Dear Faculty and Staff,
Significant shifts in the higher education landscape continue to create a palpable sense of fear and anxiety in our community. We are all worried about the safety of our community members, the safeguarding of academic freedom, and the new financial challenges driven by changes in federal funding and visa processing. These concerns are so severe and debilitating that it’s getting hard to recognize higher education anymore.
From unpredictable changes in federal policy to the value of higher education being questioned constantly, we are seeing the effect of all this uncertainty unfold in our very own community. While we are still analyzing our fall enrollment and its financial impact on our university, we would like to be as transparent as possible about the reality we’re facing. Unfortunately, it has become clear that revenues are less than what we projected for our current FY26 budget and swift action is necessary.
Drop in enrollment and rising costs drive a need to reduce spending
There are three primary factors driving the current situation we’re facing: declining international enrollment, increasing need for financial aid, and escalating benefits costs.
This fall quarter, we faced a steep decline in international enrollment. Overall international enrollment is down 755 students compared to last year, with new international graduate student enrollment down nearly 62%.
Because of the challenges to the visa system combined with the declining desire for international students to study in the U.S., we are seeing massive disruptions to our enrollments in many areas around the university. Our FY26 budget planning did not anticipate a reduction of this magnitude.
While first-year and transfer enrollments are performing well, the resulting revenue gains are not sufficient to offset the significant shortfall created by the decline in international students. In addition to the decrease in international enrollment, continuing undergraduate enrollment has declined by approximately 300 students compared to last year.
Student financial need has also increased significantly. This greater need for financial aid places further pressure on our budget. It also reflects both the economic realities facing our students, as well as the broader affordability challenges in higher education.
While DePaul remains firmly committed to supporting our students’ desire to access and graduate from DePaul, the cost of providing financial aid is now projected to be roughly $7 million above budgeted levels for the current fiscal year. This adjustment adds to the financial strain already created by the decline in international enrollment and further widens the gap between our projected revenue and actual performance.
This year, we also saw a large increase in our employee benefit expenses - driven primarily by higher healthcare costs. Overall benefit costs have increased by almost $23 million over the last five years. These rising costs have placed additional pressure on our operating budget, as health plan expenses are growing faster than anticipated and outpacing our projections.
While academic institutions across the country are experiencing similar pressures, managing healthcare costs will be a critical challenge for DePaul going forward. Addressing this trend will require us to tap into our traditions of shared governance to closely evaluate plan design, funding strategies, and long-term sustainability as we work to balance rising expenses with the university’s financial capacity.
With revenues down and expenses rising, we must act immediately to reduce spending in our current operating budget to meet our financial obligations. While we know this will be difficult, we want to be transparent about the factors driving this decision and outline how we plan to meet this moment. We will act in accordance with our mission — prioritizing our efforts to ensure that we can continue to deliver on our promise of educating our students — and preparing them for the world.
Charting a path forward: What to expect
This moment requires us to hold two seemingly disparate ideas in our minds at once. We must act with urgency to manage the questions and challenges presented by new federal policies and rising costs that are directly affecting us now. Simultaneously, we must commit ourselves to the long view — planning in three-to-five-year increments so that we can build a more resilient future.
In collaboration with the Strategic Resource Allocation Committee, known as SRAC, we are working closely with the vice presidents and the deans to determine how to make the necessary spending cuts in each of their areas. This work may include:
- implementing executive-level pay cuts
- evaluating the size of our staff and administration
- eliminating the merit increase pool for faculty and staff this year
- freezing staff hiring
- slowing down faculty hiring
- optimizing course offerings to reduce expenses
- limiting discretionary spending, such as travel, professional services, and events
As we make these difficult decisions, we will prioritize the student experience, ensuring that we preserve the high-quality academic programming that defines a DePaul education. While some adjustments may be necessary across the entire university, we will make every effort to minimize cuts that directly affect teaching and learning.
We will share an update with more concrete next steps within the next few weeks, after we have fully evaluated the fall census, which closed on Sept. 27.
We know how difficult this moment is for our community. Our unwavering commitment to our educational mission will be at the heart of every decision we make. We will not lose sight of our values.
Planning for our future
To address our immediate and long-term financial health, we are simultaneously pursuing the following strategies:
1. Getting our current operating results back on track
Senior leadership is working with SRAC to identify additional cost-saving measures. The vice presidents and deans will be part of the decision-making process to determine how the reductions will be made in their areas. You can expect to hear more about next steps within the next few weeks.
2. Planning for next year’s budget, FY27
We are also preparing for challenges that we will likely face in FY27, including a continued decline in international enrollment and anticipated changes to the Graduate PLUS loan program.
Together, these factors are expected to place additional pressure on graduate enrollment and tuition revenue. To manage these risks, we will need to develop proactive strategies that address graduate enrollment and the evolving federal financial aid landscape.
3. Planning for our future: Designing DePaul Strategic Plan
Our Designing DePaul strategic plan is our clear path forward. The elements of this plan are designed to help us invest in our essential work and create the revenue streams necessary to sustain our mission, while simultaneously creating space for us to re-invest in our people.
Earlier this month, our shared governance councils asked for nominations for the Designing DePaul strategic subcommittees:
- Student Advising, Retention & Career Outcome
- Academic Programs of National Interest
- Academic Distinction
- Loop Campus Design
- Graduate Program Financial Aid Strategies, Recruitment Marketing & Branding
These subcommittees will lead comprehensive plans, make recommendations for resource allocations, and track measurable outcomes to ensure our long-term institutional priorities stay on track. We encourage you to participate in this critical work for our university and will share more details about the Designing DePaul strategic plan with you soon.
4. Long-range planning
Joint Council will take the lead in evaluating and rightsizing our operations, enabling us to set the course for the next five years. This work will ensure that our university remains both mission-driven and financially sustainable over the long term.
Guided by our principles of shared governance, we will engage faculty, staff, and student representatives in the process, inviting a range of voices and expertise.
Long-range planning will focus not only on aligning resources with our core priorities, but also on positioning DePaul to adapt to changes in higher education and anticipate future opportunities. By working together, we can chart a course that preserves and advances DePaul’s financial health while continuing to advance the educational mission that defines our university.
Additional information
We recognize this information is concerning, and you likely have many questions. To help provide clarity, we created a
set of FAQs and will keep this page updated as additional information becomes available.
You will soon receive an invitation to register for educational budget sessions that will take place in October. We also will participate in the upcoming Faculty Council meeting on Oct. 8, the Staff Council meeting on Oct. 15, and the Faculty Council Town Hall on Oct. 15.
In this time of uncertainty, we want to express our commitment to each of you. Please know that your well-being and motivation are among our highest priorities. We have immense faith in our collective ability to move through this challenging period together.
By working together, grounded in our mission and guided by our strategic plan, we will build a stronger, more stable future for DePaul University.
Sincerely,
Robert L. Manuel
President
Salma Ghanem
Provost
Sherri Sidler
Executive Vice President and CFO