Financial distress at small private colleges intensified this week: California College of the Arts announced it will wind down operations after the 2026–27 year and transfer its San Francisco campus to Vanderbilt University, which said it will operate an arts institute and preserve archives and public programming. Separately, Hampshire College’s latest audit flagged ongoing operating losses, a breach of bond covenants and a potential default if it cannot refinance short‑term debt. Auditors said lenders had extended refinancing deadlines to September as Hampshire seeks investors and must demonstrate its strategic plan’s viability. The two developments underline a broader consolidation trend among tuition‑dependent arts and liberal‑arts colleges, where enrollment declines and thin endowments leave institutions vulnerable to bond covenants and takeover or closure scenarios.