2024 is proving to be a tough year for higher education, with a confluence of issues including enrollment challenges, financial aid, and technology transformation. Any of these issues could have a significant impact on the university’s overall financial balance, negatively impacting its ability to fund critical technology operations and future investments. Below is a mid-way check on the health of higher education and some of the major issues.
A downward trend in enrollment
Over the past 15 years, undergraduate enrollment has been on an overall downward trend, reaching its lowest point during the pandemic. According to the National Center for Education Statistics (NCES), this downward trend has not affected colleges equally, at least from 2010 to 2021. During this period, the largest declines were seen at two-year public and private colleges and four-year private for-profit colleges. The decline has been attributed to the declining birth rate in the United States, immigration policies, the pandemic, and the overall cost of attending college. Administrators at these institutions must explore strategies to minimize this financial gap in order to operate effectively and efficiently. Program cuts, increases in tuition and student fees, and raising external funds appear to be the most widespread solutions. The mantra of “doing more with less,” a continuing theme in many fall addresses given to faculty by presidents and deans, has placed a heavy strain on information technology. Faculty and students expect faster networks, 24/7 remote access, and greater storage capacity. As end-user demand for technology resources grows and accelerates, so does the need for improved security, privacy, and identity management, all of which have a significant impact on costs.
Financial challenges, barriers and assistance
While some jobs don’t necessarily require a college degree, there is compelling evidence that having one increases the likelihood of a higher salary after graduation. While the United States is experiencing an overall decline in enrollment in higher education, recent data from the National Student Clearinghouse provide some good news. In spring 2024, undergraduate enrollment increased 2.5%, while community college enrollment increased about 5% over the previous year. Technology-related fields, such as computer science and information science, increased 10% at four-year universities. Meeting this growing demand will likely require additional organizational investments in faculty, staff, and resources.
Rising tuition costs are also one of the main reasons students don't pursue traditional higher education degrees. According to the university ranking website Best Colleges, “more than half of Americans consider tuition fees to be the biggest financial barrier to attending college.” In addition to tuition fees, there are student fees that universities charge to provide high-quality facilities and services, which further increase costs significantly. Affordability of these increases varies greatly by demographic. While some wealthy families may be able to afford the rising cost of education, students from lower-income families and ethnic backgrounds may not be able to afford the additional costs and student loan burden.
Financial aid and scholarships help many students defray the rising cost of attending college. One of the major challenges for 2024 is the delay in the FAFSA (Free Application for Federal Student Aid) program. The U.S. Department of Education released a new form for the program in late 2023. Unfortunately, according to CNN, “numerous processing issues and glitches” have caused major delays to the program. According to the National College Attainment Network Tracker, as of May 2024, completed FAFSA forms are down by about 14%, which could impact fall college enrollment. Rising costs, the ability to pay tuition and student fees, and the difficulty of receiving financial aid can all lead to lower enrollment and increased financial strain on higher education.
Fund Technology
Although a major financial tsunami is hitting the traditional walls of higher education, careful strategic planning and developing innovative solutions can stabilize and sustain student enrollment. As students and parents try to make informed decisions about where to apply, schools that can clearly differentiate themselves from others may have the best chance of future success. Here are five innovative ways that universities may use technology to attract future students: Encourage campus foundations to secure sustainable external funding and encourage corporate sponsorship of student opportunities and technology resources. Strategically employ AI technologies to customize student learning paths, monitor and evaluate institutional administrative processes, enhance teaching and learning, improve coursework, and provide student activities. Enhance student services such as advising, recruitment, admissions and retention, monitoring of student progress and early warnings, and mental health care. Enhance cybersecurity monitoring, and early warning and protection for faculty, staff, and students. Provide robust personal identification, identity management, and data protection across the institution. Invest in robust network and storage infrastructure and cloud computing to meet today's needs while developing strategic plans for future growth, replacement, and renewal. Invest in talented technical staff and offer a retention plan to keep them.
A clearly defined technology strategic mission is essential for higher education to grow and thrive in a financially uncertain future. Involving a CIO, CTO, or similar administrator on the management team along with the CFO is essential to get the right people at the “strategic planning table.” There will be many issues in the future that will have a significant impact on the financial bottom line. Making the best strategic decisions now as universities enter the fall 2024 semester will give them enough stability to weather the waves of impending financial change and ensure they have the right technology in place to weather any economic crises that may come their way.
Jim Jorstad is a Senior Fellow at the Center for Digital Education and the Center for Digital Government. He is the former Interim CIO and Cybersecurity Officer Emeritus in the Office of the President at the University of Wisconsin-La Crosse. He has held leadership roles as Director of IT Client Services, Academic Technology, and Media Services, serving over 1,500 staff and 10,000 students. Jim has experience in IT operations, teaching and learning, and social media strategy. His work has been featured on CNN, MSNBC, Forbes, and NPR, and he is the recipient of the 2013 CNN iReport Spirit Award. Jim is an EDUCAUSE Leading Change Fellow and was named one of the top 30 media producers in the United States.
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