Home Forums College Miscellaneous Harvard Business School professor predicts half of colleges will soon fail

This topic contains 3 replies, has 3 voices, and was last updated by  Le Crange 3 months, 2 weeks ago.

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  • #52539

    Hello everyone!

    HBS professor Clayton Christensen has gone on record as saying that online education is so cost effective that half of US universities could go out of business within the next 15 years. Professor Christensen is the co-author of The Innovative University which discusses the challenges posed to these colleges by online, for-profit universities.

    Christensen does mention that most large donors give generously to colleges because of personal relationships they developed at the schools and pointed out that is something the disruptors won’t likely be able to replicate.

    We’ve seen research from Moody’s that small colleges, in particular, are going to be more likely to merge or close. We’ve also been concerned with the facility spending on items such as luxury dormitories.

    Time will tell of course, but please don’t hesitate to share your thoughts below.

    Best of luck with your applications!

    Sincerely,

    David Petersam
    President
    AdmissionsConsultants, Inc.
    DPetersam@admissionsconsultants.com

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    #52546

    vibhawari
    Participant

    Online education has a bad reputation. If schools go under, they will be small schools and won’t represent 1/2 of the total college students. not within the next 15 years.

    #53068

    Hello everyone!

    Forbes published an article earlier today that reexamines Harvard Business School Professor Clayton Christensen’s 50% college failure prediction. In 2017-2018, the average tuition discount rate grew to 49.9% for first-time, full-time freshmen. This is well above the 35% threshold that the National Association of College and University Business Officers believes signifies financial irresponsibility. The Forbes article also states the population of 18 year-olds is starting to decline and will decline more rapidly beginning in 2026.

    Best of luck with your applications!

    Sincerely,

    David Petersam
    President
    AdmissionsConsultants, Inc.
    DPetersam@admissionsconsultants.com

    AdmissionsConsultants
    1.800.809.0800

    Keep up with us on:

    admissionsconsultants.com facebook page

    admissionsconsultants.com twitter page

    admissionsconsultants.com youtube channel

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    admissionsconsultants.com google +

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    #53078

    Le Crange
    Participant

    They’re not going to all fail. Too many college aspirants. The high discount rate just means colleges are becoming like the outdoor markets where everyone has to negotiate and only a few dumb tourists pay the price the vendor initially requests.

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