My kid is looking at liberal arts colleges, preferably somewhat small, but not in the top 40. I’m well aware of the enrollment cliff looming, and how many schools are going to be having to cut back and slow investment as they anticipate lower enrollment. How can I research the financial health of colleges, to gauge how long they are likely to stay in business? I don’t mean the Bowdoins or Williams’ of the world, which have their endowments, but more middle tier schools. Thanks.
Moody’s rates the financial health of colleges. You can search for the name of the school you are looking for + Moody’s and get a good amount of information along with their prediction for the school’s fiscal stability.
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I agree with the bond ratings - that’s more to ensure a schools’ ability to pay their debt. Not all schools will have them though.
So an example is Clark University - they are cutting programs rapidly and you can read about it - but I cannot find a bond rating. Last year (not this) Forbes gave Clark a B-.
Forbes also has a “college health index” but I can’t find a free list. But you could subscribe for a month for $10 if you want and then get the list and other related articles, etc.
Also, last August, @randommom1 posted the 2024 list - things may have changed but this could give you an idea - Go to Message 4.
It’s an interesting list - Syracuse U is a AA- by Moody’s so bulletproof to pay their debt (I own their bonds) but Forbes gives a B- so you need to read how they grade…hence it might make sense to subscribe for a month (a very low expense vs. the cost of college).
Forbes 2024 Financial Grades - Applying to College - College Confidential Forums
Forbes College Financial Grades 2025: America’s Strongest And Weakest Schools
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Some updated information appears in this reply in the same topic: Forbes 2024 Financial Grades - #41 by merc81.