This blog has written several pieces about college debt and the financial wreck of American colleges and universities. Now another financial analyst has come out with worse news.
Hoosier Econ has published posts in the shift of people realizing that Bachelor Degrees sometimes serve no relevance in their job field, so they are deciding not to go. Another factor is shifting demographics from not as many people in high school, so less kids physically available for college.
Now a Harvard Business Professor has gone along the same lines and is predicting massive bankruptcy for colleges:
Christensen is known for coining the theory of disruptive innovation in his 1997 book, “The Innovator’s Dilemma.” Since then, he has applied his theory of disruption to a wide range of industries, including education.
In his recent book, “The Innovative University,” Christensen and co-author Henry Eyring analyze the future of traditional universities, and conclude that online education will become a more cost-effective way for students to receive an education, effectively undermining the business models of traditional institutions and running them out of business.
At the Innovation + Disruption Symposium in Higher Education in May, Christensen specifically predicted that “50 percent of the 4,000 colleges and universities in the U.S. will be bankrupt in 10 to 15 years.”
More recently, he doubled down on his statements, telling 1,500 attendees at Salesforce.org’s Higher Education Summit, “If you’re asking whether the providers get disrupted within a decade — I might bet that it takes nine years rather than 10.”