Confronting the Current Higher Ed Financial Crisis: What Options Do Distressed Institutions Have?


8 minute read | August.04.2025

An increasing number of U.S. colleges and universities are facing an existential crisis in their finances. The U.S. Department of Education has placed more than 450 institutions on its Heightened Cash Monitoring schedule, with thirty-five on the more severe HCM2 Schedule.

In their analysis for The Bond Buyer, Orrick’s Manny Grillo, Jenna Magan, Lorraine McGowen and Kevin Roche examine the options available to financially challenged colleges and universities.