A general view of Georgetown with Georgetown University (background) is seen in Washington DC next to the Potomac River where people are kayaking on July 12, 2020. (DANIEL SLIM / AFP)

Universities in the United States are losing millions of dollars after having to reduce the number of students on campus due to the COVID-19 pandemic, leading many of them to refuse refunds for tuition fees or dormitories.

Princeton is inviting students back to campus in stages. It is also offering a 10 percent discount on full-year undergraduate tuition

In mid-March, colleges throughout the country closed dorms and dining halls and moved classes online to halt the spread of the novel coronavirus. Some schools issued refunds for housing costs, others did not.

This week, Harvard University announced that it will limit the number of students on campus to 40 percent of capacity when its term begins on Sept 2. 

All 1,650 first-year students can live on its campus in Cambridge, Massachusetts, but they are being encouraged to study remotely. Annual tuition fees for Harvard are US$49,653.Room and board cost US$17,682 in 2019.

ALSO READ: US backtracks on new visa rule for international students

A spokesman for Harvard said in a statement: "We're not advocating that students come to campus."

Princeton, Stanford, Johns Hopkins and other top universities also announced reopening plans this week. Most will hold classes online.

Princeton is inviting students back to campus in stages. It is also offering a 10 percent discount on full-year undergraduate tuition.

The federal Coronavirus Aid, Relief, and Economic Security Act provided US$14 billion to colleges to help them offset housing and dining refunds, but the loss and uncertainty over revenue generated by housing and tuition fees have caused major disruptions to the US$700 billion-a-year higher education industry.

In Louisiana, colleges and universities will refund US$24 million to students whose courses were interrupted by the pandemic. Louisiana State University will issue US$4.4 million, the University of Louisiana in Lafayette will give back US$3.8 million, and Southern University in Baton Rouge will issue US$3.5 million in refunds.

Collective decision

Jim Henderson, president of a system that oversees the University of New Orleans and other schools, told local newspaper The Advocate: "It was more of a collective decision for us. We all agreed we needed to do something."

California State Northridge and California State University, Los Angeles, will offer refunds to students for housing up to the start of the fall semester.

University of California, Los Angeles, or UCLA's, deadline for refunds is when the dorms' contract term begins. And students at the University of Southern California had until Wednesday this week to cancel housing.

The University of California, Irvine, will allow students to cancel before Sept 1 to get a refund.

University of California President Janet Napolitano said in a statement:"UC has already lost hundreds of millions in housing and dining revenue."

Meanwhile, the University of Maryland said it also plans to significantly cut down on the number of students on campus. Out of its 30,762 undergraduates, about 12,600 will stay on campus.

Ryan Baker, professor of education at the University of Pennsylvania, said the pandemic has transformed university study for both students and teachers.

READ MORE: Harvard, MIT sue over Trump order on foreign students

Baker said:"A lot of instructors in higher education are very attached to a traditional model of lectures and tests or lecture environments that they can't replicate in an online setting because it's just really hard to have a discussion with over 15 people on Zoom compared to in a classroom."

Elsewhere, several universities have hastily rewritten housing policies to ensure that they are not liable for refunds if students cannot use dorms.

The University of South Florida now requires students to sign a yearlong housing contract that absolves the school of liability.