- Eight US colleges closed in 2024 due to financial instability and declining enrollment.
- The “demographic cliff” and financial pressures are expected to lead to up to 80 closures by 2029.
- Two more colleges are scheduled to close in 2025, signaling ongoing challenges for smaller institutions.
In 2024, the US saw the closure of several colleges, with institutions like the University of St. Katherine and Wells College closing their doors due to financial instability, declining enrollment, and mounting operational costs.
Looking ahead to 2025, two additional colleges, Eastern Nazarene College and Fontbonne University, plan to close due to similar financial challenges.
US College Closures: The Impact of Financial Strain and Shifting Demographics
The closures of colleges in 2024 reflect a growing crisis in the US higher education system. Many small institutions are facing declining enrollment, driven by a combination of fewer high school graduates and rising costs. Schools such as the College of St. Rose and Lincoln Christian University have been forced to close due to these financial pressures. This trend is expected to worsen in the coming years, with the “demographic cliff” projected to lead to up to 80 college closures by 2029.
The COVID-19 pandemic has had a lasting impact on many colleges, particularly smaller ones that were already on the brink of financial collapse. Many students now prefer larger, more established institutions or seek alternatives such as trade schools, which offer more affordable paths to career success. This shift has made it increasingly difficult for smaller colleges to remain financially viable.
Some of the colleges that closed in 2024, like Magdalen College and St. John’s University’s Staten Island campus, struggled to maintain enrollment and secure necessary funding. The trend points to an overall decline in demand for liberal arts programs, with students increasingly seeking specialized skills that can lead to immediate job opportunities. For many of these schools, the struggle to compete in a changing educational landscape has been too great.
Looking ahead, the closures in 2025, including Eastern Nazarene College and Fontbonne University, underscore the broader systemic challenges facing many smaller colleges. These institutions are finding it difficult to overcome declining enrollment and financial difficulties, leading to their inevitable shutdowns. The higher education sector will continue to face significant restructuring as it adapts to these economic and demographic shifts.
The rise in college closures highlights the pressing challenges facing US higher education, especially for smaller institutions. Financial instability and declining enrollment are likely to continue driving this trend.
“Education is the most powerful weapon which you can use to change the world.” – Nelson Mandela
In the face of growing financial instability and enrollment challenges, many US colleges are finding it difficult to fulfill this mission.
