Bankruptcy Risk Reaches Half of Small and Medium Schools in Brazil, Says Research

Institutions with up to 240 students make up 80% of the private system and are under pressure for default

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Laura Mattos
São Paulo

Between 30% and 50% of small and medium private schools in Brazil are at risk of bankruptcy due to the coronavirus pandemic.

The reduction in revenue, caused by the need to grant discounts due to late payments and delinquency, reached 40% of them in April and should exceed 50% at the end of May. In 95% of establishments, enrollment has already been canceled.

Institutions with up to 240 students make up 80% of the private system and are under pressure for default - Paulo Talarico/Agência Mural/Folhapress

The data comes from a survey commissioned by the Union for Private Small and Medium Schools, a non-profit organization created during the pandemic to support educational institutions.

Delays in the payment of tuition fees, which were 9% before the start of the pandemic, reached 17% in April and are expected to reach 22% in May. The loss of students is already around 10%.

Translated by Kiratiana Freelon

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