Over the past decade, college enrollment has been on a steady decline, leading to financial struggles for many institutions. As a result, an increasing number of colleges are facing the difficult decision to shut down.
According to data from the State Higher Education Executive Officers Association (SHEEO), 28 degree-granting institutions closed in the first nine months of 2024, compared to 15 closures in all of 2023. This trend of closures has been ongoing, with colleges shutting down at a rate of nearly one per week.
The statistics are concerning. Between 2008 and 2023, close to 300 colleges and universities offering degrees at the associate level or higher closed their doors. More than 60% of these closures were institutions operated by for-profit entities.
After the financial crisis, the number of closures escalated, with an average of seven institutions shutting down annually from 2008 to 2011. This figure doubled to 14 per year by 2014 and reached 32 closures by 2018. Although the annual closure rate seemed to stabilize between 2020 and 2023, an average of 16 colleges and universities still closed each year.
In addition to degree-granting institutions, hundreds of post-secondary schools offering non-degree programs have also ceased operations in the past 15 years. Including these institutions, a total of 843 closures were recorded from 2008 to 2023.
Rachel Burns, a senior policy analyst at SHEEO, attributed the closures to declining enrollment rather than financial mismanagement. Factors contributing to the enrollment decline include a lower birth rate and skepticism among parents about the return on investment in college education.
When colleges close, enrolled students are directly impacted. Experts recommend that institutions notify students at least three months in advance, retain student records, refund tuition fees, and establish partnerships with nearby schools to facilitate student transfers. A study by SHEEO revealed that only about half of students from closed colleges transferred to other institutions, and the likelihood of them completing their degrees varied.
While Covid-related enrollment declines have stabilized, colleges continue to grapple with the challenges posed by demographic shifts and changing perceptions of higher education. The financial strain resulting from decreased enrollment poses a significant threat to the sustainability of many institutions.
For the students affected by college closures, the situation can be disruptive and uncertain. Efforts should be made to ensure that students are supported through the transition, with clear pathways for continuing their education at other institutions.
For more information on college closures and their impact, readers can access the comprehensive database maintained by The Hechinger Report. The database tracks closures dating back to 2008 and is regularly updated to reflect the latest developments in higher education.
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Contact staff writer Marina Villenueve at 212-678-3430 or [email protected]. Contact staff writer Olivia Sanchez at 212-678-8402 or [email protected].
This story on college closures was produced by The Hechinger Report, a nonprofit news organization dedicated to addressing issues of inequality and innovation in education.