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American universities are facing a battle for survival.

Due to economic downturn, inflationary pressure and reduced donation income, American universities are generally facing severe financial difficulties.Faced with serious fiscal deficits, many universities were forced to merge or close, and a wave of bankruptcies followed.

at the same time,The college enrollment rate in the United States is declining, and the public's confidence in four-year undergraduate programs is also declining.This is undoubtedly another heavy blow to the university.

Recently, Forbes released the latest "2024 American University Financial Status Rating" list, which mainly assesses the financial status of non-profit private universities in the United States.

In the 2024 American University Financial Status Rating list,Only 54 schools received grades of A or above, less than one-third of last year.

About 55 percent, or more than 480 schools, received a grade of C or lower.

This year, 27 colleges and universities received an A+ rating, including 11 comprehensive universities and 13 liberal arts colleges.

Five Ivy League schools, including the University of Pennsylvania, Cornell University, Yale University, Carnegie Mellon University and Columbia University, all received an A+ rating.

The financial situation of most top universities remains strong, indicating that they have strong capabilities in fund management and fundraising, and have strong ability to cope with economic fluctuations.

It is worth mentioning that Harvard University was still rated A+ last year, but this year it was downgraded to A. The University of Chicago, which was in financial trouble earlier, failed to make the A-rated list.

Although some top universities remain in strong financial shape,But overall, many private universities still face financial constraints and operational pressures.

These financially weaker schools may face greater challenges in the coming years.This includes cutting costs, adjusting operating models, and in some cases, even having to merge or close.

How once-leading universities, such as the University of Chicago, cope with financial crises in the future will become a focus of attention in the field of higher education in the future.

During the epidemic, many American universities fell into financial difficulties. Harvard University, as one of the richest universities in the world, was inevitably affected by the current economic environment.

Especially affected by the Israeli-Palestinian conflict,Families of well-known donors such as William Azh Ackman, Idan Ofer, Leslie Wexner, and Len Blavatnik have announced that they will stop donating to Harvard University.

The loss of these major donors will undoubtedly make Harvard's financial situation even worse.

The University of Chicago has spent the past two decades trying to compete with universities with larger financial reserves.However, this ambitious plan led to reckless investment and rising debt.

Clifford Andor, a professor of classics at the University of Chicago, once mentioned in his paper:The University of Chicago’s debt grew 260% from $2.236 billion in 2006 to $5.809 billion in 2022.

He also noted that the university has $900 million in loans coming due over the next five years, and that the Federal Reserve's interest rate hikes are making new debt more expensive, further worsening the university's financial situation.

In order to cope with the increasingly severe financial pressure, the University of Chicago has had to take a series of austerity measures.These include reducing cleaning services, shutting down some research institutes, cutting academic programs and faculty salaries, etc.

At the same time, the University of Chicago plans to ease financial pressure by expanding the enrollment of international students and transfer students.

In July this year, the University of Chicago suddenly announced a new early application batch specifically for summer school students.The purpose of this move is obvious.

Data shows that more and more American adults are losing confidence in higher education.

According to Gallup, when confidence in higher education was first measured in 2015,57% said they had a great deal or a fair amount of confidence, while just 10% had little or no confidence at all.

However, by 2024, this data had changed significantly. Gallup surveyed 2,180 American adults over the age of 18 and found that:

The number of people who have great or considerable confidence in higher education has dropped to 36%.Those who hold some confidence and those who hold little or no confidence each account for 32%, showing an almost evenly divided situation.

About a third of Americans who still have a high level of confidence in higher education sayThey value the training and opportunities that education provides and cite these as the main reasons why they trust higher education institutions.Specifically:

• 27% said they believed in the importance of education for individuals and society.

• 24% stressed that higher education provides opportunities for success in work or life.

• 19% said they trust higher education to develop independent thinking skills and respect different viewpoints.

• 13% mentioned the quality of university professors and administrators.

Meanwhile, about a third of Americans have little to no confidence, with concerns focused on the following:Universities push political agendas, don’t teach relevant skills, and charge exorbitant tuition fees.

Among them,41% mentioned that universities are "too liberal", try to "indoctrinate" or "brainwash" students, or do not encourage students to think independently.

37% of people are critical of higher education, believing that itFailure to teach practical skills results in a university degree becoming less valuable or graduates finding it difficult to find work.

Additionally, 28 percent cited high tuition costs and student debt.

Other less common causes includedeclining teaching quality, political unrest, unequal access to education, and issues of freedom of expression.

Overall, the public is pessimistic about the future of higher education.Only 31% believe higher education is moving in the right direction, while 68% believe it is moving in the wrong direction.

These views, which also influence parents and young people to a certain extent, may lead to a decline in college applications and enrollment rates.

The financial problems of American universities have triggered a series of chain reactions, one of which is a decline in the enrollment rate of freshmen.

According to the U.S. National Center for Education Statistics,In the fall of 2022, the freshman enrollment rate of American colleges and universities dropped by about 3% compared with 2021.

In fall 2023, higher education enrollment increased for the first time since the coronavirus pandemic, but the increase in four-year enrollment was still insufficient compared to pre-pandemic levels.

In contrast, two-year colleges have seen greater changes. Data from the National Center for Education Statistics (NCES) show thatCommunity college freshman enrollment for fall 2022 increased by about 4% to 5%.

According to data released by Community College News, freshman enrollment at community colleges for fall 2023 increased again by about 6%.

Amid these worrying enrollment trends, Gallup found thatAmericans’ confidence in four-year colleges is at an all-time low.

Americans have far more confidence in community colleges than in four-year colleges.

The biggest difference in Americans’ confidence in two-year and four-year colleges isCost and value.

While 58% of Americans are confident that two-year colleges can provide an affordable education, only 11% say the same about four-year schools.

Americans also express serious doubts about the value of a four-year undergraduate degree.Because 81% said they have little to no confidence in the value that four-year institutions offer.

Only 18% were very or fairly confident that a four-year degree was worth it.In contrast, 55% of Americans are confident in the value of community colleges.

Four-year college graduates often have heavy student loan debt.And the lower costs of community college can help reduce debt burdens.

Two-year community colleges mainly offer vocational and technical courses.These courses are directly aligned with industry needs and can help students enter the workplace faster.

Many community colleges have transfer agreements with four-year universities.Students can transfer to a four-year university after completing community college courses, saving costs while earning a degree.

In recent years, more and more students and parents have realized that community colleges can provide high-quality education and vocational training, and have chosen community colleges as a more practical educational path.

The divergent trends in enrollment at four-year universities and two-year community colleges reflect new considerations among students and parents about the cost and value of an education.

This phenomenon reveals changes in the field of higher education and the shifting demands of parents and students, and also brings new challenges to four-year undergraduate education in the United States.