Struggling Economy Puts Colleges in a Tight Spot

He added, however: "I think it is important to note that when we talk about strategically cutting back, we are not talking about cutting back on academic programs, and we are not talking about cutting back on financial aid."

Many schools depend heavily on tuition revenue. At Shenandoah, for example, it accounts for about 75 percent of the budget. So Shenandoah officials, like those at other schools, will be watching application numbers particularly closely this fall and winter, hoping to keep enrollment steady.

At George Washington University, administrators planning their budget for next year expect to need several million additional dollars for financial aid. Slightly more students than usual have asked for recalculation of their financial aid packages because their family income has changed dramatically since last year's tax returns, on which their packages are based.

GWU will be changing some of its recruitment strategies, including asking staff to travel more to reach prospective applicants whose families may be reluctant to pay for a trip to campus. Because the school is one of the most expensive in the country, GWU will emphasize that it has a fixed tuition plan so that families can prepare.

At schools with lower tuition, such as state and community colleges, some officials expect enrollment to rise. And some programs, such as graduate and professional schools, often do well in a recession as people decide to shore up job skills while waiting out an uncertain hiring market.

But public universities are facing another blow: At least 17 states have made cuts to higher education, and many schools are expecting money to continue to sag in the next year or two. Maryland and Virginia have cut higher-education funding in recent weeks.

At the University of Virginia, which has committed to cover tuition, room and board for low-income students, administrators are bracing for a significant increase next year in the cost of need-based aid.

And they are watching the market. The endowment's value has dropped more than 20 percent since summer, much of that last month -- about $1 billion from a fund that was worth $5.1 billion in July.

Some schools are considering delaying major building projects or rethinking how they approach donors whose assets have just taken a hit.

Trinity was about to launch a capital campaign this fall. "Obviously, we have lengthened the timetable," McGuire said. "It's not that we're not going to do it. But to go public with a big capital campaign now would be the height of foolishness."

Johns Hopkins University does not have the short-term liquidity and credit issues that some others do, said James McGill, a senior vice president. "The next six months or so we'll get through fine," he said. "I'm more worried about two years out, if this recession lasts."

Because the school is so research-intensive, it depends on federal funding and grants and expects that money to be under pressure. Along with just about every school, Hopkins expects lower investment returns, is rethinking estimates of how much financial aid it will provide and is looking for potential cuts.

Robert Chernak, a senior vice president at GWU, said, "In the next couple of months, there's going to be a lot of emotional roller coasters."