In the last two months, four colleges have announced they will shut down after the current academic year. The news brings attention to a trend in college consolidation, which has grown since 2016 but exploded since the start of the pandemic.
Since 2016, 87 public and private nonprofit colleges have closed or merged, or have announced plans to do so.
And in the last 10 years, the number of colleges closures has quadrupled compared to the previous decade, according to a report in The Wall Street Journal.
While some factors seem obvious, the question we want to address is: Why?
- Costs Are Still Rising: Tuition and fees plus room and board for a four-year in-state public college in the 2022-2023 school year averaged $23,250; at four-year private colleges it averaged $53,430. Data according to the College Board.
- Sinking Enrollment: Many smaller institutions have struggled as students opt for less expensive public schools or alternatives to a four-year degree altogether.
- Inflationary Pressures: Economic uncertainty and inflation also continue to weigh on markets, taking a hefty toll on endowments and leaving more colleges and universities in financial jeopardy.
Meanwhile, the country’s most elite institutions are thriving.
Top School Experience Application Boom
A small group of universities, including many in the Ivy League, have experienced a record-breaking increase in applications this season, a report by the Common Application found.
The report said the number of college applications for these top schools has jumped 20% since the 2019-20 school year, even as enrollment has slumped nationwide.
The data suggests that more people are applying to the same schools, leaving the mid-size and small schools in trouble.
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