Earlham not fully enrolled for class of 2023…
https://www.nacacnet.org/news–publications/Research/CollegeOpenings/
@Nocreativity1 Just wondering: Did you take it upon yourself to write on the threads of every small LAC on the NACAC list of 500+, or just on Earlham’s thread? I see that Knox College also is on the list, for example.
@jammin123 welcome to CC. Simple answer no.
I started following and highlighted Earlham’s challenges as they were emblematic of the challenges that many LACs are facing. It is of particular interest given the administrations continued deficit spending having acknowledged that it is unsustainable. Like watching a slow motion car wreck.
I guess I will put a question back to you…did you read the entire thread? If so are there any facts or conclusions in dispute? Do you have anything to add to the conversation regarding Earlham and it’s long term viability in the absence of a dramatic change in student offering? Anxious to hear your thoughts. Thanks.
Once again welcome. I am flattered that you would join this community at 1:40am and choose of all threads only this one to respond to and do so in your first 12 minutes. Clearly you have an opinion on the Earlham situation so anxious to hear your insight.
Not associated with Earlham and wondering if it’s a little too early to call their situation a “slow motion car wreck?” There are 500+ schools on the current NACAC list. It seems to me that Earlham’s sizable endowment gives the school some breathing room/time to sort things out. It’s a very good school and its strong and somewhat unique offerings are going to remain a draw to students.
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“Earlham has operated at a budget deficit for the past several years, but the cumulative net loss jumped from about $5.5 million in the 2013 fiscal year to more than $47 million earlier this year.”
The above quote was incorporated into Earlham’s new president announcement so these are their words and numbers not mine. How long at this rate ($47mm) do you think an endowment of below $400mm can sustain this trend (keeping in mind some of that amount has restricted use)?
https://www.chronicle.com/article/Questions-Swirl-as-Earlham/243821
“A reduction of expenses of $8mm is required. This action is intended to improve net cash flow which at present is not sustainable”.
The above is an excerpt of a letter from a year ago (included in its entirety in the link above) from the chairman of Earlham’s board of trustees. In her own words it is unsustainable and by all measure things have gotten worse over the last 12 months.
You make a fair point about the quality of Earlham as an institution and it’s unique offerings. My point is that given the “unsustainable” nature of their current financial position and having failed to draw more students in spite of spending $100mm on investment in facilities the only options available will adversely impact their educational offering. It has proven impossible to generate more revenue per student and the deficits continue to grow while the endowment declines. Cash flow in the words of their Board’s Chairperson needs to be improved. Consequently at some point the academic offering will have to be made more cost efficient (typically exiting staff and removing majors) or some other “plan” will need to both be conceived and enacted.
Students should be aware of this inevitability of change when considering their attendance. I take the school’s own board of trustees as credible when they admonish administrators to act dramatically to offset a self described unsustainable situation.
So slow motion car wreck might not be the right metaphor. More to the point however what about the narrative I am describing is not supported by the numbers, facts, and words of those closest to the situation? Happy to alter my view in the presence of contradictory info so please offer some. Thanks.
Agree that this would be unsustainable for the long haul, but it seems that with the right leadership and sound decisions they have time to find stability and move on. Rather like steering a large ship and will take a few years to regain their footing after major expenditures but they seem to be taking the bull by the horns and they do have much better finances than other schools out there.
Many other quality schools on the NACAC list: Goucher, Hobart William Smith, Juniata, Knox, McDaniel, Quinnipiac, St. john’s, Randolph Macon, Hollins…
@Aug2019 My post didn’t state anything about the quality of a school based on its inclusion on the NACAC. All those you mention and Earlham are great schools.
If you read the thread in its entirety the point is that Earlham repeatedly acknowledges a need to generate cash flow. The obvious way to do this is attract more students. Inclusion on the list suggests this “solution” remains elusive in spite of the $100mm capital spend. Piecing together a schools financial picture that is as opaque as Earlham requires overlaying info.
They have been in a deficit spend and bleeding capital since 2013. Their current fiscal year leaves them (post actions taken) with an $8mm shortfall and a continued reduction in revenue per student as they subsidize tuition costs to attract kids. So where and how have they “taken the bull by the horns” and more importantly please point me to where it has translated into material financial improvement with a path to long term financial health? Hyperbole aside I am earnestly trying to find numbers that support your narrative but I can’t seem to locate any. Please just any financial result, matrix or number please.
Lastly we seem to agree that something has to change. Wouldn’t you as a parent be concerned about how that inevitable “change” will impact your prospective student/child?
Here are several fact based articles that provide the hard numbers and fact pattern I have referenced. Nothing substantive that I can locate has been put forward by the school that suggests a counter narrative (please provide if I missed it) and much of the data contained was provided by the school.
You’re definitely taken a deeper dive on this than me - I was just making some observations as an outsider looking in.
It’s a tough time for many schools; some will make it and some won’t. I still fell like Earlham’s got a shot.
@Nocreativity1 Clearly I touched a nerve, based on your extended (and quick) responses above. I have been a read-only visitor on these forums as my three children (all at different schools) have gone through the college admission process, and I am genuinely wondering why you would repeatedly point out this particular college’s shortcomings (at times referring to the same articles or repeating the same criticisms). I am not an alumni or staff person…my goal is to come to these forums to get well-intentioned information (good or bad), and not to have to endure people with axes to grind, or thinly-veiled bullying. In the end, your input has actually made me even more curious about Earlham, and what it may be doing right to merit such an on-going emotional response from you.
@Jammin123 once again please enlighten me. I have no ax or inside info on Earlham, never been there nor known anyone to have attended. Just what I have read. Please share what you discover, your informed input would be a welcome addition. Thanks
FYI prior to the thread…
http://talk.qa.collegeconfidential.com/discussion/comment/21312331#Comment_21312331
I had never heard of Earlham. It did however cause me to look into the claims. Once again I would welcome your fact based insights.
We visited Earlham several times with my kid, and know many kids who have graduated from there/are attending, as it is a popular choice from my kid’s urban, diverse IN high school. So while we are not specifically a member of the Earlham “family,” it is a school that has been transformative for kids we know.
This board is not especially active, so anyone coming here to learn more about Earlham will not miss seeing the frequent posts about last year’s termination of the President and the budget shortfall. They may miss some of the more recent updates, such as the hiring of the new President and the work being done to address the budget issues.
https://www.wvxu.org/post/earlham-college-names-first-female-president#stream/0
https://earlham.edu/news/?id=67322&r=14619
There are a number of LACS outside the top 50 that are, or will be facing, similar financial challenges. Heck, even Oberlin, a top 30 LAC, has been dealing with multi-million dollar budget gap, hiring freezes, layoffs etc. As an interested bystander at Earlham, my impression is that the Board hired a new President who is fully aware of the challenges ahead and the College is working on its financial plan with the support of the faculty.
@Midwestmomofboys I completely agree with all of what you describe. How would you anticipate likely responses impacting students?
I wouldn’t speculate about impact. I do find it important, and a good sign, that the curricular committee is faculty-led so that changes are supported by faculty and built from the ground up rather than imposed from the top-down. This is a time of evolution at many LACs, as they consider new majors such as data analytics and look to expand CS departments etc. There are likely administrative efficiencies that can be achieved without increasing class size or reducing class offerings or the size of departments at the same time as building on existing expertise to develop new majors and programs which can attract students.
What matters is that the new President, the Board and the faculty are laser-focused on addressing these issues. The former President who left after a year seemed not a good fit for what the College needed at the time – he was not an academic but rather came from leadership in non-profits. Without that necessary credibility with the faculty as an academic, someone trying to identify appropriate cost-cutting measures would face a nearly impossible task. As notable a person as he is, he was not the right person for the College’s needs right now.
@Nocreativity1 - to be fair: I have repeatedly attempted to provide “informed input” on other threads, and you have have incessantly argued it, using the same original articles (even after its flaws are pointed out and updated facts have been provided… which is why I didn’t bother to reply to you again on this thread)
Say what you will… you definitely seem to have an “axe to grind” where Earlham is concerned. Normally, I would just ignore your commentary and won’t be so rude as to say that but, as jammin123 has pointed out: people come to this site in good faith, seeking good information to help with college decisions, and…
They should know that know that you consistently post negative information and make uninformed comments about this school.
I am an educator in Indiana who has many former students at Earlham College. So… I am quite informed about the state of the school, the education it provides, and the students who attend.
The more I have learned, the more impressed I have become. In fact, one of my own children now attends Earlham. (chosen over even the tippy-top NESCACS, where he was accepted, and which is where my older children have chosen to attend. BTW-- I am only judging by my own children, but… comparatively speaking, except for sports, the NESCACS -for all their ratings- are not ahead of Earlham College in the opportunities they provide nor in the education that students receive. In my own observation, Earlham holds its own with Bowdoin, Amherst, and Midd – also very amazing schools, btw… )
For anyone interested in Earlham College:
Please do yourself the favor of checking it out. It isn’t a school for everyone, but… if it is a good fit for you, I am well-informed… and absolutely convinced that you would be hard-pressed to find a better education. (You still have to do your part, of course… work hard, embrace opportunities, and fully engage. )
Also know that the school is in better shape financially than most other midwestern LACs: Earlham has a healthy endowment; a solid financial rating from both Moody’s and from Forbes; and an action plan to deal with enrollment (which is falling at colleges and universities, nationwide); Earlham has received multiple-millions in gifts in the last two years, which has created separate endowments for student-funding, which will reduce the pulls from the general endowment; Earlham alumni giving has significantly increased since the article was released
Also know that the two significant reasons for the financial issues being pointed out include: major investment in facilities within the last ten years AND a commitment to providing access and equal educational opportunities to ALL deserving students who wanted them. While other schools went to need-aware admissions and were slashing student aid, Earlham continued to offer opportunies to low-income students; to provide financial aid to international students; and to include funding for study-abroad, for research, and internships so that ALL students could benefit from those opportunities.
[ On that note, please allow an illustrative bragging aside: I just had a former low-income (free lunch) student who is now a Bonner Scholar at Earlham return from a semester abroad in Scotland where she did an internship and was nominated by that company for some sort of prize which she won ($5k) - but I haven’t seen her yet, so I don’t know what it was. Her dad just texted me when she won it.) ]
Also, Earlham really has an applied-learning environment with a tradition of community engagement/service-learning and a ton of support for mentored research leading to real-life/hands-on application of classroom content; Earlham has a special endowment to fund an internship program (look up EPIC as you research Earlham), which has been doing impressive work.
Earlham is in the first and second percentiles for med school and law school admissions; Earlham is in the first percentile for general grad school admissions and for students who go on to complete PhDs.
Earlham has a very strong social justice and service environment; a truly diverse campus, including solid representation from all over the world; a very open/accepting (but “quirky”) student body; and a forward-looking approach to curriculum.
Anyway – I am a teacher in Indiana; I am a Questbridge partner and I mentor high-school students completing elite college applications; I have many former students at Earlham College as well as at other top schools throughout the nation; I am also a parent of children whose children have chosen Bowdoin, Middlebury, Amherst, and Earlham (all great schools!). And…
In my experience, Earlham is a great place to get a superb education.
Again… I want to reiterate that Earlham isn’t right for everybody. But, if Earlham is right for YOU – you should do yourself the favor of really looking into it and visiting.
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@blue1516. You can find that information in most schools financial reports. The issue is a lot more complex, though, as per-student revenue does not really tell the story of a school’s overall financial health, and does not take other significant factors into consideration. For example, Earlham has lower per-student revenue than other schools in the conference, because Ealrham (with a Quaker ethos and a commitment to social justice) had made a commitment to not exclude students with high need, when other schools were becoming increasingly need-aware. (Earlham also caps loans for the neediest students. Earlham funds study-abroad, research and internship opportunities so that all students have equal access to critical educational opportunities)
It also does not take into consideration the endowment (general funds) or special endowments (such as scholarships)
Moody’s and Forbes both do assessment of the health of institutions, and they are able to take a pretty comprehensive approach.
So, you can certainly find specific financial information at each school’s website, but it might be beneficial (and certainly time-saving) to check Moody’s and/or Forbes.
Forbes, The Princeton Review, and some other organizations also provide a “Best Value” assessment for schools nationwide and make a list. I am not sure what the numbers are for this year, but I would be shocked if Earlham wasn’t on the list… it usually gets a Best Value nod in most years. (Remembering that anything in the top 50 puts a school in the first percentile, Earlham is frequently in the top 20, and, often, top ten.)
@blue1516 I forgot:
*S&P also provides bond-ratings, so you could check those for the schools being considered, as well.
*Bloomberg’s does an endowments report.
There are probably some indicators, but that is all that is coming to mind right now.
“Earlham has a 1) healthy endowment; 2) a solid financial rating from both Moody’s and from Forbes; and 3) an action plan to deal with enrollment”
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The endowment is down $47mm from its $410mm apex
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Moody’s has withdrawn their rating since 2016 after downgrading the schools rating twice. This is Moody’s announcement of rating withdrawal…
S&P does not have a rating available for the school.
Forbes is a magazine not a rating agency. They last did their matrix assessment (not dynamic or forward looking) in 1017.
The school has left admissions open having not filled its current class.
These are neither new, personal or my concerns alone per the old CC thread…
I am admittedly not as close to the situation or as emotional as BB given her child’s enrollment. I am not a teacher like BB so I can’t speak to the academic experience. I am however a 30 year career banking professional who does credit analysis daily. I am completely numbers driven and anxious to hear how the new President plans on reducing their annual deficit spending without impacting the educational experience of future students who appear to be applying in diminishing size.
@BB “They should know that know that you consistently post negative information and make uninformed comments about this school.”
I have based all my comments on published numbers and articles. If have made a specific mistake please point it out and I will gladly correct it, thanks.