Colleges in Dire Financial Straits

[lightning]

329 employees of Becker College, which is closing, will be unemployed by the end of June:

https://www.telegram.com/story/news/2021/05/01/becker-college-worcester-leicester-layoffs-massachusetts-warn-closing-june-employees/4905553001/ .

Okay, that's the small college formed in the 1970s by the merger of two tiny older institutions (One dating back to the 1780s).  They seem to have had a long history of changing their mission to adapt to changing times, including the creation of a video game design institute about ten years ago.  You can't accuse them of a hidebound failure to try to adapt.  In this case it still wasn't enough.  Especially when you're trying to compete for students in a very crowded regional field.

Does anyone know if, after assets are liquidated, Becker has to pay back the $3 million paycheck protection loan that they took out during the pandemic?

[Vkw10]

329 employees of Becker College, which is closing, will be unemployed by the end of June:

https://www.telegram.com/story/news/2021/05/01/becker-college-worcester-leicester-layoffs-massachusetts-warn-closing-june-employees/4905553001/ .

Okay, that's the small college formed in the 1970s by the merger of two tiny older institutions (One dating back to the 1780s).  They seem to have had a long history of changing their mission to adapt to changing times, including the creation of a video game design institute about ten years ago.  You can't accuse them of a hidebound failure to try to adapt.  In this case it still wasn't enough.  Especially when you're trying to compete for students in a very crowded regional field.

Does anyone know if, after assets are liquidated, Becker has to pay back the $3 million paycheck protection loan that they took out during the pandemic?

It probably qualifies for forgiveness. See https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-loan-forgiveness

[ProfessorPlum]

Judson College in Alabama is closing. WBRC: Judson College board of trustees vote to close school.
https://www.wbrc.com/2021/05/06/report-judson-college-board-trustees-vote-close-school/

[spork]

Judson College in Alabama is closing. WBRC: Judson College board of trustees vote to close school.
https://www.wbrc.com/2021/05/06/report-judson-college-board-trustees-vote-close-school/

Anyone working at a college with fewer than 500 students should be looking for employment elsewhere. A college that size is just not sustainable anymore.

[Ruralguy]

Even 1000 is getting difficult.

[dismalist]

In your dreams!

5000 is minimum economical scale, according to empirical work I would do if I had to.

That's not a joke. :-)

[Ruralguy]

Are you sure? That sounds a little high to me, but maybe I'm just magically thinking.

[mleok]

In your dreams!

5000 is minimum economical scale, according to empirical work I would do if I had to.

That's not a joke. :-)

Caltech is a counterexample.

[dismalist]

In your dreams!

5000 is minimum economical scale, according to empirical work I would do if I had to.

That's not a joke. :-)

Caltech is a counterexample.

Caltech is a counterexample to everything. :-)

MIT has just under 5000, e.g.

The point is not to get a Caltech, or even an MIT, but to get a viable undergraduate institution which is not totally bad.

[Ruralguy]

Yet, I don't see reports of 3000 undergrad schools going under or even under extreme pressure, though maybe some are. Anyone have anything specific?

By the way, of course money changes everything. 3000 students and a billion dollar endowment probably keeps you safe. But 3000 and 500 million endowment is nice, but not safe enough.

[dismalist]

Yet, I don't see reports of 3000 undergrad schools going under or even under extreme pressure, though maybe some are. Anyone have anything specific?

By the way, of course money changes everything. 3000 students and a billion dollar endowment probably keeps you safe. But 3000 and 500 million endowment is nice, but not safe enough.

Keep the flows and the stocks separate!

Everything is fine until the trustees have eaten up the endowment. :-) :-(

[Parasaurolophus]

Yet, I don't see reports of 3000 undergrad schools going under or even under extreme pressure, though maybe some are. Anyone have anything specific?

By the way, of course money changes everything. 3000 students and a billion dollar endowment probably keeps you safe. But 3000 and 500 million endowment is nice, but not safe enough.

Laurentian had ~9000. But their case is sort of exceptional.

[marshwiggle]

Yet, I don't see reports of 3000 undergrad schools going under or even under extreme pressure, though maybe some are. Anyone have anything specific?

By the way, of course money changes everything. 3000 students and a billion dollar endowment probably keeps you safe. But 3000 and 500 million endowment is nice, but not safe enough.

Laurentian had ~9000. But their case is sort of exceptional.

And more typical in size for Canada. The small (i.e. under 1000 student) places wouldn't really be on the radar here for talking about PSE; they'd be very niche-y, such as religious institutions or private vocational training colleges.

[Hibush]

Caltech is a counterexample.

Caltech is a counterexample to everything. :-)

Caltech's annual research budget is $380,000 per undergraduate (not including JPL). Does anyone else come close?

[Durchlässigkeitsbeiwert]

Yet, I don't see reports of 3000 undergrad schools going under or even under extreme pressure, though maybe some are. Anyone have anything specific?

PASSHE?