Today, college counseling is considered to be one of the most profitable businesses to exist. It has transformed from a supportive service to a booming industry. As awareness on the importance of receiving an education has increased, the demand for professional guidance by parents and students has also grown. In this blog, we will understand the economic perspective of this industry, which people may seem to overlook.
As times progress, acceptance rates have become tougher to crack, leading families to visit college counselling organisations for support. An increase in the complexity of the overall application process, changing of admission criteria, and evolving expectations has fueled the demand for expert guidance. In previous years, the earnings of college counsellors has significantly increased. As a matter of fact the industry was worth $2 billion in 2020, and has been increasing at a steady 4% rate since then. Companies such as IvyWise, the Hale Education Group, and Collegewise enroll students from around the world and have the highest success rates of this generation. While the process of applying to what is deemed as a ‘good’ college may not that be that difficult in reality, it is the intimidation and peer influence that often leads people to join such organisations. Today, schools have college counsellors as permanent faculty members which certainly was not the case back in the 80s. Areas with high demand for college counselling such as the Bergen County in New Jersey, USA or Gurgaon, India, often charge premium fees as they aware about the aspiring ambitions of students. The extensive research and coordination involved within this industry is partially what makes it so expensive. Tutoring for the SAT, ACT, and IELTS alone has generated heavy sums of profit, let alone the financial value of of forming a portfolio and writing the perfect college essay.
Conclusively, despite the many business expenses of college counsellors, they seem to be floating on a profitable boat. The variety of options available today have left economists surprised on the potential of this business. In my opinion, students with ambitions are only expected to rise in the coming years, growing the demand for expert guidance.
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