While NIU has been affected by the sagging U.S. economy in certain areas, it hasn’t been forced to resort to some of the drastic measures that other higher education institutions have.

Colleges and universities nationwide, both public and private, have been facing lowering endowment values and budget cuts as a result of the struggling economy, causing them to layoff faculty members, implement hiring freezes and abandon need-blind admissions, according to a report in The New York Times.

NIU relies on endowments to fund professorial positions, scholarships and athletics, along with other needs. Endowments are gifts that are invested long-term, so when the value goes down, it forces NIU to look at other options, such as expendable gifts or non-specific endowments, to fund the aforementioned areas, said NIU Foundation President Mallory Simpson.

“We are studying this very carefully right now. Things are changing very rapidly,” Simpson said. “We’re seeing a little bit less giving this year … But people still give during tough times. Philanthropy is not always one of the first things to go.”

Squabbles in Springfield over the state budget are keeping NIU and other state universities waiting for their final budget figures for the next fiscal year.

“Receipts are down due to the economy,” said Ken Zehnder, associate director of External Affairs. “The University is looking at our expenses; looking to eliminate costs and expenditures.”

The state reportedly stands to take in an estimated $800 million less in revenue this year, so NIU officials will be able to breathe easier once Illinois’ budget is finalized, Zehnder said. But unlike other institutions, NIU has yet to implement a full-scale hiring freeze or be forced to layoff employees because of budget cuts.

“President Peters has limited hiring authorizations to essential appointments and has directed university officers to preserve funds as we move into the 2009 time frame,” said Steven Cunningham, associate vice president for Administration and Human Resources.

Certain colleges and universities have decided to get rid of the practice of need-blind admissions, where admissions officers don’t consider how much financial need a student has when determining whether to admit them.

“NIU is and has always been need-blind in admissions,” said Admissions Director Bob Burk. “There is absolutely no way that income level would negatively affect a student’s admission decision at NIU.”

Still, NIU officials and others fear the country’s economic situation will get worse before it begins to gets better. Until then, officials say, it will be difficult to determine the extent to which NIU will be affected.