<p>Who says small colleges are in trouble? This list has plenty of them with an "A" rating for financial health.</p>
<p>Is</a> Your College Going Broke? The Most And Least Financially Fit Schools In America - Forbes</p>
<p>Doesn’t Harvard have the largest endowment of all US colleges? Wonder why they aren’t ranked no. 1?</p>
<p>While most of the colleges listed as being financially weak are lesser known private schools, often with limited appeal, there are some surprises in that some schools popular enough to be selective are also rated as being financially weak:</p>
<p>2.325 / C / Baylor University
2.108 / C / Rensselaer Polytechnic Institute
2.059 / C / Juniata College
1.954 / C / Illinois Institute of Technology
1.868 / C / Stevens Institute of Technology
1.597 / C- / Hampshire College
1.383 / D / Polytechnic Institute of New York University</p>
<p>Other notables that have been in the news regarding finances:</p>
<p>4.031 / A / Cooper Union
3.040 / B / New York University
2.854 / B / Howard University</p>
<p>Criteria for grading are listed here:
[Behind</a> Forbes College Financial Grades - Forbes](<a href=“http://www.forbes.com/sites/schifrin/2013/07/24/behind-forbes-financial-grades/]Behind”>Behind Forbes College Financial Grades)</p>
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<p>Harvard has the largest total endowment, but not the largest endowment per undergraduate student.</p>
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<p>I don’t think I’ve ever heard anyone make the claim that all small colleges are in trouble. What’s usually said is that small, tuition-dependent private colleges, especially the less selective among them, are in trouble. I think you’ll find plenty of corroboration for that statement in these lists. Most of the small colleges at the top of the charts have healthy endowments, and many also generate substantial annual giving from generally affluent alumni. If you go to the bottom of the list and look at the D and C- rated schools, I think you’ll find almost all of them are small, tuition-dependent (low- or no-endowment), private, non-selective schools–the kind that many people are saying are in trouble.</p>
<p>Odd that they look only at private schools, however. The bond rating agencies need to look at publics as well. I’m quite certain Michigan and UVA have maintained AAA bond ratings even through the recent deep recession and should probably be in A+ territory on this list.</p>
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<p>Endowment size is only one factor in an institution’s financial health. Harvard in particular has also borrowed heavily and has heavy debt repayment obligations that offset some of the wealth in its endowment. Many people also think Harvard’s endowment may be overvalued, with lots of underperforming and illiquid assets that are difficult to value because there is quite literally no market for them right now. Obviously it’s in the institution’s interest to place a moderately high value on such assets so it doesn’t look like they bungled. In any event, I don’t think Harvard is on the brink of ruin, but I’m not surprised it’s not ranked #1 in financial strength.</p>
<p>Harvard is one of 41 schools with the maximum possible rating of 4.500, so one can say that it is tied for first with 40 other schools in this rating system.</p>
<p>^^That begs the question how the survey managed to arrive at the exact order they did. Is this another one of those situations where hairline differences get blown up in order to sell more magazines?</p>
<p>I think theses numbers are derived from the US Govt, which assesses fiscal strength of colleges. They dont want kids taking out loans to go to schools that may go bankrupt. I think D ratings (maybe even c-) go on some type of watch list. The D in the column above resolved the problem by merging.</p>
<p>How would the quality of education be impacted at schools which earn a low financially healthy rating? I saw a few schools listed on the C-D list that I consider academically rigorous or at least exceptional in some way.</p>
<p>Also, the PINYU’s financial health rating may not be a reliable indicator of its true strength owing to the merger. Though I’m no fan of NYU, it’s still a viable university and any branch of it will likely continue for the near future.</p>
<p>“Endowment size is only one factor in an institution’s financial health”</p>
<p>My son’s college has a relatively small endowment compared to it’s peers (only $215 million) yet has an A rating. They are also very generous with need based aid (they give no merit but 45.5 % receive aid and the avg. is $34K) so they must be doing other things extremely well.</p>
<p>Yes, both my kid’s schools are ranked in top 10. Trying to figure out how they could be ahead of Yale for example…I read all the information about the criteria for grading but it still seems unlikely.</p>
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<p>Some risks that may be more likely at a financially weak school:</p>
<p>Reduction of course offerings.
Small classes may be combined into fewer larger classes.
Cutbacks in facilities like labs and library hours.
Closure of departments or majors.
School goes out of business.
School is merged with another school and educational mission is changed to be no longer suitable for the student (some financially failing non-profit schools have been acquired by for-profit schools).
Cutbacks in continuing students’ financial aid or scholarships.
Large tuition increases.</p>
<p>Note that some of these are the same concerns that people have with public universities facing budget cuts from state governments.</p>
<p>My school is on the bottom list and they just spent a ton of money re-designing and reconstructing a garden pathway through the campus which was NOT needed whatsoever. Makes me wonder where the schools’ priorities are</p>
<p>In response to a comment above, only 2 public universities in the US have maintained the top bond rating from all 3 major agencies. One is UVa. I believe the other is Indiana U.</p>
<p>Some of the colleges in the most financial trouble avoid the public bond market, and therefore do not have a bond rating.</p>
<p>When the bond agencies review a college, two of the things they like to see a high yield rate and a relatively low acceptance rate. They like to see that a college would have room to slightly lower admission standards if needed in the future, to fill up their classes.</p>
<p>Also, endowment can be deceiving. Some colleges have debt that is larger than their endowment.</p>
<p>From the colleges I know about, that list seems pretty accurate.</p>
<p>Emily, they mentioned in some meeting I was at that they had changed their investment strategy years ago, before the last few big crises, to something more conservative, at the time. They said they weathered the storms without the sorts of negatives that left other schools playing catch-up. Something like that.</p>
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<p>Seems like another incentive for colleges to play the “level of applicant’s interest” game.</p>
<p>Lookingforward, </p>
<p>Interesting.</p>
<p>D’s college was recently dinged in the media for being need aware and not admitting low income students as measured by Pell (only 7% I think). Maybe this has something to do with their fiscal health.</p>