Has there been any bankrupt famous university in recent history?
Universities filing for bankruptcy
It is a sad state of affairs when a university, an institution devoted to the acquisition of knowledge, goes bankrupt. However, it is not impossible. Between 2005 and 2012, at least 13 universities filed for bankruptcy in the United States.
Prestigious universities
It's no secret that some of the most prestigious universities in the United States are facing financial problems. The amount of student debt that students are faced with upon graduation is rising, and the college financial aid system is in a state of flux. This can all be traced to the fact that most of these schools were founded several hundred years ago when education was not nearly as expensive as it is today.
Struggling with finances
In addition, many of these universities have an endowment larger than the GDP of a developing country, and yet tuition continues to increase for both in-state and out-of-state students alike. The following schools have been known to have struggled with their finances at one time or another, but they remain some of the top educational institutions in the country.
Reasons why universities run into financial problems
There are plenty of reasons why universities can run into financial problems. The most common issues are not having enough students or having too many students and not enough money to support them. A third reason a lot of universities have problems is that they're spending more than they have on research, student facilities, and all the extra things a university offers.
An example of a school going bankrupt
One example of a school going bankrupt is the University of Southern California, which declared bankruptcy in 2011. They had $4 billion in debt from building new buildings on campus and from their athletics department. It was difficult for them to pay off the debt, so they filed for bankruptcy.
If you have any questions, you can get a free consultation with the Best Attorneys in Utah.
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
