Education Institutes Face Financial Crisis As A Brunt Of The Pandemic
Experts discuss how to manage cash flows in this unprecedented situation.
Sharp enrolment declines due to the pandemic have taken a severe financial toll on many colleges and universities and the impact may last for years to come. As many schools moved to a hybrid approach to education, with a combination of in-person and online classes, the number of students living on campuses is also down substantially.
BW Education recently hosted Top Education Brands Summit and Awards where visionaries from various education institutes discussed how colleges are facing financial crisis in the face of the pandemic.
The panellists for the session were Dr R W Alexander Jesudasan, Pro-Vice-Chancellor, Hindustan University, Moulshree Dubey; CEO, Professional Institute of Engineering and Technology; Vikas Singh Executive Director, ITS Engineering College. The discussion was moderated by Prof N V Ramana Rao, Director, NIT Warangal.
In his opening remarks, Prof Rao said, “Cash flows in the education system have stopped because parents and government expect the institutions to pay the money back.” He pointed out how institutions are facing problems because of the need for procuring advanced technology for enabling the online teaching process.
Adding to the discussion, Moulshree Dubey; CEO, Professional Institute of Engineering and Technology said, “We need to have a fiscal footing and a plan based on valid facts and work on a matrix financial strategy.”
Loss of auxiliary revenue to the colleges like parking fees, lodging and hostel fees and increase of unexpected expenses like partial expense on fees has added to the problem.
Vikas Singh Executive Director, ITS Engineering College expressed that the new ed-tech companies like BYJUs and UpGrad are becoming a threat to the educational institutions. He further added, “I am surprised that students are hesitant to come back to classrooms despite being in lockdown for the past 9 months. The reason for this can be reluctance on part of the parents."
“The physical presence of students and socialising with peers and faculty will enable the splendid learning process,” expressed RW Alexander Jesudasan, Pro-Vice-Chancellor, Hindustan University.
Understanding the different parameters affecting the financial condition of colleges is crucial for ensuring their long term survival. The panel was full of great insights and the leaders were optimistic to make their institutes, cash positive.
The event was concluded successfully in partnership with the Tourism Finance Corporation of India.
Around The World