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Intellectual Capital in America

By Roger Ferguson, Jr.

In the current economic environment, many colleges and universities have had to contend with budget gaps and hiring freezes. They've suspended pay raises and infrastructure projects. Their endowment managers have struggled to support ongoing operations while preserving future purchasing power. That is not easy—even when markets are strong.

The economy is also affecting the outlook among students. A national survey of American freshmen by the University of California, Los Angeles, released last January, found that more students view financial aid as "very important" or "essential" in selecting a college. And more say they'll need a job this year to help pay their expenses. Note that the UCLA survey was fielded during the early fall—when the full extent of the current financial crisis was not generally known. Next year's figures will be even more telling. . . .

Excerpted from the spring 2009 issue of The Presidency. To subscribe to the magazine, please call (301) 632-6757, or order online through ACE's bookstore.