In the early 21st century, there has been an increase in the number of institutions of higher education (IHEs) that have closed their doors. In fact, according to the Chronicle of Higher Education, as of the fall of 2016, “nearly 1,500 campuses in American colleges and universities have closed or are in financial trouble.”
This sudden increase in the number of college closures has caused many students and parents to ask themselves a question that has become all too common in recent years: Will my child’s college go bust?
Unfortunately, there is no easy answer to this question. In fact, it can be quite difficult to determine whether or not a particular college is in danger of closing down.
Below, we will provide a few factors that you can use to help you determine whether or not a particular college is at risk of going bust.
1. The Financial Status of the College
One of the most important factors you can use to determine the likelihood of a college closing down is the financial status of the institution. Many colleges that have closed their doors in the past have done so because they have been unable to compete with newer, more expensive institutions. If a college is facing increased competition from other higher education institutions, that is a sign that it may be in danger of closing down.
2. The Number of Students Enrolled at the College
Another important factor to consider when assessing the likelihood of a college closing down is the number of students that are enrolled at the institution.
3. The Age of the College
Another indicator of a college’s viability is the age of the institution. Many older, traditional colleges struggle to keep up with the demands of today’s students.
4. The Amount of Debt That the College Has Obtained
Another factor that you should consider when assessing the likelihood of a college closing down is the amount of debt that it has obtained. Many colleges that have closed their doors have done so because they have been unable to pay off their debts.
5. The Financial Condition of the Institutional Foundation
Finally, you should also pay attention to the financial condition of the institutional foundation. If the institutional foundation of the college is in bad shape, that could be a sign that the institution is in danger of closing down.
