Many colleges are under financial pressure, and the cracks are starting to show. At least 20 colleges closed in 2024, and more are set to shut down after the current academic year, according to the latest tally by Implan, an economic software and analysis company.Altogether, more than 40 colleges have closed since 2020, according to a separate report by Best Colleges. That has left some colleges and universities in a bind, especially “small private — often liberal arts — schools,” said Candi Clouse, a vice president at Implan.
As the sticker price at some private colleges nears six figures a year, students have increasingly opted for less expensive public schools or alternatives to a four-year degree altogether, such as trade programs or apprenticeships. At the same time, the population of college-age students is also shrinking, a trend referred to as the “enrollment cliff.”
Experts have continuously warned that ongoing problems with the new Free Application for Federal Student Aid form have resulted in fewer students applying for financial aid, which could also contribute to declining enrollment.
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