Financial crisis impacts college campuses

Buckle up, it may be a bumpy ride for college kids next year.

With the chaos of the country's financial crisis and slumped economy, the turmoil on Wall Street as well as the growing concern among the general public has begun stirring up a sense of fear among universities and state colleges.

University administrators and officials have begun holding meetings about halting the costs on any new plans of constructions or projects on college campuses and have started to keep a close watch on all the funds that are used.

"Everything is on the table in this context," says Brandeis University's spokesman, Dennis Nealon, to the Boston Globe. "Colleges and universities can't pretend this isn't going to have an effect on us," he adds.

The condition in the state of Massachusetts especially is quite critical as a large portion of the state's high income is attained from funds generated by universities established for higher learning. The funds incorporated into the state's economy by various independent universities amounts to a staggering $23 billion annually.

The president of one of New York's economic consulting firms, Hugh O'Neill stated that universities and colleges have been the sole reason for stability in Massachusetts and this crucial time of economic instability.

Due to the fallen market conditions, the universities have been left struggling for more funds. Thus there might be the strong possibility of colleges raising the tuition amount for their students as there is going to be a significant cut in government subsidies to state colleges and other academic institutions.

"Depending on their severity, there could be fee increases for the second semester," says Robert Antonucci, president of Fitchburg State College.

These cost increments could affect a number of private universities, as their already expensive tuition bills might discourage the already financially troubled middle class families from enrolling their children in them, thus significantly reducing the college going population.

People are saying everything will be OK once things return to normal," states Paula Rooney, of Dean College in Franklin. "But what's the definition of normal right now? I think it's an assumption we have to give up."

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