Credit crunch hits universities as they struggle to keep enrollment high.
Keeping enrollment up during the credit crunch is a difficult task faced by the nation’s colleges and universities. Moody’s Investor Service recently downgraded their rating of the nation’s colleges and universities. Half a year ago they indicated that the financial outlook for such institutions was stable, but in light of the persistent downturn in the economy, they have reconsidered.
Having diversified sources of income, Colleges and universities have always fared well, even when tuition outpaces inflation. But the credit crunch resulting from the subprime lending crisis has lenders everywhere tightening their purse strings. Federal regulators have recently loosened restrictions on student and parent loans to make it easier to keep students enrolled. Even so, lenders are dropping their less profitable loan products. With fewer lenders and dwindling home equity, all the usual sources of extra money to keep students enrolled are drying up.
Universities across the nation are scrambling to find other ways to make attending school cheaper. Some schools are offering classes only four days a week, so students don’t have to drive to campus five days a week. Schools across the country are seeing increased enrollment in their online classes. While online classes aren’t any cheaper, enrolling in them does cut down on gas prices, which continue to climb.
The more challenging it becomes to hit target enrollment numbers, the more universities are making use of lead management software to find more students to fill their classes.
