American universities are failing. They are private or public schools. They could be religiously-affiliated or not. They could be in the east, west, north, or south of the United States. They traditionally emphasized liberal arts. They are facing an enrollment and budget crunch for several years, seeing that the declining number of eighteen-year-olds in the coming years poses an existential threat. It has a modest endowment. It is not an elite school. It is a school like the one that many professors teach at. It was failing before Covid-19. It may not be around in five years. With COVID-19, it may be around even less than that.
Years ago, I argued that higher education had a failed business plan, one that planted the seeds of its own destruction. It was a plan following the failures of K-12. Now the reality of the failed business plan is imminent .
The reasons for failing are many.
For years it relied on the same demographic of white students to recruit, except that demographic is disappearing.
For years it raised tuition at percentages that far outstripped the cost of living and increases in median household incomes, and now many students cannot afford to go to college.
For years it raised tuition to convince people that the more expensive it was the better a school it was. Except the school did not invest the money in academic programs.
For years it played the U.S. News & World Reportcollege rankings game. Except all the other schools played too and all it accomplished was elegant dorms and rising tuition.
For years it spent increasing amounts of money on lavish meals and events to recruit students. Except all the other schools did the same.
For years it encouraged students to borrow, except now with student loan debt at nearly $2 trillion they are tapped out.
For years it chased adult Baby Boomer learners who wanted additional credentials or thought they had a novel in them. But this demographic is gone.
For years it jumped on the bandwagon to create pricey graduate programs such as MBAs to subsidize the liberal arts school. Except this balloon busted.
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