Citing inflationary pressures and sinking enrollment, more colleges are set to close in 2023.
Already, Presentation College in Aberdeen, South Dakota; Cazenovia College in Cazenovia, New York; Holy Names University in Oakland, California; and Living Arts College in Raleigh, North Carolina announced they will shut down after the current academic year.
The consequences of fewer students and less tuition revenue since the start of the pandemic have been severe, according to Kristin Reynolds, a partner and leader of NEPC’s Endowments and Foundations practice.
“Larger institutions can weather the storm,” she said.
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The number of colleges closing down in the past 10 years has quadrupled compared with the previous decade, according to a report in The Wall Street Journal.
Not only have many smaller institutions struggled as students opt for less expensive public schools or alternatives to a four-year degree altogether, but 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.
College applications jump 20%
Harvard University campus in Cambridge, Massachusetts.
Michael Fein | Bloomberg | Getty Images
This year, a small group of universities, including many in the Ivy League, experienced a record-breaking increase in applications.
A report by the Common Application found that the number of college applicants jumped 20% from the previous year, even as enrollment flatlined nationwide, suggesting more students are applying to the same schools.
“For brand-name colleges, the demand is off the charts,” said Hafeez Lakhani, founder and president of Lakhani Coaching in New York. “It’s never been harder to get in.”
The majority of people are going to say, ‘is that…
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