As the semester began in September, Wisconsin's Beloit College found itself 36 students short. Some of the no-shows at the small liberal-arts college had enough credits to graduate early. Others, with an eye on the souring economy, chose to either delay their education or go somewhere cheaper.
Whatever the reason, the 36 absentees have had a big effect on this bucolic 1,300-student campus, a two-hour drive north of Chicago. The lost tuition was the primary factor in creating a $1 million budget shortfall that is leading the school to lay off nearly a tenth of its staff including all nontenured...