Finance

US colleges are cutting majors and slashing programs after years of putting it off

Published

2 years ago

August 11, 2024

US colleges are cutting majors and slashing programs after years of putting it off

Christina Westman dreamed of working with Parkinson’s disease and stroke patients as a music therapist when she started studying at St. Cloud State University.

But her schooling was upended in May when administrators at the Minnesota college announced a plan to eliminate its music department as it slashes 42 degree programs and 50 minors.

It’s part of a wave of program cuts in recent months, as U.S. colleges large and small try to make ends meet. Among their budget challenges: Federal COVID relief money is now gone, operational costs are rising and fewer high school graduates are going straight to college.

The cuts mean more than just savings, or even job losses. Often, they create turmoil for students who chose a campus because of certain degree programs and then wrote checks or signed up for student loans.

“For me, it’s really been anxiety-ridden,” said Westman, 23, as she began the effort that ultimately led her to transfer to Augsburg University in Minneapolis. “It’s just the fear of the unknown.”

At St. Cloud State, most students will be able to finish their degrees before cuts kick in, but Westman’s music therapy major was a new one that hadn’t officially started. She has spent the past three months in a mad dash to find work in a new city and sublet her apartment in St. Cloud after she had already signed a lease. She was moving into her new apartment Friday.

For years, many colleges held off making cuts, said Larry Lee, who was acting president of St. Cloud State but left last month to lead Blackburn College in Illinois.

College enrollment declined during the pandemic, but officials hoped the figures would recover to pre-COVID levels and had used federal relief money to prop up their budgets in the meantime, he said.

“They were holding on, holding on,” Lee said, noting colleges must now face their new reality.

Higher education made up some ground last fall and in the spring semester, largely as community college enrollment began to rebound, National Student Clearinghouse Research Center data showed.

But the trend for four-year colleges remains worrisome. Even without growing concerns about the cost of college and the long-term burden of student debt, the pool of young adults is shrinking.

Birth rates fell during the Great Recession of 2007 to 2009 and never recovered. Now those smaller classes are preparing to graduate and head off to college.

“It’s very difficult math to overcome,” said Patrick Lane, vice president at the Western Interstate Commission for Higher Education, a leading authority on student demographics.

Complicating the situation: the federal government’s chaotic overhaul of its financial aid application. Millions of students entered summer break still wondering where they were going to college this fall and how they would pay for it. With jobs still plentiful, although not as much as last year, some experts fear students won’t bother to enroll at all.

“This year going into next fall, it’s going to be bad,” said Katharine Meyer, a fellow in the Governance Studies program for the Brown Center on Education Policy at the nonprofit Brookings Institution. “I think a lot of colleges are really concerned they’re not going to make their enrollment targets.”

Many colleges like St. Cloud State already had started plowing through their budget reserves. The university’s enrollment rose to around 18,300 students in fall 2020 before steadily falling to about 10,000 students in fall 2023.

St. Cloud State’s student population has now stabilized, Lee said, but spending was far too high for the reduced number of students. The college’s budget shortfall totaled $32 million over the past two years, forcing the sweeping cuts.

Some colleges have taken more extreme steps, closing their doors. That happened at the 1,000-student Birmingham-Southern College in Alabama, the 900-student Fontbonne University in Missouri, the 350-student Wells College in New York and the 220-student Goddard College in Vermont.

Cuts, however, appear to be more commonplace. Two of North Carolina’s public universities got the green light last month to eliminate more than a dozen degree programs ranging from ancient Mediterranean studies to physics.

Arkansas State University announced last fall it was phasing out nine programs. Three of the 64 colleges in the State University of New York system have cut programs amid low enrollment and budget woes.

Other schools slashing and phasing out programs include West Virginia University, Drake University in Iowa, the University of Nebraska campus in Kearney, North Dakota State University and, on the other side of the state, Dickinson State University.

Experts say it’s just the beginning. Even schools that aren’t immediately making cuts are reviewing their degree offerings. At Pennsylvania State University, officials are looking for duplicative and under-enrolled academic programs as the number of students shrinks at its branch campuses.

Particularly affected are students in smaller programs and those in the humanities, which now graduate a smaller share of students than 15 years ago.

“It’s a humanitarian disaster for all of the faculty and staff involved, not to mention the students who want to pursue this stuff,” said Bryan Alexander, a Georgetown University senior scholar who has written on higher education. “It’s an open question to what extent colleges and universities can cut their way to sustainability.”

For Terry Vermillion, who just retired after 34 years as a music professor at St. Cloud State, the cuts are hard to watch. The nation’s music programs took a hit during the pandemic, he said, with Zoom band nothing short of “disastrous” for many public school programs.

“We were just unable to really effectively teach music online, so there’s a gap,” he said. “And, you know, we’re just starting to come out of that gap and we’re just starting to rebound a little bit. And then the cuts are coming.”

For St. Cloud State music majors such as Lilly Rhodes, the biggest fear is what will happen as the program is phased out. New students won’t be admitted to the department and her professors will look for new jobs.

“When you suspend the whole music department, it’s awfully difficult to keep ensembles alive,” she said. “There’s no musicians coming in, so when our seniors graduate, they go on, and our ensembles just keep getting smaller and smaller.

“It’s a little difficult to keep going if it’s like this,” she said.

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The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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Finance

Budgeting apps can help track spending, but habits still matter

Published

60 minutes ago

June 1, 2026

Press Room

Budgeting apps can help track spending, but habits still matter

Budgeting apps promise to make it easier to track spending, manage bills and pay down debt.

Financial experts say the best tool is the one people will use.

“I am really interested in the AI financing and budgeting apps,” said Jerry Xia.

What budgeting apps do

Budgeting apps can track spending, monitor bills, set category limits, and manage subscriptions. Some also help users build savings and reduce debt.

“There are tools out there that you can enter things yourself and it will track right on there,” said Bob Ingram, a certified financial planner with Center for Financial Planning Inc. “There are also tools that we can connect right to our bank accounts, right to credit cards and statements.”

Choosing the right app

A search for budgeting apps turns up dozens of options, including Rocket Money, EveryDollar, Albert and Monarch Money.

“It depends on what you are looking for. Do you need a lot of features? Do you need a lot of control?” Ingram said.

Some apps offer free versions, while premium plans often cost $10 to $20 per month.

“Just like any cost, it becomes part of your budget,” Ingram said.

For some users, the added expense is worth it.

“I just realized through the app, I was spending way too much money,” said Ronan Plunkett. “It makes everything super organized.”

A closer look at spending

After hearing Plunkett’s experience, I tried Rocket Money by linking my bank and credit card accounts. The app quickly highlighted spending patterns across dining out, Amazon purchases and recurring subscriptions. It also showed how quickly small purchases can add up.

“You’ll oftentimes talk to folks who say they’re not big spenders and don’t spend a lot,” Ingram said, noting that many are surprised when they look at their income and overall spending throughout the year.

Technology can’t change behavior

Financial planners say budgeting apps provide useful data, but they cannot change spending habits.

“Money behaviors are still money behaviors. And regardless of whether we can track something or not on a budget, we’re still going to have spending decisions driven by emotions and thoughts. And that’s probably not going to change,” Ingram said.

Read the privacy policy

Experts say privacy should be considered before linking financial accounts to budgeting apps.

Before connecting accounts, users should review terms to understand how data is collected, shared, and used.

If the language is difficult, AI tools may help summarize and explain it.

More information on the pros and cons of using finance apps can be found here.

Finance

The Most Innovative People in Finance 2026

Published

11 hours ago

June 1, 2026

Press Room

The Most Innovative People in Finance 2026

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Banking has entered a new phase of transformation that has the potential to remake large swaths of the industry. For much of the past decade, innovation was often framed around modernization efforts such as upgrading legacy systems, improving digital channels, or experimenting with emerging technologies through pilots and limited deployments. Now, the institutions pulling ahead competitively are distinguished by their willingness to explore innovation early and their ability to operationalize it at scale and translate it into measurable business outcomes.

Across the industry, innovation is beginning to reshape the economics and competitive structure of financial services in more tangible ways. Revenue models are evolving. Operational costs are being reconfigured through the strategic integration of artificial intelligence, cloud computing and blockchain. That, in turn, is fundamentally changing how capital is allocated. Risk management is becoming more data driven, predictive and automated. Customer expectations around speed, personalization and accessibility continue to rise as the instant-everything culture takes hold.

What makes the current cycle particularly significant is that several major technology shifts are unfolding simultaneously and beginning to intersect. AI, real-time payments, digital assets, tokenization, cloud-native infrastructure, embedded finance, and programmable financial systems are increasingly reinforcing one another and revamping how financial institutions operate, deliver services and compete.

These factors compelled American Banker to launch The Most Innovative People in Finance, a new annual ranking that recognizes the top 50 individuals who are driving these massive waves of digital transformation—producing measurable results, shoring up their competitive positions, opening new markets, and, in some cases, redefining the industry.

Leading this year’s list is #1-ranked Vantage Bank CEO Jeff Sinnott for the launch of the U.S.’s first bank-issued stablecoin; followed in the top five spots by Custodia Bank CEO Caitlin Long (#2) for the debut of a tokenized deposit network for community banks; Goldman Sachs CIO Marco Argenti (#3) for developing and deploying the firm’s widespread internal use cases for agentic AI; TD Bank SVP and Chief AI Scientist Maksims Volkovs (#4) for the development of its predictive foundation AI model; and Anchorage Digital CEO Nathan McCauley (#5) for becoming the issuer of Tether’s U.S.-regulated stablecoin USA₮.

The methodology used to select the 50 individuals is based on quantitative and qualitative factors encompassing leadership, investment in technology innovation, and number, size and impact of digital transformation initiatives over a single year (2025) and three-year time horizon, including internal cost efficiency gains and/or new revenue generation, and, where applicable, impact on the industry. American Banker also considered the role that the individual played in driving digital transformation initiatives in 2025, percentage of technology budget allocated to new innovation projects, products and initiatives, specific funding amount allocated to digital transformation initiatives annually, acquisitions and partnerships initiated to advance the bank’s innovation, impact on creating an internal culture of innovation, and number of patents held in their name.

Why does recognition of outstanding leadership in innovation matter now more than ever?

Consider that AI sits at the center of much of the transformative change—with advanced forms of AI increasingly coordinating workflows, monitoring transactions in real time, supporting liquidity management, identifying anomalous behavior, and assisting with operational decision-making across multiple functions simultaneously.

At the same time, the movement and representation of value itself is changing, with stablecoins, tokenized deposits, blockchain-based settlement systems, and digital-asset infrastructure evolving from experimentation into broader commercial use cases.

As such, real-time payment networks, richer transaction data standards, embedded financial services, and intelligent payment routing are transforming payments into a central layer of customer engagement and commercial activity.

Underpinning many of these developments is a broader modernization of banking infrastructure. Cloud-native architecture, API-driven platforms, and modular technology environments are driving adaptability, data accessibility, ecosystem connectivity, and the ability to integrate intelligence directly into operational workflows.

This period of structural change is altering the competitive dynamics of the industry, requiring leadership that understands when to invest, where to modernize, which risks are worth taking and how to aggressively reposition their institutions for the future.

Finance

Crypto’s 24/7 Derivatives Era Is Forcing Traditional Finance To Adapt

Published

21 hours ago

May 31, 2026

Press Room

Crypto’s 24/7 Derivatives Era Is Forcing Traditional Finance To Adapt

Photographer: Christopher Dilts/Bloomberg

Crypto has always traded on a different clock. Bitcoin does not close for weekends, liquidity does not pause for holidays, and leverage does not wait for clearing desks to reopen on Monday morning. For years, that difference helped separate crypto-native venues from regulated financial infrastructure.

That separation is narrowing. CME Group said its regulated cryptocurrency futures and options will be available for 24-hour, seven-day trading beginning May 29, pending regulatory review, with trading continuing on CME Globex except for a weekly maintenance window. The move is more than an operational extension. It is a sign that traditional finance is being pulled toward the market structure crypto normalized first.

The harder question is not whether institutions can trade crypto around the clock. They already can, through offshore venues, prime brokers, market makers, and liquidity providers. The harder question is whether regulated finance’s clearing, custody, surveillance, privacy, and risk systems can operate in markets where leverage, information, and volatility never really switch off.

Crypto’s 24/7 derivatives era is not simply making digital assets look more institutional. It is forcing traditional finance to become more continuous.

Derivatives are becoming crypto’s institutional layer

The center of gravity in crypto markets has been moving away from simple spot trading for years. Spot markets still matter, especially for retail flows, exchange liquidity, and ETF-related demand. But derivatives are where much of the institutional market now expresses risk, hedges exposure, prices volatility, and manages leverage.

That shift is visible in the data. CCData’s January 2026 Exchange Review reported combined centralized exchange volumes of $5.26 trillion, while spot trading accounted for $1.27 trillion. The implication is clear: derivatives represented the majority of centralized exchange activity that month.

This matters because derivatives do not just reflect price discovery. In crypto, they increasingly shape it. Futures, perpetual swaps, and options influence liquidity, funding rates, volatility expectations, and institutional positioning. When derivatives become the dominant venue for market expression, trading hours become less a convenience issue and more a structural one.

That is why CME’s move is significant. Regulated access is no longer just about listing a bitcoin or ether contract. It is about matching the operating rhythm of the asset itself.

CME also said client demand for digital asset risk management helped drive a record $3 trillion in notional cryptocurrency futures and options volume in 2025. That is not a fringe market asking for extended access. It is a regulated derivatives marketplace responding to institutional demand for more continuous risk management.

Continuous trading still runs into legacy settlement

The tension is that continuous execution does not automatically mean continuous settlement. CME’s model extends trading access, but it still preserves familiar institutional mechanics. Weekend and holiday trades are assigned the next business day’s trade date, and clearing, settlement and regulatory reporting continue to flow through the next business day framework.

That is the bridge traditional finance is trying to build: crypto-speed execution on top of regulated market infrastructure. It is a practical compromise, but also a revealing one. Crypto markets solved for continuous trading first and institutional controls second. Traditional finance is trying to do the reverse.

There are good reasons for that. Regulated derivatives markets cannot simply discard reporting obligations, margin discipline, risk controls, and clearing protocols. Their value proposition is precisely that institutions can trade within a transparent, supervised framework.

But always-on markets compress the time available to react. A move that happens on a Sunday morning can affect collateral needs, counterparty exposures, hedge ratios, and liquidity conditions before traditional workflows fully resume. In that environment, operational readiness becomes part of market structure.

The next competitive edge may not be who lists the product first. It may be who can monitor risk, margin exposure, custody flows, and compliance exceptions in real time without weakening the controls institutions rely on.

Transparency becomes a risk surface

Crypto’s always-on design also introduces a second challenge: information moves continuously too. Public blockchains make settlement visible, auditable, and difficult to falsify. That can reduce certain intermediary risks. But the same transparency can expose flows that businesses would normally treat as confidential.

“It does both simultaneously,” said Natalie Newson, Senior Blockchain Investigator at CertiK, when asked whether public blockchain transparency reduces systemic risk or creates new attack surfaces. “Settlement finality is also publicly auditable,” she said, but “front-running and MEV are persistent issues in blockchain.”

That duality is central to the institutional adoption question. Public auditability is useful when markets need trust in settlement. It is less straightforward when market participants reveal treasury movements, collateral positioning, payroll flows, or supplier payments in real time.

Newson framed the business risk directly. “If your treasury wallet is known, and on-chain, it eventually becomes known, counterparties, suppliers, and competitors can watch your liquidity position in real time,” she said.

For trading firms, that visibility can affect execution. For corporations, it can expose working capital strategy. For institutions, it can turn settlement infrastructure into a source of market intelligence for competitors. In a 24/7 derivatives environment, information leakage does not wait for office hours either.

This is where the conversation moves beyond cybersecurity. The issue is not just hacks, exploits, or smart contract vulnerabilities. It is whether an always-on financial system can protect commercially sensitive behavior while preserving the auditability that makes blockchain infrastructure useful in the first place.

Privacy is becoming part of market infrastructure

The early crypto argument treated transparency as a feature. That was true for open monetary networks and early DeFi systems, where public verification helped establish trust. But what works for a speculative or experimental market does not automatically work for enterprise finance.

“Transparency becomes a structural constraint the moment a business tries to use blockchain for real operations,” said Varun Kabra, Chief Growth Officer of Concordium. “Payroll, supplier contracts, treasury flows, pricing structures, these are not marketing data points.”

That is the institutional bottleneck hiding inside the 24/7 trading conversation. It is not enough for markets to stay open. The systems around those markets need ways to prove identity, authorization, eligibility, and compliance without exposing more information than necessary.

Kabra’s broader point is that the next phase of adoption depends on combining privacy with accountability. “The next phase of adoption won’t come from arguing with regulators,” he said. “It will come from building systems where privacy and accountability coexist by design.”

That logic is already moving beyond financial markets. Concordium’s partnership with the Danish Ice Hockey Union includes a Verified Fan Programme using zero-knowledge proofs and an Agentic Commerce initiative around verified AI agents, showing how users or automated agents could prove access rights or authorization without disclosing unnecessary personal data.

The sports example is not the point. The infrastructure pattern is. As markets become more automated and more continuous, identity and selective disclosure become part of the same control stack as margining, custody, and surveillance.

Traditional finance is learning to operate on crypto’s clock

The obvious reading of CME’s 24/7 move is that crypto is becoming more institutional. That is true, but incomplete. The more interesting reading is that traditional finance is beginning to adopt pieces of crypto-native market structure because client demand, volatility, and liquidity have already moved in that direction.

This does not mean regulated finance will become decentralized. It will not. Institutions still need clearinghouses, custodians, reporting systems, market surveillance, and legal accountability. What changes is the cadence. Risk systems that were designed around market closes and business-day workflows will need to function in a market where exposure changes continuously.

That transition will not happen all at once. Execution hours can expand faster than settlement systems. Trading access can move faster than compliance architecture. Liquidity can move faster than privacy standards. The result is a hybrid market structure: crypto assets trading on a crypto clock, through increasingly regulated venues, with traditional finance rebuilding its control layer around a more continuous environment.

For investors, this means crypto derivatives are becoming more than a trading product. They are becoming the test case for how legacy market infrastructure adapts to always-on finance.

The next phase of institutional crypto adoption will not be defined only by which assets get listed or which venues gain market share. It will be defined by whether the financial system can manage risk, identity, privacy, and settlement at the speed crypto markets already demand.