The Massachusetts Board of Higher Education is preparing to adopt a stress test to monitor the financial health of private nonprofit colleges in the state. The proposal comes after the abrupt shutdown of Mount Ida College in Newton last year.
A draft report obtained by WGBH News shows the board is considering a new method to determine whether a school is at risk of abrupt closure.
The report, drafted by a working group of the board, finds an “ongoing and likely growing threat that more Massachusetts non-profit colleges will be forced by their financial conditions to merge or close.”
“Shifting fundamentals including on demographics, competition and costs have created significant financial viability risk for some private, non-profit colleges in Massachusetts and have led to closures so abrupt as to injure students and families and undermine the credibility of higher education,” the report notes.