How administration mismanagement might impact your child’s future
Ric Edelman: It's Wednesday, September 20th. I've been warning you about the fact that colleges around the country are going broke. We've got 1.3 million fewer students today than three years ago. That means $65 billion less in tuition revenues for schools. One study says half of the nation's colleges are going to close over the next ten years. Now we've got news out of West Virginia. West Virginia University is the state's flagship. They have announced that they have a $45 million budget shortfall. And to solve that problem, the university is firing 169 faculty members. That's 7% of the total. And it is also shutting down 32 of their 338 majors. That affects 400 of their students. They now have no major.
Imagine if you're a student, a junior or a senior, and your school just told you that your major no longer exists. No advance warning, no permission for current students to be okay and just stop recruiting freshmen. Bam, you're out. Go scramble for a new college. Get ready to pay all over again for classes and credits because the new school won't accept all of the other school's credits. You'll not only spend more; you'll spend an extra year or two to get your degree. That's a year or two less of a career. That'll cost you hundreds of thousands of dollars in lost retirement savings.
West Virginia University is not alone. Penn State has a $63 million deficit. Rutgers has a $77 million deficit. The list goes on and on. Nationally, public colleges and universities have doubled their tuition since 1980. But it's not enough for them to support themselves because they have increased their spending by far more than that, all while state funding has been reduced. I've been warning you this crisis is coming. We are now beginning to see that it is here.
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