Did you know that colleges are businesses first? They need to make money so they have money to spend. And just like any business, they operate depending on consumer demand. But the events of 2020 have turned many colleges’ worlds upside down. Demand may be decreasing. Hafeez Lakhani is the CEO of Lakhani Coaching, which offers one-on-one coaching for test prep, college admissions, academic skills and character growth. He chats with Bold TV about how colleges will adapt to survive these challenges. And many of these institutions won’t make it.
Loss of tuition money
University finances aren’t looking great right now. And a college’s survival will depend largely on their endowment. Large universities with big endowments have a rainy day fund. Educational institutions that don’t have large endowments depend on tuition. But because of constant uncertainties and many classes migrating online, 25-30% of students may take the year off. They can find jobs and make money until campuses go back to normal. And with the uncertainty surrounding international students, many of them may stay in their home countries to avoid the new hurdles. Many schools don’t have a way to replace that lost tuition revenue. And Lakhani expects 100 colleges won’t make it out of this period.
Colleges going test-optional
Another effect of low enrollment is the test-optional movement. Many schools are waiving the SAT and ACT requirements for this academic year. So, will standardized tests become a thing of the past? Some colleges have been test-optional for three decades. The University of Chicago is prestigious but has been successful with the test-optional route. Lakhani suggests that if you think a test isn’t the best way to show your excellence, don’t take it. The admissions office will focus more on your academics and character. You can use this new opportunity to show your excellence outside of standardized testing. College as we know it is evolving. Do you think it’s for the better?