US College Closures to Soar Amid Prospective Student Slowdown

The video discusses the potential closures of colleges due to a decline in prospective students, as highlighted by new data from the Philadelphia Fed. Using machine learning, researchers predict significant impacts on students and staff. The closures could severely affect local economies, especially in rural areas where colleges serve as major employers. The video also explores the differences in closure rates between for-profit and traditional colleges and the implications for the municipal bond market, where colleges have been aggressive borrowers.

What is the predicted impact of a 15% drop in student enrollment according to the research?

• It could lead to the closure of all Ivy League schools.

• It could affect over 100,000 students and 20,000 staff.

• It would have no significant impact on college operations.

• It would result in a 50% increase in college enrollments.

How do college closures impact rural areas economically?

• They lead to an increase in job opportunities.

• They result in a decrease in local taxes.

• They have no impact as colleges are not major employers.

• They can cause significant economic distress as colleges are often major employers.

What role do colleges play in rural communities?

• They are minor contributors to the local economy.

• They primarily serve as tourist attractions.

• They are often the largest employers and act as anchor institutions.

• They have no significant role in rural communities.

Which type of colleges have seen the majority of closures in the past two decades?

• For-profit colleges

• Ivy League colleges

• Public universities

• Community colleges

How has the muni market reacted to the potential closures of small colleges?

• Investors are only interested in Ivy League college debt.

• The market has shown no reaction.

• There is a chilling effect, with some investors avoiding small college investments.

• Investors are eagerly investing in small college debt.