The low Canadian dollar doesn’t necessarily mean St. Thomas has a new recruiting tool when recruiting students outside the country.
Jeffrey Carleton, the director of communications at STU, said the university has to be wary of the low cost of the education coming off as a lower quality education.
Carleton said international tuition is around $13,000, but similar schools in the U.S. can range from $20,000-$30,000 and that could lead parents to view it as a dip in the education offered.
“We talk about the value of the investment as opposed to the cost,” said Carleton.
He said the university instead focuses on class size and the success of U.S. alumni. Carleton said the exchange rates aren’t something that impacts enrolment in a significant way.
“Overall, when you look at the trends – in 2008 the Canadian dollar had previously been low – we don’t see a significant impact, but it’s something we have to aware of when speaking with students and parents,” said Carleton.
The dollar, currently hovering at approximately 70 cents U.S., is primarily affecting sectors of the economy that import or export. But any Canadian who crosses the American border notices the exchange rates. Experts point to the low price of oil and other commodities as a reason for the languishing dollar.
“Because I think the loonie’s value is so low, prices for things have gone way up,” said Angela Bosse, a second-year student. “Even compared to my first year.”
Bosse, a Connecticut native, said even with the strength of the American dollar, the taxes in Canada tend to offset the potential savings. She does notice the difference when crossing the border though.
“It helps when I exchange my American money to Canadian,” said Bosse.
She recalls buying a $2.50 coffee in Holton, Me, paying with a $5 Canadian bill and getting 50 cents back. But Bosse says the real savings is in tuition. She said a similar school in her home state would have ranged around $60,000 in tuition.
But with the Canadian dollar at an 11-year low, it is having an effect on the university’s exchanges to the United States.
St. Thomas University spends about $125,000 a year on computer software and licensing from the U.S. According Carleton, they expect with the low value of the Canadian dollar it could cost the university an extra $50,000 in exchanges.
“That’s the main imprint on our operating budget,” said Carleton. “This year we expect it to have an impact.”
Carleton expects the added cost to the software and licensing is the only major impact the university will absorb. As far as recruitment and recruiters travelling abroad, Carleton said the exchange rates aren’t detrimental.
“The numbers are small enough when compared to the overall budget of those areas. It’s a cost we can absorb,” said Carleton.
Although the dollar naturally has its ebbs and flows, the low value now may cost the university money for the foreseeable future, but it’s a cost the university is willing to shoulder.
“Sometimes when your committed to particular enterprise systems and software’s it’s a cost that you have to absorb,” said Carleton.
