The global financial crisis and subsequent fall in stock values may cause Canadian universities to make cuts in programs paid for by their endowment funds and investments, reports The Globe and Mail, in Toronto.

Many universities are looking at possible cuts not only in academic and research programs but also in financial aid to students, including scholarships. Some may begin a hiring freeze. Canadian institutions, which have about half of their endowment money and pension funds invested in the stock market, have lost millions of dollars in the downturn, senior administrators told the newspaper.

The decline comes in the wake of a weak investment performance last year.

What’s more, neither tuition increases nor government support for higher education has kept up with the rise in operating costs. Some universities were looking at possible cuts even before the current financial crisis.

As in other countries, officials also report that donations and gifts are down, and that some donors are asking to renegotiate their pledges.

Several administrators noted that although the market uncertainty presents challenges, universities invest for the long term. Canadian universities hold about 11 billion Canadian dollars in endowments. —Karen Birchard