Private Colleges Make Big Cuts in Unexpected Places
Posted 24 Aug, 2009
It’s no secret that private colleges are feeling the pinch this year, and with financial aid and student services serving as important recruitment and retaining tools for their attendees (and a source of income), many schools are having to make tough decisions.
Snip, Snip
Wondering where all your college tuition payments go?
A new survey released by Yaffe & Company, a private consulting firm, shows just how much fund allocations have changed this year. The company surveyed over 250 private colleges and universities to discover how the economic downturn has affected their spending practices.
The result? Massive budget cuts not for student funding, but for staff. An astounding two-thirds of those nearly 260 colleges plan to freeze staff salaries for the upcoming school year. Eighty percent of those planned for the freeze to cover the entire institution, and nine percent of schools plan to actually reduce staff pay–but that’s not all.
Benefits Begone?
Private college employee benefits are being trimmed as well: a shocking change, as higher ed benefits have reportedly been considered untouchable–almost sacred–in recent years.
Of the over 50% of schools making cuts, 1/4 plan to reduce or eliminate employer contributions to staff retirement funds.
Health benefits are changing as well. Many schools are forcing their employees to cover a higher percentage of their health insurance, and some are cutting their number of health plan options.
Changes Afoot?
While most parents and students will be happy to see budget cuts occurring in other areas besides housing, financial aid, and student activities, there is no shortage of grumbling from staff in the higher education community.
Many worry that the budget cuts will demoralize college staffs, potentially affecting their quality of service to the students.
Unfortunately, as with most of the big changes the collegiate community has seen over the past year, only time will tell what results the budget cuts might bring. One thing, however, is quite certain: changes this big indicate that private colleges are feeling heavy pressure from the economy, and that could mean they will be more willing than ever to figure out how best to entice students to attend. If the trend continues, private college admission could continue to become easier over the next few years.
All the best,
Deborah Fox
Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.
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It’s no secret that private colleges are feeling the pinch this year, and with financial aid and student services serving as important recruitment and retaining tools for their attendees (and a source of income), many schools are having to make tough decisions.
Snip, Snip
Wondering where all your college tuition payments go?
A new survey released by Yaffe & Company, a private consulting firm, shows just how much fund allocations have changed this year. The company surveyed over 250 private colleges and universities to discover how the economic downturn has affected their spending practices.
The result? Massive budget cuts not for student funding, but for staff. An astounding two-thirds of those nearly 260 colleges plan to freeze staff salaries for the upcoming school year. Eighty percent of those planned for the freeze to cover the entire institution, and nine percent of schools plan to actually reduce staff pay–but that’s not all.
Benefits Begone?
Private college employee benefits are being trimmed as well: a shocking change, as higher ed benefits have reportedly been considered untouchable–almost sacred–in recent years.
Of the over 50% of schools making cuts, 1/4 plan to reduce or eliminate employer contributions to staff retirement funds.
Health benefits are changing as well. Many schools are forcing their employees to cover a higher percentage of their health insurance, and some are cutting their number of health plan options.
Changes Afoot?
While most parents and students will be happy to see budget cuts occurring in other areas besides housing, financial aid, and student activities, there is no shortage of grumbling from staff in the higher education community.
Many worry that the budget cuts will demoralize college staffs, potentially affecting their quality of service to the students.
Unfortunately, as with most of the big changes the collegiate community has seen over the past year, only time will tell what results the budget cuts might bring. One thing, however, is quite certain: changes this big indicate that private colleges are feeling heavy pressure from the economy, and that could mean they will be more willing than ever to figure out how best to entice students to attend. If the trend continues, private college admission could continue to become easier over the next few years.
All the best,
Deborah Fox
Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.
Subscribe in a reader
Subscribe by Email
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