“worst scenario assumes that students would not be allowed to live in campus housing when the fall semester starts”
Schools across the country are likely facing similar circumstances.
The Star Tribune reports:
University of Minnesota bracing for $75M to $300 million hit from COVID-19
The University of Minnesota could lose more than $300 million because of the COVID-19 pandemic, which has shuttered campuses across the country and forced schools to switch to online learning for the foreseeable future.
Under the best-case scenario, U administrators told the Board of Regents Tuesday that the university could lose $75 million if the pandemic subsides this spring. If it extends through the summer, the loss in revenue could reach $160 million. The pandemic could cost the U $315 million in revenue in the most severe case, if it were to last into the fall.
“We have been challenged before. We have emerged stronger, and we will do that again,” President Joan Gabel said.
In the worst-case scenario, the U loses nearly $90 million for tuition, $75 million for athletics, up to $60 million for event cancellations and as much as $40 million for student housing and dining fees.
The worst scenario assumes that students would not be allowed to live in campus housing when the fall semester starts, said associate vice president of university finance Julie Tonneson.
That scenario also forecasts notable drops in student enrollment, with the incoming freshman class and incoming transfer students each potentially decreasing by 20%, Tonneson said. Student retention rates could also be affected, with graduate student retention potentially dropping as much as 10% and international graduate student retention decreasing as much as 50%.
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