Saturday, April 4, 2015

Why more U.S. colleges will go under in the next few years - Jillian Berman, MSN

“We expect that there will be more college closures over the next three to four years,” Susan Fitzgerald, a senior vice president at Moody’s. “I don’t think it’s going to be a landslide of college closures, but we are coming through a very tough period of time.” About one-third of all colleges and universities in the U.S. are on an unsustainable financial path, according to a 2012 report from consulting firm Bain & Co. While some of the schools on that list have resources, like a large endowment and a steady enrollment base, that could help them stave off closure, smaller, private colleges “need to be on the lookout,” Jeff Denneen, the leader of Bain’s higher education practice and one of the authors of the report, said in an interview. “They have many fewer degrees of freedom and a much shorter runway to get things in order and I think that’s a little bit of what you saw at Sweet Briar,” he said.

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