Universities face financial impact after coronavirus spikes, students forced off campus

As some universities are still hoping to reopen for in-person or blended classes, coronavirus cases continue to spike by the clusters, forcing schools to move to all-remote learning and send students home. It’s a trend that is far too familiar now, in what universities are seeing as a domino effect throughout the country. Now many colleges are scrambling to reconfigure a path forward in order to prevent major financial losses and make students whole.

CORONAVIRUS PUSHES COLLEGES TO THE BREAKING POINT

After only nine days of classes, a reported 135 cases of coronavirus forced the University of North Carolina at Chapel Hill to convert to online classes and mandate the closure of residential housing. Not long after, East Carolina University followed suit in response to a surge in cases and canceled residential housing contracts with the exemption of special circumstances like international students, student-athletes and other hardship cases.

The University of Southern California has also closed down residential housing due to orders from Los Angeles County, and the school is asking students to delay their return to campus until the permission is granted.

Other universities are even urging students to stay home rather than find housing on campus to take online classes. When Michigan State University decided to effectively terminate 2020-2021 housing contracts, the school asked students who planned to live in residence halls, totaling around 9,600, to continue their education from their permanent homes.

Whether returning home or relocating to alternative off-campus housing complexes, cohorts of students continue to evacuate campuses.

Since UNC-Ch made the announcement on Aug. 17, more than 4,250 students have cancelled their housing contracts, while nearly 1,566 have scheduled move-out appointments. According to a UNC-Ch spokesperson, housing contracts have declined over time, and main campus housing remains at 15.1% capacity. The school will continue to evaluate the financial impact.

CORONAVIRUS CLUSTER FORCES UNC TO CANCEL IN-PERSON CLASSES

Most universities will offer refunds or credits to students who are being booted from their on-campus housing accommodations.

While some schools are faced with financial liability in order to de-densify campuses, universities that have yet to start the semester are taking precautionary measures to mitigate cases and financial losses.

Virginia State University announced that it will switch to be fully online and close on-campus housing ahead of the semester, as stated in an email from school President Makola M. Abdullah, in order to prevent an abrupt shutdown.