Colleges Across the Nation Shut Down - Could This Affect Your Education?

In the past few years, the higher education landscape has seen a significant change, with close to 80 private nonprofit colleges closing or merging between 2020 and 2024. This shift has left many students and alumni wondering about the implications of these closures.

First and foremost, it's important to note that a degree earned from a closed college remains valid and valuable. However, keeping copies of important documents such as academic transcripts, the school's academic catalog, and syllabi from all classes is crucial. In the event of a school closure, it may become harder to obtain these documents, making it essential to have them on hand for future reference and potential transfer to another institution.

When evaluating a college's financial viability, several factors come into play. Enrollment trends, tuition discounting, endowment size, state funding patterns, and new program offerings are all key indicators of a college's financial health. Colleges with small endowments, high debt, and lacking online programs are more likely to be at risk of closure.

If a college announces it's closing, students can evaluate their options. A teach-out agreement, where the closing school arranges for students to complete their education at another institution, is one possibility. Transferring to another school or completing an online program are other viable options.

In the United States, particularly vulnerable colleges that may face closure in the coming years can be identified by factors such as declining enrollment, financial instability, dependence on tuition revenue, and lack of research funding or innovation capacity. Institutions with small endowments, limited online education offerings, and those in economically depressed regions are at higher risk. Identifying these colleges involves analysing enrollment trends, financial health metrics, academic program viability, and adaptability to changing educational demands.

Exchanging contact information with professors and other students is recommended for professional networking purposes. In some cases, a school closure may lead to a merger with another institution, potentially introducing new opportunities for continued learning and a new alumni network.

University endowments are funds that colleges rely on for operation, funded by donors. The specifics of what university endowments fund can vary between institutions. Some institutions may establish a document repository at another institution or use a transcript service. It's recommended to order several copies of these documents and save a digital copy for convenience.

For those researching a college's financial health, resources such as The Hechinger Report's Financial Fitness Tracker, College Viability, and the federal government's Financial Responsibility Composite Scores can be used. It's also beneficial to look at historical data about college closures and maintain a list of closed colleges and mergers, which can be found online.

Lastly, it's worth noting that from 2014 to 2019, over 73 colleges and universities have closed or merged, with most operating as for-profit institutions. Small, private, and for-profit schools are particularly vulnerable to closure.

In this ever-changing educational landscape, being informed and prepared is key. By staying aware of the factors that may lead to a college closure and taking steps to protect important documents, students and alumni can navigate these challenges with confidence.