Recent Defaults Show Private Colleges Are Struggling
- 800-student private school in Georgia has $25 million of debt
- Moody's predicts small college closures will triple by 2017
This article is for subscribers only.
The finances of small U.S. colleges have big problems.
The latest example: Emmanuel College, an 800-student Christian school in Franklin Springs, Georgia, that failed this month to pay investors holding $25 million of bonds. It joins Dowling College, which this year became the first municipal-bond-market borrower rated by Moody’s Investors Service to default since 2013.