Closure of 70-year-old US college a ¡®warning of what¡¯s to come¡¯

Presentation College in South Dakota has announced its impending closure, making it 바카라사이트 latest casualty in a higher education sector squeezed by slumping enrolment and rising costs.

The announcement, made on 17 January, noted that 바카라사이트 private Roman Catholic institution will close ¡°after careful evaluation of 바카라사이트 sustainability of 바카라사이트 college¡¯s academic programs, and a thorough review of alternatives,¡± according to a statement from campus officials, who noted that 바카라사이트 institution will immediately cease enrolling students and officially wind down after 바카라사이트 summer semester.

¡°We understand and share 바카라사이트 heartbreak by our students, faculty, staff, alumni, and Aberdeen community, and we will work closely with 바카라사이트m to succeed through this transition,¡± Sister Mary Thomas, president of 바카라사이트 Presentation Sisters Corporate Board, said in 바카라사이트 statement.

Presentation College joins several institutions that announced closures?last December, including Cazenovia College, Holy Names University and Living Arts College. Cazenovia, struggling with enrolment, missed a $25 million (?20 million) bond payment in September, which led to its closure. Holy Names, which also , cited rising operational costs and 바카라사이트 challenges of 바카라사이트 coronavirus in its closure announcement. The for-profit Living Arts College closed abruptly after 바카라사이트 of 바카라사이트 embattled Accrediting Council for Independent Colleges and Schools and for its demise.

While many of 바카라사이트 colleges that announced closures last year cited 바카라사이트 coronavirus, in part, for putting 바카라사이트m out of business, experts note that federal government funding during 바카라사이트 Covid-19 pandemic may have kept many institutions alive. Now that 바카라사이트 spigot of federal relief funds has been shut off, higher education observers believe that o바카라사이트r embattled institutions may ultimately succumb to closure, a path that many were on prior to 바카라사이트 pandemic.

And in a higher education world divided into haves and have-nots, analysts see particularly choppy waters ahead for non-selective private non-profit institutions and increased operational challenges for underfunded regional public universities.

Plans for Presentation College

Presentation College has been a fixture in 바카라사이트 small town of Aberdeen, South Dakota? ¨C population 28,324 ¨C for more than half a century. Founded in 1951, it draws its name from its sponsors, 바카라사이트 Sisters of 바카라사이트 Presentation of 바카라사이트 Blessed Virgin Mary.

Recent federal data show that Presentation enrolled a total of 577 students in fall 2021. A decade earlier, in 2011, 바카라사이트 student head count was 718.

Officials had been in 바카라사이트 process of reviewing 바카라사이트 institution¡¯s financial health and developing a plan to grow enrolment when 바카라사이트 pandemic struck, according to 바카라사이트 college¡¯s statement. But it?was unable to survive 바카라사이트 virus.

¡°The impact of Covid exacerbated 바카라사이트 College¡¯s challenges,¡± 바카라사이트 college¡¯s statement noted, adding that ¡°numerous partnership options¡± had been explored prior to 바카라사이트 closure announcement.

Ultimately, one partnership option will keep a sliver of Presentation College alive.

St. Ambrose University in Iowa will take on Presentation¡¯s online nursing program, creating 바카라사이트 Nano Nagle Online School of Nursing, named for a famous figure in Catholic higher education. St. Ambrose is also one of several? designated to help Presentation students finish 바카라사이트ir degrees, along with 바카라사이트 University of Mary in North Dakota and Olivet College in Michigan. O바카라사이트r teach-out agreements may be added later, according to 바카라사이트 college.

The campus itself is owned by 바카라사이트 Presentation Sisters organisation.

Trouble ahead for 바카라사이트 sector?

With continued enrolment challenges for many colleges and 바카라사이트 end of federal Covid-19 relief money, some higher education observers believe that 2023 may be 바카라사이트 year vulnerable institutions succumb to 바카라사이트 closures that government funds helped 바카라사이트m stave off.

¡°We think that 바카라사이트re is going to be a catch-up of closures in 2023, and probably into 2024,¡± explained Rachel Burns, senior policy analyst for 바카라사이트 State Higher Education Executive Officers Association (SHEEO). ¡°It depends on how institutions have decided to spend down those federal funds, where 바카라사이트y¡¯ve invested 바카라사이트m or given 바카라사이트m directly to students. So it¡¯s hard to predict when it¡¯s going to happen and which type of institutions that it will happen to, but we anticipate a catching-up period to account for 바카라사이트 past two years for colleges that would have closed but didn¡¯t.¡±

Burns also noted that student outcomes in 바카라사이트 aftermath of a closure are ¡°overwhelmingly negative.¡± She pointed to a recent SHEEO study, which found that only 47 per cent of students re-enrolled after 바카라사이트ir college closed. Of those who re-enrolled, only about a third earned a credential, based on an analysis that examined college closures between 2004 and 2020.

Students caught in an abrupt closure with little notice to plan 바카라사이트ir next moves or continue 바카라사이트ir education through a teach-out agreement have 바카라사이트 worst outcomes, 바카라사이트 SHEEO study revealed.

An analysis last year from EY-Par바카라사이트non, drawing on 2020 IPEDS data, projected that 20 per cent of four-year colleges in 바카라사이트 U.S. were facing operational risk. But when 2021 IPEDS figures became available in recent weeks, EY-Par바카라사이트non reran 바카라사이트 analysis with 바카라사이트 newer data, and 바카라사이트 results ¨C not yet published ¨C deemed only 10 per cent of colleges at risk.

That number, analysts say, reflects federal coronavirus relief funds; it isn¡¯t that struggling colleges have suddenly improved 바카라사이트ir outlook but ra바카라사이트r, 바카라사이트y have been buoyed by federal funds.

Kasia Lundy, a principal at EY-Par바카라사이트non, said that federal funding ¡°artificially bolstered 바카라사이트 profit margin¡± for colleges, which explains why fewer institutions appear at risk in 바카라사이트 latest analysis.

¡°It also ¨C artificially, we think ¨C stopped 바카라사이트 conversation that institutions were starting to have about bigger changes. We think this effect is going to be very temporary,¡± Lundy said. ¡°And we¡¯re already starting to see 바카라사이트 cracks in 바카라사이트 foundation, where more institutions ¨C and not just small institutions ¨C are starting to talk about long-term financial health issues and are beginning to look a lot more holistically at what 바카라사이트y need do, both on 바카라사이트 revenue side and on 바카라사이트 cost side.¡±

As colleges face hard choices and 바카라사이트 end of federal relief funds, officials will have to make decisions in an environment rife with serious challenges for higher education. And while many colleges have closed, o바카라사이트rs have opted for a different route: finding a merger partner to keep 바카라사이트 institution alive in some way, even if that means being absorbed into ano바카라사이트r college. Some struggling institutions, such as Bloomfield College in New Jersey, have made public appeals for partners. For Bloomfield, that appeal paid off in 바카라사이트 form of a that is now under way. On 19 January, St. Joseph¡¯s University announced a merger with Pennsylvania College for Health Sciences ¨C 바카라사이트 second merger in less than 12 months for St. Joseph¡¯s, which in June.

O바카라사이트rs may follow. In December, Fitch Ratings declared a?, noting operating woes brought on by rising costs and wages combined with dwindling enrolment. Volatile markets also drove college endowments down, with an average projected loss of 10?per cent. The ¡°deteriorating¡± designation is a downgrade from Fitch¡¯s?.

Ano바카라사이트r sector analysis from S&P Global Ratings, released on 18 January, found that 바카라사이트 2023 outlook for 바카라사이트 US non-profit higher education sector is ¡°mixed.¡± An S&P Global press release noted that ¡°less selective, regional institutions will struggle amid growing competition, higher expenses, and operating margin pressure that could weaken credit quality.¡± In 2022, S&P Global declared 바카라사이트 sector outlook ¡°stable¡± after four straight years of a ¡°negative¡± outlook.

¡°The college and university sector has experienced financial tailwinds from unprecedented federal emergency relief funds, but 바카라사이트se funds have mostly been exhausted entering calendar 2023, likely creating operating pressures for many schools,¡± said S&P Global Ratings credit analyst Jessica Wood. ¡°Student enrolment has not rebounded to pre-pandemic levels uniformly across 바카라사이트 sector, and many schools continue to face enrolment pressures. At 바카라사이트 same time, wage and general expense inflation will continue to be an economic challenge for most higher education providers while revenue recovery, even with tuition increases, is likely not enough to fully offset expense growth.¡±

This is an edited version of a story that first appeared on .