Comparing Colleges Side by Side - 6 New Jersey private colleges
Gary Stocker on a set of troubled New Jersey schools
We are pleased to be cross-posting research from Gary Stocker of College Viability on New Jersey private colleges. See also Gary’s piece focussing on Ithaca College and on a trio of New York State private colleges.
You can read the summary and watch Gary present his findings in more detail on YouTube.
By Gary Stocker
There is a common theme in the five New Jersey private colleges we analyzed with the College Viability App. The colleges (Bloomfield College, Centenary University, College of St. Elizabeth, Drew University, Pillar College, Rider University):
All of these private colleges have a six-year pattern with expenses higher than revenues.
5 of the 6 show a decrease in the revenue they have collected from tuition and fees.
Granted, lower tuition and fees are good for students. However, decreasing revenue is not good for the financial health and viability of these colleges.
The College Viability App is used to create a Green - Yellow - Red battery financial health and viability indicator. 5 of these colleges get a YELLOW indicator and one gets a RED indicator. Our analysis is confirmed by the 2021 Forbes College Financial Health Grades.
2021 Forbes College Financial Health GradesCollege Viability Indicator
Bloomfield College ..................... D ................. Yellow
Centenary University ................... D ................. Red
College of St. Elizabeth ................ D ................. Yellow
Drew University ........................... D .................Yellow
Pillar College ............................... n/a ................. Yellow
Rider University ............................C- ................. Yellow
4 of these 6 New Jersey private colleges had substantial decreases in FTE enrollment from 2014-2019 - the most recent data released by the federal government's National Center for Education Statistics.
Students, parents, concerned stakeholders and others should note the patterns for these 6 colleges. Enrollment is down. Revenues are down. Expenses are up. 6-year graduation rates are modest to bad. (You can check them on the College Viability App.) The most significant risk for students choosing colleges with this financial health and viablity profile is that there will be or have been program cuts, and major faculty and staff layoffs.
Students deserve a quality college education. Some colleges are better financially positioned to provide that quality than others. More information on private college financial health and availability is here.
CTAS comment (not Gary): The endowment drawdown at Drew (drewdown?) is notable and the onset of COVID did in fact provoke significant cutbacks at the school, as detailed by Inside Higher Ed. Also, see this Glass Door comment.