Illinois colleges grapple with financial challenges

(The Center Square) – Illinois’ grade is far from an “A” in college economics.

Northwestern College closed in July after 122 years in Chicago’s south suburbs.

Western Illinois University announced 36 job cuts in June and an unspecified additional number in early August.

Bradley University eliminated more than 60 jobs and 15 academic programs last December.

Eastern Illinois recently announced a credit upgrade from Moody’s. EIU previously was one of at least seven Illinois colleges to have junk credit ratings in the past 10 years.

MacMurray College of Jacksonville closed in 2020.

Scott Hegerty is an economics professor at Northeastern Illinois University and president of the Illinois Economics Association. He said part of the issue is a national trend of people not seeing the value of college, although it is a trend he does not agree with.

“Part of it is that there are fewer students. Part of it is that people think that maybe college is getting too expensive and they can achieve their goals more cheaply. Within Illinois, I think those same demographics hold,” Hegerty said.

Hegerty told The Center Square private schools are hit hard when they have smaller than expected classes. Public colleges have a different challenge.

“State schools are a little bit more insulated because they get state appropriations, but those have taken hits over the years,” Hegerty said.

Hegerty said smaller budgets mean less faculty. He said colleges may have to focus more on education and less on non-academic programs.

Hegerty referred to the concept of a consumption bundle. He said some people want to see a good football team, but others want a certain program or degree.

“More and more schools might have to focus more on the education side, because I think students are getting a little more wary about going into huge amounts of debt. We know that college costs have outpaced regular inflation. CPI, average inflation is high, but college education inflation is much higher,” Hegarty explained.

Hegerty said colleges may need to adjust as people look more at the higher education component and less at frills.

High costs and debt payments are especially high for students in Illinois. According to U.S. News, Illinois placed 42nd out of 50 states for low debt at graduation and 48th of 50 for tuition and fees.