Concerns about university closures continue to grow across the country.
As many as 80 universities could collapse in a year due to declining enrollment due to declining student populations and rising operating costs. There can be significant risks for families, including interruption of degree programs, loss of credits, and financial instability.
Some college students have paid tuition for years only to find themselves without a path to a degree when their school closes.
Open School Rankings, a platform that ranks institutions known as the Distressed Universities Index, analyzed nearly 300 universities to identify those showing signs of severe financial distress.
The Open School Rankings list says two Florida universities, Florida Memorial University and Saint Leo University, are showing signs of serious financial distress, and several other universities are also in financial distress.
Dan Ye, a lecturer at Johns Hopkins University and founder of Open School Rankings, warns that some universities could be at risk of closing within the next five years. His broader “Distressed Universities” ranking identifies universities that are likely to face serious financial challenges over the next decade.
Ye said students and parents should carefully assess a university’s financial situation before paying tuition or incurring student loan debt. He recommends considering several factors that may indicate whether a financial institution is financially stable or at risk of closure, merger, or major restructuring.
His analysis also considers why university closures and mergers are likely to accelerate rapidly over the next decade. You can read his analysis here.
