Reliable Brokers
Online Investing
Alerts & Analysis
Easy Trading

Private universities anticipate massive loss if shutdown continues

The 105 private universities across Bangladesh will incur huge financial losses for the lack of new admissions and students failing to pay tuition fees due to the lockdown

Update : 04 Apr 2020, 03:53 PM

Private universities across Bangladesh are anticipating huge financial losses as academic activities have been suspended because of the coronavirus pandemic.

Despite the fact that some universities have successfully transitioned to online education, many of them still haven’t made the transition and continue to suspend classes, which may also lead to “session jam” (prolonged or postponed academic sessions) in the private academic sector, fear academics. 

One fear is common among all – if the pandemic continues for long and fewer students seek admission in the universities, it will hit the academic sector hard. 

Private university authorities said, the  summer semester is scheduled to begin in May. Some universities already called for applications for admission tests while some are still observing the situation. 

However, the number of responses received so far is very low, said all private universities contacted by Dhaka Tribune.

The government on March 16 announced closure of all educational institutions which will continue till April 11.

Sources at the University Grants Commission (UGC) said the closure may even continue till Eid-ul-Fitr.

Condition of different private universities

Keeping all things in mind, private university authorities remain anxious about how they will begin the upcoming summer semester and what will be the financial losses, even if they manage to begin the semester with fewer students.

Prof Dr Abdul Mannan Choudhury, vice-chancellor (VC) of World University of Bangladesh (WUB), told Dhaka Tribune that the private universities will face a big financial blow as they do not receive any financial support from the government.

“We run the university with tuition fees collected from students. As garments and other industries are getting incentives from the government, I think there should be some incentive for private universities too as education is the backbone of a nation” he said. 

No matter how the situation proceeds, the admission procedure for the upcoming summer semester must continue for the universities to survive, said the WUB VC.

Currently, there are 105 private universities across Bangladesh.

In 2016, there were about 337,157 enrolments in private universities, while it was 354,333 in 2017 and 361,792 in 2018, according to reports compiled by UGC.

Academics fear the trend of students increasing every year will be hampered this time. They think private universities outside the capital will suffer more as they not only lack students, but also charge less tuition fees compared to any university based in Dhaka.

Private universities in a crisis because:

>>105 private universities in the country

>>Session delays in most universities

>>Delay in starting academic sessions means delay in getting tuition fees

>>Private universities do not get subsidy from the government

>>Universities outside Dhaka have lower tuition fees, financial crisis arises if the students number drops

>>Not all students are able to take online classes

>>The next course of action depends on government decision


Prof Dr Hossain Reza, vice-chancellor of Khwaja Yunus Ali University (KYAU) in Sirajganj, said their university is run by subsidy and charges less than others.

“The university was established to educate local youths who mostly belong to less solvent families. Many students here cannot even pay full tuition fees,” he said. 

“As the situation goes, the number of new admissions will fall if shutdown is extended and we will face even more economic crisis.” he said.

Laila Ferdousy Ontee, lecturer of Economics at Green University of Bangladesh situated in Dhaka said, they are taking classes online, which they used to do before the Covid-19 pandemic too.

“However, some students who went to their village home are facing problems because of poor internet connections,” she added. 

Dr Hossain Reza, VC of KYAU, said: “Though we are using technology successfully to take classes, physical presence is important in the departments which have laboratory and practical classes.”

Benajir Ahmed, secretary general of the Association of Private Universities of Bangladesh (APUB), said they will face a 26 days session delay if universities are opened on April 12.

“We can still manage this loss by reducing the gap between two semesters. But if the closure extends, we will not be able to collect tuition fees from students which will be a huge problem,” said Benajir, also the chairman of the board of trustees at North South University (NSU).

“Some reputed universities are capable of overcoming the situation but new universities and those with fewer students will be in trouble,” he said. 

UGC

Sheikh Kabir Hossain, president of APUB and also the chairman of the Board of Trustees of Fareast International University said they are waiting for directions from UGC on how to deal with the situation.

The UGC on March 23 called upon all the universities to continue their academic activities online during shutdown so that academic activities are not hampered. 

Prof Dr Md Sazzad Hossain, a member of UGC said, if the shutdown extends the government may consider financial issues of the private universities, much like how it is taking care of other sectors.

“Everything depends on how long we have to suffer for Covid-19. We are expecting new directives from the government next week and then we will discuss the next course of action with the private university authorities,” he said.

As of Saturday, Covid-19 has killed eight people and infected 70 across Bangladesh.

Since the pandemic started in China in late December last year, the novel coronavirus has infected over 1,127,000 people and killed more than 59,900 in at least 205 countries and territories around the world, according to worldometer.

Top Brokers