According to the professor at New York University, when colleges try to recover from a pandemic and prepare for future semesters, in the next 5-10 years, one to two thousand schools will go bankrupt.
Scott GallowayProfessor of Marketing at New York University Leonard N. Stern School of Business said Hari Srinivasan of “Amanpur & Co.” PBS which many colleges are likely to suffer from a possible extinction as a result of coronavirus.
He created several second-tier universities, which, most likely, will not remain unscathed. During the pandemic, wealthy companies did not fight for survival. Similarly, he says “There is no such luxury brand as higher education,” and top names will emerge from the coronavirus without difficulty.
“Regardless of the amount received in the fall, with donations of $ 4 billion or more, Brown and New York University will be fine,” Galloway writes. Blog post,
“However, there are hundreds, if not thousands, of universities with a pentatol sodium shake with a lot of training and small donations that will begin their death march this fall.”
“You will see incredible destruction among companies that have the following factors: second-level brand; expensive training and low income, ”he said at Amanpour and Co. ” because “there will be a breakdown in demand, because more people will experience interruptions in years, and you will see increased pressure to reduce costs.”
Bringing to the conclusion that between 1,000 and 2,000 of the country’s 4,500 universities may go bankrupt over the next 5-10 years, Galloway concludes, “What department stores were in retail, second-level higher education universities are about to become education, and they will soon become the walking dead.”
Another critical problem underlying financial difficulties faced by families and universities is the likelihood of a decline in the quality of higher education.
Galloway argues that US education is clearly unsatisfactory for the amount it costs, given that if you “go to class, it doesn’t look, it doesn’t smell, and it doesn’t feel any different than it did 40 years ago, except that the cost learning has grown by 1,400 percent, “ he said during interview with Dr. Sanjay Gupta.
AND The pandemic, according to Galloway, served to expose the quality of higher education.
“I think that students all over America, along with their families listening to these Zoom classes, are starting to think about what value or lack thereof they get for their dollars for tuition,” he said.
In the next six weeks, after receiving deposits / tuition fees, more universities will begin to announce the transition to all online courses for Fall. Scenario planning through Zoom among administrators of competitors D-Day. But, probably, all the scenarios will lead to one implementation: the protocols, due to the increase in the number of infections in the USA, will reduce the experience in the classroom to such an extent that the difference between personal and Zoom will be less than the difference between the risks of each approach,
Parents and students can still decide to send their children back to campus and make their own decisions about the risks that they can bear using a hybrid experience – online learning, living on or near the campus. They should / will enjoy the lawns in UVA and Royce Quad with friends – distance marked. But personal lessons should not be held.
Universities will face financial crisis, both parents and students recalibrate value fall semester (spoiler warning: this is a terrible deal). In addition, our cash cows (foreign students) can solve xenophobia, Covid-19, and H1-B Visa Limits not worth it $ 79,000 (estimated annual cost of visiting NYU). This is a long time ago, and, as in many other industries, we will be forced to make difficult decisions. Most universities will survive, many will not. This calculation is past due and a reflection of how drunken universities began to use exclusivity and the Rolex campaign, forgetting that we are civil servants, not luxury brands.
Frank professors end with another uncomfortable truth: Universities that after siphoning 1.5 trillion dollars on credit from young people, can not stand a semester on reduced budgets, do not deserve to survive.