Bailouts

Should colleges that will fail due to lack of enrollment or even this years Corona virus receive federal bailouts?

https://www.forbes.com/sites/susanadams/2020/04/21/why-is-harvard-getting-9-million-in-stimulus-money-when-it-has-a-40-billion-endowment/#577d2d946f00

Quote: petroglyph

Should colleges that will fail due to lack of enrollment or even this years Corona virus receive federal bailouts?

https://www.forbes.com/sites/susanadams/2020/04/21/why-is-harvard-getting-9-million-in-stimulus-money-when-it-has-a-40-billion-endowment/#577d2d946f00

I am not sure Harvard is a fair example. They would be fine without the 9mil. Other colleges may not be.

I think in the long term this will teach colleges to get less reliant on fees from living on campus as online and commuting becomes the norm (the traditional model is outdated anyway). Colleges are only losing money on room and board fees and dining facility fees.... Which should have been outmoded year ago anyway....

Many colleges need to close. The problem is many are the single industry for their small town. Oh well, something new must replace them.

There will be a movement to prop them up. Hopefully it fails. 1-2 will probably close per year the next 20-30 years.

The model is outmoded. They need to convert to more practical education. IT certs. Business degree in 18 months. End the taking of useless gen ed classes.

Are we going to call the billions colleges will receive "bailouts" or "stimulus"? And are the money's loans or grants or gifts?

For years students borrowed tuition, and financial institutions loaned them the money because it is well known that they wouldn't be able to bankrupt out of the loans. An unintended consequence of that law, was increase after increase in the cost of higher education.

Next year looks like their will be a massive decrease in the amount of students enrolling in brick and mortar colleges. Without students, those schools will not be able to pay all the professors. If the laws of supply and demand were allowed to follow it's natural course, many schools would collapse, teachers salary's would go down as would tuition. If the fed pumps up these now failing schools so they can remain a going concern, we have in fact nationalized our higher education school system.

I chose to start the thread because of what's happened here in Az., with so many students having pre paid for housing and meals and being shut out, especially with the amount of foreign students who nowhere to go and no money to get there. And, the ASU hasn't refunded their money. What's the plan, to bailout the schools while the students are stuck with education loans?

If the fed stimulates the colleges, we may as well have already given free education to students that wished to continue on, similar to what Germany does. If the fed doesn't stimulate [bailout] these schools that won't have throngs of students in the fall, they will fail. Either way, the country is changed.

It doesn't seem fair for Harvard which has a 40 billion dollar endowment to receive millions in stimulus money, while local community colleges will probably need to close their doors.

Trump said several times today during his update that they're getting the money back from Harvard. He must have said it five times.

Quote: AZDuffman

Many colleges need to close. The problem is many are the single industry for their small town. Oh well, something new must replace them.

There will be a movement to prop them up. Hopefully it fails. 1-2 will probably close per year the next 20-30 years.

The model is outmoded. They need to convert to more practical education. IT certs. Business degree in 18 months. End the taking of useless gen ed classes.

I surprisingly agree.

If your business fails during the shutdown, maybe it should fail too without propping it up. Why the difference with schools? Why should they be allowed to fail.

Quote: AZDuffman

Many colleges need to close. The problem is many are the single industry for their small town. Oh well, something new must replace them.

There will be a movement to prop them up. Hopefully it fails. 1-2 will probably close per year the next 20-30 years.

The model is outmoded. They need to convert to more practical education. IT certs. Business degree in 18 months. End the taking of useless gen ed classes.

+1,000

Yep, colleges today are basically indoctrination camps. Libbie professors don't care about education. All they want to do is push their socialist agenda on students. 🙄