Written by Connor Smith
The effects of the current COVID-19 pandemic are widespread, damaging practically all industries with the exception of a select few. While hundreds of thousands of adolescents are returning to university for an uncertain fall semester, the rapid decline in college attendance occurring across the nation may not be obvious. Of course, there is the small percentage of college students who choose, or are forced, to delay their return to school until safe and in person classes return in full. Therefore, the coronavirus pandemic has grave implications to the revenue of the higher-education industry, which will have rippling effects in the recovered future. Such effects further the decline in college attendance, which has been occurring since college attendance reached its peak in 2011.
The year of 2011 marks the fortunate end of the 2008 Recession, which had lasting effects in the financial sector and nearly all parts of life. As this was one of the lowest troughs in American economic history, a gradual recoupment was expected to occur; however, such a rapid recovery was not expected as we had. Many industries began to take off, especially in the technology sector with the giants of Silicon Valley. With the economy prospering and unemployment rates continuing to decrease, attending college was no longer the clear choice, as attending college requires one to forego vital employment opportunities in hopes of finding a better job in the uncertain future. The opportunity cost of attending university simply became too much for many, leading to the decline within the past decade. In fact, the National Student Clearinghouse Research Center reported at the end of 2019 that “For the first time in the decade, the nation’s fall unduplicated enrollments fell below 18 million students and declined by more than 2 million students”. As shown by this frightening statistic, the number of enrolled students has declined rapidly and with it the profits of our nation’s universities. The current pandemic has not brought relief to the issues troubling these universities; as one would expect, many educational institutions are under even more financial hardship. Although the pandemic has affected the success of every student and university, the virus has varying degrees of severity for different demographics of universities and people. For example, the Wall Street Journal recently reported on the various effects of the pandemic, and specifically on the decline of enrollment in community colleges nationwide. These colleges are seen by many as a necessary pathway to receiving a college degree, and an alternative to the expensive four-year universities when one may not have the money, grades, or career knowledge for such universities. In fact, a decline in the economy usually correlates with an increased rate of enrollment at community colleges, as the opportunity cost from foregoing full-time jobs declines. However, the Wall Street Journal states that community college “enrollment declined 9.4% overall and 22.7% for first-year students this fall”. This statistic, when coupled with the fact that many students of these colleges are from families of lower socioeconomic standing, further shows the great harm of this pandemic on college-age individuals. Therefore, whether the colleges are classified as private, public or community, the effects of this pandemic to our economy are felt by many.
The University of Michigan is in no way an exception to such financial trouble. While undergoing threats to preexisting revenue streams, such as the cancellation of profitable athletic events and the closure of dormitories, the University of Michigan system is at risk of receiving a lesser amount of state and federal funding. In an update for the general public from the university’s Office of the President, Mark Schlissel stated that our university “currently faces anticipated losses of $400 million to $1 billion through the end of the calendar year”. The loss of such a tremendous amount of money threatens the success of our university over the next decade or so. Without recoupment of such funds through alternative methods not halted by the pandemic, the University of Michigan may potentially be forced to cut non-essential programs across campus.
There has not been an event in this generation that has affected people worldwide similar to how the COVID-19 pandemic has. Within the United States specifically, students of collegiate institutions have had their academic careers altered, in the form of virtual classes and extensive public safety measures. Despite the extensive measures taken by universities and the local communities, thousands of students nationwide have deviated from their plans of college enrollment, as this semester cannot offer them the academic and social experiences that they wish to obtain from college attendance. As a result, college enrollment in US universities has been declining in the past months; however, such a downward trend has occurred over the last decade. Without a swift financial recovery within the next few years, an increase in the number of universities in financial turmoil is likely to occur, harming the current students and their aspirations for the future.
References
“Current Term Enrollment Estimates – Fall 2019.” National Student Clearinghouse Research
Center, National Student Clearinghouse Research Center, 27 Aug. 2020, nscresearchcenter.org/current-term-enrollment-estimates-2019/.
Noted., WSJ. “How Covid-19 Has Affected College Enrollment.” WSJ Noted, The Wall Street
Journal, 15 Oct. 2020, www.wsj.com/articles/how-covid-19-has-affected-college-enrollment-11602783463.
Schlissel, Mark S. “A COVID-19 Update from President Mark S. Schlissel.” Office of the
President, University of Michigan, 20 Apr. 2020, president.umich.edu/news-communications/letters-to-the-community/a-covid-19-update-from-president-mark-s-schlissel/.