We're being told here in the UK that bankruptcy is now a very real possibility for some of our "lesser" universities. They lack student numbers. They must charge their students lower fees. The system now accepts fewer overseas students who might pay higher fees. Could bankruptcy be a possibility where you are?
Yes, some University could be broke, same as a corporation. If University lose their students, without donations, it will be in serious financial troubles and maybe will face with bankruptcy.
Of course it can. Mismanagement, incompetent leadership and lack of commitment to excellence over time erode the foundation of universities without large endowment to save them.
'University' is 'Steel' of 'Nation' & provides 'Strength' to population or inhabitants. Any unforeseen unbalance with 'Higher Education' implicitly represents projected social unbalance.
Thanks for your answers so far everyone. It's good to find out about what's happening elsewhere. And you show we need to thinking about various forms of funding.
NOCK
Here in India, the educational institutes are become one of the most profitable business. Its happening around the world as well. The abroad university also takes a huge amount of tuition fees, which is merely impossible to bear by the students, specifically from developing countries.
thank you
Well certainly the UK has been at the forefront of the commercialisation of higher education. In some places it seems money means more than education! This is bad for all students, home and overseas. Maybe we're now witnessing an undesired consequences of that process....
NOCK
There is a clear possibility that some universities can fail, financially, because of the wide range of income flow, financial histories, and corporate status of the institutions. Old, well-established, universities with thousands of successful alumni, historic traditions, and deep-well endowments are clearly safe. These places cannot spend money as fast as they earn it. These places, like Michigan, Harvard, Stanford and a few others can afford to offer free tuition to economically-marginal students that they want...because the students have great promise. These places also attract billions of dollars of government and foundation supported research. These schools are not financially dependent on tuition.
On the other hand are regional schools that have emerged over the last 50 years where endowments are meager, alumni may not be in well-healed vocations (teachers, nurses, social workers), and there is far less income from indirect cost rates associated with research grants. These schools are often tuition dependent, and as state or regional government support becomes less, with conservative government policies, then tuition goes up....fewer students mean less income from tuition. Programs and departments will be the first to go. Institutional survival can be in question if a local elite school (as in Michigan) offers free tuition; this bleeds the very best students from the regional school honor programs and the vicious downward spiral speeds up.
The third category are small colleges where traditions, alumni loyalty, and avoiding dependence on faculty entrepreneurship can be very healthy. If growth is kept in check, quality is emphasized, and alumni are successful, these small schools can thrive in an economic environment where larger schools are in jeopardy.
Also, online education (which I personally do not favor in comparison to excellent classroom instruction) will compete very successfully with the very same universities that are financially at risk. The profit margin for online courses is enormous compared to classroom instruction from mature, tenured faculty.
This could mean a leaner market for some faculty categories in the future.
The abanks for that nice account of the US situation. We have our own well endowed institutions. But, unlike the US, we have government founded institutions founded in the 1950/60s which have little private money, but have been cast adrift to fend for themselves. These places are particularly in danger, I fear.
NOCK
There is also the false illusion that all post-secondary youth should go to a university or undergraduate degree program.
We have a desperate shortage of skilled trades workers in construction, for instance that is ridiculous in a nation of o er 300,000,000. Germany is a good example of recognizing the value of post-secondary training at all levels...complex societies need plumbers as much as computer scientists!
Well, indeed! Ours seem to be learning that many degrees at too many institutions are poor quality. There's a slow shift towards apprenticeships, but they're hard to come by.
NOCK
University' is 'Steel' of 'Nation' & provides 'Strength' to population or inhabitants. Any unforeseen unbalance with 'Higher Education' implicitly represents projected social unbalance. Agree with friends
Today there's a report about what might happen if one of the three in big trouble actually did go broke here:
1/ Large local unemployment
2/ Loss of cultural centre
3/ Students left in appalling situation
So, it's claimed, government would have to step into bail it out. "To big to fail" supposedly. At the same time about 80 shopping centres (malls) are said to be near bankruptcy. Surely that would have a similar effect? No government aide here, I'm sure!
NOCK
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