Upcoming changes to the way we log in on College Confidential. Read more here.
Death Spiral" - Harvard Professor Predicts Up To Half Of US Universities May Fail In 15 Years
Dowling College (on Long Island), which got a failing grade for its financial resources from accreditors last month, epitomizes the growing plight of many small private colleges that depend almost entirely on tuition for revenue. It’s been five years since the recession ended and yet their finances are worsening. Soaring student debt, competition from online programs and poor job prospects for graduates are shrinking their applicant pools.
As the debt loads and poor payoffs finally meet market forces...
“What we’re concerned about is the death spiral -- this continuing downward momentum for some institutions,” said Susan Fitzgerald, an analyst at Moody’s Investors Service in New York. “We will see more closures than in the past.”
But Harvard Business School professor Clayton Christensen has much more dire warnings of the technological shift...
as many as half of the more than 4,000 universities and colleges in the U.S. may fail in the next 15 years. The growing acceptance of online learning means higher education is ripe for technological upheaval, he has said.
“I’m not sure a lot of these institutions have the cushion to experiment with how to stay afloat,”
Post edited by texaspg on
This discussion has been closed.