Higher Education and the Current Global Crisis

“Liberty University in Virginia welcomed students back to campus Monday” in the midst of the coronavirus pandemic NBC News reported on March 24, 2020. Liberty University is a private Christian college that was established in 1971. Student enrollment numbers make this university one of the largest private non-profit colleges in the states. Economic downturns like the world are experiencing due to COVID-19 impacts private universities like Liberty University in more than one way.

According to the World Economic Forum, economic response to COVID-19 is creating massive volatility within the stock market. Experts are suggesting a potential market crash if actions are not made in the near future.  Mok suggests that policy implementation is influenced by global challenges, state needs, and local demands. Due to the current situation, the U.S. is creating a policy in hopes of keeping the economy afloat. The U.S. government is developing a 2 trillion dollar stimulus bill that will hopefully counteract the present economic spiral. USA Today developed a visual guide to understanding the stimulus package. Within the stimulus, democrats propose that 60 billion dollars go towards schools and universities to ensure operation. They suggest that $50 billion is invested in K-12 while the remaining $10 billion go towards higher education. However, they do not specify if or how public or private universities will be financed differently. As university privatization has led to high tuition fees, democratic leaders propose that legislation supports 44 million borrowers with their student debt. By financially giving back to U.S. citizens through this stimulus, the Trump administration hopes that this action will boost the economy. 

Lebeau discussed the economic crash of 2008 and how the global economy financially harmed higher education funding in the public sector. Similarly, private higher education institutions are negatively jolted from a decline in the marketplace. Lebeau raises concerns about how these private institutions are funded, namely through tuition fees. Many private universities, like Liberty, rely on student enrollment as a significant strategy for financial growth and stability. Since universities have sent their students home, some students have requested reduced tuition or refund for the Spring 2020 semester since in-person classes are moved to online. A professor at Seton Hall University said to MarketWatch, “A lot of colleges simply can’t afford to give (tuition) refunds.” Universities are still grappling with how to respond since policies related to this type of situation have yet to be developed. 

As university visits are being canceled across the globe, the 2020 Fall enrollment may be hit harder this year due to the pandemic. Universities are forced to adjust to online tours and recruitment quickly. Similarly, questions arise regarding the future flow of international students and how this present crisis will influence cross border movement and international student enrollment. The current travel bans in place, create a level of uncertainty and unknown. Programs that provide income to universities are being temporarily canceled, such as study abroad programs and Fulbright scholarships. Ruby, who is part of the Higher Education and Democracy at the University of Pennsylvania, stated that perceptions of personal health and safety might also influence international and national student school choice.  

The privatization of universities gives institutions the autonomy to make their own decisions. In that, it is incumbent on private universities to ensure they build a positive public reputation among funders and potential students. Unpresidented situations like COVID-19 force public and private universities alike to take action. Some decisions that the universities make may later impact future student enrollment. For example, Liberty University received considerable backlash across the country since they decided to bring students back to campus after Spring break. Although classes were moved online, buildings such as the library would remain open, says the Richmond Times-Dispatch. After this verbal policy was enforced, the President of the university relinquished his statement and said that only international students were allowed to remain on campus. Liberty University’s decision during this pandemic has the potential to harm their reputation and, in turn, influence private funding.

 Overall, universities are doing their best to make the right decisions for their students and employees. This global pandemic forces universities to think ahead, according to THE. The deputy vice-chancellor at the Swinburne University of Technology said that it is imperative to assist students “where they are in the world, with the best possible support.” Universities will need to master online teaching and learning and prepare for enhanced programs of interest, such as in the health care sector and science and technology. Some professors do not think that this crisis will profoundly disrupt higher education. But if the crisis continues for an extended time, financial losses may create an enduring effect for universities worldwide.

References

Funakoshi, M., Hartman, T., Reuters, T., Reuters, & Data Visualization Developer. (2020, March 23). Mad March: How the stock market is being hit by COVID-19. Retrieved March 25, 2020, from https://www.weforum.org/agenda/2020/03/stock-market-volatility-coronavirus/

Griffith, J. (2020, March 24). Coronavirus: Liberty University's Jerry Falwell Jr. welcomes students back amid pandemic. Retrieved March 25, 2020, from https://www.nbcnews.com/news/us-news/coronavirus-liberty-university-s-jerry-falwell-jr-welcomes-students-back-n1167581

Lebeau, Y., Stumpf, R., Brown, R., Abrahao, M., Lucchesi, A., & Kwiek, M. (2012). Who shall pay for the public good? Comparative trends in the funding crisis of public higher education. Compare: A Journal of Comparative and International Education, 42(1), 137-157.

Mok, K. H. (2005). Riding over socialism and global capitalism: Changing education governance and social policy paradigms in post-Mao China. Comparative Education, 41(2), 217-242.

Ross, J., Peckham, R., McKie, A., Lee, S., & Grove, J. (2020, March 12). Universities brace for lasting impact of coronavirus outbreak. Retrieved March 25, 2020, from https://www.timeshighereducation.com/news/universities-brace-lasting-impact-coronavirus-outbreak

Passy, J., & Keshner, A. (2020, March 16). Harvard and other major universities still charging full tuition as classes go online amid coronavirus outbreak. Retrieved March 25, 2020, from https://www.marketwatch.com/story/a-lot-of-colleges-simply-cant-afford-to-give-refunds-major-universities-holding-online-classes-due-to-coronavirus-are-still-charging-full-tuition-2020-03-13

Chumney, R. (2020, March 24). Thousands of Liberty students expected to return to campus amid coronavirus outbreak. Retrieved March 25, 2020, from https://www.richmond.com/news/virginia/thousands-of-liberty-students-expected-to-return-to-campus-amid/article_a7b91be3-217a-598e-a367-34950271e6c6.html