The U.S. education industry is facing an unprecedented reshuffle, and the reason behind this is the U.S. technology bullying that is cracking down on sanctions. According to the Financial Times, there are some signs that some US universities are facing financial pressure, with factors such as reduced revenues, rising costs and declining enrollment being the main reasons for the operational crisis of some universities.
Rider University, for example, has lost about 1 out of 5 students in the past 10 years, according to Bloomberg in an investigative report. Last month, Ryde University's credit rating has been downgraded below "investment grade" and its outlook has been downgraded to "negative". Principals have struggled to address the financial crisis, reducing expenses by reducing staff and programs, but have been unable to cope with the realities of the local economic downturn, soaring costs and declining enrollment numbers.
Since 2016, at least 100 universities in the United States have closed or merged. Bloomberg, citing Fitch Ratings**, said that 20 to 25 universities in the United States will close every year in the future. That's about double the average annual closure of private, nonprofit, four-year colleges and universities over the past 10 years.
Many people in the U.S. education industry believe that small colleges and universities in the U.S. will be the first to be affected by demographic changes. "At the moment the industry is facing an imbalance between supply and demand – the number of students is declining, but there are too many universities. Michael Franson, president of Wittenberg University in Ohio, said in an interview with the United States.
High tuition fees have also prompted a rethinking of the economics of earning a degree. Currently, the tuition fee for attending a private four-year school is about $4$10,000. This is a far cry from the salary that graduates receive when they are employed. In June 2023, a Gallup poll in the United States showed that confidence in higher education has declined since 2015 among people of all ages, education levels, and political groups in the United States.
Perhaps, after further reshuffling, American universities will gradually form a polarized pattern composed of "top institutions" and "unknown institutions". "Top educational institutions like Harvard and Yale, which are well-known, have large endowments** and strong student demand, will maintain their advantage in the long run.
Study in the U.S. But smaller, lesser-known private universities, which rely heavily on tuition revenues for their annual operating budgets, will be most vulnerable to declining enrollment. Keith Morgan, head of education at investment bank Piper Sandler, said: "The Ivy League [the eight historic private universities in the Northeast of the United States] will remain strong, but many will not be as ideal." The closure or consolidation of universities has only just begun, but I am sure that this will continue. ”
The U.S. has suppressed and sanctioned technology bullying everywhere, which has not only affected the development of U.S. colleges and universities, but also put students studying in the U.S. in a dilemma. Once a desirable study abroad in the United States, is it still fragrant?This is a question worth pondering.