<p>I don’t quite get what axe barrons has to grind against women’s colleges. The larger trend is clear: except for the best-endowed among them, small LACs are on extremely shaky financial ground, and that’s true whether they’re coed or single-sex. When Antioch went under a few years ago, we didn’t see headlines shouting “Coed LACs in Decline.” </p>
<p>Here’s the difference between Sweet Briar and what remains of the traditional Seven Sisters–apart from the fact that the latter have always had, and still have, a great deal more academic prestige and intellectual capital.</p>
<p>2011 Endownment (per NACUBO):</p>
<p>Sweet Briar $93.8 million</p>
<p>Mount Holyoke $603 million
Bryn Mawr $679 million
Smith $1.429 billion
Wellesley $1.5 billion</p>
<p>At a standard 5% payout, Wellesley’s endowment (or Smith’s) would generate nearly as much revenue each year as the total amount Sweet Briar has in its endowment. Granted, at 760 students Sweet Briar is tiny; on a per capita basis the endowments would be a bit closer, but the Seven Sisters still have an enormous financial edge which allows them, inter alia, to meet full need for 100% of their students. Sweet Briar, in contrast, meets full need for only 60% of its students, and on average meets only 24% of need. Which means more of its students face serious financial challenges, leading to higher quit rates and lower graduation rates.</p>
<p>The tuition spiral is a death spiral for LACs in this part of the market. Without major endowments, they’re nearly 100% dependent on tuition revenue, and they can’t afford to match their better-endowed peers in tuition discounting (i.e., need-based or merit-based financial aid). As tuition creeps higher, more of their students have financial need, and the average amount of financial need increases, but the college’s FA budget can’t keep up. So the college becomes less affordable and less attractive Faced with this dilemma, coupled with a weakening demand for a liberal arts education, many small LACs are reinventing themselves by adding vocational programs, aiming for a different segment of the market—and effectively ceasing to be LACs at all. The best-endowed LACs are still largely insulated from these market pressures; they can afford to lavish out generous FA, which helps them to attract and retain top students. And that’s true for well-endowed single-sex institutions as well as coed schools. </p>
<p>What’s happening to Sweet Briar reflects, in my opinion, not what’s happening in single-sex education per se, but rather broader trends that are forcing a shake-out among financially weaker LACs, which are increasingly unable to compete in today’s higher education marketplace.</p>