"At least 15 nonprofit institutions announced closures amid a difficult year for higher education as the sector navigated rising operating costs and political minefields amid a presidential transition. That number is down from last year when Inside Higher Ed tracked 16 closure announcements but up from 2023 when 14 nonprofit colleges announced plans to shutter their operations. That count does not include colleges that closed this year but had previously announced plans to do so."
"Colleges planning to close are a mix of public and private institutions, though all seven of those in the public sector were part of Pennsylvania State University. Pennsylvania was the only state that had more than one college announce closure plans in 2025. Of the other eight colleges that announced closures, five were religiously affiliated. Enrollment at colleges that announced closures ran from a high of nearly 2,000 students to a low of less than 100. Most had seen enrollment tanking for years while operating costs continued to rise, creating untenable deficits."
"Next year is also likely to be challenging for higher education; three credit rating agencies issued unfavorable outlooks for 2026. Anticipated pressures on the sector including concerns about declining enrollment, new caps on federal student loan programs, obstacles for international students seeking to study at U.S. institutions, and possible drops in state funding, among other issues. Small, tuition-dependent colleges are expected to be the most vulnerable institutions."
Fifteen nonprofit institutions announced closures during a year of rising operating costs and political turmoil surrounding a presidential transition. That total is down from 16 last year but up from 14 in 2023. Seven public colleges slated to close were part of Pennsylvania State University, making Pennsylvania the only state with multiple announced closures in 2025. Of the remaining eight, five were religiously affiliated. Enrollment at closing colleges ranged from nearly 2,000 students to fewer than 100, and most had long-running enrollment declines and growing deficits. Credit-rating agencies issued unfavorable 2026 outlooks. Anticipated pressures include enrollment declines, new federal loan caps, obstacles for international students, and potential state funding cuts, leaving small, tuition-dependent colleges most at risk. Martin University paused operations, terminated staff en masse, and encouraged students to transfer while appearing on the brink of closure.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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