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July 6 (UPI) -- As many as 13 British colleges and universities could fail financially without government support as a result of the coronavirus pandemic, a new analysis said Monday. The institutions have been forced to move classes online and do not expect students to return to classrooms until next year.
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The study by the Institute of Fiscal Studies said the long delay has the potential to seriously affect the schools' revenues that come from students living and dining on campus, conferences and other events.
"Universities are facing big losses across a range of income sources and investments," the report said. "These losses could cause serious financial problems, including -- in the extreme -- insolvency.
"Most institutions will be left with reduced net assets, which could increase financing costs and will leave them less well placed to cope with future adverse shocks."
The report said the schools' actual losses remain "highly uncertain," but estimates they could run between $3.8 billion and $23.8 billion. In the mid-range, it projects losses of about $14 billion.
"[a] very tightly targeted bailout aimed at keeping these institutions afloat could cost around [$175.21] million," the institute said.
It said a one-off $2.25 billion increase in teaching grants, for example, would only save about three of the ailing universities. It also stressed that a "one size fits all" plan would likely not be effective.
"Large sector-level losses mask substantial differences between institutions," it noted. "In general, institutions with a large share of international students and those with substantial pension obligations are most affected. These tend to be higher-ranking institutions as well as postgraduate and music and arts institutions."
