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According to a recent article in The Chronicle of HigherEducation, closures of four-year, private, and not-for-profituniversities and colleges in 2017 are expected to triple from the current average rate of five per year. There is an important reason for schools to be proactive.
Image: The University of Arkansas System is considering a transaction in which it would transform the for-profitUniversity of Phoenix into an independent nonprofit affiliate, spokespeople for both institutions have confirmed. “Being private equity owned, you’re always having that conversation,” Smiley said.
The implications of President-elect Donald Trump regaining the helm of the Department of Education have catalyzed many predictions and fears of how highereducation will fare in 2025. In the face of such uncertainty, college and university leaders may feel compelled to sit tight and assess the climate.
Together, the Department and FTC actions call into question not only the integrity of Grand Canyon’s recruiting and academic operations, but also its effort to be accepted as non-profit. But, reading the school’s agreement with Zovio , Arizona may be out of luck on that score. —
However, the more relevant reason for many of these closures is the lifecycle and current operating environment of highereducation. Over the past few years, 65 for-profits closed and seven merged with other institutions. We continue to see highereducation closures. This is up from 34% in 2017.
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