Category: Consulting

Higher education is experiencing transformative shifts as institutions respond to societal, economic, and technological changes. This year is set to bring new opportunities and challenges. We’re always keeping a pulse on the industry and where it’s headed so we can stay proactive and prepared –– ready to support our partners through whatever conditions they’re facing.

The pace of mergers and consolidations among smaller colleges is expected to accelerate in 2025, according to Collegis Education CEO Kim Fahey. With financial pressures and declining enrollment, many institutions will view mergers as a strategic alternative to closure. But these transitions are anything but simple.

“Mergers involve unique technology requirements and complex data management challenges,” Fahey explains. Successfully integrating applications, systems, and hardware requires expert guidance. Higher ed leaders will look to partner with experienced organizations to help navigate these intricacies.

The information security landscape is becoming increasingly intricate. With 21 comprehensive state privacy laws, alongside European Union (EU) regulations, federal rules, and Title IV requirements, compliance challenges are mounting.

“Smaller schools often lack the experience and qualifications to manage these threats,” notes Dr. Jason Nairn, CISSP, Collegis VP of Information Technology. Cyberattacks, like phishing and social engineering, are relentless. In 2025, institutions must prioritize more robust cybersecurity measures, leveraging external partnerships and security tools to protect sensitive data.

Cloud migration will take center stage as institutions transition away from outdated, on-campus systems. While many schools still rely on highly customized platforms, which limits their ability to adopt or migrate to more modern technology, the adaptability and scalability of cloud platforms are simply too compelling to ignore.

Furthermore, technology infrastructures must be sufficiently modernized in order to capitalize on emerging tech innovations in AI and predictive analysis. This process can’t happen overnight –– it’s an evolution, according to Fahey.

“Cloud migrations take 18+ months, so schools need to act now,” she emphasizes. An institution-wide commitment to digital transformation will not only modernize operations but also position institutions to stay competitive in an increasingly tech-driven environment.

Financial constraints will push smaller schools toward shared services and consortium models to access the technology and expertise they need at a manageable scale. These models allow institutions to pool resources and reduce costs but require significant change management, according to Jeff Certain, VP of Solution Development at Collegis.

“This will require schools to standardize and make some concessions,” Certain explains. “This could pose a challenge, but they may not have an option.” Institutions must embrace these shifts to remain sustainable while navigating limited budgets.

Programs aligning with workforce needs will gain momentum in 2025. Alternative credentials like microcredentials and certificates will become more prominent, offering shorter, career-oriented pathways for learners.

“Institutions will increasingly recognize and credit learning outside the classroom, exploring more direct pathways into the workforce,” predicts Dr. Tracy Chapman, Chief Academic Officer for Collegis. This reflects growing demand for flexible, career-focused education that meets student and employer expectations.

It is not just colleges and universities facing consolidation. Ed tech companies and services providers are also reshaping the landscape with their own mergers and acquisitions. While these changes may offer schools more comprehensive solutions, they may not necessarily align with institutional objectives.

“Some recent acquisitions have led to poorer customer experiences,” Fahey observes. Institutions must carefully evaluate new partnerships to ensure they will deliver meaningful improvements.

With the “enrollment cliff” looming, institutions must double down on maintaining their existing student base as a key to sustainability. Purposeful and cost-effective retention strategies will play a pivotal role in maintaining financial health, as retaining current students is often more cost-effective than recruiting new ones.

“Retention strategies build stronger, more loyal communities,” says Patrick Green, VP of Enrollment Strategy. Forward-looking schools have perceived the importance of fostering a sense of belonging across the student lifecycle and are providing robust support networks that improve student persistence and satisfaction.

Students and families are increasingly demanding clear ROI from their education. As a result, institutions will need to demonstrate how their programs lead directly to employment and career advancement.

“Building relationships with regional industries and showcasing job placement rates will be essential,” advises Tanya Pankratz, AVP of Marketing at Collegis. Marketing efforts will need to start highlighting tangible outcomes (e.g., alumni success stories, job placement rates, and employer partnerships) to win over prospective students.

AI and other emerging technologies will revolutionize higher education operations. From enrollment management and personalized marketing to virtual campus tours using augmented reality (AR) and virtual reality (VR), technology has the means to dramatically enhance the student experience –– or wreak technical havoc if data, platforms and tools are misaligned.

“AI-driven tools make personalization more accessible, but the strategy remains critical,” notes Dan Antonson, AVP of Data and Analytics. Institutions must invest in data infrastructure to fully harness these advancements in order to build and maintain a competitive edge.

Higher ed institutions are increasingly recognizing that they don’t need to own the entire value chain. In 2025, strategic partnerships will play a more prominent role.

“Institutions will double down on their core mission of education and seek out partners to support other critical functions,” Dr. Chapman explains. These partnerships provide access to technology, expertise, and resources, allowing schools to focus on what they do best — educating students.

As evident in this compilation of higher ed trends, the landscape is set for significant change in 2025 and beyond. Institutions that proactively address these trends will be well-positioned to navigate challenges and seize opportunities. By embracing digital transformation, fostering strategic partnerships, and adopting value-driven approaches, schools can ensure long-term success in an evolving marketplace.

Excited about the opportunities that lie ahead? Collegis Education has the experience and expertise to guide you through any twists and turns you may face. We’ll help you stay on the leading edge instead of chasing trends. Connect with us and let’s start creating solutions together.