When a college closes, its students, faculty, and staff may need to find new institutions or employment opportunities, and any outstanding debts or obligations of the college may need to be resolved.
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When a college closes, the effects are far-reaching and can have a devastating impact on students, faculty, and staff. The closure can occur due to financial challenges, low enrollment, loss of accreditation, natural disasters, or other unforeseen circumstances. The effects of a college’s closure can create significant stress and anxiety for all involved parties, particularly students who may have already invested time and money in their education.
One of the most devastating effects of a college’s closure is the displacement of students. These students are left without a degree, and it can be challenging to transfer credits to another institution. Students may also face difficulties in accessing financial aid or obtaining refunds of tuition and fees.
In addition to students, faculty and staff may suddenly find themselves unemployed without warning. These individuals may have difficulty finding new employment opportunities in their field or may need to relocate for new job opportunities.
When a college closes, there are outstanding debts, creditors, and legal issues that need to be resolved. “When a college goes bankrupt, a trustee will be appointed to liquidate the school’s assets and disburse the proceeds to creditors,” according to U.S. News & World Report.
According to a study conducted by the National Student Clearinghouse Research Center, between 2013 and 2016, 114 colleges closed in the United States. Data from the same study showed that 19,000 students were affected by these closures.
Here is an example table showcasing some of the most significant college closures in recent US history:
| College Name | Date of Closure | Reason for Closure |
|---|---|---|
| Argosy University | March 2019 | Loss of Accreditation |
| ITT Technical Institute | September 2016 | Loss of Accreditation |
| Saint Catharine College | July 2016 | Financial Difficulties |
| Marygrove College | August 2019 | Low Enrollment |
In conclusion, when a college closes, the impact is felt by students, faculty, staff, and the community at large. It’s important to note that while college closures can be challenging, they’re not uncommon. It’s critical for students and staff to make plans for what to do in the event of a closure and to remain vigilant about the financial health of their institution. As Thomas J. Snyder, former president of Ivy Tech Community College, once said, “Solid planning, solid management, and solid financial oversight are critical to any institution’s survival.”
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If your school closed, you have two basic options: (1) apply for a closed school loan discharge or (2) transfer your earned credits to another institution.
If a college or university that granted your current degree closes down, your degree remains valid and legit. The reason for the closure doesn’t affect the validity of your degree. The same goes for if the school from which you obtained your degree loses its accreditation.When colleges close, the small towns whose economic fortunes are tied to the institutions can experience an exodus of residents and businesses, a drop in property values, and an irreversible depression affecting the lives of everyone left. Students, alumni, donors, faculty and staff are clearly affected when colleges close.
If a college or university that granted your current degree closes down, your degree remains valid and legit. The reason for the closure doesn’t affect the validity of your degree. The same goes for if the school from which you obtained your degree loses its accreditation.
When colleges close, the small towns whose economic fortunes are tied to the institutions can experience an exodus of residents and businesses, a drop in property values, and an irreversible depression affecting the lives of everyone left.
Students, alumni, donors, faculty and staff are clearly affected when colleges close. In addition, the communities where these schools are located can lose jobs, tax revenue, population and cultural opportunities.
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Non-profit colleges and universities across America are closing at an alarming rate, with financial reasons being the primary cause of 68% of closures, particularly affecting private schools, which have led public schools in annual closures since 2016. Enrollment is the leading issue, and private universities and colleges rely heavily on tuition that cannot keep up with inflation and enrollment declines. The financial stress on struggling institutions is expected to worsen when federal funds are removed from the higher education emergency relief fund in 2023. Ivy League and big state schools are seeing record applications and larger endowments than ever before, indicating the divide between top schools and smaller schools that struggle to compete. Students should be offered teach-out plans, be partnered with neighboring schools or move departments to other universities, while the best tool closing colleges can give their students is time.