"It is the number, gravity and severity of the issues, along with whether the measures save enough money and whether revenue-generation measures have been enacted simultaneously. For example, are costs cut or assets liquidated to pay monthly operational costs, or are funds used to invest in revenue generation? Are actions ethical, legal and standard best practices, or do they cross the line?"
"'They Aren't Buying What You're Selling' (Revenue Generation) Indicators: Can't attract and keep students. Apathetic alumni. Donor disinterest. Auxiliary revenue generators are failing. Enrollment decline (demographic cliff) Lack of investment in new programs Hiring consultants Lack of branding and marketing Declining (or poor) persistence/retention/graduation rates Increased discount rate (above peer and national averages) Increased cost to attend (above CPI and peer averages)"
Sectorwide concern about the future of many colleges and universities persists in 2026, with some institutions publicly seeking alumni donations, government bailouts, negotiating mergers, or selling assets. Closures sometimes occur suddenly and without broad warning. A checklist of 11 categories and 58 warning signs identifies potential indicators of imminent shutdowns or mergers. Closure risk depends on the number, gravity, and severity of issues and whether cost reductions and revenue-generation measures are effective and ethical. Questions include whether cuts are funding operations or investing in growth, and whether actions damage reputation or erode constituent, government, and lender confidence.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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