09-18-2019, 02:19 AM
The problem with small schools comes down to declining enrollment, competition, and financial aid issues.
A new generation of students is questioning the value of a degree vs loans/debt. Small colleges have tried to keep up enrollment by keeping tuition down and offering more financial aid.
With many small colleges, over 90% of the students might be on tuition assistance. I've heard of a few where it's at 100%.
Endowments are also down after recent tax laws have made them unfavorable. Big schools still get big donations, but smaller schools have to hustle. Government cutbacks have affected financial aid. Students are drawn to schools with more resources and there's a halo effect where services around student living will promote a school, but if the school's debt makes those services scarce then the situation simply degrades.
Something like 5% of all small private colleges in the United States were running deficits 30 years ago. Now it's approaching 30%. There's a bloodbath on the horizon.
A new generation of students is questioning the value of a degree vs loans/debt. Small colleges have tried to keep up enrollment by keeping tuition down and offering more financial aid.
With many small colleges, over 90% of the students might be on tuition assistance. I've heard of a few where it's at 100%.
Endowments are also down after recent tax laws have made them unfavorable. Big schools still get big donations, but smaller schools have to hustle. Government cutbacks have affected financial aid. Students are drawn to schools with more resources and there's a halo effect where services around student living will promote a school, but if the school's debt makes those services scarce then the situation simply degrades.
Something like 5% of all small private colleges in the United States were running deficits 30 years ago. Now it's approaching 30%. There's a bloodbath on the horizon.