Private College Revenues and the US College Meltdown

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According to National Center for Education Statistics charts, public higher education institutions overall experienced increased revenues in recent years, but private colleges saw a $46 Billion loss in revenues from 2013 to 2015.

To make matters worse, in 2016, the revenue line for non-profit private colleges and universities actually dipped below expense lines. Revenues were $183B and expenses were $189B, for a net loss of $6B.

Bear in mind that the numbers are not up-to-date, so this pattern may have improved, stabilized, or worsened since 2016. But with student enrollment continuing to decrease, declining private college revenue numbers may be a harbinger of a larger meltdown.

In 2016, EY suggested that as many as 805 colleges faced significant challenges due to low enrollment numbers and unsustainable finances.

Some of private college revenue losses may due to a tuition discounting. In any case, drops in institutional revenues for a significant period require cost cutting, which frequently means cuts in teachers, staff, and financial aid. Conditions at individual private colleges may be vastly different, from thriving and growing to downsizing and closing.