Category Archives: Finance

The money that makes academe tick.

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U. of Michigan Board Chair Withdraws $3-Million Gift Over Naming Concerns

The University of Michigan’s board chairman has withdrawn a $3-million pledge to fund the construction of a new building over concerns that it would not keep the name of the building it is replacing, the only structure on the Ann Arbor campus that’s named for an African-American, the Detroit Free Press reported.

Mark Bernstein, the chairman, and his wife, Rachel Bendit, announced in April that they would help finance the $10-million building, which is slated to open in 2018. The building would …

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Citing Cost Concern, Wright State Pulls Out as Host of Presidential Debate

Wright State University is pulling out as host of the first presidential debate, between the presumptive party nominees Hillary Clinton and Donald J. Trump, the Dayton Daily News reports. In announcing his decision, the university’s president, David R. Hopkins, said he had been motivated by concerns over cost and safety.

University officials had estimated the cost of holding the event, scheduled for September 26 on the campus’s Nutter Center, to be as much as $8 million, $3.5 million of which it…

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Embattled Dowling College to Close After All

Administrators at Dowling College, a small liberal-arts institution on New York’s Long Island, have announced that it will shut down for good after a protracted attempt to stay afloat, the Long Island Press reported on Friday.

Dowling initially announced its closing at the end of May, but administrators then attempted to stave off closure by negotiating an agreement with Global University Systems, a company that provides capital to higher-education institutions and strengthens their internation…

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New Mexico State U. Will Eliminate 126 Positions to Close Budget Gap

New Mexico State University’s main campus, in Las Cruces, plans to cut 126 positions — 37 of which are filled — as part of efforts to mitigate a budget shortfall of $12.1 million, the La Cruces Sun-News reported. Of the 37 existing jobs to be eliminated, three are faculty posts and the rest are staff positions, according to CBS4 News.

In a memorandum to the campus, Garrey E. Carruthers, chancellor of the New Mexico State University system, wrote that the past few months had posed “serious financ…

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U.S. Investigates Bridgepoint Over Its Use of Federal Student Aid

Bridgepoint Education Inc., the for-profit owner of Ashford University, is under investigation by the U.S. Department of Justice over claims that it “may have misstated Title IV refund revenue or overstated revenue associated with private secondary loan programs,” according to a corporate filing on Tuesday.

According to Bridgepoint, the inquiry concerns whether the company violated the federal 90/10 rule, which prohibits colleges from receiving more than 90 percent of their revenue through feder…

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Expect High Turnover in College Business Offices, Association Says

Many business-leadership positions at colleges and universities will be vacant in the next few years, according to a report released on Thursday by the National Association of College and University Business Officers.

More than 43 percent of 713 business leaders surveyed said their current position was their last before they retired, and about 44 percent of those respondents said they planned to retire in less than four years, according to the report, the “2016 National Profile of Higher Educati…

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Education Dept. Releases Final Report on Corinthian Loan Discharge

The fourth and final “Borrower Defense Progress Report” was released on Wednesday by the U.S. Department of Education. It cites 26,603 claims for debt relief, of which 87 percent were from former students at the now-defunct Corinthian Colleges Inc., according to the agency. As of June 24, the report says, the department had approved more than 11,000 claims for student-debt relief, for a total of more than $170 million.

This is the last of four reports produced by a special master, Joseph A. Smit…

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Long-Struggling Dowling College Is Told It Will Lose Accreditation

The Middle States Commission on Higher Education this week notified Dowling College that it would lose accreditation on August 31, Long Island Business News reported.

In a public-disclosure document, the commission said that it would withdraw the long-struggling private college’s accreditation after peer-evaluation reports, visits to the New York campus, and materials submitted by the college “failed to document that the institution has achieved and can sustain ongoing compliance.” The commiss…

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Private Urban Universities Beat Rivals in Enrollment and Revenue Growth, Moody’s Says

Private urban universities are outperforming their rural and suburban counterparts in enrollment and revenue growth, according to a new report from Moody’s Investors Service.

Private urban universities can use their locations to their advantages and attract more international students, graduate students, and students in continuing-education programs, according to the credit-rating agency’s report.

Enrollment at private urban universities rated by Moody’s grew 34 percent from 2000 to 2015, compar…

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U. of Chicago Faculty and Students Protest Layoffs of Departmental Aides

It’s not just underfunded public institutions like Chicago State University that are feeling the pain of budget cuts in Illinois; even the wealthy and private University of Chicago is being roiled by spending cuts and layoffs that have fallen heavily on nonacademic and secretarial staffers, the Chicago Tribune reports.

Several employees in the humanities division were let go in mid-May, and another round of cuts affecting other branches could hit at the end of June, faculty and union representat…