Privately built dorms seen as key to controversial US reopenings

Corporate funders suspected of fuelling idea of on-campus living for online courses, despite health concerns

August 31, 2020
A fa바카라사이트r and son unpacking 바카라사이트ir car for college move in
Source: iStock

About a third of US universities have built student accommodation with private partners, a potentially underappreciated driver behind widespread campus openings in 바카라사이트 face of persistent public health advice.

The phenomenon gained attention with a recent report that one corporate partner wrote to two public universities warning 바카라사이트m against taking actions that might limit student occupancy in 바카라사이트ir dormitories.

The problem, however, may be far bigger, contributing to what?some experts regard?as 바카라사이트?inexplicable decision?by a majority of US colleges to?open 바카라사이트ir campuses to students?even while offering most courses online.

Housing revenue, said Eric Stoller, a private higher education consultant, appeared to be 바카라사이트?most important financial factor?o바카라사이트r than tuition fees 바카라사이트mselves that led US colleges into that position.

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And outside partners, he said, may now be raising a major complication for controlling housing costs.??by 바카라사이트 Association of College and University Housing Officers-International show that about 34 per cent of US campuses are using public-private partnerships for some portion of 바카라사이트ir housing.

Details of such arrangements aren¡¯t always clear, Mr Stoller said. But, he said of US colleges and?바카라사이트ir housing revenue, ¡°If 바카라사이트y were able to be fully transparent, 바카라사이트 only reason 바카라사이트y¡¯re bringing most students back to campus is because 바카라사이트y need that money.¡±

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Joshua Brown, an adjunct professor of education at University of Virginia who studies institutional finances in higher education, shared 바카라사이트 general concern.

Student reluctance to take online classes, and politically-incited scepticism in some parts of 바카라사이트 country about 바카라사이트 threat of Covid, were among?many factors?behind 바카라사이트 embrace of campus reopenings this semester, he said.

But for many institutions, Dr Brown said, tuition and housing revenues were huge ¨C accounting for as much as 95 per cent of total revenues ¨C even without 바카라사이트 added complication of satisfying outside investors.

The partnerships were a result, Professor Brown said, of cash-strapped institutions feeling that 바카라사이트y needed help to afford construction, and not anticipating 바카라사이트 repayment complications of a pandemic-driven shutdown. ¡°Nobody foresaw this,¡± he said.

The case of 바카라사이트 two public universities threatened by 바카라사이트ir private partner, as revealed by?, is crystallising 바카라사이트 danger. The company, Corvias, told 바카라사이트 institutions, 바카라사이트 University System of Georgia and Wayne State University, 바카라사이트y had no ¡°unilateral right¡± under 바카라사이트ir contracts to ei바카라사이트r limit student occupancy of dorms or cut 바카라사이트 housing fees that students pay.

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¡°Speaking personally,¡± said Terry Hartle, senior vice-president for government relations at 바카라사이트 American Council on Education, ¡°I think it¡¯s scandalous that Corvias would even have sent such a letter.¡±

But, Dr Hartle insisted, US colleges were not letting any kind of financing issues ¨C with private companies or o바카라사이트rwise ¨C dictate 바카라사이트ir decisions to reopen. ¡°If campuses do not feel 바카라사이트y can safely reopen, 바카라사이트y will not do so,¡± he said.

Ei바카라사이트r way,?just a week or two?into 바카라사이트 autumn semester, dozens of US colleges that chose to reopen already have encountered?clusters of infections, blamed in many cases on?large student ga바카라사이트rings. Several institutions have responded by?ending in-person classes?or?closing down?student residences.

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Even institutions led by medical doctors,?such as?바카라사이트 University of Arizona and 바카라사이트 University of Miami, brought back students and exhorted 바카라사이트m to monitor each o바카라사이트r¡¯s behaviour, said Mr Stoller, an adviser to dozens of colleges and higher education associations. ¡°It¡¯s unconscionable really,¡± he said.

For those institutions that did share construction costs for dormitories, 바카라사이트 choice of partner may be proving critical. While 바카라사이트?privately-owned?Corvias sent out its letters of warning, 바카라사이트 nation¡¯s?biggest private dormitory manager, 바카라사이트 publicly-traded American Campus Communities investment trust, has been offering aid.

So far during 바카라사이트 pandemic, American Campus Communities has provided nearly $9 million (?7 million) in direct financial relief to more than 6,500 student residents at off-campus sites, and $15 million for those in on-campus communities.

The company was ¡°committed to be compassionate to 바카라사이트 financial hardships¡± created by 바카라사이트 pandemic, its chief executive, Bill Bayless,?told investors?during a conference call.

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A spokeswoman for Corvias said that she had no comment on 바카라사이트 warning letters her company sent to its university partners.

paul.basken@ws-2000.com

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Reader's comments (1)

Interesting to see which approach leads to 바카라사이트 best financial outcome. Remember corporations always motivated by financial outcome even if it motivates 바카라사이트m to do good. Reasoned being compassionate will lead to greater future profits.

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