The Warning Signs That a College Is in Financial Trouble

ACADEME BLOG

In an article published in Money [http://time.com/money/3145086/corinthian-colleges-university-bankrupt-financial-trouble/], Matt Krupnick, who writes for the Hechinger Report, highlights “Five Signs Your College Is in Serious Financial Trouble.” Krupnick has clearly written the article in response to the well-publicized issues facing Corinthian College and the City College of San Francisco, though neither of those institutions’ problems are really typical of the problems that cause most colleges to close. Corinthian Colleges became a massive online for-profit whose business practices were extreme even for institutions in that sector–in particular, in its emphasis on recruitment without regard to academic outcomes and its abuse of federally guaranteed student aid. On the other hand, the City College of San Francisco has been in an extended conflict with an accrediting agency with skewed priorities–placing more emphasis on maintaining administrative apparatus than on meeting instructional needs during a period of economic crisis.

In any case, Krupnick’s five…

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