Trajectory #17: The End of University Inc

The challenges facing University Inc may ultimately usher in a new era of education. One where the role that elite universities have historically played as gatekeepers on knowledge, prestige and access begins to fall away and the very best education becomes available to any-and-all (with or without a fee). The world may ultimately end up having few... See more

The High-Level This Week: There are 4,000 universities in the United States that generate over $650 billion in revenue and educated 20 million people annually. A perfect storm involving declining revenues and state funding are putting many of these universities at risk of bankruptcy. Many will not survive. Is this the end of University Inc in the U... See more

Over 50% of the universities in the United States expect enrollment to decline by over 5% in Fall 2020 compared to Fall 2019. Similarly the Federal Student Aid program (FAFSA) has seen FAFSA renewals for returning students decline by nearly 5% (about 350,000 fewer students) for the academic year 2020-2021 compared to last year.

Declines in enrollment are life-threatening for most universities, as tuition is the primary source of revenue for most universities. Edmit, a college planning tool for parents and high school seniors, examined financial trends at 937 private universities. The company conservatively estimated the Covid-19 impact as tuition losses of 10 percent in 2... See more