The situation isn’t pretty, to say the least: With a dozen UK universities standing to lose £77 million (US$125 million) in collapsed Icelandic banks, the higher education sector appears to be facing an uncertain future and a rocky road, The Guardian reports recently. But could the global financial downturn in fact spell good fortune for UK universities in reality, when the numbers are factored in?

The evidence from previous recessions is that business schools and universities tend to benefit greatly, and here’s why. In a difficult recruitment situation, people take time out to embark on masters degrees to improve their CV and knowledge while they ride it out, says Jonathan Slack, chief executive of the Association of Business Schools (ABS). Which in turn gives much needed income to schools and colleges.

Business and management is the most popular subject at degree level and is taken in some form by one in seven students in the UK. The findings of a survey by ABS show undergraduate demand from home and EU students for business school courses is up, particularly MBA courses and particularly full-time MBAs. Needless to say, a universities bottom line improves nicely under this scenario.