4 min read November 2023 — In an interview with Invest:, Andrew Rosen, chairman and CEO of global education company Kaplan, discussed Kaplan’s global influence in education, how it is adapting to changes in the educational landscape and its innovative strategies to meet future demands in the sector.
How would you describe Kaplan’s overall contributions to the education sector over the past year?
Kaplan’s impact across the education sector is significant and global – each year, more than a million individuals can attribute their success to our programs. While we’re known first in the United States for test preparation, we also support individuals preparing for various licensure exams, from physicians to brokers. Beyond individual training, we collaborate with universities to help them attract and support students through a number of programs, such as online program enablement, pre-college career exploration programs, and improving student employability. We’ve also partnered with over 13,000 U.S. companies to enhance employee career growth.
Internationally, Kaplan is a leading force in student recruitment, bringing more students to study in English-speaking countries than any other organization. Most of these students come from non-Western countries to enroll in our institutions or those of our partners.
During the COVID-19 pandemic, despite facing challenges like travel restrictions that impacted our English training business, our pathway programs and branch campuses continued to thrive, as students were willing to go online until they could travel to their intended campus overseas. With the easing of restrictions, there’s a notable increase in students wanting to study abroad, seeking degrees from top institutions and building international connections.
A recent innovation in the United States is our institutional partnership approach. Beyond providing renowned exam prep to individual students for tests like the LSAT or MCAT, we now offer a model where institutions pay a single fee, making our full suite of programs available to all students, not just those who can afford them. This approach aims to enhance students’ lifetime opportunities by assisting them in accessing better-ranked schools. Our all-access agreements offer universities an opportunity to maximize their students’ potential. It’s an incredible value for institutions and students, delivering a huge lifetime return on their educational investment, and several universities have now partnered with us to make all-access preparation available to their entire student bodies. Fast Company cited this program as one of the reasons it named Kaplan one of its 13 “General Excellence” global brands that are working to create a better future.
How is Kaplan evolving to meet the demands of the 21st century, better equipping the current generation of learners?
Over the next 10 to 15 years, education will change at a pace we’ve never really seen before. The rise of technology, especially artificial intelligence (AI), will offer students high-quality learning at a fraction of the cost. The landscape of education will change meaningfully, as new options emerge at tempting price points. Some institutions will adapt, while others will lag behind.
At Kaplan, we spend a lot of time thinking about what the world of education will look like over the coming decades, and we try to shape our company for what students and institutions will want not just now, but in years to come. In the past, that helped us lead in areas like online education and global education. We collaborate with university partners to craft curricula that combine cutting-edge technology with expert knowledge, ensuring top-tier education. We help traditional universities adapt their best assets – including their professors and their standing in their communities. A key to this is understanding individual student needs and expectations and adapting education accordingly. You can see it starting already: in the coming years, human interaction will be complemented with AI, offering 24/7 support and personalized learning for students.
The future will favor those institutions offering the best balance of quality, student-centeredness, learning motivation, and cost-effectiveness. Today’s diverse global offerings will compete with high-quality, highly produced, data-driven, adaptive and affordable educational options. Although these challenges are global, they’re particularly pronounced in the United States. Here, universities often compete on non-educational attributes, like campus amenities or dining quality — which drives prices up. In most countries around the world, where government funding plays a role but often also imposes price caps, universities tend to allocate more of their funds directly to learning and classroom-related resources.
What are the trends and challenges in global higher education and how is Kaplan addressing them?
One of the most significant dynamics we’re focusing on is the changing landscape of higher education demand and supply. In the United States and, to a lesser extent, the U.K., the capacity to offer higher education will soon outpace the demand. The number of students graduating from high schools is decreasing and fewer of these students are pursuing traditional four-year degrees. Instead, many are entering the workforce directly or seeking certificates and other forms of secondary education that don’t equate to a degree. As a result, many universities will struggle to fill their classrooms.
Conversely, in many parts of the world, especially Asia and Africa, the demand for higher education is soaring. The upcoming decades will witness nearly 2 billion people entering the global middle class. While many of them may not be ready to immediately seek university degrees, this shift will produce a significant population of students desiring higher education. Yet it would be impossible to construct physical universities quickly enough to meet this level of demand.
Given this global demand and the existing capacity in Western institutions, we believe Kaplan can play a pivotal role. We aim to bridge this gap by assisting institutions in matching their capacity with the rising demand. We recognize that the traditional, expensive undergraduate experience in the West may not be feasible for everyone, but a quality, affordable, accessible education might well be. Our goal is to strike the right balance between educational quality and experience, providing an affordable and practical solution for the emerging middle class.
How is the economic landscape impacting the education sector?
The economic landscape certainly impacts our business and education in general. Generally, when jobs are harder to find, more students pursue education. It’s essentially an opportunity cost issue. When jobs are plentiful and employers are eagerly hiring and offering competitive salaries, students often defer further education. They think, “Why go to school now when I can secure a great job, pay my mortgage or maybe buy a new car?” However, when they observe layoffs and economic downturns, the need to differentiate themselves becomes more apparent. They might consider enrolling in graduate school or obtaining a certificate as a way to invest in themselves. Historically, a down economy tends to benefit higher education. Although we don’t wish for economic downturns, that’s the reality we’ve observed.
Of course, all these effects are less pronounced at the undergraduate level and in elite institutions. For instance, Harvard Law School is largely unaffected by these economic fluctuations. They’ll always fill their class, regardless of the state of the global economy. But the broader education sector will generally feel the impact of economic shifts.
What excites you the most about the future of education and Kaplan’s role in it?
The educational market is undergoing significant shifts that may seem daunting to many in the industry. We believe change brings opportunity. I’m confident that we’re more agile than many other players and are well-equipped to guide those who aim to succeed in this new environment. While some institutions and individuals resist change and might face challenges, we aim to support those who are seeking to adapt but might lack the know-how. For example, some institutions look at emerging technologies like ChatGPT with fear, sometimes seeking to ban or restrict their use. We recognize that these emerging tools are going to be part of all our lives going forward, and we believe the better approach is to prepare students to effectively apply these tools in their educational, professional and personal lives. Of course, that means we have to evolve our assessment methods in order to create a level playing field for all learners. Our mission is to ensure our students are equipped and ready to harness the massive potential of emerging tools and technologies.
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