Falling enrollment, lost tuition puts colleges in extreme financial distress – CNBC
- Revenue shortfalls from tuition and student housing are the greatest challenges colleges now face, according to a new survey of higher education leaders.
- Already, universities have furloughed thousands of employees and announced revenue losses in the hundreds of millions.
Sharp enrollment declines due to the pandemic have taken a severe financial toll on many colleges and universities, and the impact may last for years to come.
To that point, 67% of higher education leaders said decreased revenue from tuition and student housing are the biggest challenges they now face, according to a recent poll from consulting firm NEPC’s endowments and foundations practice.
Overall, undergraduate enrollment fell 4% this year, according to separate data from National Student Clearinghouse Research Center, with incoming freshmen accounting for the biggest drop — sinking 16% from last fall.
For many colleges and universities, the consequences could be severe, according to Sam Pollack, a partner in NEPC’s Endowments and Foundations practice.