According to the findings, college attendance surged throughout the recession, particularly in the hardest-hit states. Part-time enrolment climbed while full-time enrollment decreased, with the gains concentrated among students of color.
What was the impact of the Great Recession on higher education?
Higher education has a peculiar characteristic in that it runs in the opposite direction of the economy. When the economy is stagnant, demand for college grows as unemployed people decide to return to school in order to enhance their career prospects. Since the coronavirus outbreak appears to be causing a new recession right now, I thought it might be helpful to review what occurred to schools and institutions during the Great Recession of 2008 to help us think through what could or might not happen this time.
From 15.6 million undergraduate students in the fall of 2007 to a peak of 18.1 million students in the fall of 2010, the number of students enrolled in college increased by about 2.5 million, or nearly 16 percent. According to Doug Shapiro, executive research director of the National Student Clearinghouse Research Center, the majority of the increase was driven by older individuals rather than traditional college-age students who had recently graduated from high school. These seniors primarily attended two-year community colleges and for-profit online schools like University of Phoenix.
Back-to-school shopping did not happen overnight. There was a gap of 18 months. Workers were laid off first. They then ran out of jobless benefits. “When they realize they won’t be able to find another job, they begin to consider going back to school, according to Shapiro. “And it takes them a year and a half to two years to get through the entire process of selecting a school and getting into one.”
What was the impact of the Great Recession on college students?
Many first-time and returning students faced severe financial challenges as a result of decreased family incomes, declining house values, and large tuition hikes at their state schools during the Great Recession.
Students who are applying for the first time must pick where they will apply and enroll in college. During the Great Recession, we looked at the influence of sticker-price shock on college application behavior in a recent study. Students were less inclined to apply to state flagship universities when such institutions’ tuition increased significantly, according to our findings. Even while numerous state flagships met full financial need for low-income students and the price these students faced after subtracting grant help would have stayed the same, this effect was visible for all students.
The fact that low-income students reacted to price hikes that didn’t even affect them implies that tuition increases accompanying recessions have a broad chilling effect on college-bound students’ plans. At the very least, students should be aware that tuition hikes on the sticker may not necessarily reflect tuition increases for them.
What impact did the financial crisis of 2008 have on education?
During a recession, private school tuition might become an unaffordable luxury for some families. Indeed, according to this preliminary data, private school enrolment fell sharply in areas hardest hit by the Great Recession. This was especially the case among white, affluent suburban households. Private school enrollment fell from 9% to around 5% in the hardest-hit areas.
Both private and public schools suffer as a result of this: private institutions lose tuition dollars, while public schools pay the burden of educating additional kids while budgets are stretched.
In a downturn, what happens to education?
People often pursue higher education to obtain new abilities and boost their future career prospects during times of recession. This is supported by research. “In general, recessions lead to enrollment increases for many schools,” says Bob King, Collegis Education’s senior vice president of partner strategy.
What impact did the economy have on education?
Negative effect 1: As adult income declines, it becomes more difficult for parents to cover direct educational costs such as tuition, fees, books, supplies, uniforms, and private tutoring. As a result, educational outcomes are affected because the youngster is either absent from school or underprepared for it.
What impact did the 2008 financial crisis have on student loans?
College is more costly and more vital than it has ever been. And this paradox puts students in a difficult position: do they risk incurring unpayable debt or forego the benefits of a college education?
This dynamic has long been referred to as a “crisis” by experts. Then came another type of disaster: the coronavirus epidemic. After then, there was an economic downturn.
The United States officially entered an economic recession in February, and over 42.6 million Americans claimed for jobless benefits between mid-March and June.
Many people chose to return to school and learn new skills during the 2008 recession. However, since then, the cost of a four-year college degree has climbed by 25%, and student debt has increased by 107 percent, and many people are questioning whether college will be the answer to surviving this recession.
During the Great Recession, why did people return to school?
- Going back to school has a low opportunity cost during a recession, which means you’re less likely to pass up possible job possibilities by returning to school. If you’ve been thinking about going to graduate school, now might be the greatest moment to receive a good return on your investment.
What is the economic impact of college enrollment?
The Richland Community College Chronicle also supports: “According to a study done on forecasted job growth and college education, roughly 35 percent of the new job development that is expected throughout the 10-year projection period is likely to occur among employees and students.”
What does the recession entail for educational institutions?
When a recession strikes, schools lose funding from all three of these sources. Schools, for example, receive greater money in areas with a high property tax; schools in areas with low property taxes, on the other hand, receive less funding.
In 2008, how many instructors were laid off?
According to the California Teachers Association, teacher layoffs fell to their lowest level since the crisis began in 2008, with roughly 1,300 teachers, librarians, counselors, and other public school personnel getting final layoff notifications by the May 15 deadline.
The 1,300 mailings were less than half of the 3,000 preliminary “pink slip” layoff notifications given out by school districts on March 15, the state’s deadline for notifying teachers of possible layoffs. According to the Association, which analyzes the data, roughly 20,000 teachers and school personnel received preliminary layoff letters in March 2012, with about 8,000 facing final layoff notices. The majority of laid-off employees are often rehired, but this may not happen until August.
Dean Vogel, president of the California Teachers Association, remarked, “This is a huge thing.” “We wouldn’t be looking at statistics like this if Prop. 30 hadn’t passed.” Proposition 30, which passed in November, averts a $5 billion decrease to K-12 education spending in the middle of the year and increases financing for schools over the next seven years.
However, Vogel warned that the state’s education problems are far from over. “California’s public education system is chronically underfunded,” he remarked. “At long last, we have a governor who is concerned about it.”
The Association was unable to provide a district-by-district breakdown of the layoffs, but a district official claimed that the state’s largest district, Los Angeles Unified, did not lay off any certificated employees. According to the Sacramento Bee, 250 teachers were put off in Sacramento, Yolo, El Dorado, and Placer counties. According to a statement from the district, the Pasadena Unified School District laid off 93.5 full-time employee equivalent positions, and the San Francisco Unified School District sent 105 final layoff notices to teachers and other certified staff, as well as paraprofessionals such as classroom aides and family liaisons.
Despite the low number of layoffs, Matthew Hardy, communications director for United Educators San Francisco, a local teachers organization, said they caused significant distress.
“I’m not sure the district realizes how much this is going to cost,” Hardy added. “It produces a sense of alienation and detachment from higher management and administration, which sadly leads to skepticism,” says the author.
Some of the layoffs this year are due to funding shortfalls, but many are due to positions that are no longer needed, either because a particular employee’s credential area does not match the needs of the school site for next year or because a grant-funded resource is coming to an end, according to San Francisco Unified School District Superintendent Richard A. Carranza.
“This is the first year since 2007 that SFUSD is not facing hundreds of layoffs as a result of the state of California’s planned budget reduction,” Carranza stated. “While the financing climate has improved significantly, we still have budget gaps and budget uncertainties in various areas.”
Rachel Snow, an English and drama teacher at Rosemead High School in the El Monte Union High School District, received a final layoff notice last week and said she was split between looking for a new job and hoping she would be rehired. “I need insurance and work, but I also want to wait out and see if I can get my job back,” she explained. “I adore my children and have been working tirelessly to expand the theatrical program.”