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Colleges Face a Financial Reckoning. The University of Chicago Is Exhibit A.
The Wall Street Journal ^ | Oct. 30, 2025 9:00 pm ET | Sara Randazzo and Heather Gillers

Posted on 10/31/2025 1:36:15 PM PDT by E. Pluribus Unum

Decades of big spending, new federal funding cuts and a changing view of higher education created a perfect storm; ‘Spending Your Tuition On Its Mistakes’

The school that produced Milton Friedman and 34 other Nobel Prize-winning economists is struggling to manage its pocketbook. 

The University of Chicago ran budget deficits for 14 years straight, spending big on new labs, dorms and technology to raise its profile and enrollment. Now it’s facing a financial reckoning.

Over the summer, university leaders said they needed to cut $100 million in expenses. They decided to slow tenure-track hiring, scale back new construction and pause admissions to nearly 20 Ph.D. programs for a year. They’ve been aggressively fundraising and soft launched a new capital campaign.

By the time freshmen arrived in September with their minifridges and extra-long sheets, disgruntled faculty and graduate students had printed up flyers. Families—many paying $71,000 a year—were handed a paper that read “UChicago: Spending Your Tuition On Its Mistakes.”

The university is an acute example of the financial woes plaguing higher education. Even before President Trump’s federal funding cuts, many schools were already stretched by years of competitive spending. Their budget struggles are in many cases more than a decade in the making, and it’s not just far-flung state universities or D-list private colleges suffering.

As schools scramble to make cutbacks, they face broader questions about what kind of university they can be in this new era of financial constraint.

“Our president kept saying we’ll get ‘sharper,’” said Gabe Winant, an associate history professor at UChicago. “How does something get sharper? You file away at it.”

In the years leading up to the pandemic, low interest rates fueled borrowing binges across higher education to build snazzy academic buildings and dorms. UChicago and other schools also...


(Excerpt) Read more at wsj.com ...


TOPICS: Education
KEYWORDS: eplentyofspam; epluribusrino; sirspamalot; spammingfr

1 posted on 10/31/2025 1:36:15 PM PDT by E. Pluribus Unum
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To: E. Pluribus Unum

U of Chicago has the distinction of being the first school to boast tuition/fees/room & board over $100,000 annually and that was 5 to 6 years before covid.

I remember reading the article and one hook for students was the elite level, top of the line, concierge housing...

I hope they go bankrupt...


2 posted on 10/31/2025 1:42:25 PM PDT by God luvs America
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To: E. Pluribus Unum

The founding of the federal department of education and all the largess showered by it on academia, without financial accountability, aided and abetted the extravagance and outright wasteful spending at colleges with unchecked tuition increases and met with more and more federal subsidies to schools and students to pay for it all.

“Aid to education” at the college level was really and truly NOT as much about “education” as it was about subsidizing the arrogant, extravagant and elitist education industrial complex. The colleges lobbied their friends in Congress to keep pushing for more college and student subsidies not “for the students benefit” but to just help the colleges keep from having to operate economical, efficient and financially sound institutions; not to worry, “Congress will support the students” and keep upping the aid for the unaccountable tuition increases.


3 posted on 10/31/2025 1:56:06 PM PDT by Wuli
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To: God luvs America

I transferred out in the early ‘80s largely because of high expenses and a lack of financial aid.


4 posted on 10/31/2025 1:57:59 PM PDT by Dr. Sivana ("Whatsoever he shall say to you, do ye." (John 2:5))
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To: E. Pluribus Unum
The "Enrollment Cliff" seems to be hitting the University of Chicago hard. Or it could be that UChicago's location in south Chicago is a negative factor.
5 posted on 10/31/2025 2:00:32 PM PDT by Carl Vehse (Make Austin Texas Again!)
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To: God luvs America

I will cut U. Chicago some slack. It was their former Dean Zimmer, who became well known during Trump I administration, for sending out a letter to incoming freshmen that the university did not accept “safe spaces,” and all students should be prepared to have their ideas tested. Leftists freaked out.


6 posted on 10/31/2025 2:06:43 PM PDT by PGR88
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To: E. Pluribus Unum

Milton’s old stomping grounds


7 posted on 10/31/2025 2:19:17 PM PDT by Third Person
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To: PGR88

Yeah, I remember that too. That was definitely a plus in my book. But sounds like they got stupid in other ways.


8 posted on 10/31/2025 2:33:03 PM PDT by rbg81 (=)
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To: E. Pluribus Unum
The above woes pale in comparison to their biggest problem, viz. they are graduating "students" who are woefully inadequate in math and science and can barely read.

But they sure know about fag sex! Cause they took classes on it!

9 posted on 10/31/2025 2:33:55 PM PDT by LouAvul (Galatians: proof that dispensationalism in any form is false doctrine. Salvation is only in Jesus.)
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To: God luvs America

My son was offered a roster spot on the football team there. No money since they aren’t D1 or D2. $96k. Hopkins was only $46k.


10 posted on 10/31/2025 2:43:21 PM PDT by Mathews (I have faith Malachi is right!!! Any day now...)
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To: Carl Vehse

Or it could be that UChicago’s location in south Chicago is a negative factor.

+++++++++++

The only redeeming thing about U of C location is (was) Maxwell street market. My father used to take me on Sunday mornings. All the hoodrats were sleeping off the Saturday night bender so it was not too dangerous. Great memories. No longer.


11 posted on 10/31/2025 2:46:55 PM PDT by mund1011 (We can ignore reality, but we cannot ignore the consequences of ignoring reality)
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To: God luvs America
Across major U.S. universities, there are significantly more non-instructional staff (administrators and other professionals) per student than in previous decades, and in many cases, there are more non-faculty staff than faculty . The ratio varies widely, but some elite institutions notably have a near 1:1 or even higher ratio of non-faculty employees to students or more non-faculty than faculty.

I think I see a problem here. Circa 1966 my school NLSC now the University of Louisiana Monroe had about 7000 students. Today it is about 8300. In 1966 the administration building had one wing of the chemistry building and about 20 offices and today it has a three story behemoth of a building with probably 100 offices. Do you see a problem with this?

12 posted on 10/31/2025 3:19:11 PM PDT by cpdiii (cane cutter, deckhand, oilfield roughneck, drilling fluid tech, geologist, pilot, pharmacist, MAGA)
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To: God luvs America

It may be posted that tuition, room/board and fees may be $100,000 per year. However, that does not include any scholarships, grants, etc. that students may receive.
The out-of-pocket costs for a student (parents) may be far less than the posted amount.


13 posted on 10/31/2025 3:48:53 PM PDT by Maine Mariner
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To: Maine Mariner

You can say that about any school...my daughter went to a Big 10 school, was an A student, graduated magna cum laude and with Distinction in her department...

Over four years we received exactly $0.00 in scholarship $$$ and were forced to pay full freight (about $55K annually) because we’re white, own a home and pay all our own bills...


14 posted on 10/31/2025 4:01:22 PM PDT by God luvs America
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To: cpdiii
Let me explain it in computer logic.

10 Washington gives taxpayers’ money to colleges.
20 Colleges brainwash the kids to make government bigger.
30 GOTO 10

15 posted on 10/31/2025 4:02:07 PM PDT by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: E. Pluribus Unum
Faber College continues to thrive.
16 posted on 10/31/2025 5:18:27 PM PDT by Henry Hnyellar
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