80 colleges could close by 2029, even as elite Ivy League schools thrive
Jennifer Mattson
December 11, 2024
This year, some two dozen colleges shut their doors and more are forecast to close in 2025, CNBC reports. According to new research from the Federal Reserve Bank of Philadelphia, as many as 80 colleges and universities are expected to close in the next five years.
That working paper from the Fed based its analysis on a massive dataset of college and university information from 2002 to 2023, which predicted future closures through a model using machine learning. It found that of the 100 riskiest institutions it assessed, 84 closed within a three-year period. Researchers then predicted the likelihood of future closures, factoring in a 15% decline in enrollment between 2025 and 2029.
Many colleges are struggling financially as enrollment falls, the result of skyrocketing tuition costs and students questioning if the degree is even worth the hefty price tag.
