Across America, colleges are struggling financially, and a number of them have closed, merged, or announced significant cuts over the last three years. While COVID relief funds and use of reserves eased some colleges’ financial troubles in 2021 and 2022, in 2023 it appears that colleges are experiencing dramatic cuts in staffing, degree programs, and use of endowment funds as emergency funding. Centered on the best interests of low-income college applicants and their families, The Scholarship Foundation of St. Louis Advising Director, Teresa Steinkamp, has issued the following important alert regarding several colleges that are in significant danger of closing their doors. This advice is especially relevant to first-time freshmen who have completed the FAFSA and need financial aid for the 2024-25 school year.
BEWARE PROMISES THAT SOUND TOO GOOD TO BE TRUE
Some colleges are in urgent need of enrollment commitments and may make promises that they are unable to keep. Declining numbers of applications and difficulties related to the FAFSA this year have put increased pressure on some colleges to prioritize their enrollment goals over the needs of students. Among struggling colleges, the competition for students is fierce and the information some are sharing can be misleading.
REVIEW THE FOUNDATION “WATCH LIST” OF SCHOOLS IN FINANCIAL TROUBLE
Currently, 37 of the 203 colleges attended by Scholarship Foundation students have shown signs of significant financial distress in one or more of the last five years. The Scholarship Foundation advises all students to review financial solvency data for their prospective school(s). Students should exercise extra caution if their school appears on The Scholarship Foundation WATCH list below (schools indicated in red are of special concern due to recent financial scores and disclosures):
| Benedictine College | Maryville University of St. Louis |
| Bradley University | McKendree University |
| Central Baptist College | Millikin University |
| Claflin University | Milwaukee Institute of Art & Design |
| Coe College | Missouri Baptist University |
| Columbia College | Missouri Valley College |
| Culver-Stockton College | Oklahoma City University |
| Drake University | Quincy University |
| Drury University | Regis University |
| Drury University-Monett | Ripon College |
| Evangel University | Rockhurst University |
| Fontbonne University* | Rose-Hulman Institute of Technology |
| Grand Canyon University | Saint Xavier University |
| Harris Stowe State College | Southwest Baptist University |
| Kentucky Wesleyan College | Union University |
| Lake Forest College | University of the Incarnate Word |
| Lane College | Webster University |
| Lincoln Memorial University (TN) | William Woods University |
| Loyola University New Orleans | Xavier University of Ohio |
| Marquette University |
*Fontbonne University has announced its 2025 closure since the original publication of this list.
THE SCHOLARSHIP FOUNDATION ADVISING TEAM CAN HELP
Deciding whether and where to attend college is one of the biggest financial decisions a student can make. Those who are not wealthy must focus closely on the financial aid package offered by their prospective college, as well as the overall financial health of the school. It is crucial that students select schools that are on solid ground and are certain to remain accredited and financially stable for, at minimum, the length of time necessary to earn a degree and graduate.
The Foundation’s student advisors will be communicating directly with students who are planning to attend a college whose financial health is in doubt.
For concerns about a college’s financial solvency, accreditation, or any financial aid packages that have been offered, please contact a Student Advisor to schedule a free appointment.
DO THE HOMEWORK: RESEARCH A SCHOOL’S FINANCIAL SCORES BEFORE MAKING A COMMITMENT
Use these links to learn how financially stable or precarious a school may be:
Forbes College Financial Health Scores 2019
Forbes College Financial Health Scores 2021
Forbes College Financial Health Scores 2022
Forbes College Financial Health Scores 2023
US Department of Education Financial Responsibility Scores (Multiple years)
Higher Learning Commission Accreditation Reports (including financial factors)
