With interest rates low and endowment returns high, many colleges and universities are borrowing more than ever. This increasing reliance on bond issues and deficit spending will work if the economy remains strong. Investors appear to be eager to invest in private institutions. Colleges with more aggressive boards are using debt to reposition…

Many small liberal arts colleges nationwide are facing unprecedented challenges in finances and demographics. Unless they have name recognition, a sizeable endowment, or especially strong academic offerings, most struggle to attract students from outside their regions. To survive, colleges have been urged to expand adult education and distance…