financial health assessment of 876 private US colleges and universities. Using data from the National Center for Education Statistics, Forbes reviewed colleges鈥� endowment assets, viability ratio (expendable assets divided by total liabilities), reliance on tuition as core revenue, and other key factors.
Forbes developed the grading system to help future college students make wise enrollment decisions. In addition to inflation and rising operating costs, by 2026 American institutions will face the sinister-sounding 鈥渄emographic cliff鈥濃�攁 15% drop in incoming students thanks to lower birth rates during the 2007鈥�09 Great Recession.
With colleges competing for fewer students, Forbes writer Emma Whitford argues, fiscally prudent institutions like Scripps will be best equipped to weather the enrollment storm.
鈥淏alance sheet strength is never mentioned on the list of must-haves. But it should be,鈥� she writes. 鈥淔or any student who wants to spend their college days on the same campus鈥攅specially if that school is small to begin with鈥攕electing a financially sound school is more important than ever.鈥�