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 factors are contributing to the potential closures of colleges according to the Philadelphia Fed data?

How does the demographic cliff affect the number of students applying to colleges?

What role do colleges play in the economic activity of smaller towns in the United States?

What differences exist between the closure rates of for-profit colleges and traditional liberal arts colleges?

How has the perception of safety in investing in higher education changed in recent years?