A couple days ago, the Association has written in its blog on state university budget cuts.  Today we learned another fact of college closures.  If one analyzes the timeline, all that is happening now starts with skyrocketing tuition (due to inefficiency and applying an out-dated mindset) followed by gigantic student loans accumulation.  Now one will see the negative and direct impacts for not controlling the operational inefficiency when these colleges are still have time to do so many years ago.  When the consumers no longer able to pay the price, it will negatively affect student enrollment.  As we have mentioned on our previous blogs, the new dynamics in the industry will first affect the private Liberal Arts Colleges for they are the most vulnerable institutions with limited support from the tax payers’ money.  The longer the marginal institutions wait, the more probable that they can be wiped out from the competition.  This structural changes will not stop until some of the most inefficient organizations close their doors until an equilibrium level is reached and Pareto Improvement is met.  It could take many years, and once it settled, there will only be big and the most efficient players are staying in the industry.