Private Colleges Face Financial Strain as Enrollment Declines
Forbes analysis of 928 private colleges shows more than 25 percent received a D grade for financial health. Declining high school graduates and shifts in student enrollment are contributing to operating losses at many institutions.
axios.comForbes released its annual College Financial Grades report on May 22, 2026, covering 928 private not-for-profit colleges with at least 500 students. More than 25 percent of the schools received the lowest grade of D, the highest share since the analysis began in 2013.
Nearly half received a C or lower. The report links the results to a projected 13 percent drop in high school graduates, driven by lower birth rates during the 2008 recession. Middle-income families are shifting toward public colleges or opting out of higher education, while international enrollment has fallen nearly 20 percent.
New limits on Parent-Plus loans under the One Big Beautiful Bill Act cap annual borrowing at $20,000 per student.
Tulsa reported a $26 million operating deficit in 2016 despite holding an endowment exceeding $1 billion. The school expanded its athletic program to Division I, renovated facilities, and increased non-teaching staff before eliminating more than 80 academic programs in 2019.
His metric UNAEP measures unrestricted net assets available for operations after excluding plant assets and related debt. Forbes analysis found 192 private colleges currently operate with negative UNAEP values.
Massachusetts received a D grade.
The school reported a negative UNAEP of $9 million in 2024 and announced it will cease operations at the end of 2026. It carries $21 million in bond debt and has recorded repeated annual operating losses. Elite institutions continue to show stronger results. More than 100 schools, including Pomona College, Harvard, MIT, and St. Olaf College, received the top grade of A+.
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