Dive Summaries:
- As many as one-third of colleges and universities show financial warning signs that could lead them to shut down, a report says.
- The report from a financial consulting firm says that declining enrollments and low-cost competition are leading some colleges to give discounts to attract students, which means that the institutions' operating costs are rising faster than revenues and investment income.
- In 2011, the latest Department of Education data available show that more than 150 colleges and universities received failing scores for their financial stability.
From the article:
... “Change is needed, and it’s needed now,” the Bain report said. “Still, at the majority of institutions, the pace of change is slower than it needs to be. Plenty of hurdles exist, including the belief that things will return to the way they were. Note: They won’t.” ...
