the campus and, ultimately, access. Uliana Gabara, dean of international education at the University of Richmond, said the parallels with on-campus financial aid are striking. “Presumably parents could sue and say Johnny is paying three times as much or 50 percent more than Suzie, because my Johnny doesn’t get any financial aid. Why am I paying more?” said Gabara. “But the issue is one of creating a student body for everybody’s benefit.”

“The move toward charging your own tuition but offering financial aid is a move toward integrating study abroad into the educational process and standards of the given institution,” she said, adding that the funding mechanism opens all study abroad programs, not only the cheapest ones, to students on aid. “When we did not have this kind of thought-through system [on the home campus] and any student could essentially go anywhere, they didn’t go anywhere. Because the great majority of students want that integration into their home institutions. They want to know what their professors will think and how this will fit into their political science major.”

“What I see happening is a return to a consumerist mentality,” added Joseph Brockington, associate provost for international programs at Kalamazoo College. “Higher education from a university no longer becomes a coherent whole, but it’s sort of an a la carte conglomeration of different programs and experiences.”

But another leader in the study abroad field, William Brustein, associate provost for international affairs at the University of Illinois at Urbana-Champaign, said that while he can see both sides of the argument, colleges are ultimately in the business of eliminating all hurdles for study abroad and should be flexible – and should not, he said, punish students who take the initiative to enroll in programs on their own, without university support, by charging them higher home institution tuition.

“What is the ultimate objective? That is to be able to provide as many opportunities as possible for students to get these high-quality learning experiences and to remove as many of the obstacles, whether the obstacles are curricular or financial,” said Brustein (who emphasized that he was speaking not in his capacity as current president of the Association of International Education Administrators, but as an individual professional).

Rather than look to students abroad to make up the money colleges lose by not having them sitting in an on-campus classroom and sleeping in a dorm for a semester, Brustein said that colleges need to be creative about strategic enrollment management. “If you’re sending 300 students on yearlong study abroad each, so you know you’re going to have 300 seats, try to see how you can manage your enrollment each year, whether through transfer students or through increased enrollment at the beginning. There are ways to get the money.”

“There’s truly no clear-cut solution here, but my sense is again, if a goal is to enhance study abroad, then we should do everything to remove the disincentives and improve the incentives.”

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Comments on Legal Test of Study Abroad Fee Structure

  • Posted by kgotthardt on February 12, 2008 at 8:20am EST
  • “This is what we lawyers call a contract of adhesion. It’s a classic principle of contract law, where one party is in an inferior bargaining position, where you really don’t have any choice, any real choice, but to accept the deal that’s thrust upon you.”

    That happens right here in the good 'ole U.S. not just in study abroad programs. How many schools have "sites" that offer nothing but ask the students to pay for everything, including services never offered? I can name at least one.

  • Financial Aid is the Key
  • Posted by Les Perelman on February 12, 2008 at 8:55am EST
  • I am the parent of a Wheaton College student and an administrator and instructor at another educational institution. My son pays full tuition at Wheaton, and, if he studies abroad, we will continue to pay full Wheaton tuition.

    I have been on admission and financial aid committees. The key point is that at most private colleges that have relatively low endowments and are tuition dependent, unless they charge full tuition they will not have funds to underwrite financial aid for students who can't afford to study abroad.

    Just as a part of the very high tuition we pay every semester goes to make Wheaton more diverse by allowing students with fewer financial resources to attend, charging Wheaton's full tuition ensures that these same students can participate in study abroad programs.

    As international study becomes a more and more an essential part of undergraduate education, it is important that colleges make sure that all students have access to it.

    Sure, Mr. Brady could have paid significantly less if he paid it directly to the School for International Training. But if such a policy is allowed, a Wheaton education will be less diverse and less valuable.

  • Posted by kgotthardt on February 12, 2008 at 9:05pm EST
  • Les, I am wondering why you have to pay for diversity. Not trying to be rude....I just don't understand it. I can see paying for a study-abroad experience, but as far as paying for diversity, there are many colleges in the lower price ranges that offer diversity (which I DO think is valuable anywhere).

  • It Is a Choice!
  • Posted by GradGirl24 on February 12, 2008 at 9:05pm EST
  • Study abroad programs, like so many aspects of college life, are a choice a student makes based on a number of factors. The fact that Wheaton offers the program is wonderful and the fact that it costs the same as attending Wheaton makes perfect sense to me.
    Miss Gotthardt claims that this poor student "had no choice". I can think of another possible choice for her, don't study abroad. Stay at Wheaton and continue your studies. Contract of adhesion hardly applies here. It isn't like a rich landlord who takes advantage of a poor tenant who has no other options for a roof over their head.
    I personally know a Wheaton student who studied in Ghana for a semester and considers it one of the most amazing and rewarding experiences of her life. I would highly doubt she would complain about price. She made the most of her experience. My guess would be the suit is more sour grapes than anything. Perhaps it wasn't everything she dreamed of and decided the only way to feel better was a lawsuit. Seems right in line with the litigious nature of our country. Very sad.

  • Posted by Denise on February 13, 2008 at 10:50am EST
  • It's the word "study" that invokes skepticism. Spending a semester in Ghana for a semester may be an "amazing experience" but one can go on a short term mission in any one of these countries for that, spend a lot less money in doing so and maybe actually be on the serving end rather than the served. I've sat in on a few prospective student orientations, now that my daughter is in the process of looking at colleges, and some of these study abroad programs sound like merely an extended tour to expose students to other cultures It's very appealing; I wouldn't mind joining! But I don't think I want to be doling out that kind of money unless I could see something substantial in terms of real academic output on the part of the student and the college.

    In the mean time, next month I will be welcoming my fifteen year old son home from a two week building project in Mozambique. He will meet his peers of a different culture, eat their food, sleep in their homes and experience an African safari all for the price of $1,500 plus help in the cost of building supplies.

  • Congrats Denise
  • Posted by GradGirl24 on February 13, 2008 at 5:15pm EST
  • You should be very proud of your son. The girl I knew who went to Ghana with Wheaton was an Art Major who studied sculpture. Apart from being an amazing experience on many levels, it also gave her an opportunity to study with a native of Ghana who forever changed the way she approached her career and focus. She was accepted to one of the most highly acclaimed graduate programs in sculpture, all because of her experience studying abroad.

    I am just merely pointing out the fact that for some people, it is worth every penny. Just as is college in general. I believe it is largely about the individual. My guess, and I could be completely wrong is that whoever this girl is who is bringing the lawsuit would have done so regardless of the cost.

    I was merely attempting to present a different side to the story by telling a personal success story that came out of the very same situation that this girl decided was so unfair that she should sue. I believe we have become a culture of litigious blamers who try anything and everything to take the heat off of ourselves.

    It doesn't detract from the other programs out there that give people a similar opportunity for less money. My problem is with the lawsuit and the motive behind it.

  • Could have been avoided?
  • Posted by Admin, Community Member & Parent , Career in Administration on February 18, 2008 at 8:05pm EST
  • With a long career in higher ed administration, integrating admissions, financial aid and academics, I can understand why Wheaton charges full tuition, minus a student's pre-approved financial aid discount (merit and/or need based) to students who are active Wheaton students when they study abroad. However, I wonder whether senior management took the time to explain it to the father/lawyer to the point of placating him, involving the president if need be. "Attitudes" on one side and/or the other may have been a factor that got this out of hand.

  • Posted by Terry Rodenberg on February 27, 2008 at 5:15pm EST
  • In the discussion of study abroad expenses, why don't these institutions look at the exchange networks that are available, including ones like ISEP where a student pays room, board and tuition to the home institution and pays nothing abroad? The home institution also receives a wonderful international student who contributes toward the international aspects of the campus. I have to laugh at the figures being tossed around for these third party providers--many people cannot pay this plus your student can have an excellent experience for a fraction of these costs. But part of the blame is on international offices who have to do the work necessary to establish these options rather than just sign up the kids.