The West Bank's flagship university, Bir Zeit, was to reopen Tuesday, after a weeklong closure forced by cash-strapped students protesting attempts to collect tuition payments.
The dispute was the latest sign of the sharp downturn in the economy as a result of a year-long international aid boycott of the Hamas government.
Most sectors have suffered decline, including manufacturing, education and health care. Some 165,000 civil servants, whose salaries sustain about one-third of the Palestinians, have received only partial wages.
Growing numbers of Bir Zeit's nearly 8,000 students have fallen behind in payments.