Rising Enrollments Buoy Some Colleges, Burden Others

CAROL’S SUMMARY: The current economic crisis has some colleges in a panic. Private colleges that rely on tuition to pay for a majority of their operation costs are getting hit hard with declining enrollment. Returning students are finding out they can’t afford to finish right now and freshmen classes are smaller than last year.

Questions to consider:
1. How has the economic crisis affected your educational plans?
2. What do you plan to do about it?


Most Colleges Fill Classrooms Even as Students Struggle to Pay


Section: Money & Management
Volume 55, Issue 14, Page A1

The nation’s economic crisis is bringing colleges higher borrowing costs, smaller endowments, tighter budgets, and fears over the availability of loans for their students.
Yet one of the most critical factors in colleges’ health — student enrollment — appears to be largely holding strong, at least for now.

Tuition and fees are the top source of revenue at private four-year colleges, with smaller institutions relying on those funds especially heavily. The loss of even a handful of students can bring some institutions to the brink of collapse.

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