Proving it's not only small, private, liberal-arts colleges that are susceptible to financial distress, Louisiana State University (LSU) announced that it's in the midst of drawing up a financial exigency plan.
Bloomberg News, which reported the development, called the plan "equivalent to a college bankruptcy" and noted that it would let LSU fire tenured faculty and restructure its finances.
The president and chancellor of LSU, F. King Alexander, stressed the bankruptcy plan was essential since there has been little movement in the state's legislature to make updates to the budget.
"We don't say that to scare people," Alexander was quoted as saying in The Times-Picayune. "Basically, it is how we are going to survive."
The larger debate over the future of small colleges has been ramping up over the past few years, with Mark Cuban as a vocal participant in the conversation warning of a "student loan bubble." After Sweet Briar's announcement, Cuban tweeted: "This is just the beginning of the college implosion."
Source.
Where there's smoke, there's fire.
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