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I'm not sure we have any reason to believe this. There are two reasons given:

1. families had fewer kids after the 2008 recession.

2. Alternative forms of education.

The latter will be good news, if it does displaced old colleges. The former, which is waaay earlier in the article and therefore probably the more important cause (in the opinion of this article) could be swung at any moment by a change in immigration, welfare, or regulatory policies on state (for the latter two) or Federal levels.

I don't see much reason to take this prediction seriously. Are private investments or bonds of some kind in these institutions tanking?

Their tuition is rising at unsustainable rates, and institutions are making huge investments in facilities whose loans depend on the unsustainable rise in tuition in order to pay them off.

The main reason that they surprising didn't talk about is cuts from the states. After state pulled out the support by imposing cuts in budgets over and over, the burden has gradually moved onto consumers. Here's some cost analysis:

Cost of tution/student/mo = 6hr * 5day * 4 weeks * $50/hr / 20 students = $300

Cost of facilities/student/mo = $600

Cost of room and board/student/mo = $600

So at minimum student will need to bear $18000/yr cost. If college is only receiving fraction of this then it will bankrupt.

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