The mid-2010’s saw an uptick in U.S. college closures—particularly in the private nonprofit space.
Since 2016, 91 U.S. private colleges have either closed, merged with another school, or announced plans to close according to a CNBC analysis of data from Higher Ed Dive. This trend is affecting tens of thousands of college students across the country, with almost half of those schools closing after the onset of the pandemic in 2020. For many struggling schools the pandemic was the final straw—but two major themes showed up consistently throughout the closures: finances and enrollment.
“There are two significant issues affecting higher education right now,” said The Princeton Review’s Editor-in-Chief Robert Franek. “Specifically, through the admission and enrollment offices. Number one, it is the admission cliff, and that is the impending decline. We’ll be graduating our lowest high school classes by population in 2025. And most enrollment professionals have been wringing their hands about this date of 2025, but many schools have seen those enrollment declines already.”
About 95% of U.S. colleges rely on tuition, according to Franek, meaning they rely on money from students to operate. Dwindling enrollment numbers mean less money, fewer student offerings, and eventually a shuttered institution.
“It’s a reflection of, I think, an unsustainable operating platform, meaning a heavy reliance on tuition, which can’t always keep up with inflation,” said Fitch Ratings Senior Director Emily Wadhwani.
“It can’t always keep up with erosion in enrollment. We can’t keep hiking tuition sticker price in the hopes that the net residual once you account for scholarship and discounting and the like is gonna be enough to sort of offset your growing expense base.”
Chapters:
00:00 — Introduction
01:42 — The enrollment cliff
05:17 — Colleges on the brink
11:30 — What’s next?
Correction: A previous version of this video misspelled the last name of Melinda Huspen, a student at The King’s College.
Produced by: Devan Burris
Edited by: Evan Miller
Narrated by: Jordan Smith
Graphics by: Mallory Brangan and Alex Wood
Supervising Producer,: Jeff Morganteen
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Why More And More Colleges Are Closing Down Across America
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Colleges going bankrupt. Good. They brought it on themselves, for the way they treated their customer base (middle-class whites) with utter contempt.
What do liberal arts colleges offer for the money they charge? Do students get a big enough bang for their buck? The answer is more and more NO!!!! The advantage of these colleges was to develope all around adults who can analyze a situation and express themselves about a situation both written and oral at a level substantially above those graduating from high school. In both respects, many colleges are failing in this objective, and employers know it and don't need these graduates. The result is that students end up having to go back to schools, such as professional schools or trade schools to get a job.
Universities have created all the woke nonsense. They should close!!!!
Good practical schools are needed , they have strength in the major with not many side issues . Another thing that needs attention , is the foreign language requirement , it's just a repeat of high school and some of us are not great in foreign language . The individual abilities need to be the priority
I think Americans are waking up to the fact that government over-regulation isn't the only reason American products aren't competitive with products from other countries. For example, everyone is buying Japanese cars instead of American made cars. The reason being is that the Japanese education system is BETTER than the American education system. So the Japanese make better products. Americans and foreign students are thus going to OTHER countries like Europe to get a BETTER education. People are doing this to increase their chances of getting meaningful employment. Thus the American education system is facing GLOBAL competition; and like other American products, the American education system can't compete. I personally went to an American school and experienced a lot of violence within the American school. A lot of American students bringing guns to class, pointing loaded guns at each other in school; teachers recruiting bully students in the class to break into another students apartments that the instructor didn't like and poisoning his food and drink in his refrigerator to make the student so sick the student quits. Why deal with this kind of student abuse when you can go to a much safer school in Europe or Japan. There's no guns there.
I think woke people should get a woke degree. This is sad to see.
I don't see any wars closing, so why should our greatest institutes of learning close?
college is so unnecessary
TRADE SCHOOLS, not everybody needs a "communications", or "art" degree.
This is why higher education should just be subsidized like proper countries
I feel it’s already kinda well known that if you have a large gap of time between completing your degree (like a gap year, illness, needing to support your family, etc) -the rates that students won’t come back at all is higher. It’s already a known fact. Kinda common sense. It’s not impossible to go back, just LOADS harder later on in life when you’ve got much more responsibilities.
On this topic I have many different feelings. I worked in a field that required a BS degree. But my BS degress was in something different. I pulled different things from my BS to use on my job so it worked out. I earned a MS degree that moved me on the pay scale. So as a whole it was beneficial for me. One thing that was not addressed in this video was how Ronald Reagan started this during his first administration. He started the cut back process of which the morbidly rich loved. During his time as president was the beginning of the billionaire class. Now there are more of them and they are using their money to have politicians do their bidding. Cut this, cut that that will help the average person. Raise taxes on the middle class but cut taxes for the billionaires. I really think there is a movement to dumb down the average person. The far, far, right wing conservatives would love to turn the clock back to the early 1900s. FDR and other great politicians' work totally undone. Here comes another guilded age.
On the other hand, I can see how the yournger people are angry. They go to college to try to get a good start for their adult lives only to acquire great debt and find low job opportunities. The American dream for them is now a nightmare. I'm glad I'm close to retiring but now days I'm scared to do that. I feel so sorry for today's youth.
Admissions reps are forced to lie..promise potential enrollees the world ..when they know they can't because corporate forces it ..and then ..enrollment tanks ..screws up projections ..and..revenue
Katherine Gibbs… Perfect example…Corp greed..blatant mismanagement
Having a college degree from a US college is all but meaningless now. Democrats have all but ruined the entire US education system. They did away with SATs, doing away with "grading", passing students that should be held back and are less about a real education than they are about liberal indoctrination and "equity" (getting it without earning it). Gen Z college graduates are the most uneducated college graduates in US history and they are totally unprepared for the realities of life.
The business of college is not regulated. I’ve taught at traditional and for profit colleges. For profit colleges charge an obscene premium to expedite degree completion, thus watering down education.
I don't know this for sure, but if a private school (I graduated from Regis Univ, Co.) has an engineering/technology and/or medical field emphasis, they are much more secure and prepared for bad times ahead. But you have to couple that with talented managers of their Endowment. Regis saw a tremendous loss of enrollment since 2016…especially during the pandemic. But it's now pretty stable, as nursing is something that the future is going to need, and Regis has a tremendous Nursing program. Business degrees/IT are awesome there, and they have averaged well over 10% return on their Endowment. Without good management of finances, addressing the future, high standards etc…I believe Regis would be in the same trouble as others. You can see how universities that appear so solid, are actually on shaky ground when the economy goes south.
Globalist: "You will own nothing but you will be happy"
The more uneducated or illiterate people there is, the more they can deceive and more slaves they can make.
Both BLS and Social Security data shows that college graduates earn approximately $1million more over than lifetimes than high school graduates. So to all of you young people skipping college- I thank you for sacrificing your own lives so my college bound kids could get ahead!
woke, I need to say no more
If you would heading into manual work and crafts you would get paid to learn your job since the age of 16 years old and can be an entrepneur by 20 years old…so the $200k keeps only growing…and only is compensated by an elite small portion of students who attend college/university.
demographics
The rich realized that if they convince more Americans that education is not important then they can keep fooling their modern day slaves. While every degree you get is not going to get you to be rich, you will at least learn critical thinking and expand your world view. Like Donald Trump said – he likes the poorly educated as they will make unwise decisions like choosing people into the government against their own interests.
Chinese students being demonized and treated badly in the USA is stopping them from coming over and paying the HIGHER MORE LUCRATIVE FEES to schools. Thank you for your xenophobia Americans.
😂😂😂😂 college is a scam
Why is it that other developed countries can afford to educate their citizens with a minimum cost and we can't?
Private for profit colleges are scams. The rest are just oversaturated. We have an aging population, and many are seeking alternatives due to the devaluation of degrees.
Choosing a college in the most expensive city in the country so you can visit a public park on the weekends or study at a particular coffee shop. What a sound method of decision making.
Have u consider the racists political atmosphere making parents not permit their kids to study in the USA.
Their woke liberal worthless education and thats why!
Thank you for featuring my story as a part of this project! The American higher education system is at a major point of reckoning, and although I may have been unfortunate enough to be caught in the middle of it I believe it is long overdue. Something that I highlighted in my interview that unfortunately did not make it into the final cut was that I was the recipient of a full-tuition scholarship to attend The King's College, and my FAFSA aid covered most of my remaining college costs (including housing) so I wouldn't have the burden of taking out loans to pay for my degree. Without that generous financial aid package, the costs of higher education would simply have been too high for me to even consider attending college without taking on an unreasonable amount of student loan debt. Especially as a first-generation college student who would not have been able to afford any kind of college education otherwise, I saw the scholarship as an opportunity to build a better life for myself than I could if I entered the workforce with only a high school diploma, which doesn't get you very far in the current job market.
However, this is a choice that students such as myself should not have to be making, especially with the now-increasing possibility of the school they happen to choose closing on them unexpectedly. My hope is that through sharing my experience, others can make more well-informed decisions about how they will approach higher education options as the industry shifts in the near future.
For anyone who might be curious, The King's College did finally announce their closure in late July 2023, but by then I'd officially transferred to Fordham University. Fordham's School of Professional and Continuing Studies offered me a generous transfer plan where most of my credits were accepted and my financial aid was largely honored, so I wouldn't be faced with the prospect of taking out an outsized student loan debt to complete my education. Although I was willing to leave New York City to finish my degree or even to drop out of college entirely and start working full-time, I am incredibly grateful that I'm still able to capitalize on the networking and internship opportunities that Fordham and NYC offers to college journalism students.
(And yes, listening back to myself in this video made me acutely aware of my nervous tic of unintentionally adding upticks to my enunciation so the responses sounded like questions, although it didn’t help that the editing was a bit awkward and the interview audio often clipped partway though a sentence before I “downticked” my voice again to conclude my thought – I took a public speaking class at Fordham last fall that helped me cut that habit lol)
Haha because College teach Woke classes. And makes you poor.
ACADEMIA, ESPECIALLY in the humanities, as been a pro MARXIST indoctrination centers.
DEI departments are costing larger and larger chunks of university budgets.
No question that the restrictions during the pandemic really put the quality of the traditional undergraduate education into question. Was it really worth it? Sure the restrictions are over, but a.) they set a precedent, and b.) their legacy lasts
You would think you would learn not to up-talk like this chick.
Most of our community colleges dropped the word "community" from their names on the lame excuse that they'd adopted at least one four-year bachelor program. The truth is, it was never about community and learning and was always about profit. I was an adjunct at one of these schools for ten years; I constantly saw frustrated, confused students barely passing their courses and often having to take courses over again because of uncaring, incompetent faculty and administrators. You could hear the "cha-ching!" with each repeated course. These places need to shut down.
Far too many worthless, useless degrees taken by those who were duped into a lifetime of debt in the name of profits.
These degrees are useless as HR departments have gotten accustomed to require dementia levels of requirements, master degrees, and years of experience fixing the world's most pressing issues (and your efficiency while doing that) while offering near- minimum wage starvation jobs. People just realize this is just not worthy, not at the tune of 40k and above.
Good.
College degrees now have the same worth as a highschool diploma with the added benefit of being 30k in debt and no job skills
Might be because the piece of paper is worthless to employers.
So the "BLM" donation money wasn't used to solve the problem?🤔
Isaiah 3:14-15 (KJV) The LORD will enter into judgment with the ancients of his people, and the princes thereof: for ye have eaten up the vineyard; the spoil of the poor is in your houses.
What mean ye that ye beat my people to pieces, and grind the faces of the poor? saith the Lord GOD of hosts.
Colleges are still needed for some jobs, but have gotten over saturated with degrees that aren't worth the paper they are printed on.
I have wanted, and tried, to enroll in a college program. But the costs of tuition are exorbitant – even for online schools. I mean if they don't even have a brick and mortar facility, and exist only as a network of administrators and instructors working online from home, then how on earth can they be so expensive to run that they need to charge such preposterously high tuition? And now, via this video, I learn that even with such ridiculously high tuition rates, they are not bringing in enough dollars to survive? If this is truly the case, then something is very wrong with the overall, overarching system of our economy and societal structure.
When the bedrock institutions start to fail,like the corner convenience store going out of business, that situation gives me a really uneasy feeling about the future of our civilization.
I estimate that at least 1000 more need to close to create a better balance between supply and demand.
In Japan elementary and primary schools are closing because their populations are aging.
DONT FORGET THOSE RICH CHINESE STUDENTS THAT USE TO PAY OUT OF STATE TUTIONS ARE BEEM BANNED BY OUR POLITICIANS. AMERICAN UNDERSITIES ARE LOSING BILLIONS FROM THE LOSS OF CHINESE STUDENTS. WE HAVE TO START TO DISMANTLE THIS WICKED SADISTIC CAPITALISM BEFORE IT DESTROYS US ALL.
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