When Colleges Shrink: What Students Should Know About Enrollment Decline and Campus Stability

Last Updated on : August 20, 2025
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If you’re building your college list, you’ve probably considered rankings, test score ranges, and perhaps even browsed a few glossy admissions brochures. But there’s a quieter shift happening in higher education that most students and families overlook—yet it could significantly impact your college experience.

Across the United States, college enrollment is declining. This trend is particularly pronounced at small private colleges and regional public universities—institutions that, just a decade ago, were thriving centers of academic and community life.

A recent Wall Street Journal article highlighted Macomb, Illinois, where Western Illinois University has lost nearly half its student body since 2010. As the university contracted, so did the town’s economy, population, and opportunities for students.

Macomb is not an isolated case. Similar patterns are emerging nationwide, reshaping the college landscape—and it’s something you should consider as you finalize your school list.


Shrinking Enrollment Isn’t Just a Small-Town Problem

Between 2010 and 2021, U.S. college enrollment declined by 15%, according to the National Center for Education Statistics. This trend isn’t solely due to the pandemic. Demographic shifts, such as falling birth rates, have led to fewer high school graduates in certain regions, particularly in the Midwest and Northeast.

As a result, many colleges are grappling with enrollment challenges. Some are cutting programs or staff, others are offering significant tuition discounts or expanding online offerings, and a few are merging or closing altogether.

In 2024 alone, at least 20 colleges closed, a number that could increase in the coming years due to proposed cuts to Pell Grants and loans, as reported by the Institute for College Access & Success.


Recent College Closures and At-Risk Institutions

Understanding which colleges have closed or are at risk can provide valuable context as you assess potential schools. Here are some notable examples:

  • Birmingham–Southern College (Alabama): This private liberal arts college closed at the end of the 2023–24 academic year after years of financial trouble.
  • Union Institute & University (Ohio): A private online university that closed permanently on June 30, 2024, due to severe financial challenges.
  • Hodges University (Florida): Announced plans to close permanently by the end of August 2024, citing declining enrollment and financial challenges.
  • Eastern Gateway Community College (Ohio): Closed on October 31, 2024, after experiencing severe financial distress.
  • University of Saint Katherine (California): Announced its closure in April 2024, filing for bankruptcy following financial shortfalls.

Additionally, some institutions are at risk of closure:

  • Penn State University (Pennsylvania): Proposed the closure of seven of its commonwealth campuses due to ongoing enrollment declines and financial pressures. 
  • University of Wisconsin-Oshkosh (Wisconsin): Announced the closure of its Fox Cities campus amid an enrollment plunge.

Why This Matters for Students

From the outside, a college may still appear robust. However, once on campus, you might notice fewer course options, limited extracurricular activities, or faculty turnover—signs of an institution under financial or enrollment strain.

While prestige and selectivity often dominate college discussions, stability is equally crucial—especially if you plan to spend four formative years there, build relationships, and launch your career.

When a school is shrinking, several aspects can be affected:

  • Academic Quality: Reduced funding may lead to fewer classes and less experienced professors.
  • Student Life: Clubs, sports teams, and campus events often suffer.
  • Career Outcomes: A declining alumni network and fewer on-campus recruiting opportunities can impact job prospects.

How to Evaluate a School’s Trajectory

This doesn’t mean you should avoid all small or regional schools—many offer excellent programs and personalized support. However, it’s essential to look beyond rankings.

Here are a few factors to consider:

  • Enrollment Trends: Review the past 5–10 years. Are numbers increasing, decreasing, or stable?
  • Financial Health: Is the college investing in new programs or facilities, or is it closing departments?
  • Campus Morale: Read the student newspaper or forums. What are students saying about their experiences?
  • Location: Colleges in declining towns may face more challenges than those in growing urban centers.

Strategic Application = Future-Focused Thinking

At InGenius Prep, we guide students not just toward getting in—but toward thriving once they’re there. That means helping families weigh not only academic fit and prestige but also long-term institutional health.

If you’re building your school list now, ask yourself:

  • Will this school support me academically and personally for four years?
  • Is it on solid financial footing?
  • Does it have a clear vision for the future?

Choosing a college isn’t just about where you start—it’s about where that choice can take you. Let us help you build a list that considers all the factors that matter.


Want Help Evaluating Your College List?

Schedule a free consultation with one of our expert counselors today. We’ll help you assess schools based on academic fit, financial stability, and long-term opportunities to ensure you make the best choice for your future.

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