Charter School Defaults Spike Higher as Enrollment Woes Persist

The number of charter schools in default surged over the past year, marking the third straight year of mounting distress for the sector in the absence of federal aid and enrollment headwinds.

There were 107 charter schools with current impairments as of Jan. 21, up from the 78 at the end of January last year, according to a report by Municipal Market Analytics. At the end of January 2024, there were 51 charters with impairments.