Forbes' annual financial report card for private, nonprofit colleges and universities is putting a spotlight on how well schools can manage their finances. The rankings are based on each institution's ability to cover immediate expenses with cash on hand -- a measure that is increasingly resonating with parents.
In the Triangle, the grades vary widely. Duke University received an A+, while Meredith College earned a B-. Shaw University was rated C-, and Saint Augustine's University received a D.
For families, those grades are becoming an important part of the decision-making process, alongside academic and campus life.
"This college experience is much more than the books and the tuition," Wake Forest parent Meranda Van Ningen said.
Van Ningen said a school's financial condition is now a key factor as she -- and many other parents -- evaluate long-term value and security.
"We had to really lean in and ask the questions, make sure that we were getting the answers we appreciated," she said. "They want us. They want our money to come in and to pay for that next year."
She said the financial grades offer insight into how well schools can navigate economic challenges.
"Show that they can handle this tough, tough economy, to be honest, and that they know how to roll with it because campuses have good years and bad years as well," Van Ningen said.
Financial planners say that shift in focus is well-founded, especially as some colleges across the country face financial strain or closure.
"A lot of smaller colleges are closing throughout the country," said Gray Pendleton, president of Pendleton Financial. "I think it's important to look at the financial health of the school."
Experts say the added scrutiny reflects the high stakes of higher education, often one of the largest investments a family will make. Along with reviewing financial grades, they encourage families to thoroughly research institutions before committing.
They also stress the importance of early financial preparation to manage rising costs.
"Even like, $10 to $100 a month," Pendleton said. "The NC 529 savings plan is great. And that's an aggressive, age based plan. That's a good opportunity."
As financial grades draw more attention, families are increasingly weighing not just where students will thrive academically, but also which schools are best positioned to remain financially secure over the long term.