American schools and private universities have closed campuses, switching to digital education remotely. They still don’t know if they will be able to reopen classrooms in September to hold lessons in person, and this is having an economic impact for several reasons.
Some students are reconsidering enrollment because they do not believe that virtual teaching is worth the cost of tuition, which in Harvard’s case exceeds $ 70,000 a year.
The physical presence then ensured other revenues, such as those for food and accommodation, which will now be missing. The costs do not change, however, also because the University of Cambridge has decided not to fire anyone.
All this, however, will open a 1.2 billion hole in Harvard’s budget, despite being the richest university in the United States, with a capital of 40.9 billion. So executive vice president Katie Lapp asked employees to accept voluntary sacrifices to fill the gap in the accounts. Suggested measures include pre-retirement, with one year’s salary as a bonus; give up holidays; reduce working hours between 10% and 50%, for a minimum of two months.
Harvard confirms that she does not intend to lay off, and will also pursue other cost cuts, but asks employees to help her get through the storm.