Abstract
The article discusses the fiscal problems in higher education in the U.S. It outlines the causes of the financial crisis experienced by higher education including endowments' stock market losses, tightened credit, and revenue losses from school tuition, state funding, and donations. It mentions that in the declining economy, states are cutting funds for higher education. It notes that cutting budgets for programs and services and re-examination of long business plan, financial aid policies, and reconsidering risk-management policies are needed to solve the dilemma of the financial crisis in higher education.
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