Private Distress

Career College Central summary:

  • Some private colleges that managed to weather the recession are announcing layoffs, cutting programs and more. Almost all of these small to mid-sized privates are tuition-dependent and lack large endowments. National declines in the number of traditional college-age population mean students just aren't showing up to privates, which are facing competition from public colleges that are more stable now than a few years ago and the reality that privates cannot afford to indefinitely lure students by cutting prices with generous financial aid packages.
  • College presidents, private college trade groups and higher ed consultants blame a confluence of long- and short-term trends for battering some private colleges, particularly the small to mid-sized privates that depend on tuition dollars because they don't have significant endowments. It’s hard to tell if there is an existential threat brewing that could close a significant number of colleges, as some pundits have grandly predicted. But a sampling of the cuts — primarily driven by falling enrollment — suggests serious challenges for many institutions.

Click through to see the list of struggling private colleges.


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