A study by EY-Parthenon, a consultant to the education industry, indicated that some 800 of America’s 2,000 colleges could close. Twenty percent of colleges run deficits because of inadequate endowments, less than optimal enrollment and/or need to provide significant tuition discounts to many members of their student body.
Particularly hard hit are private colleges with fewer than 1,000 students in rural areas. Currently, the financial position of big universities or those located in urban areas remain positive.
Lower birth rate and the high cost of college meant that only 34% of institutions polled met their enrollment targets for the fall term in 2017. The Western Interstate Commission for Higher Education estimated that there were 80,000 fewer high school graduates in 2017 compared to 2016.
Over the past 40 years, the average price of college has more than doubled. The average public 4-year school now lists their total cost of attendance (which means tuition, room and board) at nearly $20,000 a year. The price of private colleges is above $40,000 a year.
The cost-benefit of college remains favorable. That is, the average 4-year bachelor’s degree holder earns nearly $1 million more over the course of their lifetime than someone who holds only a high school diploma.
Robert Zemsky, author of “A Checklist for Change: Making American Higher Education a Sustainable Enterprise,” criticized universities for not implementing change. He cited four major shortcomings:
- A disengaged faculty resistant to change
- An inability to differentiate institutions
- An accreditation and regularity process that punishes innovation
- Outmoded curriculum that often lacks cohesion and drives many to question its value
To remedy the problem, Zemsky promoted the idea that the faculty needs to take a leading role in shaping their institutions. Zemsky promoted winnowing down the undergraduate curriculum to 90 credits that can be completed in three years.
In response to COVID-19, educators must provide effective online student engagement tools. Clearly, the problem is magnified where students must perform laboratory assignments, engineering feats and develop artistic skills.
The Wall Street Journal highlighted in an article “America’s Grand Experiment in Remote Learning Fails” the widespread opinion of students, teachers, parents and administrators that currently remote learning has failed. Many school districts were not requiring students to do any work. This has created a learning gap. Many students do have suitable electronic devices. There is a huge gap between what students can do for fun on the cellphones and gaming systems and how good they are at using a device for educational tasks.
Before the pandemic, online education comprised less than 2% of the $2.2 trillion global higher education market, according to HolonIQ.
Times Higher Education survey of 1,000 institutions throughout the globe revealed that America’s domination of the rankings have slipped. For the first time in history, no U.S. school ranked in the top two spots.
Because of the pandemic, American colleges will face declining international student enrollments. In 2001, 28% of all international students were enrolled in U.S. colleges. By 2014, the percentage of foreign students dropped to 22 percent. Because foreign students pay full tuition, the financial burden on our colleges will increase.
I feel a particular sadness about the challenges facing American colleges. My father was a founding professor at the University of Houston and chairman of its Sociology Department. Started in the Great Depression, UH has exceeded the expectation of its founders. Initially, UH was a junior college and offered trade school programs. Today, the university comprises four separate and distinct universities and has more than 70,000 students. It offers many doctoral degrees.
In brief, the ability of UH to provide first-rate educational opportunities to the community has untold benefits. For college to remain relevant, every community needs to offer the equivalent educational opportunities provided by UH.
