Forbes awards Hollins University an A+ rating for financial health

Roanoke, Virginia – What universities and colleges can offer students and their prospects for success in the future can be determined by their financial situation.

COVID-19Numerous private colleges and universities are facing financial and demographic disasters as a result of the disappearance of 19 federal relief programs. Inside Higher Education claims that the funds assisted colleges in overcoming the shock of decreased enrollment, revenue losses, and other monetary strains brought on by the pandemic.

For the past 20 years, Hollins has concentrated heavily on diversifying its sources of income in order to become less of a tuition-dependent university. You’ve probably heard a lot about tuition dependence, the state in which student fees account for more than 80% of an institution’s total revenue. However, if enrollment declines or there are any changes in the student body, you are so reliant on tuition income that you have no other means of supporting the school while you recover from the setback, according to Kerry Edmonds, vice president and chief operating officer of Hollins University.

The financial balance sheet of Hollins University is getting notice, despite the fact that many are finding it difficult to adjust. According to University Business magazine, it’s the only private college in Virginia and one of only 27 private universities in the country to achieve an A+ in Forbes magazine’s report on College Financial Grades for 2024.

It seems like such a validation of the work that Hollins employees perform on a daily basis. We have been able to launch initiatives like the Hollins Opportunity for Promise through Education (HOPE) thanks to this strong financial foundation. Thus, approximately 100 students from the Roanoke region are currently enrolled at Hollins without paying tuition, according to Mary Dana Hinton, president of Hollins University.

According to President Hinton, there are three main reasons why she thinks they were successful in getting the grade.

First and foremost, it means a great deal to us to have a strong financial foundation thanks to the generosity of our friends, benefactors, and alumni. The second is that we are debt-free. A college or university having no debt is uncommon. However, we are really appreciative that an alumna paid off all of our debt more than ten years ago, therefore we are no longer pursuing debt and are not permitted to have debt. This ranking is largely based on that. Thirdly, it is genuinely cautious stewardship, Hinton added.

Data from the National Center for Education Statistics of the U.S. Department of Education served as the basis for Forbes’ research of roughly 900 private colleges with at least 500 full-time students. Out of Forbes’ nine components, endowment assets were the most significant factor in assessing a school’s long-term financial sustainability.

We had a definite goal in mind when we launched our campaign in 2002: increasing our endowment. At the time, our endowment was about $85 million. Our continuous goal was to increase the endowment through contributions. After 20 years, our endowment has grown to almost $300 million. Strengthening the foundation will enable us to be more strategic, considerate, and adaptable to the shifting needs of the market and our students. Supporting our kids’ scholarships is one of the biggest areas in which we’ve invested over that time, according to Edmonds.

According to Forbes, choosing a financially stable school is more crucial than ever, and financial health is key.

“We are aware that the work we perform at Hollins draws in students. Serving young women, offering top-notch instruction, and giving them access to experiences are all important, but we are also aware that many families continue to face financial difficulties. Thus, expanding and funding the HOPE program will allow for the enrollment of a great number of additional kids, according to Edmonds.

According to Hollins University, the HOPE Program will go national in the fall of 2025. offering free tuition, which includes paying the whole cost of fees and lodging and board.