Is your alma mater on the brink of extinction? A recent study by the Federal Reserve Bank of Philadelphia paints a grim picture for many U.S. colleges. Brace yourselves, because the higher education landscape is about to undergo a seismic shift that could affect your community and maybe even your old school sweatshirt’s value.
Here’s the scoop: college enrollment is dropping faster than your freshman year GPA after discovering the campus pub. Only 62% of high school seniors are heading straight to college these days, down from 68% in 2010. Couple that with a shrinking pool of college-age kids, and you’ve got a recipe for financial disaster for many institutions. It’s like musical chairs, but with ivy-covered buildings and crippling student debt.
The numbers are sobering. At least 20 colleges closed shop in 2024, with 9 more waving the white flag for 2025. And hold onto your mortarboards, because in a worst-case scenario, up to 80 more could shut their doors by 2029. This isn’t just about losing your reunion venue – these closures can devastate local economies, affecting jobs and incomes. It’s like when the main employer in a small town closes, but instead of a factory, it’s the place where you learned to appreciate obscure poetry and perfect your beer pong technique.
While the Harvards and Yales of the world are sitting pretty, many other schools are in a financial tailspin. Some are declaring “financial exigency” (fancy academic speak for “we’re broke”) and slashing programs faster than you can say “student loan deferment.” And let’s talk tuition – the average cost for private colleges has skyrocketed to $58,600 for 2024-25, while public in-state costs average $24,920. At this rate, you might need to take out a second mortgage just to buy textbooks. So, whether you’re a proud alum, a parent eyeing college for your kids, or just someone who cares about the future of education and local economies, it’s time to pay attention. The college experience as we know it might be headed for some serious extra credit work.
