The research questions addressed in this paper are: What are the costs that Ontario universities and colleges experience in recruiting, admitting and integrating transfer students? How do these compare with the costs of recruiting, admitting and integrating students directly from secondary school? Nine institutions were surveyed (4 colleges, 5 universities), and focus groups were held to solicit comments from survey participants. The survey found that costs were higher for transfer students than for direct-entry students, by 72% per application and by 19% per registrant. This pattern was more pronounced for the universities surveyed than for the colleges. The cost difference was primarily attributable to higher admissions costs for transfer students. Institutional spending per applicant for recruitment was lower for transfer students than for direct-entry students. Spending per registrant for integration of transfer students (e.g. orientation and academic advising) was higher than for direct-entry students at universities and lower at colleges...