Higher education is headed for a shakeout, analysts warn

Matt Zalaznick's picture

Facing skeptical customers, declining enrollment, an antiquated financial model that is hemorrhaging money, and new kinds of low-cost competition, some U.S. universities and colleges may be going the way of the music and journalism industries.

Their predicament has become so bad that financial analysts, regulators and bond-rating agencies are beginning to warn that many colleges and universities could close.

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