International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Impact of the Financial Crisis on American Public Universities

The impact of the financial crisis on higher education has been considerable, and the crisis may lead to reduced funding for education from all sources – government, private sector and households. There are a number of effects on the financial situation of the American public universities. Most of them come about as a direct result of the global economic situation. While both developed and developing countries are affected, it is not always in the same way. A key modifying factor is the shape and structure of the higher education system within each country, which can produce different outcomes in each particular country. The American higher education system has been much affected by the financial downturn. Unemployment has continued to climb, and job availability for young people is low. At the same time, the cost of tuition at private colleges and state four-year universities has continued to grow. As a result, with a greater need for higher education, but fewer financial resources, families have chosen cheaper options. Thus, those who may well have paid for a prestigious private college in previous years are now attending quality state universities. Spending in many American colleges and universities has been severely cut back. These reductions include the cutting of services and reduced spending.

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