St. Louis University is facing a $20 million budget deficit, forcing academic and administrative divisions to cut expenses by 4% this fiscal year. The deficit is attributed to a drop in international student enrollment.

Last fall, the university enrolled 1,400 new international graduate students, most paying full tuition of $36,000 or more. This year, however, the university expected 1,300 new international graduate students but only enrolled 300. This drastic decline is linked to the U.S. government issuing far fewer visas to international graduate student applicants, according to David Heimburger, SLU's vice president and CFO.

The resulting revenue shortfall has forced SLU to make difficult financial decisions, including:

Heimburger emphasized the need for long-term expense control, stating, "This is not just a one-year fix. We need to change our permanent behavior in terms of expense control."

While undergraduate enrollment remains steady at around 8,500, the university's financial strength is being tested by the international student enrollment decline. Heimburger assures that SLU is in a strong financial position to handle the situation, emphasizing that it's not "devastating news."

Increased financial aid and investments in faculty and graduate student research have also contributed to the deficit, according to a May 15 letter from President Fred Pestello.

Academic leaders are developing strategic long-term plans to downsize or restructure their departments, as confirmed by Christine Rollins, president of the faculty senate. While the decision-making process is challenging, Rollins is encouraged by the university's ongoing dialogue with faculty.

University officials assure that the restructuring will not negatively affect students, though the specific cuts within each academic department remain unclear. Student financial aid and university-provided scholarships are not included in the planned cuts, which is a relief for many students, according to Student Government Association President Reuelin Arulanandam.

Arulanandam has been actively engaging with university officials to ensure students are considered in the decision-making process. She commends SLU's transparency with students regarding its budget challenges.

St. Louis University is facing a budget deficit and is taking proactive steps to address it. University leaders have outlined a plan to address the budget challenges, which includes finding new revenue sources and restructuring academic programs. This plan is being implemented with transparency and collaboration, guided by Jesuit values. The university is committed to communicating these changes to students so they are prepared for any adjustments. This is not the first time the university has faced budget challenges; in 2020, they went over budget by $20 million, which led to cost-cutting measures. St. Louis University is not alone in facing these financial challenges, as many higher education institutions across the country are struggling with finances and enrollment numbers.