The Struggling Colleges Raiding Their Endowments to Pay the Bills – WSJ

https://www.wsj.com/us-news/education/colleges-restricted-endowments-financial-trouble-247c7d3c?st=auQJeP&reflink=desktopwebshare_permalink (gift)

«The percentage of private, nonprofit colleges drawing down endowments at greater than 7%—considered a sign of financial instability—nearly doubled to 19.3% in 2025 from 9.7% in 2016, according to Perspective Data Science, which analyzed nearly 1,000 institutions. The percentage of schools drawing down endowments at 15% tripled to 5%.

“A lot of schools are doing whatever they can to keep the lights on,” said Hendricks.

College and university enrollments are hitting the so-called demographic cliff, a falloff in the population of potential students caused by lower birthrates. The largest number of Americans born in a single year started college this past fall. Now, enrollments are projected to fall 13% by 2041, according to the Western Interstate Commission for Higher Education. In the Midwest and northeast the decline has been ongoing for several years.»

(Pretty sure I’ve posted about this before, a couple of years ago. Small Midwestern colleges winking out, one by one.)

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.