Dowling becomes rare nonprofit college to file for bankruptcy

ITT Educational Services

29/11/2016 23:24

By Tom Hals 
    WILMINGTON, Del., Nov 29 (Reuters) - Dowling College became 
a rare nonprofit college to file for bankruptcy on Tuesday after 
the liberal arts school near New York lost its academic 
accreditation in August and closed its doors after 48 years. 
    The college has suffered from sinking enrollment and 
defaulted last year on $54 million in debt that was issued 
through local government agencies.  
    Dowling joins several for-profit colleges, such ITT 
Educational Services  ESINQ.PK  and Corinthian Colleges, that 
have filed for bankruptcy in recent years after losing access to 
U.S. government-backed financial aid programs.  
    Dowling announced earlier this year that efforts to find a 
partner to rescue the school had fallen through and began 
helping its more than 1,500 students to find other institutions 
to complete their education.  
    The school offered dozens of majors and specialized in the 
arts and sciences, aviation, education and business, and offered 
graduate degrees. 
    The college has hired a real estate broker to sell its 
waterfront campus property in Oakdale in eastern Long Island, 
according to court documents. Real estate in Shirley, New York 
will be marketed next year. 
    Morris Brown College in Atlanta filed for bankruptcy in 
2012. Other financially struggling nonprofit colleges have 
closed or merged with stronger institutions. 
 
 (Reporting by Tom Hals in Wilmington, Delaware; additional 
reporting by Jessica DiNapoli in New York; editing by Jonathan 
Oatis) 
 ((thomas.hals@thomsonreuters.com; +1-610-544-2712; Reuters 
Messaging: thomas.hals.thomsonreuters.com@reuters.net)) 
 
Keywords: UNIVERSITY BANKRUPTCY/