Wednesday, October 29, 2008

Could independent colleges be the next bubble?

Discovered on PhiBetaCons from MSNBC:

By Maurna R. Desmond
updated 3:54
p.m. PT, Fri., Oct. 24, 2008

In June, 157-year-old Antioch College
decided to "suspend operations" at its flagship campus despite a push from
alumni to rescue the flailing institution. At that point, only 60 students were
enrolled, and their $40,000 per year tuition was being heavily subsidized by
Antioch's five newer campuses...

...The crunch will be particularly bitter for the institutions that drained
coffers to build "country club colleges" complete with
luxury dormitories, spas and top of the line sports
complexes to lure choice students, hoping that a sharper crowd would lead to
more accretive diplomas, entering a profitable cycle of more successful alumni
and increased donations...

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