How Many Colleges Lose Money?
The answer is more than you think…
Over 40% of private colleges in the US lost money last year.
That’s just one of a mountain of interesting insights from a recent blog post by Robert Kelchen.
In his post - “Which Colleges Always Lose Money?” - Robert analyzed the most recent IPEDs data release for nearly 1,000 private and public colleges and universities, looking to better understand trends in institutional operating margin over time.
And the results aren’t great…
A few of the callouts that stood out to me from Robert’s post include:
Twice as many private colleges posted a loss, compared to public institutions
27 institutions have posted a loss 8 or more years over the past 10 years. Among those are several that have gone on to close, including my alma mater, The College of Saint Rose.
Of the 22 public institutions that have lost money in 8 or more of the past 10 years, nearly 70% are from New York.
It’s worth keeping in mind, this data includes investment returns, as well as the loss of Covid relief funds, but it doesn’t change the fact that the present state for many institutions is one of financial decline.
When you consider that the industry is only closing roughly 1% of colleges annually, it’s interesting to realize that…
While many institutions aren’t closing, a significant number are losing money at a rapidly rising rate
About The Author
Seth is the founder and CEO of Kanahoma, a San Diego-based performance marketing agency on a mission to build a better agency for organizations building a better world.
You can learn more about who we are and what we do at www.Kanahoma.com.