BSC in danger of closing

[4Q Basket Case]

Interesting article on the demise of BSC. Essentially throws Pollick under the bus. Pollick says it was in bad financial shape when he got there.

The Birmingham News

www.birminghamlede.com

It’s an interesting summary of 20 years of problems, mis-steps and mis-management.

A few quibbles — the article quotes the ups and downs of BSC’s endowment. But it doesn’t ask (or even address) what caused the ups and downs. As in, when BSC’s troubles started to get really serious in 2008, the stock market as a whole was tanking. How much of the endowment’s decline was due to spending and how much was due to market fluctuations? No clue.

Likewise, the article credits Krulak (Pollick’s successor) with increasing the endowment. But he was in the chair during a time of fast-rising stock values. How much of the increase was Krulak’s doing, and how much was him being a boat floating on a rising tide of stock valuations? Again, no clue.

A clergyman / member of BSC’s Board of Trustees is quoted as “hyperventilating” when Pollick told them that BSC had dipped into the endowment for $5 million to pay operating expenses. Did the good reverend voice opposition? Did he fight it? Did he demand fiscal responsibility? The article doesn’t say. But I’m guessing not because all the former Trustee does is point fingers.

Finally it accurately mentions three students burning a number of rural churches, and that causing both a PR problem and a financial problem when BSC stepped in to help rebuild the churches. It inaccurately says that the congregations were predominantly Black. Some were, some weren’t. The perps didn’t know or care. They just wanted to burn churches.

 

[Tidewater]

This might already have been posted, but I think it is relevant.

BSC is exactly the kind of school that was set up to have difficulty in this era. 15% fewer college students to go around. Those that there are are culturally predisposed to not want to go to college at all.
How many other private schools out there are postured for failure in the near future? Montevallo? Here in Virginia I could think of a number of liberal arts private schools that might be in trouble: (Hollins, Mary Baldwin, Maybe Hampden-Sydney?)

 

[TIDE-HSV]

This might already have been posted, but I think it is relevant.

BSC is exactly the kind of school that was set up to have difficulty in this era. 15% fewer college students to go around. Those that there are are culturally predisposed to not want to go to college at all.
How many other private schools out there are postured for failure in the near future? Montevallo? Here in Virginia I could think of a number of liberal arts private schools that might be in trouble: (Hollins, Mary Baldwin, Maybe Hampden-Sydney?)

I have a friend on the board at Montevallo. I'll talk to her, though I'm sure she'd want anything she said to remain confidential...

 

[Tidewater]

I have a friend on the board at Montevallo. I'll talk to her, though I'm sure she'd want anything she said to remain confidential...

Bridgewater College (affiliated Church of the Brethren, but not oppressively so) nearby is private. They have had a very public reduction in tuition to attract applicants after years of declining enrollment.
I think declining populations of young people, spreading realization that maxing out your student loans to get a sociology degree is not a wise investment, and increased demand for skilled labor not requiring a degree at all are creating much of the crunch.
Private schools at the bottom of the academic order of merit are really going to be in trouble.

 

[TIDE-HSV]

Bridgewater College (affiliated Church of the Brethren, but not oppressively so) nearby is private. They have had a very public reduction in tuition to attract applicants after years of declining enrollment.
I think declining populations of young people, spreading realization that maxing out your student loans to get a sociology degree is not a wise investment, and increased demand for skilled labor not requiring a degree at all are creating much of the crunch.
Private schools at the bottom of the academic order of merit are really going to be in trouble.

The CBs have other problems. There's a general decline in protestant attendance, but they are also greatly associated with German-descended people and that identification has tended to fade, even in the heavily-populated German areas of PA and the Midwest. The Methodist church swallowed around 750,000 EUBs back in the late '60s. My late BIL was CB and I visited once with him in his little hometown of Windber, PA, near Johnstown and we attended a CB service. There may be a plainer, drabber service somewhere, but IDK where. The Lutherans have done a better job of holding on to Germans. I asked my neighbor once why he didn't attend the Lutheran church here. He said "zu Katholisch." He went on to describe Lutheran services back in Darmstadt, where he grew up, and it sounded more like the CBs...

 

[Crimson1967]

This might already have been posted, but I think it is relevant.

BSC is exactly the kind of school that was set up to have difficulty in this era. 15% fewer college students to go around. Those that there are are culturally predisposed to not want to go to college at all.
How many other private schools out there are postured for failure in the near future? Montevallo? Here in Virginia I could think of a number of liberal arts private schools that might be in trouble: (Hollins, Mary Baldwin, Maybe Hampden-Sydney?)

Montevallo is a public university.

 

[4Q Basket Case]

Update: Alabama A&M is in talks to buy the BSC campus.

No word on the price or where the funds will come from. Only clue is that they're asking for an undetermined (or at least not publicly-stated) amount of aid from the state for the purchase.

With which, assuming the terms and conditions are copasetic, I have no problem.

Alabama A&M is a state-funded institution of higher learning. It is entirely within the state legislature's purview to make that funding decision. They might say yes. They might say no. They might say yes up to a specified amount, but not above that. I don't know. The decision is theirs to make.

Alabama A&M is an HBCU located in Huntsville. The BSC campus is in an area of Birmingham that is heavily skewed toward minorities, primarily black. Alabama A&M has a chance to further its mission by offering higher education to its historical base, in their neighborhood. The state has a chance to offer higher education to a that same base without that base having to leave home to get it, thereby reducing the cost. The base has a chance to get education that otherwise might not be an option.

I see a chance for a lot of people to win.

I am, however, curious on two points:

First, regardless of the amount, who makes the decision to accept or reject Alabama A&M's offer?

Second, suppose they make a deal. Given that BSC is closing in a few weeks, who gets the money?

I'm guessing the recipient will be creditors.

Might be suppliers of all kinds of goods and services -- office supplies, security services, etc., etc. Might be a lender (bank or bondholders). Might be some other creditor(s).

If (two big letters) my guess is right, it might explain why Young Boozer was saying that BSC couldn't deliver a first lien on the collateral they were offering.

 

[JDCrimson]

They will likely let Young Boozer negotiate on the state's behalf which means it likely wont happen.

Update: Alabama A&M is in talks to buy the BSC campus.

No word on the price or where the funds will come from. Only clue is that they're asking for an undetermined (or at least not publicly-stated) amount of aid from the state for the purchase.

With which, assuming the terms and conditions are copasetic, I have no problem.

Alabama A&M is a state-funded institution of higher learning. It is entirely within the state legislature's purview to make that funding decision. They might say yes. They might say no. They might say yes up to a specified amount, but not above that. I don't know. The decision is theirs to make.

Alabama A&M is an HBCU located in Huntsville. The BSC campus is in an area of Birmingham that is heavily skewed toward minorities, primarily black. Alabama A&M has a chance to further its mission by offering higher education to its historical base, in their neighborhood. The state has a chance to offer higher education to a that same base without that base having to leave home to get it, thereby reducing the cost. The base has a chance to get education that otherwise might not be an option.

I see a chance for a lot of people to win.

I am, however, curious on two points:

First, regardless of the amount, who makes the decision to accept or reject Alabama A&M's offer?

Second, suppose they make a deal. Given that BSC is closing in a few weeks, who gets the money?

I'm guessing the recipient will be creditors.

Might be suppliers of all kinds of goods and services -- office supplies, security services, etc., etc. Might be a lender (bank or bondholders). Might be some other creditor(s).

If (two big letters) my guess is right, it might explain why Young Boozer was saying that BSC couldn't deliver a first lien on the collateral they were offering.

 

[Crimson1967]

It will give A&M extra tailgating spots for the Magic City Classic.

 

[Crimson1967]

BSC’s baseball team has advanced to the Division III College World Series. It begins on Friday, the day the college officially shuts down.

 

[TexasBama]

On their baseball team

Birmingham-Southern College folds, but baseball team very much alive and headed to College World Series

Century-and-a-half-old BSC announced in March it was shutting down on May 31, citing financial shortfalls and declining enrollment.

www.nbcnews.com

 

[Padreruf]

Here's an article that states more than 500 colleges have closed in the last 10 years or so:

College closures in the US have risen sharply in the last 8 years

More than 500 private four-year universities have closed in the last 10 years alone...

sherwood.news

 

[jthomas666]

Here's an article that states more than 500 colleges have closed in the last 10 years or so:

College closures in the US have risen sharply in the last 8 years

More than 500 private four-year universities have closed in the last 10 years alone...

sherwood.news

I would hate to be a new PhD looking for a teaching position right now...

 

[CrimsonNagus]

University bubble is slowly popping. Eventually it will start hitting bigger universities if they continue to raise tuition rates like they have been for the last decade or 2. The value of the education provide vs its cost is so far out of balance these days. It is why I ignore the cranky older folks who whine about loan forgiveness while saying things like "back in my day I worked my self through school". Sure you did, because "back in your day" a minimum wage job could cover the monthly tuition cost. These days you have people making great money and it still takes them decades to pay off their loans.

We also need a to rethink the hiring practices at most companies/employers. They want to see college degrees for everything these days, for jobs that decades ago only required high school diplomas or trade experience. Basically, undergraduate degrees have become the new HS diploma/GED except it cost the student and/or parents 10x times more.

I want this bubble to burst. It is ridiculous what higher education cost in this country and it needs a complete reset.

 

[jthomas666]

University bubble is slowly popping. Eventually it will start hitting bigger universities if they continue to raise tuition rates like they have been for the last decade or 2. The value of the education provide vs its cost is so far out of balance these days. It is why I ignore the cranky older folks who whine about loan forgiveness while saying things like "back in my day I worked my self through school". Sure you did, because "back in your day" a minimum wage job could cover the monthly tuition cost. These days you have people making great money and it still takes them decades to pay off their loans.

We also need a to rethink the hiring practices at most companies/employers. They want to see college degrees for everything these days, for jobs that decades ago only required high school diplomas or trade experience. Basically, undergraduate degrees have become the new HS diploma/GED except it cost the student and/or parents 10x times more.

I want this bubble to burst. It is ridiculous what higher education cost in this country and it needs a complete reset.

It's been going on for long than a couple of decades.

When I started grad school at Penn State, they were celebrating a silver anniversary of sorts. 25 straight years of tuition increases. And that was in 1990.

 

[AWRTR]

University bubble is slowly popping. Eventually it will start hitting bigger universities if they continue to raise tuition rates like they have been for the last decade or 2. The value of the education provide vs its cost is so far out of balance these days. It is why I ignore the cranky older folks who whine about loan forgiveness while saying things like "back in my day I worked my self through school". Sure you did, because "back in your day" a minimum wage job could cover the monthly tuition cost. These days you have people making great money and it still takes them decades to pay off their loans.

We also need a to rethink the hiring practices at most companies/employers. They want to see college degrees for everything these days, for jobs that decades ago only required high school diplomas or trade experience. Basically, undergraduate degrees have become the new HS diploma/GED except it cost the student and/or parents 10x times more.

I want this bubble to burst. It is ridiculous what higher education cost in this country and it needs a complete reset.

When I hire people I pay little attention to their degrees anymore. The most widely given grade is an A. Grade inflation is a real problem. As an employer, it devalues the degree in my eyes. I know this firsthand because the majority of my classes in college weren't that rigorous and amounted to quite a bit of "busy work." There were some challenging classes that I really learned things in, but unfortunately, they weren't the norm. I'm more interested in their fit with the organization, past experience, intelligence, and work ethic. Some of those traits are hard to know 100% before hiring, but I take the slow to hire quick to fire if the person approach. If it isn't working out I try to help correct the situation, but if it doesn't improve it's time to move on.

This is an older article, but I can guarantee it has gotten worse.

https://www.npr.org/sections/thetwo-way/2011/07/15/138167102/study-the-most-common-grade-given-by-colleges-is-an-a

 

[Go Bama]

When I hire people I pay little attention to their degrees anymore. The most widely given grade is an A. Grade inflation is a real problem. As an employer, it devalues the degree in my eyes. I know this firsthand because the majority of my classes in college weren't that rigorous and amounted to quite a bit of "busy work." There were some challenging classes that I really learned things in, but unfortunately, they weren't the norm. I'm more interested in their fit with the organization, past experience, intelligence, and work ethic. Some of those traits are hard to know 100% before hiring, but I take the slow to hire quick to fire if the person approach. If it isn't working out I try to help correct the situation, but if it doesn't improve it's time to move on.

This is an older article, but I can guarantee it has gotten worse.

https://www.npr.org/sections/thetwo-way/2011/07/15/138167102/study-the-most-common-grade-given-by-colleges-is-an-a

I’ll be honest, I had to study hard in college. It wasn’t easy at all. I made mostly A’s and a few B’s, but had to study hard because I didn’t take any layup courses.

It surprises me to learn that the most common grade in college now is an A. That does indeed degrade the degree.

 

[AWRTR]

I’ll be honest, I had to study hard in college. It wasn’t easy at all. I made mostly A’s and a few B’s, but had to study hard because I didn’t take any layup courses.

It surprises me to learn that the most common grade in college now is an A. That does indeed degrade the degree.

It definitely depends on what your degree is in. There are certainly some very difficult courses of study, but I have found most aren’t that hard.

 

[jthomas666]

It definitely depends on what your degree is in. There are certainly some very difficult courses of study, but I have found most aren’t that hard.

Once you get out of STEM areas, too many course have become a matter of simply parroting back whatever the instructor says. Attempt to engender critical thinking skills and you get accused of attempting to indoctrinate students (that problem also exists at the high school level).

 

[AWRTR]

Once you get out of STEM areas, too many course have become a matter of simply parroting back whatever the instructor says. Attempt to engender critical thinking skills and you get accused of attempting to indoctrinate students (that problem also exists at the high school level).

Wouldn't being forced to parrot back whatever the instructor says be closer to indoctrination? Maybe I misunderstood your post.