CFO Insights

With international borders closed for a month or more, higher education institutions need to be thinking about the long-term effects of COVID-19 (or Coronavirus) on international student enrollment rates. Not only will current international students be affected by the pandemic, but prospective international student enrollment rates are expected to drop dramatically. Watch the video to learn how to incorporate international student enrollment scenarios into your college or university's short- and long-term financial models.

Depending on Industry, it’s arguable if COVID-19 is truly a “black swan” event—something that was unpredictable with profound consequences on the global economy; or, does the incident better align with the coined term “gray rhino” – a threat on markets that was predictable yet ignored until too late. Either or, the proposition remains the same—detailed contingency plans must be put in place now to get you through this crisis, or to proactively ensure your organization will remain unscathed when faced with the next catastrophic event.

While the social and economic impacts of the growing coronavirus outbreak have dominated the news cycle, the larger implications for higher education have largely gone unnoticed. With the WHO recently declaring the coronavirus a global pandemic, colleges and universities across the country have been forced to grapple with the long-term consequences of declining international enrollment, suspended study abroad or foreign exchange student programs, and an overhaul of distance educational technology. Though the trajectory of the current outbreak is impossible to predict, institutions should make responsible financial planning a priority in the event of revenue loss.