Anyone else hearing “lots” of LACs already on the brink may close permanently this summer?

[Anonymous]

Anonymous wrote:Many small, regional LACs are facing declines in enrollment and coupled with weakening endowment resources, they may be facing closure or merging with more financially sound institutions. Even before Corona, there were more than a few colleges in dire straights - so I wouldn’t be surprised if this is the “straw that breaks the camels back.” If you are interested, you can keep up with news at Inside Higher Ed and the Chronicle of Higher Education.

+1. If you're only 2,000 or 3,000 students... then you just had to issue huge refunds for the winter/spring... then with the economic uncertainty and inability for prospective families to actually visit campus this spring, you get -5 or -10% fewer kids committing for the fall, you're quickly up a creek!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Many small, regional LACs are facing declines in enrollment and coupled with weakening endowment resources, they may be facing closure or merging with more financially sound institutions. Even before Corona, there were more than a few colleges in dire straights - so I wouldn’t be surprised if this is the “straw that breaks the camels back.” If you are interested, you can keep up with news at Inside Higher Ed and the Chronicle of Higher Education.

+1. If you're only 2,000 or 3,000 students... then you just had to issue huge refunds for the winter/spring... then with the economic uncertainty and inability for prospective families to actually visit campus this spring, you get -5 or -10% fewer kids committing for the fall, you're quickly up a creek!

Also endowments are probably hurting.

[Anonymous]

Not only did endowments just take a big haircut, but enrollment has been slipping for years, only propped up with aggressive "scholarships" begging kids to commit. If the college is in the middle of nowhere and has a sub $100M or even sub $200M endowment, it's probably been on the brink for a while.

[Anonymous]

Anonymous wrote:Do LACs have credit ratings like public universities? Is that public record? That's one way to tease out long-term viability.

Yes, Moody ranks them. My own SLAC was downgraded to "negative" before this mess.

[Anonymous]

https://www.insidehighered.com/news/2020/04/02/two-small-colleges-winding-down-operations-coronavirus-impact-looms-over-higher-ed

One example is MacMurry College which is a small liberal arts college in Southern Illinois that is fairly old and established--it's been around 174 years.

A few colleges that have closed in recent years: Mount Ida college in Massachusetts (around for 119 years), Green Mountain College in Vermont (174 years old), and Sweet Briar College almost closed a couple years ago. A friend of mine works at Georgetown College outside of Lexington, KY and their financial situation is a mess. It's these small, private, mostly regional LACs, many of which have been around since the late 1800s that are in trouble.

[Anonymous]

Anonymous wrote:https://www.insidehighered.com/news/2020/04/02/two-small-colleges-winding-down-operations-coronavirus-impact-looms-over-higher-ed

One example is MacMurry College which is a small liberal arts college in Southern Illinois that is fairly old and established--it's been around 174 years.

A few colleges that have closed in recent years: Mount Ida college in Massachusetts (around for 119 years), Green Mountain College in Vermont (174 years old), and Sweet Briar College almost closed a couple years ago. A friend of mine works at Georgetown College outside of Lexington, KY and their financial situation is a mess. It's these small, private, mostly regional LACs, many of which have been around since the late 1800s that are in trouble.

If they made it through the economic depression and World War Two why’s now the worst time for them?

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.insidehighered.com/news/2020/04/02/two-small-colleges-winding-down-operations-coronavirus-impact-looms-over-higher-ed

One example is MacMurry College which is a small liberal arts college in Southern Illinois that is fairly old and established--it's been around 174 years.

A few colleges that have closed in recent years: Mount Ida college in Massachusetts (around for 119 years), Green Mountain College in Vermont (174 years old), and Sweet Briar College almost closed a couple years ago. A friend of mine works at Georgetown College outside of Lexington, KY and their financial situation is a mess. It's these small, private, mostly regional LACs, many of which have been around since the late 1800s that are in trouble.

If they made it through the economic depression and World War Two why’s now the worst time for them?

A lot of schools closed or were bought by larger (especially public universities) during both of those events. Some of them later managed to re-open with donations to the endowment from alumni, but many either closed for good or were absorbed by larger institutions. It's interesting to see how many named departments/dorms/honors colleges at public flagships used to be women's schools or small religious schools that shuttered during various times--a ton during the civil war, but some during WWII and the depression. I suppose it's part of the cycle that any historical period of downturn might lead to institutions closing. Maybe some of these schools will reopen in a few years catalyzed by a wealthy donor. Mt. Ida ended up being absorbed by UMass.

[Anonymous]

I honestly don't see how the middle of nowhere LACs have existed this long. The towns are almost always hollowed out shells. Weren't most LACs built during horse and carriage times? They're gorgeous and quaint ... but they're totally obsolete when kids can fly and drive anywhere ... and all the hot modern careers are in like 10 coastal cities.

[Anonymous]

What's sad is you couldn't even turn the dorms into low-income housing or anything because these little podunk towns have no industry. Once the LAC closes, might as well turn the lights off on the town. If the LAC is lucky enough to be in New England it's possible some housing developer may want the acreage ... but flyover country Midwest LACs? Doubtful.

[Anonymous]

As a strong believe in a liberal arts education, I am saddened by the spate of closings, and likely increased closings, of SLACs around the country.

But let's be real, none of these SLACs are schools your average family in the DMV has ever heard of. And for your average snotty DCUMers, having to send their spawn to anyone of these SLACs would be a major stain on the family name.

The closing of these SLACs while regrettable, are actually a good thing for the SLACs that count (and I am casting a wide net, saying top 50). Survival of the fittest. Will increase interest and brand name of those SLACS that make it through.

[Anonymous]

Anonymous wrote:As a strong believe in a liberal arts education, I am saddened by the spate of closings, and likely increased closings, of SLACs around the country.

But let's be real, none of these SLACs are schools your average family in the DMV has ever heard of. And for your average snotty DCUMers, having to send their spawn to anyone of these SLACs would be a major stain on the family name.

The closing of these SLACs while regrettable, are actually a good thing for the SLACs that count (and I am casting a wide net, saying top 50). Survival of the fittest. Will increase interest and brand name of those SLACS that make it through.

Just so you know, we live in the DMV, graduated from schools that folks on here think are highly competitive, and we have a graduating senior with serious anxiety deciding between many SLACs—none of which are in the top 50, so we are following this with interest. We’ll check out Moody’s, but are interested in any info about which schools might go under.

[Anonymous]

If an LAC closes, would what's left of the endowment be given back donors? How would that work? Some of the private colleges on the brink claim to have $50M-200M endowments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Who are you hearing the rumors from? What are the sources? You sound like a gossip monger.

990s are public record. You can look up their financial issues yourself.

So you’re hearing the rumors from yourself? That’s weird.

[Anonymous]

So OP hasn’t returned to back up where she’s hearing these “rumors” from?

[Anonymous]

Anonymous wrote:So OP hasn’t returned to back up where she’s hearing these “rumors” from?

Well since OP posted this, numerous articles in the press discussing the financial strain of schools, especially small private schools have been posted on this thread. Is USA publishing "rumors"?

https://www.usatoday.com/story/news/education/2020/03/21/coronavirus-college-students-online-closing-private-liberal-arts/2889546001/