Delaware acted after talking to American Bar Association officials, who have noted a drop in both student interest and law-firm placement. Delaware also reviewed state plans to cut back higher-education subsidies.Wow. Truth Serum? What happened? I guess they've gotten the message loud and clear.
Also, if you went to school in the 90s as I did, you may already know a new building has always been a traditional and surefire way to join the first tier. Not anymore it seems. Drexel has decided against building a new facility:
The university concluded a law school would initially lose $160 million a year.
"We are not prepared to ask the Board for approval to incur that kind of deficit," according to a report by a committee assembled by UD president Patrick Harker that studied the proposal.Did anyone here know that universities were rated, the same way that mortgage backed securities were? A lot of good that did us, by the way. That Moody's... they are so honest!
I didn't know they were rated, but I guess it makes sense, since Universities are primarily money making machines. Never mind that most don't have shareholders--we all know that there are investors who are interested in the likelihood of a good return on the investment. Well, now that you know, what do you think the rating for Drexel is? It went from AAA to AA last week. Still a better investment that most junk bonds, but worth noting. Moody's reasons for the downward slide?
The university, which grew rapidly and raised academic standards under then-president Constantine 'Taki' Papadakis, faces "escalating" debt and "tepid financial resource growth," Moody's says. While Drexel's tuition income is "solid," other high-rated schools have "stronger cash flow."Anyone willing to wager bets as to when this over-valued behemoth will go under? Let's hope it's soon.