With news that a rebounding economy is resulting in declining college enrollment, administrators, professors and students could be in for some changes at colleges and universities.
What might higher education look like with smaller student bodies? Here are six things that could change:
1. More recruitment of out-of-state students
Colleges may have to expand the territories from which they draw students. In the case of public universities, this can also mean attracting students who pay higher out-of-state tuition rates, perhaps making up for what would otherwise be a shortfall of tuition income as the number of students declines. At least one school in New York, St. Lawrence University, is looking overseas for students to fill its classrooms.
2. Declines in funding
Lower enrollment translates into less money coming into the school, whether from tuition or from government money based on head count. With less money coming in, less money gets spent. A hiring freeze, reduced faculty hours and early retirement packages are already in place at Loyola University in New Orleans, the Wall Street Journal reports.
3. Easier admissions
To some extent, the law of supply and demand takes effect with fewer students enrolling. While Ivy League institutions are unlikely to have to lower their standards, a smaller supply of students will generally mean that colleges will have to compete more avidly to attract students. This could be reflected in better financial aid packages or more flexible academic standards.
4. Fewer course options
With money tight and fewer students in the seats, colleges could be forced to look at the class schedule and cut from the bottom. Classes with the lowest average enrollment could become less frequent. Classes already teetering on the edge of viability may be cut entirely.
5. Two-year schools could get squeezed
Community colleges tend to track with unemployment rates more closely than four-year schools; as unemployment rises, community college enrollment grows. If sagging enrollment numbers are tied to an improving economy and the economy continues to improve, community colleges may see the most empty seats. Many community colleges, such as some in central Illinois, are already seeing the effects of an economic uptick.
6. Weaker pricing power
The law of supply and demand rears its head again. With more colleges chasing fewer students, some colleges and universities may not be able to command the full price of their tuition. College tuition increases have typically outpaced the rate of inflation for years, but they may fall back more closely in line with inflation.