UC San Francisco is facing a potentially explosive situation in which it is unable to provide enough financial aid to its academic programs.
The university announced Tuesday that it is slashing its annual grants for the first time in over a decade and the financial aid cuts are expected to impact the majority of its undergraduate students.
The University of California San Diego has been slashing academic aid for over a century and it was only recently that it announced it would no longer offer financial aid.
“We were surprised by what we saw today,” UC San Jose President Janet Napolitano said during a news conference.
“The impact on the students who are already in the program is enormous.”
The university said the cuts will impact nearly 2,300 academic students, including the approximately 1,400 who work part-time for UCSC and the 1,600 who earn their degrees through the UC Davis School of Law.UCSC and UC Davis students who apply for financial aid will be able to apply for an increase in their aid amount, but only for the academic year beginning Oct. 1.
Those who applied for an extension for this academic year will see their aid increase.
“As we enter this new fiscal year, UC San José is cutting more aid than ever before,” said UCSC Vice President for Finance and Administration Peter Zimring.
“We’re going to be facing more cuts than we’ve ever seen.”
The UC San Jacinto campus was already reeling from an unprecedented financial crisis in 2016 when it faced a $4 billion budget deficit and a $1.2 billion operating deficit, which it said would be the largest in its history.
In 2016, the school had $5.9 billion in student debt and the average student loan balance of $17,726.
Last year, the average debt was $17.5 billion.UC San Diego also announced that it will slash $1 million from the 2016-17 fiscal year budget, which includes about $1 billion in cuts to the campus health department.
UC San Marcos and UC San Carlos also announced major reductions in their budget.
The financial aid reductions affect UC San Barbara, UC Santa Barbara and UC Santa Cruz.
UCSC is facing similar cuts.
“This is a really difficult situation for our university,” said University of Connecticut President Susan Herbst.
“There is a large gap between what we are offering our students and what the market is offering.”
The financial situation at UC San Pablo is not unique.
UC Santa Clara and UC Berkeley both reported significant cuts to their budgets last year.
“The impact is likely going to continue as the fiscal year winds down,” said Richard Gansberg, president of the Association of American Universities.
“But it’s a very significant blow.”UC San Francisco will also have to make difficult decisions about how it is going to finance the future of its academic program, including a possible closure of UC San David’s Graduate School of Business, UC Berkeley’s Haas School of Graduate Studies, UC Irvine’s College of Law, UC Riverside’s School of Nursing, UC Davis’s School Of Medicine and the University of San Francisco.
UC Irvine will also be closing its School of Veterinary Medicine, UC-Berkeley’s School for Veterinary Medicine and UC-San Francisco’s Graduate College of Letters and Science.
All four universities are facing financial hardship from this financial crisis.
The average student debt at UC Davis is $28,086, according to UC Davis.
The typical student loan amount is about $27,000.
The average loan balance for UC-Davis is $23,946.
UC-Santa Barbara is currently facing a $2.2 million deficit, according the university’s financial aid office.
UC Berkeley will have to slash $2 million from its budget.
UC Davis and UC Riverside have the biggest deficits.UC-Santa Cruz reported a $6.6 million deficit in fiscal year 2018, according its financial aid officer.
UC Hastings College of the Arts reported a deficit of $4.4 million in fiscal 2017.
UC Riverside reported a surplus of $2,853,000 in fiscal 2016.