US College Closures Are Expected to Soar
The number of colleges that close each year is poised to significantly increase as schools contend with a slowdown in prospective students.
That’s the finding of a new working paperpublished by the Federal Reserve Bank of Philadelphia, where researchers created predictive models of schools’ financial distress using metrics like enrollment and staffing patterns, sources of revenue and liquidity data. They overlayed those models with simulations to estimate the likely increase of future closures.
