Colleges at Risk of Losing $183 Billion During Pandemic
/A public higher education consultant for the Association of Governing Boards of Universities and Colleges, Paul Friga, calculated that U.S. colleges and universities might lose up to $183 billion due to the financial impact of the pandemic.
Friga studied the budget estimates of 107 colleges and universities for 2020 and 2021. He found that higher education revenue losses were caused by fewer students enrolling, schools discounting tuition, fewer international students applying, and athletic programs being suspended.
Not only do colleges and universities need to be worried about a dwindling revenue from students, but also from the states’ higher education funding and pandemic-related expenses. As a result of this financial strain, institutions have begun hiring freezes, layoffs, and budget cuts to programs.
While federal assistance from the Biden administration will provide some financial relief, colleges and universities face a loss of $146 billion.