US Ranks as the Top Choice for Parents Sending Children Abroad for College
-
With average annual tuition topping $33K, US is also the most
expensive destination -
Quality of education and a prospering job market make the US a
preferred choice -
The number of international university students could hit 8 million
by 2025
NEW YORK–(BUSINESS WIRE)–Nearly one in two parents (48%) rated the United States as the top
destination for their child’s international college education. HSBC’s
The Value of Education Foundations
for the future report reveals the United States is the
most popular choice from a list of 50 countries. The UK and Australia
ranked as the second and third choices for an education abroad.
Quality of education and job prospects in the US make it a favored
destination
The majority of parents (59%), when asked to select the one reason to
best explain why the United States is their top choice, say it is
because of the better quality of education, while 29% say it is for the
job prospects. Parents from China (12%), the UAE (12%) and India (10%)
made up the largest proportion of individuals who prefer the US.
US is the most expensive education destination
Despite its popularity, the US is also the most expensive destination,
with average annual tuition fees at $33,215 per year. More than two in
five (42%) parents cite higher tuition costs as the most significant
barrier to sending a child to college in the United States.
Parents’ ambitions
Over a third (35%) of parents around the world would consider an
international university education for their child. Ambitions for an
international education are the highest among parents in Indonesia
(60%), the UAE (58%), Hong Kong (54%), India (47%) and China (44%).
Countries where parents are the least likely to consider sending their
child to college abroad are Egypt (10%), Australia and France (both
16%). American parents interested in sending their children abroad for a
college education fall below the global average (29%).
Allan Goodman, President and CEO of the Institute of International
Education, comments, “Students and parents consider a
university education in the USA as a good investment because they have
access to the largest choice of excellent colleges and universities and
to the English-language skills that are so critical in today’s job
market. The USA is home to the largest group of higher education
students from around the world– about 1 million in academic year
2014/2015 – who have contributed about USD30.8 billion to the USA
economy over the same period from tuition and living expenses.”
“Today, there are 4.5 million students enrolled in universities outside
of their home countries, and it is estimated that the global population
of international students could double in the near future, achieving
approximately 8 million by 2025,” said Goodman.
Germany received highest overall ratings as a destination for
international students
Parents also rated their preferred country destinations on their quality
of university education, job prospects, and quality of life. The
combination of scores reveals that Germany, Singapore, Canada and Japan
stand out as the top four countries across these factors, achieving
overall scores of 13.3, 12.95, 12.9 and 12.9 respectively from a maximum
of 15. These countries outscored parents’ most popular choice, the
United States with a rating of 12.77.
Commenting on these findings, Charlie Nunn, Global Head of Wealth
Management at HSBC said, “An international university education for
their child is a highly desirable ambition for many parents. However, it
comes at higher costs, with living expenses and air fares on top of
tuition fees. Early planning and regular saving can help parents
overcome these financial barriers and unlock the extra opportunities
they wish for their child.”
Notes to editors:
About The Value of Education research
The Value of Education is an independent consumer research study into
global education trends, commissioned by HSBC. Foundations
for the future, the third report in the series, was published in
June 2016 and represents the views of 6,241 parents in 15 countries and
territories around the world: Australia, Canada, China, Egypt, France,
Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, United
Arab Emirates, United Kingdom and United States. The findings are based
on a survey of parents from a nationally representative sample in each
country who have at least one child aged 23 or younger currently (or
soon to be) in education. Over 350 parents (including 150 with a child
at university or college) were surveyed in all countries. The research
was conducted online by Ipsos MORI in February and March 2016, with
interviews in Egypt conducted face-to-face.
Country league table research methodology
Source: The Value of Education Foundations for
the future survey
The country ranking is based on the popularity (frequency of mentions)
of countries that parents would be most likely to consider as a
destination for their child’s international university education.
Parents selected their first, second or third choice destinations from a
list of 50 countries and territories, including the 15 countries in the
survey.
Parents’ rating (out of 15) for each country is the sum of their
individual ratings for its quality of education, quality of life and job
prospects (each out of 5).
The average annual undergraduate tuition fee for international students
is based on the four most popular subject areas that parents would most
like their child to study at university (Medicine, Engineering,
Business, management and finance, and Computer and information sciences).
Source: Desk research
The average annual tuition fee across these four subjects is derived
from the 10 largest universities by enrollment (number of students
enrolled) in each country. Both public and private universities are
included.
Tuition fees are for international undergraduate students studying at
these universities and exclude any additional fees/costs such as
administration, examination, books, accommodation, and travel.
Tuition fee data is sourced either from the university website, by phone
from their Admissions Departments or from other credible websites. Where
course fees were provided in a local currency, it was converted into USD.
The Value of Education Foundations for the future report was
published in June 2016 and is available on http://www.about.us.hsbc.com/news-and-media
More detailed methodology is available on request.
About the Institute of International Education
The Institute of International Education (IIE) is the world leader in
designing strategies and implementing programs that advance scholarship,
promote access and build economies. An independent, not-for-profit
organization founded in 1919, IIE has a network of 19 offices worldwide
and over 1,200 member institutions. IIE manages programs of study and
training for students, educators, young professionals and trainees from
all sectors with funding from government agencies, foundations, and
corporations around the world. These programs include the flagship
Fulbright Program and Gilman Scholarships administered for the U.S.
Department of State. IIE also conducts policy research, provides
resources on international exchange opportunities and offers support to
scholars in danger.
Allan Goodman is President and CEO of the IIE and a well-known expert
into international education trends and students mobility.
HSBC is partnering with the IIE to provide expert insights to support
the data from the Value of Education Foundations for the future
research, and help understand how parents’ views and attitudes reported
by the research translate into student mobility trends around the world.
About HSBC Bank USA, N.A.
HSBC Bank USA, National Association (HSBC Bank USA, N.A.), with total
assets of US$198.8 bn as of 31 March 2016 (US GAAP), serves 2.4 million
customers through retail banking and wealth management, commercial
banking, private banking, asset management, and global banking and
markets segments. It operates more than 229 bank branches throughout the
United States. There are over 145 in New York as well as branches in:
California; Connecticut; Delaware; Washington, D.C.; Florida; Maryland;
New Jersey; Pennsylvania; Virginia; and Washington. HSBC Bank USA, N.A.
is the principal subsidiary of HSBC USA Inc., an indirect, wholly-owned
subsidiary of HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a
Member of the FDIC.
Contacts
Media enquiries:
HSBC Bank USA
Olivia Weiss,
212-525-5081
olivia.x.weiss@us.hsbc.com
or
Jeremy
Balkin, 212-525-7287
jeremy.k.balkin@us.hsbc.com
