Recent developments in higher education shed light on significant actions taken by Ohio State University regarding employee compensation and broader trends affecting academic institutions.
Ohio State University Pay Raise Reversal
Ohio State University announced plans to reverse pay raises for 306 employees that were implemented in January. This decision follows a ruling that nullified the U.S. Department of Labor’s expanded overtime eligibility, prompting the university to reassess previously adjusted salaries.
Potential College Closures
Research from the Federal Reserve Bank of Philadelphia indicates that approximately 80 additional colleges could face closure annually in the event of a sudden 15% decline in student enrollment. Conversely, a gradual decrease in enrollment would likely lead to only five additional closures each year.
Graduation Rates Increase
Data from the National Student Clearinghouse Research Center shows that 61.1% of students who began their college education in 2018 graduated within six years. This represents a 0.5 percentage point increase from the previous year, indicating a slight improvement in graduation rates across participating institutions.
Tuition Growth Projections
Fitch Ratings forecasts modest net tuition growth of 2% to 4% for most colleges during the 2024-25 academic year. Despite this anticipated growth, institutions are expected to face intense competition for a decreasing student population, contributing to a cautious outlook for the higher education sector.
First-Year Student Diversity
This fall, Brown University reported that 18% of first-year students came from historically underrepresented backgrounds, reflecting a 9 percentage point decline compared to the previous year. In response to this trend, the university has intensified its recruitment efforts to enhance student diversity.
These statistics illustrate current trends impacting higher education as institutions manage challenges concerning workforce decisions, enrollment figures, and diversity initiatives.
Source: Higher Ed Dive
