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Wednesday, February 5, 2025

The College Crisis: Why Campuses Are Going Dark Across America

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The Silent Crisis: College Closures Surge, Leaving Students in Limbo

The idyllic image of college life, filled with late-night study sessions, dorm room camaraderie, and the promise of a bright future, is being shattered for thousands of students across America. A growing number of colleges, particularly smaller private institutions, are facing closure due to a confluence of factors, leaving students scrambling to find new pathways to their educational goals.

The story of Lincoln College, a predominantly Black private college in Central Illinois, is a stark reminder of this national trend. In 2022, it shut its doors after a post-COVID enrollment decline and a crippling ransomware attack. “We thought Lincoln had the money,” said one student, reflecting the disbelief and heartbreak experienced by many. “I’m very emotional. I just lost a lot of friends. I was very lost.”

This is not just an isolated case. Since 2016, 91 U.S. private non-profit colleges have closed or merged with other institutions, affecting over 60,000 students. This closure wave, while a growing concern, is not entirely new. However, the COVID-19 pandemic has exacerbated an already precarious situation, pushing many struggling schools over the edge.

"The pace of college closures has picked up since the COVID-19 pandemic and could get even worse," warned experts. The primary reason cited for closure: plummeting enrollment.

According to Dr. [Expert name], a higher education expert, two major factors are driving this enrollment decline:

  • The "admission cliff": The high school graduating class sizes are steadily decreasing, particularly in the Northeast, Middle Atlantic, and Midwestern states, where a majority of colleges are located.
  • The economic hangover: The financial downturn in 2007-2008 resulted in fewer births, further impacting future student pools.

These challenges are compounded by the heavy reliance of private colleges on tuition revenue. Dr. [Expert name] notes that 95 percent of four-year colleges, particularly private ones, are "tuition-driven." This means that a decline in enrollment directly impacts financial stability, putting many schools in a precarious position.

Adding to the strain, the removal of federal stimulus funds, intended to help colleges navigate the pandemic, has further exacerbated financial pressure.

"Things are getting more and more challenging," said Dr. [Expert name]. "It’s a reflection of an unsustainable operating platform, meaning a heavy reliance on tuition that can’t always keep up with inflation, erosion in enrollment, and increasing operating expenses."

While some elite institutions, such as Ivy League schools, are thriving with record applicant numbers, smaller schools are struggling to compete for a dwindling pool of students. In many cases, the closures are not sudden. Institutions often face a slow decline, marked by declining enrollment, layoffs, and asset sales.

The closure of Kings College, a private Christian college in New York City, is a prime example. Despite its appeal to many, including one student who "fell in love with both the city and the school," Kings faced financial difficulties, enrollment declines, and ultimately, closure. Students were left grappling with the uncertainty of finding new institutions, often during the middle of their studies.

This crisis leaves students in a vulnerable position. Studies have shown that students who experience college closures are less likely to re-enroll and complete their degrees. Those who do re-enroll are more likely to be white women aged 18-24.

The closure of smaller colleges highlights the widening gap between elite institutions and those struggling to stay afloat. This "bifurcation" of the higher education sector raises questions about accessibility and equity, leaving many students with limited options.

Although the closure of a college is a devastating blow to students, experts emphasize the importance of communication and support. Colleges should provide students with adequate time to explore transfer options, access to resources, and guidance to navigate the transition.

While the future of higher education remains uncertain, one thing remains clear: The current challenges facing many colleges demand a proactive approach from policymakers, institutions, and students alike. It’s time to ensure that the promise of higher education remains accessible and achievable for all who aspire to reach their full potential.

A Silent Crisis in Higher Education: The Surge of College Closures Impacts Students and Communities

The American college experience, often romanticized as a pivotal step into adulthood, can be abruptly shattered. Picture this: you’re an 18-year-old college freshman, navigating the world for the first time – classes, studying, dorm food, annoying roommates, and the promise of independence. Then, one day, someone walks into your classroom and announces, "We’re so sorry, but your school is closing." This devastating reality has become increasingly common, impacting thousands of students nationwide. The COVID-19 pandemic, coupled with pre-existing financial vulnerabilities, has pushed many private colleges, particularly smaller institutions, to the brink of closure.

Key Takeaways:

  • The number of college closures has significantly increased since 2016, particularly affecting private non-profit institutions.
  • Financial struggles, driven largely by declining enrollment, are the primary culprit behind these closures.
  • The "admission cliff" – a projected decline in high school graduates – further exacerbates enrollment challenges.
  • The removal of federal stimulus funds, previously allocated to colleges, has compounded financial stress.
  • While top-tier schools thrive, smaller institutions grapple with dwindling student numbers and resource constraints.
  • The impact on students is significant, with many facing the disruption of their education and uncertainty about their future.

The Perfect Storm: Why Colleges Are Closing

The closure of Lincoln College in 2022, a predominantly black private institution in Illinois, exemplifies the growing crisis facing smaller colleges. While many believed Lincoln was financially secure, a post-COVID enrollment decline and a ransomware attack proved too much to overcome. This closure sparked a wave of emotions among students, many of whom felt a sense of loss and uncertainty. "I just lost a lot of family, I was very lost," said one student, articulating the deep emotional impact of their school’s closure.

The trend of college closures is not confined to Lincoln. Since 2016, 91 private non-profit colleges have shut down or merged, impacting over 60,000 students. This trend has escalated since the mid-2010s, with private schools outpacing public schools in annual closures. The COVID-19 pandemic served as a tipping point for many already struggling institutions. "Many of these schools were already struggling before 2020, and COVID was the final push for many religious schools in financial trouble," explained a higher education expert.

The Enrollment Crisis

"There are two significant issues affecting higher education right now – the admission cliff and the decline in birth rates," stated a college enrollment professional. The "admission cliff" refers to the upcoming decline in high school graduates due to a downturn in birth rates. This trend, coupled with the economic downturn of 2007-2008, has led to fewer students in certain regions of the country, particularly the Northeast, Middle Atlantic, and Midwestern states. These regions are home to a majority of brick-and-mortar colleges, creating a stark mismatch between available institutions and potential student populations.

"The majority of four-year colleges in the country, particularly private schools, are 95% tuition driven," emphasized the enrollment professional. This heavy reliance on tuition makes enrollment crucial for a school’s financial health. When enrollment numbers dwindle, it jeopardizes a college’s ability to maintain its operations, leading to difficult decisions, such as reducing staff or programs, or in extreme cases, closure.

A Perfect Storm of Pressures

While declining enrollment is a primary catalyst for college closures, other pressures exacerbate the situation. "The removal of federal stimulus money has created an additional layer of financial stress for already struggling schools," explained a financial expert. The higher education emergency relief funds provided during the pandemic offered a lifeline for many colleges, but this support has expired, leaving institutions facing a new wave of financial uncertainty.

"The inflationary environment, labor market challenges, and rising operating costs are creating an unsustainable platform for many colleges," he added. This pressure to maintain a balance between rising costs and a shrinking student pool places a significant strain on college budgets. Schools are forced to make difficult choices, often facing a Catch-22 situation – increasing tuition to cover expenses but potentially scaring away students who can’t afford it.

The Bifurcation of Higher Education

While smaller schools grapple with closures, a stark contrast exists at the top of the higher education system. "The strong are getting stronger," noted the financial expert. Elite institutions, such as Ivy League schools and large public universities, are attracting record numbers of applicants and benefiting from large endowments. They are effectively absorbing a greater share of the shrinking student pool, leaving smaller schools struggling to compete.

"There’s a real challenge for institutions that are not elite and don’t have a large market share," he cautioned. Smaller schools are often reliant on tuition and a limited range of revenue streams, making them more vulnerable to the pressures of declining enrollment and rising costs.

The Impact on Students: Disruption and Uncertainty

The closure of a college has profound consequences for students, impacting their education, future plans, and overall well-being. "My initial reaction was not again, because this is what’s been happening the entire semester," said one student whose school had been facing potential closure for months. For many students, the uncertainty surrounding their school’s future creates an environment of stress and anxiety.

Studies have shown that students who experience college closures have poorer outcomes in terms of re-enrollment and degree completion. "Only 47% of students re-enroll in another post-secondary program after experiencing a closure," according to research on the impact of college closures. Moreover, students who re-enroll are often forced to adapt to new institutions, potentially sacrificing valuable credits and delaying their graduation. This disruption can have a significant impact on their career prospects and future earning potential.

Looking Ahead: What Does the Future Hold?

While the current landscape of higher education is challenging, there are steps that students, institutions, and policymakers can take to navigate the challenges ahead.

For students, careful research and planning are paramount. "Look at enrollment trends over time, especially if you’re waffling between a few schools," advised a higher education expert. Students should also consider the school’s reputation, financial stability, and job placement rates to make informed decisions.

Colleges need to innovate and adapt to the changing landscape. "Institutions need to become more efficient and find new ways to generate revenue," explained the financial expert. Exploring online courses, expanding partnerships with businesses, or fundraising initiatives could help colleges diversify their revenue streams and become more sustainable.

Policymakers have a crucial role in addressing the systemic challenges facing higher education. "Increased funding for higher education and reforms that promote affordability and access are essential," stated an education policy expert. Investing in need-based financial aid and promoting online learning options can help make college more affordable and accessible for all students.

The future of higher education remains uncertain. While some institutions will thrive, others will face intense pressure, and some may ultimately close. "It’s very difficult to predict which institutions will close," acknowledged the financial expert. "Some institutions may survive because they are efficient, while others may struggle despite seemingly good circumstances."

The closure of a college is a complex issue that requires a multi-pronged approach. "The longer runway institutions can provide to students, the better," emphasized a higher education expert. "Giving students enough time to make a plan, offer teachout plans, and partner with neighboring schools for transfers can improve student outcomes as much as possible."

While the future is uncertain, the resilience of the students impacted by college closures is inspiring. "I wouldn’t give up what I received here for the world," said a student whose school was facing closure. "The friendships, the faculty, the education, and the opportunities I’ve had here, I wouldn’t trade for anything." These stories serve as a testament to the human spirit and the enduring power of community, even in the face of profound challenges.

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Alex Kim
Alex Kim
Alex Kim is a financial analyst with expertise in evaluating and interpreting analyst ratings on various stocks.

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