Diving overview:
- On the verge of bankruptcy, Goddard College Closes Permanently at the end of this semester, the institution announced Tuesday.
- The university has signed a teaching agreement with Arizona-based Prescott College to allow students to complete their degrees and “continue Goddard’s legacy of progressive education and experimental pedagogy,” the release said. Under this plan, Goddard students would pay the same tuition as Prescott.
- Colleges and universities in Vermont, among other states, were targeted. Concerned about closure for years. Declining enrollment, inflation and the end of pandemic-era relief measures are putting increasing pressure on college finances, especially for smaller, private institutions without large endowments.
Dive Insights:
In announcing Goddard's closure, officials pointed to broader problems facing small private institutions and institutions of higher education.
“Despite trying a variety of approaches, including partnerships, Goddard College has not been able to buck the trends of inflationary pressures, demographic shifts and shifting educational preferences,” the college said. “The closure of Goddard College reflects a trend seen at numerous institutions of higher education in Vermont and across the country, all of which have similar challenges.”
Officials said Goddard has 220 students enrolled, a tiny fraction of the more than 1,900 students it had in the early 1970s.
Goddard's board voted unanimously to close as the institution faces bankruptcy. university latest finance It shows that revenues were more than $500,000 short of costs of $7.5 million.. The university's revenue between fiscal years 2023 and 2022 declined substantially. $1.6 million. Goddard also took on just over $1.9 million in long-term debt.
“If there had been a viable alternative, the board would have adopted it,” Chairman Dan Hokoy said in a statement. “But unfortunately, not all of us did.”
Goddard's administration is working with Prescott's leadership to place faculty at partner institutions. It's also working with nearby Cabot Creamery to find jobs for college employees and, in conjunction with Cabot, plans to host a career fair for Goddard employees in the coming months.
In an effort to stay open, Goddard announced plans about three months ago to: Switch to online-only format. At the time, the administration cited declining enrollment on campus and signaled that a transition would follow. He said he is also exploring other options, including partnerships with other universities and organizations.
It was originally a seminary but has been given a modern look. Established in 1938 On what was once a sheep farm, Goddard meant an experiment in democratic education with “ordinary living and hard thinking.” According to the university itself, enrollment grew throughout the 1960s during the homecoming movement.
Currently, the college primarily serves adults aged 25 and older and emphasizes student-centered learning. The College of Arts and Sciences offers bachelor's and master's programs in subjects such as education, health, and sustainability.
Mark Jones, chairman of the board, said the university's closure was a “serious loss to students seeking alternative and progressive higher education”.
Other Alabama-based locations in recent weeks Birmingham-Southern College and Oak Point University A Chicago suburb announced it was closing. Northland College in Wisconsin declare financial crisis After flirting with potential closure. Northland is expected to make a final decision on its future in the coming weeks.
Moody's analysts wrote in a report last summer that before closing, many colleges are drawing down assets to buy as much time as possible for the transition, essentially delaying opening as long as possible. At the time, they predicted a gradual increase in closures.