Morris Brown College Failed Business: Bankruptcy and Foreclosure

In Atlanta, Georgia, one college is bankrupt and facing possible closure. Morris Brown College posted a notice on their website concerning these financial troubles that are plaguing the one hundred and thirty-one year old university. The school's financial problems are rooted in federal grants to students. The college was receiving up to eight million dollars a year in federal student aid.

With this "free government money" (taxpayer provided funding) coming in, a former president of the school and a former financial director were embezzling funds and defrauding taxpayers. The funding they stole was not intended for personal use, but to allay some of the college's financial woes. The college is currently over twenty-seven million dollars in debt, struggling, and taking on volunteer lecturers and professors in an effort to maintain its various curricula. Alumni are even volunteering hours to provide maintenance and janitorial services.

The embezzled taxes defrauded from the citizens of this great republic are even more indicative of the false narrative that somehow taxpayers should assume individuals' responsibilities. In the case of Morris Brown's scandal in the early 21st century, the president, financial director, and school administration believed that tax payers should pay the debts of a private university.

The financial troubles are further exacerbated by the school's rapidly declining enrollment rate. At the time of the fraud scandal, the school had approximately twenty-five hundred students, with eighty percent of them on federal scholarships and grants. The school is now struggling to keep over fifty students matriculated at the university.

Now, the school faces a very real possibility of closing due to foreclosure and bankruptcy. 

Faculty, staff, and students need to realize that colleges are businesses. They provide goods and services for appropriate compensation. If they want "free education", they will get one that is worth exactly what they paid for it.

Like other businesses, should the colleges mismanage their funds and fail to employ a working business model, they will fail. They should not seek government bailouts or taxpayer money to allay their failure, especially when their failure is, in part, due to defrauding taxpayers.

Original and full article at Mental Aikido