The
Forbes 2026 College Financial Grades show the worst overall performance since the tracker began in 2013, with
more than 25% of the 928 private colleges analyzed receiving a "D" grade. Nearly half of the institutions evaluated scored a "C" or worse, highlighting a massive financial divide in higher education. While elite, highly selective universities remain exceptionally strong, smaller private colleges with open admissions are struggling significantly due to a shrinking pool of high school graduates, dipping international enrollment, and aggressive tuition discounting. [
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Summary of the 2026 Financial Health Grades
- Over 25% of schools received a "D" grade.
- Nearly 50% of schools scored a "C" or worse.
- Only 11% of schools (more than 100 institutions) achieved a perfect "A+" grade.
Grading Criteria
Forbes updated its methodology to better capture true liquidity, scoring private, non-profit institutions with over 500 students across 10 main categories:
- Endowment size and assets per student.
- Liquidity measures, including a 3-year average of Unrestricted Net Assets Without Donor Restrictions (UNAEP) relative to operating expenses.
- Core operating margins and primary reserve ratios.
- Enrollment trends and admissions yield.
- Tuition reliance and freshman financial aid metrics.
The Top Tier: Perfect "A+" Financial Health
Elite institutions backed by massive endowments dominate the top of the list, boasting maximum
4.50 GPAs. Examples include:
- Ivy League Leaders: Harvard University, Brown University, Dartmouth College, and the University of Pennsylvania.
- Elite Liberal Arts Colleges: Pomona College, Williams College, Amherst College, and Bowdoin College.
- Major Research & Specialty Institutions: MIT, Stanford University, Duke University, University of Notre Dame, and The Juilliard School.
The Bottom Tier: Regional Crises
The report points out severe geographic clusters of financial distress. For example, in
New Jersey, more than half of the state's four-year private colleges earned a
"D" grade due to crashing enrollment and revenue shortfalls, prompting aggressive faculty cuts and land-sale considerations.
- Distressed New Jersey Schools: Rider University, Drew University, Saint Peter's University, Caldwell University, Centenary University, Saint Elizabeth University, Felician University, and Pillar College.
