A recent report indicates a potential increase in college closures across the United States, attributed to declining enrollment in higher education institutions. The report, published by the Federal Reserve Bank of Philadelphia, projects that if current trends continue, as many as 80 additional colleges may be forced to shut down.
Decline in Freshman Enrollment
Data reveals that freshman enrollment has fallen over 5%, marking the lowest level since the onset of the COVID-19 pandemic. Even a modest decline in enrollment could lead to approximately five college closures annually. Between 2010 and 2021, total enrollment at colleges and universities decreased by 15%.
Impact on Local Communities
The report highlights the precarious circumstances confronting postsecondary education, particularly if a significant demographic decline occurs. While the anticipated increase in closures may seem modest on a national scale, it could have significant repercussions for the local communities where these colleges are located.
Current Statistics of Higher Education Institutions
As of August, the total number of higher education institutions in the U.S. had diminished by 2% compared to the previous academic year, as reported by the National Center for Education Statistics.
Changing Preferences Among Students
Several factors are influencing students’ preferences to forego traditional higher education. Growing unrest on college campuses, particularly in response to protests related to the Israel-Hamas conflict, has contributed to a perception of universities as less appealing options. Many high school graduates are now opting for short-term certificate training programs rather than pursuing traditional degree pathways. Additionally, universities have faced criticism over their management of campus protests, leading to financial difficulties as some major donors have withdrawn their support.
Growth in Vocational Training
Enrollment in vocational schools saw a surge of 16% in 2023, accompanied by a 23% increase in students training for construction-related jobs. The ongoing decline in the number of high school graduates is also identified as a factor contributing to decreased college enrollment.
Future Concerns for Higher Education
The report raises significant concerns regarding the future of higher education in the United States as downward enrollment trends persist.
Source: Daily Signal