Which top colleges have a significant budget deficit? Which ones are red flags?
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Anonymous
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We're compiling a college list now with our junior. Some colleges we've come across and researched have significant budget deficits. We are trying to figure out which ones to worry about.
We know that a college budget deficit can be a significant red flag, particularly if the uni is a small, private, or regional college with a low endowment. And a structural, long-term deficit often leads to reduced academic quality, fewer student services, etc. Here are the colleges with budget deficits that we are aware of (see below). Are we missing any others we should know about? Which ones to truly worry about (I'm assuming some big ones will figure it out with its endowment but not sure if that's smart thinking)? Colleges with Budget Deficits (rough amounts reported from the past year): USC: $200 million UChicago: $160 million Stanford $140 million Penn State: $140 million Harvard: $113 million American U: $80 million GW: $76 million NYU: $71 million Boston U: $30 million Middlebury: $14 million WashU (St. Louis): $7 million Brandeis: $2 million Pitzer: $1.3 million |
Anonymous
| There are many places like Forbes that explore this. The thing is there could be more legislation regarding foreign funding. Some of these places with billion-dollar endowments accepted many millions from Qatar. I think over the years more will be revealed about the hidden agreements/contracts and some really corrupt undertakings. It's complicated. Good luck! |
Anonymous
Thank you for this insight. Do you perhaps have a link to Forbes article or another that explores this further? It is complicated as you say, and the learning curve feels steep! |
Anonymous
| following |
Anonymous
| Isn't Barnard facing major financial issues too? |
Anonymous
| USC was very stingy with aid this year, I 100% think it was due to budget deficit. |
Anonymous
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Look up their ratings from Moody’s and/or S&P. They are on top of this and know which deficits should cause concern. There is a lot of nuance to this.
Generally speaking if they are rated AA/Aa range there is nothing to worry about. If they are A range there is very little to worry about. Most of the schools listed could double their tuition and still fill up so not much to worry about. |
Anonymous
| Non-Profit Explorer has 990s where you can see deficits. |
Anonymous
USC took a bunch of wealthy mediocre kids this year. I know a handful who got in with GPAs under 3.0 but from extremely wealthy families. |
Anonymous
I have appended the 2024 Forbes Financial Health Rankings next to the school. Most of these schools are very wealthy and will adjust tie spending if the nonsense form the administration continues. None of these schools are in long term danger though the experience at R1s will change if they have to start funding more of their own infrastructure costs. Of the 2 SLACs on this list Middlebury will have no issues at all, it is extremely wealthy and the main source of the budget drag has been addressed and the deficit is already down. Pitzer has a relatively small endowment and is tuition dependent. But with an under 25% acceptance rate they should not have any issues sourcing the students needed to keep budget intact and this is reflected in their Forbes grade. Penn State is not graded by Forbes since it is a public institution. USC: $200 million A+ UChicago: $160 million A+ Stanford $140 million A+ Penn State: $140 million Harvard: $113 million A+ American U: $80 million B GW: $76 million B+ NYU: $71 million B Boston U: $30 million B Middlebury: $14 million A+ WashU (St. Louis): $7 million A+ Brandeis: $2 million A- Pitzer: $1.3 million A |
Anonymous
Please don’t use the term mediocre to describe kids. Using that term usually only reflects the mediocrity of the person who used it. |
Anonymous
I recently read they are being enveloped completely by Columbia. |
Anonymous
No they didn't. |
Anonymous
No, Columbia has not yet absorbed Barnard's projected $250-ish million in debt. https://www.columbiaspectator.com/news/2024/12/03/with-252-million-in-projected-debt-barnard-makes-cuts-to-faculty-and-staff-benefits/ Based on available reports from late 2024, Barnard College is facing a significant, projected $252 million in debt and recurring deficits. Barnard is addressing this through internal budget cuts and reduced contributions to faculty/staff benefits. Columbia University has not officially absorbed this debt; Barnard is managing its own financial recovery plan. Key details: The Debt: Barnard’s projected debt stems from fiscal pressures as of fiscal year 2025, with previous annual operating deficits exceeding $20 million in FY23 and FY24. Response: Rather than a bailout from Columbia, Barnard President Laura Rosenbury initiated a "reimagining" of financial operations to improve performance. Relationship: While they are affiliated, Barnard is legally and financially separate from Columbia University and is responsible for its own budget. Operational Costs: Historically, the two institutions pay each other for imbalances in cross-registration, a separate issue from managing total budgetary debt. (Source: The Columbia Chronicle) |
Anonymous
PP. apologies, I think the headline I read may have been April 1 joke. |