U.S. Colleges Brace for a Devastating Summer and Fall – Bloomberg Law
For many U.S. colleges, the worst may still be ahead.
The upheaval in higher education has been unprecedented already, with campuses closed for months, graduation ceremonies scrapped and entrance exams canceled. Administrators across the nation increasingly fear their schools may not reopen for the fall semester. In the meantime, many have canceled summer programs, sports camps and on-campus weddings – all of which would be lucrative most years. The double whammy of losing summer and fall income would hurt all schools, and it could be fatal to those that were already struggling.
“The hit is huge,” said Larry Ladd, a consultant with the Association of Governing Boards of Universities and Colleges. “They will have less financial cushion because that summer revenue is no longer is there.”
College finances are under siege on many fronts. Endowment values have fallen with markets. Fundraising is a steep challenge now. New and returning students may have increased need for financial aid, because many families have lost income in the Covid-19 downturn. Some colleges even fear they won’t be able to fill their freshman class for fall 2020 as students may decide to wait a year instead of starting online, which would strangle tuition revenue.