This isn’t the first time Illinois has considered its reliance on Chinese students. The colleges of engineering and business purchased an insurance policy to cover losses if international enrollment dropped precipitously. Chinese students comprise about 20% of graduate students at those schools.
If an unforeseen international event, including a trade war, causes an 18.5% decline in enrollment or greater, the insurance kicks in to cover the lost revenue. With graduate tuition at about $40,000 a year, a 20% drop in masters students would portend a $4 million shortfall, said Jeffrey Brown, dean of the Gies College of Business at the University of Illinois.
“Recent events have made it clear why we were going down this path to begin with,’’ said Brown.
This story provided by Bloomberg News.