Hundreds of four-year colleges and universities in the US are exhibiting clear signs of financial stress, according to an analysis of federal higher education data. This includes declining enrolment, reduced revenue, growing deficits, and shrinking endowments.
Between 2019 and 2024, approximately 1,100 out of 1,900 colleges in a dataset experienced enrolment drops in three of those five years, affecting about 6.4 million students. During the same period, around 1,500 colleges saw their net revenue from tuition decrease.
These financial pressures have led to significant changes for students. For example, Nalia Mutz, a student at the University of Lynchburg, feared her biomedicine degree could take two extra years after the university eliminated a dozen majors in 2024, resulting in fewer professors for science courses. The University of Lynchburg also announced 40 staff and 40 faculty reductions.
Overall, roughly 960 institutions, enrolling 5.2 million students, had 75,600 fewer instructional staff from 2019 to 2024. Nearly 440 colleges and universities reported ending the financial year in the red in three of those five years.
Experts and students are highlighting the impact of college downsizing, noting that cuts to programs and staff, while potentially balancing budgets, can leave students struggling to complete their degrees. Justin Ortagus, a professor of higher education and public policy, stated that student-faculty ratios and advising support directly affect students' likelihood to persist and complete their degrees.