What motivates Darden to recruit an internationally-diverse class of students?
- It is right for the students. I challenge any parent: given what you know about the trends in the global economy, would you be satisfied to have your child educated only with people of your own country? The professional world into which American and international students will graduate requires managers and leaders who are globally confident and competent. One learns so much about navigating across borders from studying with internationally-diverse classmates. Our best American applicants demand an internationally diverse classroom and network. They know that the future will require both understanding of and cooperation with other nations.
- It is right for the companies who recruit our students. Darden’s corporate partners actively look to hire our international students. No wonder. Our analysis shows that the top 15 corporate non-financial recruiters at Darden report an average of 45% of their revenues originating outside of the U.S. America’s business economy is not an island unto itself; it is hugely dependent on global trade. American firms of all sizes must look beyond our borders. Some 46.6% of the sales of the S&P 500 companies originate internationally.
- It is right for our society. International students contribute much more than the measures of student spending indicate. They promote global awareness among American students. They spur innovation and creativity (diversity does this generally). They found companies and create jobs here. Generally, international students carry values that are quite consistent with the heritage of America. These students are optimists, pioneers, and risk-takers who leave their familiar lands, languages, and cultures to strive for a better life. They are drawn to the American Dream as much as many Americans—and the international students help to sustain that dream. Since Darden is financially self-sufficient, it delivers these benefits to society without funding from taxpayers or the University.
- It can help the native countries of our international students. America spends 1% of its Federal budget on foreign aid and humanitarian assistance. Educating international students is a high-impact complement to such aid. As the saying goes, “Give a man a fish, and he will eat for a day. Teach a man to fish, and he will eat for a lifetime.”
- It is right for Darden. Our vision for Darden is succinct: “World-class impact and stature.” Our Mission calls us to “improve the world by developing and inspiring responsible leaders and by advancing knowledge.” We want to make a positive impact in the world. Educating international students helps us fulfill our Mission and Vision.
Darden actively supports the aspirations of international students. In 2009, the market for loans to international students froze because of the Global Financial Crisis. International first-year students at Darden were stranded by the freeze because they were unable to finance the second year of their MBA studies. We responded by developing a custom loan program for them. Lending to international students has still not thawed. Darden continues to collaborate with a lender, Discover’s Custom Loan Program. Around two-thirds of our international students borrow some amount under this program—and when they do so, they still have plenty of their own capital at stake because this program limits borrowing to less than the full cost of attendance. Since 2009, Darden’s experience with this custom loan program has been good.
I tell any applicant that borrowing to finance one’s education should be a last resort. Draw down one’s savings: in a previous post I gave evidence that investing in your own human capital yields one of the highest returns you can earn. Next, you should lean on family, friends, spouse’s employment, part-time employment, crowd funding—whatever. Borrowing should be a last resort. We formally counsel international students about the implications of their borrowing, and of the consequences of a failure to service their obligations in timely fashion. The penalties of default are not pretty: damage to credit history, legal exposure, and loss of self-respect.
But in the absence of such a loan program or other sources of financing, Darden would be accessible only to the socio-economic elites in other countries. We want to attract to Darden excellent students regardless of their financial capabilities. This loan program promotes access by the global brightest and best.
I have not seen any rigorous research that affirms the premise with which this post began, that enrollment of international students displaces domestic students. It could be that there is enough slack capacity in American higher education to accommodate all prospective domestic and international students. The premise warrants research—the folks who assert the premise should show proof. But suppose that the premise is true. Then we must make tradeoffs. This post has sketched some of the benefits of educating the international student. And I think those benefits warrant recruiting a globally-diverse class of students. In 1869, Mark Twain traveled abroad and discovered the benefits that travel can bestow–Darden does a lot to engage our students with the world beyond America. But Twain’s insights apply equally in reverse. Those who hostinternational students win the liberalizing benefits of the inbound travelers. Twain said that these benefits include the acquisition of “broad, wholesome, charitable views.” But our experience at Darden shows that the list of benefits could be extended considerably to include such attributes as keener appreciation for the challenges and opportunities of global engagement; greater global confidence and competence; and quite simply, more “street smarts.” The Darden Community gains a lot from its international students, alumni, faculty, and staff members. Let us celebrate them.
Robert Bruner is the Dean of the Darden Graduate School of Business at the University of Virginia and co-author of the report, “Globalization of Management Education,” AACSB International, 2011. This essay is adapted from a recent post on his excellent blog on education and other topics.