Rest in Peace: College Closings

That’s very good for them. But next year there will be another shortfall, and another and another. If they get $6M, it funds six weeks of operations, and then it’s gone.

They have an endowment of $72M and debt of $79M., That’s not good.

This is hard. They can’t raise tuition (or cut FA) and fill their seats. They can’t cut expenses without a rebellion. Either of these risks what @Catcherinthetoast correctly points out is a death spiral.

If they want to solve this with endowment, they need to raise not $6M but something more like $30M.

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I doubt they can. It’s too bad, but counselors should not be recommending that school to students. Just another part of the vicious downward spiral.

What is a good resource to show the financial health of colleges? My D22 is looking at colleges now and although I am cheering on Guilford I am not encouraging her to look very seriously at it. I would steer her away from other struggling schools too.

BTW, Forbes gives Earlham an A-, not sure if things have tanked there since COVID or if Forbes is measuring it differently. Would you all agree or disagree?

Earlham has an endowment of $438 million, and so almost half a million dollars per student. So while they may have budget issues, they have some room to turn things around.

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What @Nicomachus just said—having a cushion is good.

Also, Earlham may have a structural deficit, but their endowment hasn’t decreased from the time my oldest applied there (it’s actually ticked up a bit). So they’re keeping their head above water—but S&P suggests that they’re facing a revenue cliff in about two years, though I’m uncertain what that’s based on.

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Northeastern University has completed the acquisition of Mills College.
‘Together we have an opportunity to create something truly unique in higher education’ - News @ Northeastern - News @ Northeastern

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Kind of the reverse of the point of this thread, but I know Bard has been kind of on the edge of some of our watchlists, so here’s news of added financial stability (in a single pledge nearly twice its current endowment!) for the college: Bard College Receives $500 Million Endowment Pledge from Investor and Philanthropist George Soros

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