College Closures: Are Regulators Doing Enough?

The Biden administration has taken a strong stance on college oversight, yet universities continue to close without warning, leaving students and faculty in difficult positions.

Impact on Students and Faculty

Disrupted College Experiences

For many, college is a time to form lifelong friendships, engage in extracurricular activities, and immerse themselves in their academic pursuits. However, these experiences are jeopardized if a university closes its doors unexpectedly.

Victoria Hebert’s story is a case in point. In less than two years, she faced the closure of two colleges in New York, forcing her to transfer once again to a third school in Michigan. Her mother, Mia Mazza, expressed frustration over the lack of stability, noting that Victoria and her friends have not experienced a normal school year since their freshman year of high school.

Abrupt Announcements and Legal Action

The sudden closures also took the University of the Arts in Philadelphia by surprise. Students, including Isabel Rose Catalan, were shocked to learn of the closure through a news story rather than official communication from the college. Such abrupt announcements often lead to legal action, as seen in a class action lawsuit against the University of the Arts for failing to notify regulators about its financial instability.

Increasing Trend of College Closures

Historical Context

The trend of college closures has been accelerating, particularly since the 2008 financial crisis. The first half of this year alone saw roughly one higher education institution per week closing or merging.

Federal Oversight and Challenges

The Biden administration has been proactive in addressing these issues, building on efforts from previous administrations to improve college oversight and prevent unexpected closures. However, identifying at-risk colleges remains a challenge due to outdated and flawed federal metrics.

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Case Studies: Victoria Hebert and Isabel Rose Catalan

Victoria Hebert’s Journey

Victoria’s journey began when Cazenovia College, a small private school in New York, announced it would not enroll students for the 2023-2024 academic year due to financial concerns. After transferring to Wells College, Victoria faced yet another closure announcement, just before her final week of the term.

Isabel Rose Catalan’s Experience

Similar shocks were felt at the University of the Arts, where students were blindsided by the news of the school’s closure. Catalan, who had chosen UArts to stay close to home after her mother’s sudden death, found herself transferring to Drexel University.

The Role of Accrediting Bodies and Federal Metrics

Accrediting Bodies

The closures have prompted accrediting bodies like the Middle States Commission on Higher Education to reassess their procedures. These agencies rely on colleges to provide accurate information, but financial instability can still catch them off guard.

Federal Financial Responsibility Scores

The U.S. Department of Education uses a “financial responsibility composite score” to assess colleges’ financial health, but critics argue that the score is outdated and easily manipulated. Efforts to update this metric face significant challenges, including the need for substantial funding and resources.

New Regulations and Ongoing Challenges

Recent Regulatory Changes

In response to these issues, the Education Department recently introduced new regulations to address the limitations of the composite score. Schools attempting to game their rankings or displaying other warning signs, such as accreditation problems or abrupt program closures, will face penalties.

Resource Constraints

Despite these efforts, the department has been overwhelmed with other priorities, such as massive reforms to student loan programs and upgrades to the financial aid process. This has delayed the release of important oversight lists, leaving students and faculty at risk of further disruptions.

Conclusion

The stories of Victoria Hebert and Isabel Rose Catalan highlight the urgent need for improved regulatory measures to protect students from the fallout of unexpected college closures. While the path forward is challenging, the federal government must continue to refine its oversight to ensure students can complete their education without such disruptions. Ensuring stability and transparency in higher education is crucial for safeguarding the academic and personal growth of students nationwide.