Bad outlook for next year's crop...

It seems tiresome that I write so often about the impacts of the financial crisis, but it speaks not to my nerdiness, but the truly incredible significance it has.

A recent article in the Globe & Mail detailed the impact that the crisis is having on the endowment funds of universities throughout Canada. The endowment funds, are far as I know, are the funds that a university has to spend outside of the income it generates from tuition and fees from students. This money largely comes from the government and private donors and is often invested in the money markets. October of 2007 saw the highest value of Canadian university endowment funds ever seen, with a total of nearly CAD$10 billion. My, things have changed.

With the collapse in the market, universities have seen their endowment funds crumble. Some have lost as much as $100m alone, nearly 1/3 of their endowment funds. And with the ever-increasing costs of running a school and the lack of adequate government funding, things are looking bleak. And it doesn't help that private donors are hesitant to dish out their now seriously important cash. This could have a massive impact on students in Canada and the quality of our education.

In light of their new financial situation, university leaders have been expressing concern over the parts of the universities that will be hit. The hiring of new faculty and the continued employment of some faculty will be ceased at some schools. This is already a problem at many schools, particularly Trent (which prides itself on its low student-to-faculty ratio) where instructors are being hired on a temporary and part-time basis at a significantly lower wage than their full-time counterparts. Believe me, you don't want the people in these positions teaching you.

Scholarships will also be hit. For many schools, scholarships are the best way to attract the best and brightest to your school. The main (and deciding) reason I am at Trent now is because they provide me with a more than healthy scholarship. My money won't be effected by the downturn, but it could prevent others who were in my situation from deciding to come here or to any other school, and that's a sad thought. Even more important may be the reduction in smaller scholarships, of which there are thousands. These scholarships (though sometimes not particularly huge) help to reduce the cost of university for many students, which is the largest barrier to education for many people.

Other programs on campus may get cut, though it is hard to tell which ones. Others may simple be reduced. But the whole combination of program cutting will reduce the overall quality of the education.

The biggest impact may be absorbed by the students themselves in the cost of tuition and fees, which may increase substantially from their already high levels.

It is important to note that the students planning to come to school for the first time next year may not be adversely affected because the schools have already budgeted most of their tuition and scholarship numbers for the next year, but the class entering in 2010 will certainly feel the pain.

If I were selfish about this I might think this is no biggie. But I have family who will be starting university in the next few years. They will certainly be hit. But I'll be gone after the next year, so no harm to me, right? Well, I plan on going on to professional school and I have many friends looking into graduate school. Undergraduate costs are nothing compared to those programs, so we might all get hit.