Why are Universities Closing at a Faster Pace?

Why are Universities Closing at a Faster Pace?

In recent years, the education sector has witnessed an alarming trend: "universities closing at a faster pace." The closure of colleges and universities is not only just seen in the U.S. but also the United Kingdom, Japan, and some other countries. Many of those colleges and universities have a century of history, but they lose time. The State Higher Education Executive Officers Association highlighted a report about the closure of 30 colleges at the end of 2023. The period from July 2004 to June 2020 witnessed 12,000 colleges and universities closures, "according to the U.S. Department of Education's Postsecondary Education Participants System. This trend has become a pressing and major concern for students, teachers, parents, and government. Several factors contribute to this trend including demographic shifts, financial challenges, changing student preferences, and the global COVID-19 pandemic. 

Examples of Some Universities Which Closed Their Doors 

Green Mountain College was a private college located in Vermont and founded in 1834 around 190 years ago. Despite having a good reputation and strong focus on environmental sustainability, in 2019 it shut down its educational programs. The main reasons for this closure are declining enrollment and financial instability.  

The University of Cumbria has announced it to close its London campus in 2020. This university was facing some sort of financial constraints and strategic realignment that influenced it to consolidate resources and focus on the main campuses. 

Newbury College in Brookline, Massachusetts has been closed in 2019. It was founded in 1962 and is located. In December 2018, it announced it to close its doors, and in 2019, it officially closed its academic activity. The decision was influenced by the financial difficulties and declining enrollment. According to a report, in 2017, it faced a working capital deficit of about $825,000.

Universities at Risk

MacMurray College announced publicly its closure in 2020. At that time, it struggled with enrollment and financial constraints due to rising competitive costs. Further, the COVID-19 pandemic had a significant impact on that declaration. But still, this college managed to run its operations with an uncertain future. Anything can happen.

The University of Alaska has been struggling to survive with financial constraints and enrollment issues for years. These issues driving the university to potential campus closures. The entire system is operated with a financial strain which impacts the potentiality of students and the university's reputation. 

Hokuriku University (Japan) is a small private university that also faces the challenges and issues same as other mentioned universities. The current situation of this university driving it to potential closure or merge with other institutions to survive.

Some Random International Students' Comments on Closure

Voice of some students about the trend of university closures. 

Sarah Lee (South Korea) said, "I chose to study in the UK because of its reputation for quality education. The closure of the University of Cumbria's London campus was a shock. It makes me worry about the stability of my university and whether I'll be able to complete my degree."

Raj Patel (India) said about the closure trend, "The closure of Green Mountain College in the USA was unsettling. Many of my friends who were studying there had to scramble to find new universities. It's a stressful experience, especially when you are far from home."

Causes of University Closures

Several key factors contribute to university closures.

Demographic Changes are one of the key drivers of college and university closures. In certain regions, the birth rate seems to decline resulting in fewer high school graduates. The professor of economics at Carleton College reported in a magazine that the birthrate has declined by 16.3% between 2007 and 2020. So, it makes no sense to run a college and university for fewer students, especially in the case of private universities. It is hard to maintain the enrollment numbers necessary for financial viability. This kind of demographic change is seen in rural areas and regions with aging populations. 

Financial constraint is a big issue for university closure. Especially, private universities are facing significant financial pressures due to increased operating costs, but having fewer students. These universities heavily relied on tuition fees, but declining enrollment led to an increase in their financial instability. So, the universities have struggled and some universities currently struggle to continue their operations. As we mentioned earlier, Newbury College has run a working capital deficit of about $825,000, which resulted in closing its doors in 2019.

The global COVID-19 pandemic has had a significant impact on the overall education system. Most of the universities are influencing global students to study there due to having fewer local students. However, the pandemic became a strong barrier for the whole world movement and resulted in a rapid transition to remote learning rather. So, the shift to remote learning created technological gaps and created financial strain on financial institutions as well as students. 95% of the world's student population was affected by this pandemic and the issues imposed by the pandemic. As a result, many students cancel their plans to pursue a degree from a university or college. For instance, people from rural areas in LMICs started to give lower priority to completing their education. 

Changing Student Preferences is also another key factor for university closure. Nowadays, students are looking for career-oriented education and practical skills rather than traditional academic degrees and bookish knowledge. So, the shift from traditional academic degrees resulted in undermining the traditional university model and they have no choice but to continue their operations. 

Institutional mismanagement sometimes contributes the university closures. It includes poor financial planning, less focus on emerging educational trends, ill-prepared to navigate the evolving landscape, etc. Nowadays, adapting to change is very important not only for educational institutions but also for the overall sector. Because the world is continuously emerging with new techniques, technology, methods, and resources. So, the resistance to change by institutions losing the students as well as raising the financial difficulties. 

Conclusion

The trend of university closures is a complex issue with far-reaching implications for students, faculty, and communities. Addressing this crisis requires a multifaceted approach, including policy intervention, financial support, and innovative strategies to adapt to the changing educational environment. For universities to survive and thrive in this new era, they must embrace change and meet the evolving needs of their students. Real-time examples and international student perspectives underscore the urgency of finding sustainable solutions to ensure the future of higher education.