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Colleges face cash crunch which could alter campus life

With the advent of the traditional 1 May National College Decision Day, some universities may get a better idea of who wants to attend their classes and pay tuition, but the financial costs of stay-at-home will continue to bite, write Meridith Edwards and Evan McMorris-Santoro for CNN.

“Every college and university in the country is facing a cashflow crisis,” said Terry Hartle of the American Council on Education, which represents 1,700 institutions and related organisations and associations. Colleges are having to refund an estimated US$8 billion in room and board fees to students who were told to switch to online learning. Much of that will be covered by the federal government stimulus packages, Hartle said, but there are also the costs for deep cleaning and increased security on empty campuses.

Research labs that usually rely on students might have to pay others to maintain projects. And vital auxiliary revenue from renting out university facilities for conferences or athletic camps for instance has also stopped. “That works out to US$50 billion a year for colleges and universities and that has just come to a complete stop,” Hartle said.
Full report on the CNN site


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