2008 Woodie Awards
Recessions affect college enrollment, financial aid
Adam Ziegler
Issue date: 4/3/08 Section: News
As the U.S. economy heads toward an expected recession, universities could be faced with new challenges related to the country's economic woes.
Economies experience a decrease in total production and the number of jobs being created during recessions, which often leads to more people losing their jobs. As unemployment numbers increase, enrollment at universities tends to increase as well.
Many economists think the U.S. is heading toward another recession, said Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln, so universities could see another increase in enrollment in the coming months.
While the economy is likely heading towards a recession, Thompson said the short nature of most recessions make their effects difficult to recognize immediately.
"A lot of recessions are so short that by the time you're sure you're in one it's almost over," Thompson said.
With more people competing for fewer jobs, attending college becomes an easier and less costly option. Thompson said reduced chances of getting hired mean people will be less likely to miss out on good job opportunities by attending college.
Some of the people who begin attending college during recessions are ones who lost their jobs because of economic cutbacks, said Ritchie Morrow, the financial aid coordinator for Nebraska's Coordinating Commission for Post-Secondary Education. These people attend college to finish or begin degrees they hope will make them more attractive hires to prospective employers.
"It might be a good time for them to shift their focus in a new direction or make them more marketable when they're out looking for a job," Morrow said.
Recessions also increase enrollment by keeping students in college longer. Students who otherwise might have left college to take a job might not have those same opportunities during a recession, and they might choose to pursue a graduate degree instead, Thompson said.
While increased enrollment is usually positive for universities, Thompson said it can also cause problems. With more people attending college, getting financial aid for all of them can be more difficult for students.
Education aid is always part of the discussion when the state and federal governments are looking for things to cut in their budget, Morrow said, but so far financial aid hasn't been cut to Nebraska schools.
While recessions are a regular part of the economic cycle, Morrow said their unpredictable severity can make it hard to prepare for their effects.
"It's really hard to plan for the unknown," he said.
adamziegler@dailynebraskan.com
Economies experience a decrease in total production and the number of jobs being created during recessions, which often leads to more people losing their jobs. As unemployment numbers increase, enrollment at universities tends to increase as well.
Many economists think the U.S. is heading toward another recession, said Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln, so universities could see another increase in enrollment in the coming months.
While the economy is likely heading towards a recession, Thompson said the short nature of most recessions make their effects difficult to recognize immediately.
"A lot of recessions are so short that by the time you're sure you're in one it's almost over," Thompson said.
With more people competing for fewer jobs, attending college becomes an easier and less costly option. Thompson said reduced chances of getting hired mean people will be less likely to miss out on good job opportunities by attending college.
Some of the people who begin attending college during recessions are ones who lost their jobs because of economic cutbacks, said Ritchie Morrow, the financial aid coordinator for Nebraska's Coordinating Commission for Post-Secondary Education. These people attend college to finish or begin degrees they hope will make them more attractive hires to prospective employers.
"It might be a good time for them to shift their focus in a new direction or make them more marketable when they're out looking for a job," Morrow said.
Recessions also increase enrollment by keeping students in college longer. Students who otherwise might have left college to take a job might not have those same opportunities during a recession, and they might choose to pursue a graduate degree instead, Thompson said.
While increased enrollment is usually positive for universities, Thompson said it can also cause problems. With more people attending college, getting financial aid for all of them can be more difficult for students.
Education aid is always part of the discussion when the state and federal governments are looking for things to cut in their budget, Morrow said, but so far financial aid hasn't been cut to Nebraska schools.
While recessions are a regular part of the economic cycle, Morrow said their unpredictable severity can make it hard to prepare for their effects.
"It's really hard to plan for the unknown," he said.
adamziegler@dailynebraskan.com
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