U. Of Kentucky Wants To Turn Its Dorms Over To A Private Company

Abby Rogers

Image: University of Kentucky Patterson Hall at University of Kentucky

The University of Kentucky is looking to bow out of maintaining its aging student housing.

Dawn Wotapka of the Wall Street Journal reports that the university has plans to turn over its dorms to Education Realty Trust Inc., a private company that will spend up to $500 million to upgrade existing housing and build new options.

The deal will transfer control of nearly 6,000 beds and apartments to the company, which plans to build more than 2,500 additional beds in the next five to seven years.

Education Realty Trust will then be responsible for collecting payment from students.

More universities are moving their housing to the private sector to combat the expense of caring for outdated buildings, receiving less government funding, and growing enrollment.

Reason Foundation cites the success of the military's move to private housing as a reason higher education should do the same. The organization said the military's decision improved on-base housing, saved taxpayer money, and increased building efficiency