Can U.S. Universities Make a Comeback? A Debate

The coronavirus pandemic forced almost all U.S. colleges and universities to cancel classes in March and resort to remote learning for the rest of the spring semester. But the lockdowns also brought to a head long-simmering issues: Was the four-year on-campus experience worth the exorbitant cost, which many students could only afford by taking out huge loans? And how sustainable is the entire model, with tuition increases that outpace inflation and ever-more extravagant amenities offered in a bid to lure students? Bloomberg Opinion writers Tyler Cowen and Noah Smith met recently online to debate the future of American higher education.

Noah Smith: Both you and I agree that U.S. universities are about to come under enormous stress. Many colleges were already in trouble before the pandemic because of declining enrollment, heavy student debt and a declining value proposition for many institutions. Now coronavirus will make the situation much worse. Absent a generous federal bailout, state funding for public universities is likely to decline, as it did during the recession of 2008-9. And this time, the collapse in the number of high-paying overseas students -- due to Covid-19 and to Trump administration restrictions -- will add to the misery.