BULLETIN # 4 APRIL 13-17, 2020

Jeanne Harrison, Vice President and Senior Analyst at Moody’s Investors Services,
highlighting the financial impact of the pandemic on higher education, wrote: We
expect rated universities in all of our current jurisdictions- US, Canada, UK,
Australia, Singapore, and Mexico- to enroll fewer students for the next academic
year than planned, due to the outbreak.”
On April 16 th, the New York Times reported that higher education trade groups
have predicted a 15% decrease in enrollment nationwide in the United States,
amounting to a $23 billion revenue loss.
In a recent survey of nearly 3,000 students intending to study in Canada, more
than half (54%) are planning to defer their admission for a year. Another 15%
have changed their plans and are no longer planning to study in Canada.
In a survey published in The Pie News on April 15 th, 42% of students surveyed
indicated they had no interest in studying online. The same survey revealed that
46% of the 11,000 international students surveyed said the virus has impacted
their study plans.
On April 14th, Studyportals published survey results that indicated 40% of
potential international students were changing their study plans. Three weeks ago
the figure was 31%. The same survey revealed that 83% of respondents believe
their travel plans will be restricted and 68% think their parents’ savings will
decrease because of the virus.
Several colleges and universities in the United States, including Boston University
and the University of Oklahoma, are considering canceling in-person instruction

for the fall term. Beloit College is considering starting the fall term later than
usual and holding two seven-week modules instead of a single semester.
The University of Connecticut created a one-credit course, “The COVID-19
Pandemic Impacts on Health, Business, and Society. More than 4,000 students
enrolled in the course.
Minnesota State University expects to cut 10 majors and more than 160 positions
to defray a projected $6-million budget deficit in the 2022 fiscal year.
The president of Harvard will take a 25% salary cut. The president and provost of
MIT will each take a 20% cut.
On -the horizon-trend? Some legislators in Pennsylvania are questioning if the
state needs all 14 colleges and universities. Will consolidation follow? Will other
states, in the face of state budget deficits, do the same?
The College Board has cancelled the June SAT examination. More than 50 colleges
and universities have announced that SAT scores will no longer be required for
admission. Schools include: Tulane, Virginia Tech, Swarthmore, Williams and the
University of California, system-wide.
Officials for the SAT and ACT are in the process of creating digital versions of their
tests that students can take at home.
Economic Indicators Impacting Future Higher Education Enrollment
China’s GDP shrank 6.8% for the first quarter of 2021, the first decline since 1992.
COVID-19 job losses in Asia could force 11 million people into poverty.
As of April 16th 22 million Americans, or 13.5% of the labor force, were
unemployed. This represents the worst level of unemployment since the Great
Investment income in the United States, represents 9% of revenue at private
universities, and 2.5% at public schools. The Hechinger Report noted last month
that 75% of the $630 billion in endowment funds at U.S. institutions are invested
in stocks, whose value has plunged since the pandemic’s onset.
Declining investment returns, along with federal and state budget cuts and a
decline in the number of enrolling international students, will make it necessary

for colleges and universities around the world to shelve their strategic plans and
create vision plans. What will your school look like after some semblance of
normalcy returns and how can you communicate your vision with future
applicants and students?
More to come on that subject.