Down economy affecting students

Gov. Timothy M. Kaine released his annual revenue report that calls for 5 to 7 percent in funding reductions for higher-learning institutions. VCU has not yet developed a plan of action, but is not treading unfamiliar ground. The plan cuts more than $10 million from VCU’s 2009 budget. George Hoffer, professor of economics and VCU faculty member for the past 40 years, says the university can base a plan of action on ones it has taken in the past during troubling economic times.

“We have gone through four or five economic downturns,” Hoffer said.

According to Hoffer, VCU has previously resorted to solutions including raising tuition, cutting adjunct faculty, reorganizing teaching schedules, removing low-enrollment class programs and cutting some courses altogether.

Cutting adjunct faculty would mean a heavier course load for full-time staff, who would receive no raise in pay and perhaps pay cuts, Hoffer said. The changes will not be apparent until the fall, however, because most university commitments are annual.

The budget cuts are not the only side effect of the economic downturn.

“My biggest worry is student loans,” said international studies and pre-medicine major Ashley Banks.

However, Hoffer says a cut in student funds should not be a problem.

“The first loans that Congress will protect are student loans,” Hoffer said.Briana Carter, financial advisor for Edward Jones, said although national banks might be reluctant, local banks are still offering loans at reasonable interest rates.

The decline in the job market is another concern for students. Oleg Korenok, an assistant professor of economics, said students need to focus now more than ever on making themselves competitive in the job market through internships and good academic standing.

“The value is what you know,” Oleg said.

“Students need to take it upon themselves and be proactive,” said Susan Story, director of the career center. “It’s wrong to assume that nobody is hiring.”

According to Hoffer, the economy is “not all bad.” He says students can expect to see a surplus of rental property at increasingly affordable rates. Hoffer also said decreasing gas prices will give a “psychological boost to consumer confidence.”