College Closures: A Growing Concern
Ohio's Notre Dame College was Abbey Ballentine's first choice. It was a small, friendly campus with a competitive Division II soccer team and close to her home. However, just a few months into her freshman year in late fall of 2023, rumors of the school's financial troubles started circulating. The official closure announcement came early in the spring semester, and by May, the college had shut its doors.
Student Displacement
When Notre Dame College closed, campus advisors and administrators helped students find other schools within a reasonable distance that would honor their financial aid packages and accept academic credits. Ballentine chose Thiel College in western Pennsylvania. However, the support provided to Notre Dame College students is rare. According to Rachel Burns, senior policy analyst with the State Higher Education Executive Officers Association (SHEEO), 70% of private college students who attended institutions that abruptly closed in the past five years received no help in finding a place to continue their academic career. Of the 500,000 students displaced by closures, less than half re-enrolled elsewhere.
Future of Higher Education
The future of many higher learning institutions may be determined in the coming weeks as federal financial aid checks for students attending this academic year are accounted for, according to Gary Stocker of College Viability, a data analytics company specializing in higher education finances. Ninety-nine degree-granting institutions closed in the past year, according to the National Center for Education Statistics. This includes community colleges, four-year schools, and universities. Seventeen of the schools were four-year nonprofit private schools, some of which had operated for more than a century before encountering severe financial problems in recent years.
Factors Influencing College Closures
Many factors are contributing to the shrinking enrollment numbers at traditional higher learning institutions. These include the steep cost of tuition, job market trends, a recent Supreme Court decision, and even a sustained period of decreased birthrates across the country. Factors such as last year’s delayed Free Application for Federal Student Aid (FAFSA) rollout add to an already stressed market. Prospective students fill out a FAFSA form to find out their eligibility for financial aid, including grants, work-study programs, and loans. It can determine whether they can afford to attend college or not.
Regional Problem Turning National
The college closure issue, which has so far disproportionately affected campuses in the northeast, is approaching the tipping point as a national epidemic. The flurry of closures in New York could be a sign of things to come. Public colleges and universities in Pennsylvania, Ohio, Georgia, and Texas have cut or consolidated services to stay afloat. Regional campuses in Midwestern public university systems are expected to usher in a new trend of financial problems and eventual closures due to a lack of students and tuition money.
Financial Transparency
While some schools communicate openly about the challenges they're facing, others are less transparent. Stocker advises consumers to exercise due diligence, researching a school’s acceptance and graduation rates, enrollment numbers over a multi-year period, annual financial reports, staffing levels, and number of majors. It’s also important to take a look at a school’s endowment, which is used to lower sticker price tuition costs, fund capital projects, and assure the institution’s financial stability for more than one year at a time.
Adapting to Stay Afloat
Some schools have adopted drastic measures to attract students. Hartwick College, located in Oneonta, New York, announced that in 2025-2026, the standard tuition rate will be dropped to $22,000, while room and board will cost $16,000, and students will be eligible for up to $10,000 in scholarships. Ithaca College, about 4 hours from New York City, has acknowledged its financial struggles in recent years. The college intends to pursue an earlier and more intensive recruiting campaign this year to build familiarity with the college earlier in the high school journey.
Bottom Line
The issue of college closures is a pressing one, affecting thousands of students and potentially changing the landscape of higher education in the United States. With a multitude of factors contributing to this trend, it's crucial for prospective students and their families to be informed and vigilant. What are your thoughts on this matter? Share this article with your friends and let's start a conversation. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.
