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August 13, 2009

40% of private universities are in the red

japa_flag.jpgThe number of private universities that made a loss in fiscal 2008 is a record high. 222 out of a total of 589 private universities were in the red (20 have not disclosed figures). By comparison, the number of private universities that made a loss in 1997 was 48 out of a total of 425. This also indicates that, despite the demographic problems, there are actually 164 more private universities than there were in 1997.

The Daily Yomiuri reports that, 'of the private universities in deficit, 123, or 55 percent, are small schools with fewer than 1,000 students. About 70 percent of them are located outside Tokyo and Osaka and Aichi prefectures. The result indicates that small universities in the provinces face especially tough financial conditions.'

The survey was conducted by the Promotion and Mutual Aid Corporation for Private Schools of Japan.

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