Chicago Debt Warnings
The University of Chicago’s $100-million cost-cutting plan shows how even elite institutions are yielding to financial strain. Cuts include reduced tenure-track hiring, fewer funded Ph.D. candidates, pauses on new projects, and staff reductions. At the same time, Chicago carries roughly $4.5 billion in bond debt, with debt-service costs consuming more than 7% of operating expenses in recent years. Leaders argue the strategy is deliberate, aiming to eliminate structural deficits by 2028, but critics call the reliance on borrowing irresponsible. The warning is stark: if Chicago must freeze admissions and restructure humanities, smaller colleges with less wealth and selectivity may face harsher reckonings.