Small U.S. Colleges Battle Death Spiral as Enrollment Drops

[marmar]

(Bloomberg) At a Dowling College campus on Long Island’s south shore, a fleet of unused shuttle buses sits in an otherwise empty parking lot. A dormitory is shuttered, as are a cafeteria, bookstore and some classrooms in the main academic building.

“There’s a lot of fear here,” said Steven Fournier, a senior who lived in the now-closed dorm for his first three years. “It’s not the same college I arrived at.”

Dowling, 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.

“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.” .......................(more)

The complete piece is at: http://www.bloomberg.com/news/2014-04-14/small-u-s-colleges-battle-death-spiral-as-enrollment-drops.html

[xchrom]

1. du rec.

[LuckyLib]

2. And state universities are pricing themselves out of the market.

[KamaAina]

3. Yikes! Dowling has, or had, a special program for Autistic students.

It would be a shame to see that disappear. Or maybe they could build on it to boost enrollment!

[FarCenter]

4. Over 60% of colleges have fewer than 2500 students

It's hard to see how that is economically viable unless they specialize in a small number of majors.

[Arugula Latte]

5. Rest in Peace excellent and affordable U.S. higher educational system.

We hardly knew ye.

[caraher]

6. The key line is "colleges that depend almost entirely on tuition for revenue"

Such schools have always been on thin ice financially. There are many other small, private institutions that rely on a mix of funding sources, especially large endowments, who are not in quite the same bind.