How Much Do They Know? An Examination of Student Perceptions of University Cutbacks

Abstract

Before the reality of COVID 19 surfaced, many universities faced economic uncertainties due to decreased revenues. Small, private, nonprofit universities are tuition-dependent and must lower costs to remain financially viable. This study investigates how much students understand about the financial situation of their University and how the decrease in university spending impacted student experience. We surveyed a sample (n=30) of recent graduates from the business department of a small, private, nonprofit university to gain a better understanding of how recent graduates perceived the financial decisions made by the administration and the outcomes of those decisions on their experiences. Questions asking about program cuts and other substantial decreases showed that these actions were widely recognized by students, even as the administration worked hard to limit their effects on the overall student experience. The findings indicate that most students are aware of the University's financial state, so leaders must develop communication strategies for current students and alumni built on trust and transparency as part of an overall strategy for long-term financial sustainability.