Boom, bubble, bust, bailout
During last week’s NACAC national conference, I had numerous conversations with chief enrollment officers about what the future holds for private colleges and universities. There is a definite consternation about what the coming year is going to bring to everyone, especially in light of the economy. One veteran shared with his dinner companions that private colleges have experienced a boom and that the private college pricing bubble is about to burst. Those colleges that are tuition driven, have low endowments, and have no plan for the future are now going to experience some enrollment busts, but no one sees any type of bailout for them.
Ironically, today’s blog posting from The Motley Fool at Fool.com raises the question, “Is Tuition the Next Bubble to Pop ?” I encourage everyone to read this analysis for a dose of reality. Writer Todd Wenning states his case and then asserts, “At some point, the tuition bubble has to give. It’s simply unsustainable for universities to continue to raise tuition 6% per year, and it’s a situation that college presidents need to address immediately.”