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Higher Education EssayEconomic Crisis and Higher Education in the United States The 20082012 scotch failure is considered by many economists and investors to be the worst financial crisis since the Great Depression of the 1930s. It results in the hazard of total collapse from big financial firms, the bailout of banks by national governments, and downturns in stock markets around the world. The crisis in like manner plays a significant role in the crash of key businesses and collapse of housing market, results in the slow down unemployment. Higher education is a large and various venture in the United States, which has impacted by the economic recession in a number of ways, but these impacts pose not been the same and quit depending on state and type of institution. Most high education traditions started to be concerned about their financial problems due to economic recession. Their main source of revenue has been hurt by the downturn, and that those universities would nee d to make warm decisions about how to spend their money.In some states, a lot of institutions atomic number 18 in process of fund-raising programs to repeal delaying their supported campus building projects. Many of higher education universitys leaders have been considering and solving of twain following questions How is the economic downturn affecting institutions both public and private? What strategies are leaders implementing to bring their institutions? Unsuccessful budget strategies are the main reason that caused many institutions problems. Their top managers have not efficaciously managed their money.Fund-raising, government support, and earned income will similarly suffer in a poor economy. They are also experiencing revenue deficits due to lower state appropriations, endowment losses, or a reduction in donation. Furthermore, institutions difficulties in gaining access to funds invested in a major short-term investment fund. According to Ken Chabotar, causality of The Economy and Higher Education, budget management is related to the most complicated set of relationships in higher education are among college costs, student tuition fees, financial aid, and enrollment.Quality plus financial aid and affordability are the issues that most colleges and universities worry how much economics will affect while thinking about to countersink costs and prices. In the current economic situation, adults and recent high-school graduates are willing to study for two age at a community college make more financial sense than going straight to a more expensive campus. Community colleges as known as lower cost institutions are recognizing a rise in enrollment levels while small, independent colleges and universities result in a fall in enrollment.As a result, the economic crisis creates hardship not only for students in paying their tuition and also difficulties for higher education institutions to maintain their enrollment level, especially their budget and r evenue. Additionally, many of well-known universities such as Harvard, Yale, and Princeton etc. are facing difficult financial problems due to cut of endowment and donation from investors and alumni. shapely institutions have suffered losses up to a third of market value and 30% of donated money cause budget cuts, wage freezes, and borrowing to support the operating budget rather than increase endowment spending.In the United States, there are a lot of campus relied on endowment too much. Many universities have been delayed on cash funding of appropriations from state and federal government. The top managers have to suspense closely half of capital projects and research in order to balance their institutions budget. Loss of enrollment and endowment in higher education increases the financial needs of university in order to afford their expenses and keep operation going.