Go Read

We noted in our post last Thursday how certain costs like college and health care have exploded to the upside over the past two decades.  The trajectory of some of these advances is unsustainable as it has completely outstripped the average person's ability to afford them. In that vein go read the article at Morningstar.com "Your University is in Trouble".  The article highlights the issues many colleges are facing as the cost balloons beyond what most students can afford.  

Coincidentally, just after I found this article my Alma Mater, DePauw University, sent out an email where they outlined a campus restructuring to get a handle on costs.  DePauw is a wonderful liberal arts university.  Unfortunately, I'm guessing small liberal arts colleges all through the country are going through this same process.  Many of these are located in smaller communities.   Many  now  also struggle with not only attracting students to these kinds of places but also in explaining why paying $40-50,000 yearly in tuition for a liberal arts degree makes sense given the predominance of STEM related opportunities at other universities, many located in or closer to larger urban environments .  

DePauw has a fairly substantial endowment that will likely help it weather this storm but many other smaller schools are probably not that fortunate.  I also think this current generation of college students is likely the last that will have the traditional four year college experience.  School simply costs too much.

Back Wednesday.