Forecast declines in enrollment and revenue trigger spending cuts and salary freezes; 'the world order has changed'
Due to the coronavirus pandemic schools have been closed for the rest of the spring semester. Many small schools are facing declining enrollment and financial shortfalls. This global health crisis brought unexpected costs for shifting classes online and partially reimbursing room and board for students being forced to finish out their spring semester at home. There is still concern about returning to campus in the fall. Every source of funding is in doubt. Schools are facing tuition shortfalls because of unpredictable enrollment and market-driven endowment losses.
Apparently, some colleges are even cutting spending, freezing staff salaries, and stopping any new building. Schools are preparing for the financial deficit that is to come and there's no way of knowing what's to come in the fall. They should expect a 15% decline in enrollment next fall and a huge decline in revenue from tuition, room, and board, and services. Colleges have to make very crucial decisions this coming fall. Some schools have already said they do plan on opening. But what about sports, clubs, and classroom capacities. In addition, some highly selective colleges will be a little less exclusive next year and possibly for years to come. This could be a good thing when it comes to enrollments.
https://www.wsj.com/articles/coronavirus-pushes-colleges-to-the-breaking-point-forcing-hard-choices-about-education-11588256157
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