Hundreds of colleges in the United States live on the financial margins. Typically small and private, they struggle to pay bills, recruit students, and raise money. Yet few of them fail.
As Sweet Briar College’s projected demise and unexpected revival illustrate, small colleges are a resilient bunch. There are about 1,600 private, nonprofit four-year colleges in the United States, but only a handful close each year. In 2012, the most recent year for which data are available from the National Center for Education Statistics, just two of those institutions shut down.
College leaders and their advisers say that a number of factors keep troubled institutions in business. For one, even broaching the idea of a college’s demise is emotionally fraught. To students, professors, administrators, alumni, and trustees the meaning of their time on a campus depends, in many ways, on the college’s continued existence. Students and alumni may have had life-altering experiences or developed important networks, while professors may have found a community of like-minded people with whom they could picture spending their careers.