Colleges with Debt Troubles are Making New Promises to Investors
In largely unnoticed side deals with investors, several colleges have promised they will raise prices on students, force students to live in dorms and even increase class sizes as they lay off faculty.
These are not for-profit colleges. Instead, they are nonprofits running into trouble with their debts. Unable to fulfill promises made when the colleges borrowed money years earlier, these colleges have struck deals to head off severe penalties, including foreclosures of campus property.