<p>bclintonk colleges that are tuition driven and still fill the seats will probably
be ok. Those who are spending 15% of endownment on operating costs are
going to face serious challenges. At 300 million that’s 45 million a year, buy
if that drops to 200 million 15% is only 30 millions -that’s a 15 million drop.
If that money has been used primarily for aid, especially aid for prospective
students, and is no longer there, the college will see significant decline in
admission numbers - a double whammy. I think for many smaller mid western
LACs that is going to be the case. It’s very risky and could well snowball.
Beloit’s in trouble and it’s only a small number who didn’t show - what if
a 100 students don’t show and word gets out.</p>