Financial Stress. On March 18, Moody’s Investors Service downgraded its outlook for the higher education sector from “stable” to “negative.” In doing so, it cited “unprecedented enrollment uncertainty, risks to multiple revenue streams, and potential material erosion in their balance sheets.” The halt of economic activity means the end of thousands of companies and whole industries, which will have an immediate impact on student enrollment numbers. Public universities will face budget cuts.
Uncertainty.There is very little clarity about when higher education will be able to open for in-person instruction for Fall 2020 or even Spring 2021. It is extremely difficult to plan for international students. An April 2020 survey from American Association of Collegiate Registrars and Admissions Officers (AACRAO) and American Council on Education survey of more than 2,000 current U.S. college students found that 83% intend to enroll in the fall as previously planned. AACRAO survey reports that among 500 U.S. institutions, 16-21% are considering a delayed start to the fall semester.1
