Colleges in Dire Financial Straits

[lightning]

not to be confused with Union College in upstate NY. That's obvious to us, but the casual observer might think otherwise.

[AmLitHist]

Not dire straits, perhaps, but concerning nonetheless: Lindenwood University layoffs.  These follow other cuts last fall.

Locally, people have been watching LU for a few years now: TPTB seemed to have thought that going Division I with football, advertising like mad, and putting up buildings like there's no tomorrow was going to turn them into a Big School. They seem to be blaming the FASFA problems now, but there have been plenty of questionable moves long before this.

Fontbonne University is in the process of closing down, and MacMurray College/U shut down in 2020. Yet our school's brain(less) trust is building like mad, with more to come (e.g., most of my original campus buildings will be demolished, replaced by new, within the next 4 years), while our enrollments are in steady decline. Nervous, much? I think we (my faculty colleagues and I) would be nuts to not be. Whenever they want to offer a buyout, I'll be in line. 

[spork]

^ I recommend getting paid on 9-month rather than 12-month schedule, if you don't do this already.

[selecter]

Strongly agree. When the former Selecter U went down in '19, the admins refused to pay faculty who worked 9 and got paid over 12, with the reasoning being "we are broke." We eventually got it, but it aided misery to misery.

[Hibush]

Strongly agree. When the former Selecter U went down in '19, the admins refused to pay faculty who worked 9 and got paid over 12, with the reasoning being "we are broke." We eventually got it, but it aided misery to misery.

The great Chuck Berry's principle applies when transacting with financially struggling colleges, "Money up front, man!"

[apl68]

Fontbonne University is in the process of closing down, and MacMurray College/U shut down in 2020. Yet our school's brain(less) trust is building like mad, with more to come (e.g., most of my original campus buildings will be demolished, replaced by new, within the next 4 years), while our enrollments are in steady decline. Nervous, much? I think we (my faculty colleagues and I) would be nuts to not be. Whenever they want to offer a buyout, I'll be in line. 

Hard to believe that any school is still trying that strategy at this point, after so many have gotten caught out doing it.

[treeoflife]

How many institutions closed in 2024 until now?

[spork]

How many institutions closed in 2024 until now?

https://collegehistorygarden.blogspot.com/2015/11/college-closures-since-2009.html

[treeoflife]

I wonder if this is the new realty or there will be a massive implosion at a certain point.

[Hibush]

I wonder if this is the new realty or there will be a massive implosion at a certain point.

Some turnover is natural, not a sign of broader trouble. The rate should be lower than for neighborhood restaurants but it should also not be zero. Common failure causes are a "product" that has become less popular and good old bad management. Colleges are susceptible to both causes.

[apl68]

We're probably set to see continuing attrition, possibly accelerating somewhat, for the near future.  I wouldn't think we'd see a sudden mass die-off of colleges unless something structural in our economy/society/government suddenly goes horribly wrong.

[treeoflife]

In NYS a growing question is what will SUNY institutions do to deal with the decline in students. The current legislature make up in Albany is committed to support SUNY but things are changing and with the decline of the tax base some changes will need to be made but the SUNY system is very slow in offering solutions, it seems that the legislature in the state and county level will make decisions for them.

[Wahoo Redux]

IHE: Bacone College Files for Bankruptcy

[AmLitHist]

We're probably set to see continuing attrition, possibly accelerating somewhat, for the near future.  I wouldn't think we'd see a sudden mass die-off of colleges unless something structural in our economy/society/government suddenly goes horribly wrong.

It used to be that a lousy economy (see: 2008-10) was great for CC enrollments. I don't know if that would still apply now. And it's hard to know what kind of economy we actually have now: inflation is slowed, and the unemployment numbers are decent, yet I constantly hear from students, people in our town, faculty members whose spouses/kids are looking for work, that it seems virtually impossible to get callbacks when applying to those "now hiring" jobs. I'm not sure what any of this means for our short-term future.

But, "if you build it, they will come" seems to be our current MO. We'll see how that works out, I suppose.

[Hibush]

And it's hard to know what kind of economy we actually have now: inflation is slowed, and the unemployment numbers are decent, yet I constantly hear from students, people in our town, faculty members whose spouses/kids are looking for work, that it seems virtually impossible to get callbacks when applying to those "now hiring" jobs.

The work economy is indeed strong, but attitudes are horrible. Wages are rising faster than inflation due to the labor shortage, and employers are paying despite the higher interest they have to pay. But why are attitudes so bad?  Who is having trouble finding work? Is it the college graduates who spent time argued due dates and fighting for extra credit when they didn't do the regular credit?

I think it is critical to deal with the widespread low confidence in a hot economy. I don't understand why it is, but the consequences of letting it fester are dire.