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The question being asked before the pandemic, “Is there excess capacity in the US higher education sector, and what is the potential cost of this excess capacity and subsequent impact on students, especially underrepresented students?” is increasingly relevant during the COVID-19 era, with so much of higher education operating in a remote mode of delivery.
Key findings of this analysis include:
- Capacity growth of 26% dwarfs enrollment growth of 3% (FY2009–FY2019)
- 75% usage implies excess capacity of 3 million to 5 million seats
- The cost of excess capacity could be as high as $50 billion annually