AI is wreaking havoc in universities, but higher ed’s woes long predate Chat GPT. Syracuse missed its 2026 enrollment target and may run a $30 million deficit. Minnesota is cutting its budget by $225 million over two years. Tulsa is slashing tuition by more than half. Colleges enroll 4.2% fewer undergraduates than last year. Cornell, Yale, Vanderbilt and Washington University in St. Louis put out plans to reimagine the university. Colleges are known for left-leaning professors, speech suppression, bizarre courses, and easy grading.
Problems run deeper: Aptitude. In Griggs v. Duke Power (1971), the Supreme Court effectively banned corporations from giving intelligence tests, so companies rely on colleges for sorting via the SAT. A Cornell report noted employers’ skepticism of college graduates lacking job skills. A Forbes survey found almost half of corporate executives are less likely to hire Ivy League graduates. Admissions: Holistic reviews and easy majors harm college brands. Accounting: The Trump administration instituted a 15% cap on indirect cost rates, later struck down. A 2025 study found the average negotiated indirect cost rate was 58%.
Affordability: Student loans lead to tuition hikes. Sixteen colleges cost more than $100,000 a year. Artificial Intelligence: AI has passed bar exams and medical licensing exams. A 2025 Harvard study found AI tutoring outperforms in-class active learning. The sage-on-a-stage format is over. As corporate America rejects college branding, graduates would benefit.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing