No amount of scholarships could have prepared US higher education for dealing with coronavirus. Falling enrolments and shrinking revenues are putting the squeeze on the finances of US colleges and universities. After years of heavy borrowings, funding an amenities arms race to attract students, the sector is heading for a shakeout.

US colleges and universities have built up big debts over the past two decades in a bet that student numbers will continue to grow. This, in turn, has made them more dependent on tuition dollars — particularly from overseas students — to cover operating budgets and service borrowings.

The pandemic has upended this calculation. Many potential students are opting to take a gap year or defer admissions rather than shell out hefty tuition fees for online classes. Foreign candidates are holding off on enrolling because of travel restrictions and concerns about studying abroad. US political hostility to China — where a foreign education is a status symbol — has worsened the problem.