New England colleges are facing a severe financial crunch as enrollment numbers plummet in 2025. A fresh study warns that dozens of schools could shut down without major changes, driven by fewer students and rising costs.
The Growing Threat to Higher Education
Colleges across New England have long been a cornerstone of the region’s economy and culture. Now, many face an existential crisis.
A detailed analysis released this week examines 44 private colleges in the area. These schools rely heavily on tuition fees and enroll between 1,000 and 8,000 students each year.
The study highlights that 15 of these institutions already struggle with liquidity issues at current enrollment levels. If numbers drop by just 10 percent over the next four years, six more could join them in serious trouble.
This comes amid broader trends. National college enrollment peaked around 2010 and has fallen steadily since. In 2025, factors like visa policy changes under the current administration have led to a 10 percent drop in Indian student enrollments at many U.S. colleges.
Demographic shifts play a big role too. Fewer high school graduates are entering the pipeline, with projections showing a steep decline starting this year.
Key Factors Driving the Decline
Several pressures combine to create this perfect storm for New England colleges.
First, birth rates dropped after the 2008 financial crisis, leading to fewer college-age students now. Experts predict this enrollment cliff will hit hardest between 2025 and 2029.
Second, public views on college value have shifted. Many question if degrees are worth the cost, especially with rising tuition and student debt levels.
Third, international student numbers are down. Recent policy changes have made it harder for foreign applicants to get visas, affecting schools that depend on this group for revenue.
Operating costs keep climbing as well. Salaries, maintenance, and other expenses rise, but revenue from tuition does not keep pace.
- Demographic changes: Lower birth rates mean fewer traditional students.
- Perception shifts: Growing doubts about return on investment for college degrees.
- Policy impacts: Stricter visa rules reduce international enrollments.
- Cost pressures: Expenses outpace income in many cases.
Finally, alternatives like online learning and vocational training draw students away from traditional four-year programs.
At-Risk Schools and Recent Closures
The study points to specific colleges on the edge.
Many well-known brands in New England fall into this group. They have solid reputations but weak finances.
For instance, some schools draw over 12 percent from their endowments yearly to cover operations. This exceeds the safe limit of about 5 percent.
Recent examples show the real impact. Sterling College in Vermont announced it will end degree programs due to financial and enrollment woes.
Eastern Nazarene College in Massachusetts closed after years of declining students and budget cuts. Enrollment there fell from 500 to 200 undergraduates.
Other closures since 2015 total 32 across New England. This pace has quickened in the last decade.
| School Type | Number at Risk | Projected Issue |
|---|---|---|
| Private, tuition-dependent | 21 out of 44 | Liquidity challenges by 2029 |
| Mid-size (1,000-8,000 students) | 15 currently | Insolvency risk in 3 years |
| With 10% enrollment drop | 6 additional | Severe financial strain |
These numbers come from cash flow models that focus on liquid assets. They project how long schools can operate without drastic steps.
Communities feel the pain too. When colleges close, local jobs vanish and economies suffer.
Strategies to Avoid Collapse
Schools must act fast to survive this crisis.
One approach is cost cutting. Clark University has already trimmed expenses to build a buffer against future drops.
Mergers offer another path. Combining with stronger institutions can share resources and stabilize finances.
Focusing on strengths helps too. Colleges should pick key programs to excel in, rather than trying to offer everything.
Diversifying revenue is crucial. This might include online courses, partnerships with businesses, or new fundraising efforts.
Experts urge boards to plan realistically. Many strategic plans still aim for growth, which seems unlikely given the trends.
Logical steps include monitoring key areas like compensation, which takes up 56 percent of expenses on average.
Reducing staff through attrition can help without deep cuts. Attracting non-traditional students, like adults seeking career changes, could boost numbers.
Impact on Students and Communities
The crisis affects more than just college leaders.
Students face uncertainty. Sudden closures disrupt education and force transfers.
Communities lose vital anchors. Colleges bring jobs, spending, and cultural events to towns.
In Massachusetts alone, recent closures have jolted local economies. The trend could worsen as more schools struggle.
On a positive note, some institutions adapt well. They innovate to meet new demands and stay relevant.
This situation highlights the need for broader reforms in higher education. Policymakers might step in with support or incentives for struggling schools.
Looking Ahead to 2029
Projections paint a tough picture for the next few years.
If enrollment falls by 15 percent, 28 schools could face insolvency within a decade. Even a small yearly drop of 2.5 percent puts 22 at risk in about five years.
The study uses a staying power metric. It calculates how long cash reserves last under current trends.
While debates rage over exact decline rates, agreement exists on the downward trend.
Colleges that ignore this risk business as usual. Those that adapt may thrive.
Recent events, like the closure announcements in late 2025, underscore the urgency. National trends show undergraduate enrollment down 8.5 percent from its 2010 peak.
What do you think about these challenges? Share your thoughts in the comments and pass this article to others who care about higher education.
