Rejection is lucrative business — for American universities.
A study conducted by UCEazy, a company specializing in making the college application process easier for first-generation immigrants, recently revealed how universities have made rejection profitable. Co-founder Vinnie Gupta ran the numbers on behalf of U.S. News and World Report and concluded that $200 million pours into universities annually from unqualified or under-prepared applicants.
“Through our interactions with thousands of students, we realized that most students do not have the skills or information to make informed decisions about which colleges to apply to,” Mr. Gupta told USA Today on Monday. “Further, they don’t understand the process well enough to be competitive. This problem is amplified for students from first-generation immigrant families because of the inability of parents to provide much help.”
Mr. Gupta, who was successful in the information technology industry in Silicon Valley before his latest venture, said that data from over 600 public and private universities was gleaned for UCEazy’s study.
Some of the schools that profited most from rejected applicants include:
- University of California-Los Angeles: $5,369,840
- University of California-Berkeley: $4,681,320
- Stanford University: $3,632,130
The businessman said that many first-generation immigrants are qualified to get into prestigious schools, but they lack the tools needed to efficiently navigate the application process.