80 US colleges to face potential closures as enrollment declines, rising tuition by 2029

These challenges reflect the growing pressures on higher education institutions across the country.

Research from the Federal Reserve Bank of Philadelphia, cited by Fast Company, suggests that 80 colleges and universities may shut down in the next five years.

The study, which analyzed data from 2002 to 2023 using machine learning, found that 84 out of 100 colleges studied had closed within three years.

This pattern is linked to a projected 15% decline in enrollment between 2025 and 2029, which is exacerbated by rising tuition costs and increasing doubts about the value of a U.S. degree. For international students, this could mean fewer options for study abroad and potential disruptions in their educational journeys, as smaller or financially unstable institutions close their doors.

Rising tuition fees are already a significant barrier for international students, and closures of institutions may reduce the availability of affordable options for those seeking U.S. education. Additionally, students from overseas often face longer visa processes and other logistical hurdles, which could further complicate their ability to secure spots at remaining institutions.

According to reports, the financial strain facing many colleges is a result of declining student enrollment, especially in small private institutions.

According to Fast Company, the COVID-19 pandemic exacerbated these challenges, forcing many colleges to shut temporarily and causing lasting financial issues that they were unable to recover from.

Tuition costs have risen significantly in recent years, with some colleges charging nearly six figures per year.

This steep price is pushing students from lower-income families to seek more affordable options, such as public universities or four-year trade schools.

According to reports, the rising costs have become a barrier for many families, especially as students question whether the return on investment is worth the price of admission.

While many colleges are facing closures, reports inform that elite universities like the Ivy League schools and Ivy-Plus institutions such as Stanford, MIT, and Duke are experiencing a surge in applications.

These schools are seeing record numbers of applicants, with applications for the 2024-25 academic year up 10% from the previous year, according to the Common Application.

To address the financial challenges students face, many Ivy League and elite schools have increased their financial aid offerings.

As college closures continue and the cost of higher education rises, many students are reconsidering their options. While some schools struggle with enrollment and finances, elite institutions are adapting by providing more financial aid to ensure they remain accessible to a diverse group of students.