This is the question posed by Matt Schifrin in his excellent article in the August 13 edition of Forbes magazine (here).
Schifrin correctly observes, “By far the biggest problem at most colleges is that they are governed in a way that flies in the face of sound business practices. The vast majority of colleges in the U.S. are bloated with personnel and programs that make little economic sense.”
Judging a College’s Financial Health
Schifrin goes on to quote my friend Lucie Lapovsky, a respected higher ed consultant and former college president and V.P. of finance, who cautions students and their families not to ignore the signs of financial distress when considering colleges. “Visible signs of financial stress can include fewer classes offered less frequently, more classes taught by adjunct professors, less money for clubs and cutbacks in the upkeep of campus facilities,” says Lapovsky.
I mentioned other warning signs in this earlier post.
Finding My College 