October 27, 2025, By Dean Hoke—As many of you know, I am deeply committed to helping small and mid-sized colleges find sustainable paths forward. That’s why I’m proud to announce the launch of the Edu Alliance Group Center for College Partnerships and Alliances, dedicated to helping institutions explore partnerships, mergers, and strategic alliances that strengthen their mission and impact.
The Center will be led by newly appointed partners Dr. Chet Haskell and Dr. Barry Ryan, two distinguished higher education leaders with deep experience in governance, accreditation, and institutional transformation. Together, they bring a wealth of expertise in guiding colleges and universities through complex transitions while preserving mission integrity and academic excellence.
The Center’s framework draws on insights presented in “A Guide to College Partnerships, Mergers, and Strategic Alliances for Boards and Leadership:From Awareness to Implementation,” authored by Dr. Chet Haskell, Dr. Barry Ryan, and Edu Alliance Managing Partner Dean Hoke. The guide outlines a five-stage model: Recognize, Assess, Explore, Negotiate, and Implement. It emphasizes mission integrity, transparency, and trust as the foundation for success.
“Our goal is to help college leaders and boards move from awareness to action with clarity, confidence, and compassion,” said Dr. Haskell. “Partnerships and alliances can preserve institutional identity while creating new opportunities for students and communities.”
“Edu Alliance has long supported institutions navigating change,” added Dean Hoke, Co-Founder and Managing Partner. “With the launch of the Center, we’re expanding our ability to help presidents and boards design solutions that are both visionary and pragmatic.”
About the Leadership
Dr. Chester (Chet) Haskell recently completed six and a half years as Vice Chancellor for Academic Affairs and University Provost at Antioch University, where he played key roles in integrating the institution academically and structurally, as well as in creating the Coalition for the Common Good with Otterbein University, where he was Vice President for Graduate Programs. He previously held senior positions at Harvard University—including Associate Dean of the Kennedy School of Government—and later served as Dean of the College at Simmons College (Boston). Dr. Haskell went on to serve as President of both the Monterey Institute of International Studies (now part of Middlebury College) and Cogswell Polytechnical College, leading both institutions through successful mergers. He holds DPA and MPA degrees from the University of Southern California, an MA from the University of Virginia, and an AB cum laude from Harvard University.
Dr. Barry Ryan has served as President of five universities and as Provost and Chief of Staff at three others, spanning state, private nonprofit, and private for-profit institutions. A Supreme Court Fellow in the chambers of Chief Justice William H. Rehnquist, Dr. Ryan is a member of several federal and state bars and has held two terms as Commissioner for WASC (WSCUC). He has led institutions through mergers, acquisitions, and affiliations that preserved academic quality, expanded access, and strengthened long-term viability. His leadership is characterized by transparency, shared governance, and a deep commitment to stakeholder engagement. Dr. Ryan earned his Ph.D. from the University of California, Santa Barbara, his J.D. from the University of California, Berkeley, and a Dipl.GB in international business from the University of Oxford.
Webinar December 3, 2025 | 1:00 PM (Eastern) Presented by Small College America with support from Edu Alliance and the American Association of University Administrators
We Need Your Questions: To make this conversation meaningful, we need your perspective. We’re asking higher education leaders to take five minutes to complete a short, confidential survey before the event. WEBINAR SURVEY LINK
By Dean Hoke, October 6, 2025: Mergers and closures are not new to higher education. In the 1970s alone, nearly 225 institutions either closed or merged—roughly 7% of all degree-granting institutions at the time. I experienced this personally when my alma mater permanently closed in 2020. Like thousands of alumni, I grieved the loss of a place that had shaped my life. But I also understood something many did not: this wasn’t an isolated tragedy—it was part of a larger historical cycle of growth, contraction, and reinvention.
In the early 1990s, I was directly involved as President of a public television station that merged with a local public radio station. The process was emotional and complex, requiring open communication, transparency, and leadership from every level. As of today, both of these stations exist within one organization and are doing well. Those lessons stayed with me throughout my career in higher education.
During my tenure as President/CEO of the American Association of University Administrators (AAUA), it became evident that higher education was entering a new era of financial strain and demographic pressure. Colleges were being forced to explore collaboration and consolidation not as strategic options—but as survival imperatives.
At the AAUA national conference, we hosted two candid conversations about this reality:
A four-hour off-the-record roundtable session titled “Mergers and Acquisitions: Navigating Higher Ed’s Complex Landscape,” which included two leading higher education attorneys, the head of an acquisition firm specializing in higher education, and the Provost of a university that was being merged.
A public session featuring Dr. Chet Haskell (Antioch University) and Dr. Wendy Heckler (Otterbein University), who shared their groundbreaking work on the Coalition for the Common Good.
Why This Webinar Matters
According to Inside Higher Education’s 2025 Survey of College and University Presidents, one in three presidents at private nonprofit institutions report that their boards and senior leadership teams have had serious discussions about merging or consolidating. Even more telling:
17% believe a merger or acquisition involving their institution is somewhat or very likely in the next five years.
33% expect they may acquire another institution during that same period.
These numbers underscore a critical truth: every institution should be preparing for the possibility of structural change—even those that appear stable today.
That’s why this conversation matters now. It’s not about predicting which colleges will survive. It’s about helping leaders understand how to respond when the discussion moves from theoretical to real—when preservation of mission and identity must be balanced with financial reality.
The Upcoming Webinar
Against this backdrop, Small College America, with the support of Edu Alliance and AAUA, will host a live 90-minute webinar:
“Navigating Higher Education’s Existential Challenges: From Partnerships and Mergers to Reinvention”Tuesday, December 3, 2025 | 1:00 PM Eastern
This will not be another PowerPoint presentation filled with charts and trends. Instead, a panel of leaders who have lived through mergers, partnerships, and reinvention will share what they learned from the inside.
Panelists include:
Dr. Chet Haskell, Former Provost, Antioch University, and key architect of the Coalition for the Common Good
Dr. Barry Ryan, Retired President, Woodbury University, who recently led his institution through a merger with University of Redlands
AJ Prager, Managing Director at Hilltop Securities, specializing in Higher Education Mergers & Acquisitions and Strategic Partnerships
Higher education legal expert to be announced
Dean Hoke and Kent Barnds, co-hosts of Small College America, will moderate the conversation. Our focus is on the human side of institutional transformation—the conversations that happen behind closed doors, the decisions that test leadership resolve, and the strategies that allow communities to emerge stronger.
Registration for this free webinar will begin on November 3rd.
Who Should Attend
This webinar is designed for:
Presidents, provosts, and trustees facing questions of sustainability or succession.
CFOs and senior administrators managing budget pressures or enrollment cliffs.
Board members and advisors preparing for strategic decision-making.
If you’ve heard phrases like “structural deficit,” “strategic alternatives,” or “path to viability” in your recent meetings, this discussion is for you.
Why We Need Your Voice
To make this conversation meaningful, we need your perspective. We’re asking higher education leaders to take five minutes to complete a short, confidential survey before the event. Your input will directly shape the webinar by:
Identifying the most urgent questions institutions are facing.
Prioritizing real-world concerns rather than theoretical discussions.
Allowing panelists to address the issues keeping leaders awake at night.
This is your opportunity to ensure that the session reflects the realities of your campus—not assumptions from the outside. Your identity will remain anonymous; our goal is to understand the questions, not who’s asking them.
Survey closes November 29 to allow time for integration into the program.
The Growing Movement to Reform Research Assessment and Rankings
By Dean Hoke, September 22, 2025: For the past fifteen years, I have been closely observing what can only be described as a worldwide fascination—if not obsession—with university rankings, whether produced by Times Higher Education, QS, or U.S. News & World Report. In countless conversations with university officials, a recurring theme emerges: while most acknowledge that rankings are often overused by students, parents, and even funders when making critical decisions, few deny their influence. Nearly everyone agrees that rankings are a “necessary evil”—flawed, yet unavoidable—and many institutions still direct significant marketing resources toward leveraging rankings as part of their recruitment strategies.
It is against this backdrop of reliance and ambivalence that recent developments, such as Sorbonne University’s decision to withdraw from THE rankings, deserve closer attention
In a move that signals a potential paradigm shift in how universities position themselves globally, Sorbonne University recently announced it will withdraw from the Times Higher Education (THE) World University Rankings starting in 2026. This decision isn’t an isolated act of defiance—Utrecht University had already left THE in 2023, and the Coalition for Advancing Research Assessment (CoARA), founded in 2022, has grown to 767 members by September 2025. Together, these milestones reflect a growing international movement that questions the very foundations of how we evaluate academic excellence.
The Sorbonne Statement: Quality Over Competition
Sorbonne’s withdrawal from THE rankings isn’t merely about rejecting a single ranking system. It appears to be a philosophical statement about what universities should stand for in the 21st century. The institution has made it clear that it refuses to be defined by its position in what it sees as commercial ranking matrices that reduce complex academic institutions to simple numerical scores.
Understanding CoARA: The Quiet Revolution
The Coalition for Advancing Research Assessment represents one of the most significant challenges to traditional academic evaluation methods in decades. Established in 2022, CoARA has grown rapidly to include 767 member organizations as of September 2025. This isn’t just a European phenomenon—though European institutions have been early and enthusiastic adopters. The geographic distribution of CoARA members tells a compelling story about where resistance to traditional ranking systems is concentrated. As the chart shows, European countries dominate participation, led by Spain and Italy, with strong engagement also from Poland, France, and several Nordic countries. This European dominance isn’t accidental—the region’s research ecosystem has long been concerned about the Anglo-American dominance of global university rankings and the way these systems can distort institutional priorities.
The Four Pillars of Reform
CoARA’s approach centers on four key commitments that directly challenge the status quo:
1. Abandoning Inappropriate Metrics The agreement explicitly calls for abandoning “inappropriate uses of journal- and publication-based metrics, in particular inappropriate uses of Journal Impact Factor (JIF) and h-index.” This represents a direct assault on the quantitative measures that have dominated academic assessment for decades.
2. Avoiding Institutional Rankings Perhaps most relevant to the Sorbonne’s decision, CoARA commits signatories to “avoid the use of rankings of research organisations in research assessment.” This doesn’t explicitly require withdrawal from ranking systems, but it does commit institutions to not using these rankings in their own evaluation processes.
3. Emphasizing Qualitative Assessment The coalition promotes qualitative assessment methods, including peer review and expert judgment, over purely quantitative metrics. This represents a return to more traditional forms of academic evaluation, albeit updated for modern needs.
4. Responsible Use of Indicators Rather than eliminating all quantitative measures, CoARA advocates for the responsible use of indicators that truly reflect research quality and impact, rather than simply output volume or citation counts.
European Leadership
Top 10 Countries by CoARA Membership:
The geographic distribution of CoARA members tells a compelling story about where resistance to traditional ranking systems is concentrated. As the chart shows, European countries dominate participation, led by Spain and Italy, with strong engagement also from Poland, France, and several Nordic countries. This European dominance isn’t accidental—the region’s research ecosystem has long been concerned about the Anglo-American dominance of global university rankings and the way these systems can distort institutional priorities.
The geographic distribution of CoARA members tells a compelling story about where
Prestigious European universities like ETH Zurich, the University of Zurich, Politecnico di Milano, and the University of Manchester are among the members, lending credibility to the movement. However, the data reveals that the majority of CoARA members (84.4%) are not ranked in major global systems like QS, which adds weight to critics’ arguments about institutional motivations.
CoARA Members Ranked vs Not Ranked in QS:
The Regional Divide: Participation Patterns Across the Globe
What’s particularly striking about the CoARA movement is the relative absence of U.S. institutions. While European universities have flocked to join the coalition, American participation remains limited. This disparity reflects fundamental differences in how higher education systems operate across regions.
American Participation: The clearest data we have on institutional cooperation with ranking systems comes from the United States. Despite some opposition to rankings, 78.1% of the nearly 1,500 ranked institutions returned their statistical information to U.S. News in 2024, showing that the vast majority of American institutions remain committed to these systems. However, there have been some notable American defections. Columbia University is among the latest institutions to withdraw from U.S. News & World Report college rankings, joining a small but growing list of American institutions questioning these systems. Yet these remain exceptions rather than the rule.
European Engagement: While we don’t have equivalent participation rate statistics for European institutions, we can observe their engagement patterns differently. 688 universities appear in the QS Europe ranking for 2024, and 162 institutions from Northern Europe alone appear in the QS World University Rankings: Europe 2025. However, European institutions have simultaneously embraced the CoARA movement in large numbers, suggesting a more complex relationship with ranking systems—continued participation alongside philosophical opposition.
Global Participation Challenges: For other regions, comprehensive participation data is harder to come by. The Arab region has 115 entries across five broad areas of study in QS rankings, but these numbers reflect institutional inclusion rather than active cooperation rates. It’s important to note that some ranking systems use publicly available data regardless of whether institutions actively participate or cooperate with the ranking organizations.
This data limitation itself is significant—the fact that we have detailed participation statistics for American institutions but not for other regions may reflect the more formalized and transparent nature of ranking participation in the U.S. system versus other global regions.
American universities, particularly those in the top tiers, have largely benefited from existing ranking systems. The global prestige and financial advantages that come with high rankings create powerful incentives to maintain the status quo. For many American institutions, rankings aren’t just about prestige—they’re about attracting international students, faculty, and research partnerships that are crucial to their business models.
Beyond Sorbonne: Other Institutional Departures
Sorbonne isn’t alone in taking action. Utrecht University withdrew from THE rankings earlier, citing concerns about the emphasis on scoring and competition. These moves suggest that some institutions are willing to sacrifice prestige benefits to align with their values. Interestingly, the Sorbonne has embraced alternative ranking systems such as the Leiden Open Rankings, which highlight its impact.
The Skeptics’ View: Sour Grapes or Principled Stand?
Not everyone sees moves like Sorbonne’s withdrawal as a noble principle. Critics argue that institutions often raise philosophical objections only after slipping in the rankings. As one university administrator put it: “If the Sorbonne were doing well in the rankings, they wouldn’t want to leave. We all know why self-assessment is preferred. ‘Stop the world, we want to get off’ is petulance, not policy.”
This critique resonates because many CoARA members are not major players in global rankings, which fuels suspicion that reform may be as much about strategic positioning as about values. For skeptics, the call for qualitative peer review and expert judgment risks becoming little more than institutions grading themselves or turning to sympathetic peers.
The Stakes: Prestige vs. Principle
At the heart of this debate is a fundamental tension: Should universities prioritize visibility and prestige in global markets, or focus on measures of excellence that reflect their mission and impact? For institutions like the Sorbonne, stepping away from THE rankings is a bet that long-term reputation will rest more on substance than on league table positions. But in a globalized higher education market, the risk is real—rankings remain influential signals to students, faculty, and research partners. Rankings also exert practical influence in ways that reformers cannot ignore. Governments frequently use global league tables as benchmarks for research funding allocations or as part of national excellence initiatives. International students, particularly those traveling across continents, often rely on rankings to identify credible destinations, and faculty recruitment decisions are shaped by institutional prestige. In short, rankings remain a form of currency in the global higher education market.
This is why the decision to step away from them carries risk. Institutions like the Sorbonne and Utrecht may gain credibility among reform-minded peers, but they could also face disadvantages in attracting international talent or demonstrating competitiveness to funders. Whether the gamble pays off will depend on whether alternative measures like CoARA or ROI rankings achieve sufficient recognition to guide these critical decisions.
The Future of Academic Assessment
The CoARA movement and actions like Sorbonne’s withdrawal represent more than dissatisfaction with current ranking systems—they highlight deeper questions about what higher education values in the 21st century. If the movement gains further momentum, it could push institutions and regulators to diversify evaluation methods, emphasize collaboration over competition, and give greater weight to societal impact.
Yet rankings are unlikely to disappear. For students, employers, and funders, they remain a convenient—if imperfect—way to compare institutions across borders. The practical reality is that rankings will continue to coexist with newer approaches, even as reform efforts reshape how universities evaluate themselves internally.
Alternative Rankings: The Rise of Outcome-Based Assessment
While CoARA challenges traditional rankings, a parallel trend focuses on outcome-based measures such as return on investment (ROI) and career impact. Georgetown University’s Center on Education and the Workforce, for example, ranks more than 4,000 colleges on the long-term earnings of their graduates. Its findings tell a very different story than research-heavy rankings—Harvey Mudd College, which rarely appears at the top of global research lists, leads ROI tables with graduates projected to earn $4.5 million over 40 years.
Other outcome-oriented systems, such as The Princeton Review’s “Best Value” rankings, emphasize affordability, employment, and post-graduation success. These approaches highlight institutions that may be overlooked by global research rankings but deliver strong results for students. Together, they represent a pragmatic counterbalance to CoARA’s reform agenda, showing that students and employers increasingly want measures of institutional value beyond research metrics alone.
These alternative models can be seen most vividly in rankings that emphasize affordability and career outcomes. *The Princeton Review’s* “Best Value” rankings, for example, combine measures of financial aid, academic rigor, and post-graduation outcomes to highlight institutions that deliver strong returns for students relative to their costs. Public universities often rise in these rankings, as do specialized colleges that may not feature prominently in global research tables.
Institutions like the Albany College of Pharmacy and Health Sciences illustrate this point. Although virtually invisible in global rankings, Albany graduates report median salaries of $124,700 just ten years after graduation, placing the college among the best in the nation on ROI measures. For students and families making education decisions, data like this often carries more weight than a university’s position in QS or THE.
Together with Georgetown’s ROI rankings and the example of Harvey Mudd College, these cases suggest that outcome-based rankings are not marginal alternatives—they are becoming essential tools for understanding institutional value in ways that matter directly to students and employers.
Rankings as Necessary Evil: The Practical Reality
The CoARA movement and actions like Sorbonne’s withdrawal represent more than just dissatisfaction with current ranking systems. They reflect deeper questions about the values and purposes of higher education in the 21st century.
If the movement gains momentum, we could see:
Diversification of evaluation methods, with different regions and institution types developing assessment approaches that align with their specific values and goals
Reduced emphasis on competition between institutions in favor of collaboration and shared improvement
Greater focus on societal impact rather than purely academic metrics
More transparent and open assessment processes that allow for a better understanding of institutional strengths and contributions
Conclusion: Evolution, Not Revolution
The Coalition for Advancing Research Assessment and decisions like Sorbonne’s withdrawal from THE rankings represent important challenges to how we evaluate universities, but they signal evolution rather than revolution. Instead of the end of rankings, we are witnessing their diversification. ROI-based rankings, outcome-focused measures, and reform initiatives like CoARA now coexist alongside traditional global league tables, each serving different audiences.
Skeptics may dismiss reform as “sour grapes,” yet the concerns CoARA raises about distorted incentives and narrow metrics are legitimate. At the same time, American resistance reflects both philosophical differences and the pragmatic advantages U.S. institutions enjoy under current systems.
The most likely future is a pluralistic landscape: research universities adopting CoARA principles internally while maintaining a presence in global rankings for visibility; career-focused institutions highlighting ROI and student outcomes; and students, faculty, and employers learning to navigate multiple sources of information rather than relying on a single hierarchy.
In an era when universities must demonstrate their value to society, conversations about how we measure excellence are timely and necessary. Whether change comes gradually or accelerates, the one-size-fits-all approach is fading. A more complex mix of measures is emerging—and that may ultimately serve students, institutions, and society better than the systems we are leaving behind. In the end, what many once described to me as a “necessary evil” may persist—but in a more balanced landscape where rankings are just one measure among many, rather than the single obsession that has dominated higher education for so long.
Dean Hoke is Managing Partner of Edu Alliance Group, a higher education consultancy. He formerly served as President/CEO of the American Association of University Administrators (AAUA). Dean has worked with higher education institutions worldwide. With decades of experience in higher education leadership, consulting, and institutional strategy, he brings a wealth of knowledge on colleges’ challenges and opportunities. Dean is the Executive Producer and co-host for the podcast series Small College America.
September 8, 2025, by Dr. Chet Haskell: It is well known that many small American private non-profit academic institutions face serious financial pressures. Typically defined as having 3000 or fewer students, more than 170 of these have been forced to close in the past two decades. Numerous others have entered into various mergers or acquisitions, often with well-documented negative impacts on students, faculty, staff, alumni and local communities. Of the more than 1100 such institutions, at least 900 continue to be a risk.
The basic problems responsible for this trend are also well-known. Most institutions lack significant endowments and are thus almost totally dependent on tuition and fee revenues from enrolled students. Only 60 such small institutions have per student endowments in excess of $200,000. The remainder have far less.
The only additional potential source of revenue – gifts and donations –is generally neither large nor consistent enough to offset enrollment-related declines. While the occasional donation or bequest in the millions of dollars garners attention, most institutions raise much smaller amounts regularly.
Enrollment declines are the existential threat to many of these smaller colleges and universities. These declines are also well-documented. There simply will be fewer high school graduates in the US in the coming decade or more. This reality creates a highly competitive environment, especially in regions with many of these institutions.
Demographic worries are augmented by broad concerns about the cost of higher education and the imputed return on such an investment by students and families. Governmental policies such as limitations on international students or restrictions on immigration further add to the problem. Also, these institutions not only compete with each other for students, but they also compete with colleges and universities of the public sector and a growing number of for-profit entities.
Most of these 900 or so institutions have high quality programs, often described under the term “liberal arts”. Many are differentiated by a specialization or an emphasis. However, at their core they are very similar. The basic concept of a personal scale four-year undergraduate educational experience provided in a residential campus setting has a long history and is highly valued by many students and faculty alike. These institutions have lengthy, strong histories, loyal alumni and important roles in their local communities.
The fact is that it is difficult to differentiate among many of these institutions. Not only their scale or their general model of personalized undergraduate education are similar, but many of their basic messages sound the same. A review of the websites of these schools results in striking consistencies of stated “unique” missions, programs, facilities, faculty and even marketing materials.
Their approaches to financial challenges are also similar. There is considerable competition on price. Most of these institutions discount their formal tuition rates by 50% or more. Initiatives to grow enrollments support an industry of educational consultants whose recommended initiatives are themselves similar and, even if successful, are quickly copied, thus reducing advantages.
Some have tried to compete by raising money for new, attractive facilities through dipping into limited endowments, borrowing or securing external major gifts. These shiny new buildings – athletic facilities, science centers, student centers – are assumed to provide an edge in student recruitment. In some cases, this works. However, in many others the new facilities do not come with long term maintenance and eventually add to increased on-going institutional expense. The end result is often another demonstration of similarity.
Some institutions have tried to branch out into selected graduate programs, perhaps based on a strong group of undergraduate faculty. Success is often limited for multiple reasons. Graduate students in commonly introduced professional fields such as business or nursing do not naturally align with an undergraduate in-person academic calendar. Older students, especially those in careers, are reluctant to come to a campus for class twice a week. Even if there is sufficient interest in such a program, it is difficult to increase in scale because of the limits of distance and geography. And most of these institutions lack significant expertise and technology do conduct effective on-line operations.
Their institutional similarities extend to their governance. Typically, there is a Board of Trustees, all of whom are volunteers, often with heavy alumni representation. These boards generally lack expertise or perspective on the challenges of higher education and thus are dependent on the appointed executive leadership. They often take a short-term perspective and lack strategic foresight that may be most valuable in times of uncertainty and external changes.
Even when trustees have financial experience from other fields, their common approach to small institutions is to bemoan any lack of enrollments. Most do not make significant personal financial contributions, particularly if they think the institution is struggling to survive. The assumed budget goal is basically a balanced budget and when one does not control revenues, one focuses on the more controllable expense side, trying to balance budgets solely on cuts. Board members serve because they want to support the institution, but many are risk adverse. For example, a fear of being associated with an institution that might generate possible legal liability for the board member means a first concern usually involves whether there is sufficient insurance.
While every institution is indeed different in its own way, they also are very similar. What explains this?
One possible way of explanation is provided by the organizational theorists Walter Powell and Paul DiMaggio who in 1983 (updated in 1991) published a seminal piece on what they called ”institutional isomorphism and collective rationality.” [1]They argued that ”institutions in the same field become more homogenous over time without become more efficient or more successful” and identified three basic reasons for such a tendency.
Coercive isomorphism – similarities imposed externally on the institutions. In higher education, good examples would be Federal government policies around student financial aid or the requirements of both regional and specialized accreditors. Every institution operates within a web of regulation and financial incentives that impose requirements on all and work to limit innovation.
Mimetic processes – similarities that arise because of standard responses to uncertainty. Prime examples in higher education are the increasingly common responses to the quest for enrollment growth. As noted, numerous consultants purport to improve enrollments, but the gains typically are limited, as other institutions mimic the same approach. In another example, recent surveys show that almost all institutions expect to be users of artificial intelligence models to promote marketing in the service of admissions, as if this is a “magic wand”. If one institution makes strides in this area, others will follow. The result will be more similarity, not less. It is a bit like the Ukrainian-Russian war, where Ukraine originally had clear advantages using drone technology until that technology was matched by the Russians, leading to a form of stalemate. As DiMaggio and Powell note, ”organizations tend to model themselves after similar organizations in their field that they perceive as more legitimate or successful.”[2]
Normative pressures – similarities that arise from common “professional” expectations. The authors identify two important aspects of professionalization: the common basis of higher education credentials and the legitimation produced by these credentials and “the growth and elaboration of professional networks.” Examples include common faculty and senior administrator qualification requirements. Another would be so-called “best practices” in support areas like student affairs. “Such mechanisms create a pool of almost interchangeable individuals who occupy similar positions.”[3] Recently, Hollis Robbins pointed out the commonalities in paths to academic leadership positions, likening these to the Soviet nomenklatura process through which a leader progresses in one’s career.[4] Evidence of this is obvious through a cursory review of the qualifications and desired qualities posted in searches for college and university presidents or other senior administrators. Most searches end up looking for and hiring individuals with very similar qualifications and experience.
The implications of such pressures and processes are several. With common values and similar personnel, “best practices” do not lead to essential changes. Innovation is quickly copied. Indeed, it becomes increasing difficult to differentiate an institution from competitors. Common regulatory structures, declining student pools, increased competition and a lack of resources for investment all combine to enhance similarity over difference. In some sense, it is almost a form of commodification where price does in fact matter, but the “product” basically the same, especially in the minds of the larger population of potential students and families.
What is to be done?
Leadership Must Confront Their Institution’s Reality
Confronting reality has many aspects, but the leaders of every institution must be clear-eyed and unsentimental about where it stands and where it is headed. This is an essential role for boards and executive leadership.
First and foremost, the mission of the institution must be understood in realistic and practical ways. What is the institution’s purpose and what is required to fulfill that purpose? Institutional mission is central as it should drive an appreciation for the current situation of the institution, provide clarity regarding longer term goals and bringing into focus the necessary means to move forward.
With clarity of mission must come a full understanding the of institution’s financial situation, its opportunities and the longer term needs required to achieve mission goals. Building multi-year mission-oriented budgets based on surpluses (positive margins) is key. Sometimes restructuring and cuts are necessary and thus leadership must make sure all faculty and staff have a clear understanding of reality and the strategy for addressing it.
A clear understanding by all of the marginal results (positive and negative) of major components is also critical. Some elements or units return significant positive margins. Others less so. And some return negative margins, often year after year. Yet, some of these less financially productive elements may be essential to mission and must be balanced or subsidized by other elements. At the end of the day, it is the margin of the entire institution that matters. And, as the saying goes, “no margin, no mission.” However, the opposite is also true. Institutions that are unclear about their mission will be challenged to attract and motivate students, faculty, staff or major donations.
Every institution must worry about enrollments as the largest source of revenue. Declining enrollments force expense restraints. Every institution must also be concerned about growing enrollments as a key prerequisite of financial stability. Institutions operating on thin or negative margins cannot hope to achieve their mission goals without some form of growth, including having the resources to invest in growth. Without some forms of growth, an institution will either be at risk or will have to make sometimes radical changes in order to continue to pursue mission goals. The only real alternative is to amend the mission and the definition of its success.
The other important point is that all institutions are subject to unexpected external pressures that they cannot control. Examples would be 9/11, the 2008-09 Great Recession, the COVID pandemic or the advent new government policies, such as those confronting all institutions today. Coping with such events requires having some financial resiliency, strong leadership and creativity.
Yet, the combination of external pressures and the realities of small-scale institutions operating on thin margins in the face of extensive competition may mean that even the best managed and led organizations will confront existential risk.
For many institutions, merging or partnering with another institution may be the only realistic path. While there often is reluctance to cede independence to another institution, mergers are hardly new, as consolidation in US higher education is hardly a new phenomenon. There are several hundred examples of mergers, many going back a century or more. Washington and Jefferson College in Pennsylvania in 1865 is the result of such an arrangement, as is Case Western Reserve University in Ohio a century later. In addition to these mergers, hundreds of other institutions have simply closed, including at least 170 in the past twenty years.
Additionally, may institutions may be placed to take advantage of consortium relationships with other institutions. Again, there are numerous examples of institutions seeking to improve their situations through this form of collaboration. Participating institutions collaborate on such things as sharing costs or providing a wider range of student options, while remaining independent. However, this model, while valuable in many ways, rarely provides major financial advantages except at the margins. And successful consortia require a certain degree of independent sustainability for each member.
Still others may be able find opportunity in growth through symbiosis. The recent Coalition for the Common Good begun by Antioch and Otterbein universities is an example. Other variants are possible. However, again such middle ground models also assume a basic stability of the members. As stated by Coalition president, John Comerford, “we are looking for a sweet spot of resources. This is not a way to save a school on death’s door. It’s also probably not useful to a school with billions in their endowment. Institutions in the big middle ground both need to look at new business models and likely have some flexibility to invest in them.” This type of model will not work in many cases.
The point is that many of these small college will continue to be at risk as long as they are tuition dependent within a shrinking pool of potential students and insufficient external support. Fewer and fewer small institutions will be able to survive independently simply because of the financial challenges inherent in their small-scale model.
Small undergraduate institutions represent the highest ideals of higher education. They are a key source for graduate students and future professors. They are central to their communities. Their strengthening and preservation as a class is an essential element of the American higher education ecosystem with its wide range of institutional models and opportunities. But this does not mean all can survive.
The leaders of every institution need to have a clear and practical plan for the maintenance of their independence, while also being open to careful consideration of alternatives, exploring potential alternatives well before they face a crisis.
Notes:
DiMaggio, Paul and Powell, Walter, The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields in DiMaggio and Powell, The New Institutionalism in Organizational Analysis, University of Chicago Press, 1991. (pp.63-82)
Ibid. p. 70
Ibid. p. 71
Hollis Robbins, The Higher Ed Nomenklatura? Inside Higher Education, May 12, 2025
The next essay in this series will examine in some detail the steps in a process that begins with acknowledging the possible need for a partner and hopefully results in an agreement that is implemented.
Dr. Chet Haskell is Senior Consultant and Higher Education Strategist at Edu Alliance Group. He brings over four decades of leadership and consulting experience in higher education, with a career spanning the U.S., Europe, Latin America, and Asia. He has held senior roles, including President of the Monterey Institute of International Studies and Cogswell Polytechnical College, Dean and de facto Provost at Simmons College, and 13 years of leadership positions at Harvard University and five years in senior administrative roles at the University of Southern California.
As Provost and Chief Academic Officer of Antioch University, he helped lead the creation of the Coalition for the Common Good, a groundbreaking alliance with Otterbein University. Internationally, Dr. Haskell has advised universities in Mexico, Spain, Holland, and Brazil and served as a consultant to the Council for Higher Education Accreditation (CHEA), the Western Association of Schools and Colleges (WASC) and the Council on International Quality Group. A respected accreditation expert, he has served as a WSCUC peer reviewer and as an international advisor to ANECA (Spain) and ACAP (Madrid). He is a frequent speaker at global conferences and meetings.
Insights from three post-COVID presidents on enrollment, financial sustainability, and strategic innovation
September 3, 2025, by Dean Hoke: Small colleges across America face an unprecedented convergence of challenges—demographic shifts, federal policy changes, evolving student expectations, and the lingering effects of COVID-19. In an August 27th Small College America webinar hosted by Dean Hoke and Kent Barnds, three presidents shared how they are navigating these pressures with fresh strategies and resilient leadership: Dr. Anita Gustafson of Presbyterian College, Dr. Andrea Talentino of Augustana College, and Dr. Tarek Sobh of Lawrence Technological University.
Their conversation revealed that while the obstacles are significant, thoughtful leadership and adaptive strategies can position small colleges to not just survive but thrive.
The Enrollment and Financial Sustainability Imperative
Finding Opportunity in Transfers
For Presbyterian College, located in growing South Carolina, President Gustafson has found opportunity amid challenge. “About 60% of our students come from South Carolina, and the state is growing, which helps us,” she noted. However, rather than relying solely on traditional recruitment, the college has pivoted to focus on transfer students—a population they hadn’t previously targeted.
This strategic shift required significant cultural change. “We have very robust general education requirements, and we are working with our faculty to be more transfer-friendly,” Gustafson explained. The result has been a notable enrollment bump, demonstrating how institutional flexibility can open new pathways to growth.
The Four R’s Framework
At Augustana College in Illinois—a state that isn’t growing—President Talentino has developed what she calls the “four R’s” approach: recruitment, retention, revenue, and results. This framework drives their strategic planning and helps the entire campus community understand how their work connects to institutional sustainability.
“We budget actually 11 years out,” Talentino shared, acknowledging that “it’s a little bit like the weather—once you get past day three or four, it could rain when it’s supposed to be sunny.” This long-term perspective allows the college to anticipate challenges and make gradual adjustments rather than reactive cuts.
Both presidents emphasize conservative budgeting practices. As Gustafson put it: “When we build our budget, we build it on conservative numbers so that we’re not trying to overextend our budget. I think that’s really key to sustainability—making sure you’re being realistic.”
Confronting Federal Policy and International Student Challenges
The STEM Advantage and Vulnerability
Lawrence Technological University’s focus on STEM education has provided both advantages and vulnerabilities in the current environment. President Sobh noted that domestic demand for technologically trained professionals has driven significant interest in their programs. “Our programming, given the surge and the need for technological education, has been serving us well from a domestic growth point of view,” he explained.
However, like many engineering-focused institutions, Lawrence Tech has experienced a decline in international student enrollment. Sobh emphasized that this challenge extends beyond individual institutions: “The same statement would probably be true of every single one of the universities in the country that is home to a college of engineering.”
International Student Success Stories
Despite broader challenges, Augustana College achieved remarkable success with international student recruitment. President Talentino reported that they expect to bring in close to 85% of their original international student goal, “probably one of the few places in the country where we’re going to come that close.”
This success resulted from intensive, hands-on communication and their focus on undergraduate rather than graduate international students, who faced fewer visa complications. About 20% of Augustana’s student body consists of international students, making this achievement particularly significant for their financial sustainability.
Managing Financial Aid Changes
The recent changes to federal financial aid programs have created additional complexity. Talentino noted that Augustana has some protection through a generous alumnus who funds a program meeting 100% of the needs of high-achieving, high-need students. However, she acknowledged ongoing challenges: “There’s a lot of folks in the middle where parent loans are being squeezed and caps on borrowing are being squeezed.”
Strategic Technology Investment and AI Integration
The Liberal Arts Approach to AI
President Gustafson acknowledged the challenge of staying current with AI developments at a liberal arts institution. Presbyterian College has taken a pragmatic approach, partnering with external agencies for micro-credentialing programs that will eventually extend to alumni.
“Our graduates need to understand AI. They need to know how to use it in order to be competitive in the job market,” Gustafson emphasized. The college has also established a technology committee with campus-wide representation to develop long-term budgeting strategies for technology infrastructure.
AI as an Institutional Efficiency Tool
At Lawrence Tech, President Sobh described AI integration as both natural and transformative. Beyond curriculum integration, the university has embraced AI for business processes. “Our marketing, branding, and public relations departments are using AI for the development of marketing campaigns, which is 100 times more efficient, faster, cheaper, and more productive than not using AI,” he noted.
This efficiency extends across departments, from budget management to communications, though Sobh acknowledged that implementation remains “work in progress” for non-academic staff who need training and support.
Evolving Student Experience and Support
Becoming “Student Ready”
President Talentino introduced the concept of institutions becoming “student ready” rather than expecting students to be “college ready.” This perspective shift has driven comprehensive changes at Augustana, from streamlining onboarding processes to reconsidering when and how students want to engage with services.
“We can’t take things that we used to take for granted,” Talentino observed, noting that students today have different expectations and needs than previous generations. The college has revamped peer mentor programs, developed success teams for every student, and created specialized support centers like their new STEM center.
Supporting First-Generation Students
Presbyterian College’s focus on first-generation students—about one-third of its population—has led to innovative programming. Their “PresbyFirst Plus” program brings first-gen students to campus two days early and has earned recognition as a “first-gen forward network champion.”
This targeted support reflects broader changes in student demographics. As Gustafson noted: “Students of today don’t have the reading skills and the math skills that previous generations have had.” This reality has required faculty to adapt their approaches, sometimes focusing on foundational skills before advancing to advanced content.
Bold Strategic Moves
Creating New Academic Pathways
Lawrence Tech’s establishment of a fifth college—the College of Health Sciences—represents a significant strategic pivot for the 95-year-old institution. “It was quite a bold move to establish a new college 50 years or so after the last one had been established,” President Sobh noted.
This expansion into health sciences aligns with the growing demand for technologically trained healthcare professionals. The college now offers programs in nursing, physician assistant studies, and cardiovascular perfusion, and more programs are planned.
Community Development as Institutional Strategy
Perhaps the most innovative approach comes from Augustana College’s creation of a community development corporation (CDC). President Talentino explained that the condition of the surrounding neighborhood had become a recruiting challenge, with prospective students and families expressing concerns about the area.
Rather than simply hoping for external improvement, Augustana committed to an active partnership with the city of Rock Island. The CDC purchases and renovates properties to create mixed-use developments with retail on the first floor and housing above. “We really committed to putting our money where our mouth is,” Talentino said.
This initiative aligns with Lutheran principles of service to neighbor while addressing a practical institutional need. The city has become an enthusiastic partner, and the project has energized both campus and community.
Leadership Principles for Uncertain Times
Transparency and Partnership
President Gustafson’s leadership philosophy centers on transparency and symbiotic relationships. Her first-year theme, “Symbiosis—stronger together,” emphasized that the academic community functions best when operating collaboratively rather than in silos.
Her second-year pivot to “don’t panic, navigate”—borrowed from the National Association of Independent Colleges and Universities—has helped the leadership team manage multiple simultaneous challenges. This approach emphasizes thoughtful response over reactive decision-making.
Cultural Understanding and Patience
President Sobh, who transitioned from provost to president at the same institution, emphasized the importance of cultural understanding. Despite the temptation to implement changes quickly, he spent his first semester meeting with every colleague on campus—”literally hundreds” of people—to understand institutional culture and aspirations.
“The tendency of leaders to effect changes immediately is, in my opinion, the wrong decision,” Sobh reflected. “Waiting and listening to the culture of the institution, understanding the aspiration and history, and how my own interests can be integrated into that vision is absolutely worthwhile.”
Institutional vs. Individual Focus
President Talentino identified a key leadership challenge: helping people understand institutional needs beyond their individual or departmental perspectives. She noted that this represents one of her biggest adjustments from faculty and provost roles to the presidency.
“Focus on self and focus on own department rather than institutional-wide awareness was a little bit of a surprise to me,” she admitted, “but I guess that’s what makes it challenging and never boring.”
The Value Proposition Message
All three presidents emphasized the importance of clearly articulating their institutions’ value propositions to various constituencies. President Sobh stressed the power of concrete outcomes: “Being able to say 97% of my students continue on and are employed at this level and they are guaranteed a job and 85% live locally—that’s an incredibly powerful statement.”
President Gustafson focused on framing liberal arts education in terms of workforce development and democratic leadership: “All of us are important contributors to workforce development. If we can shape our message around workforce development, economic development, and providing leaders for a democratic society, that’s very helpful.”
Looking Forward
These three presidents demonstrate that successful leadership during uncertain times requires a combination of strategic thinking, cultural sensitivity, and adaptive capacity. Their approaches vary based on institutional type and regional context, but common themes emerge: the importance of transparency, the need for long-term planning with short-term flexibility, and the value of viewing challenges as opportunities for innovation.
As small colleges continue to navigate demographic shifts, policy changes, and evolving student needs, these leadership insights offer practical guidance for presidents, boards, and stakeholders committed to the distinctive mission of small college education.
The conversation reveals that while the challenges facing small colleges are significant, innovative leadership and strategic adaptation can position these institutions not just to survive, but to thrive in serving their communities and students.
Small College America is a podcast series that presents critical discussions at the forefront by interviewing small college higher education leaders, policy experts, and innovators. The podcast will delve into the evolving role of small colleges, their economic impact, innovative strategies for sustainability, and how they can continue to provide a highly personalized educational experience. The series is co-hosted by Dean Hoke and Kent Barnds.
First in Leadership Series by Barry Ryan, PhD, JD August 11, 2025
It is hard to think of a time when higher education was swimming in a pool filled with a greater number of shark-like threats than at present.
Some of these were predictable (in hindsight), some not so much. Let’s set aside blame, however, on either an institutional level or on a more global basis. The vital thing now is for genuine leaders to help chart courses that will lead higher education, not just to mere survival, but to new and meaningful purposes that will benefit this generation and the next.
When situations are “normal,” we may be tempted to imagine that we need leadership that can keep the legacy intact, turn the crank, not rock the boat. But normal no longer exists, does it?
I remember a senior university leader, who admonished me, as I began a new presidency: “everything’s going great—just don’t mess it up” (using slightly more colorful language). One year later, seismic changes in higher ed created an unexpected crisis and necessitated major changes in the institution. Almost everything that had contributed to its prior success turned, overnight, into a liability.
There is, of course, more than one crisis in which higher ed is being buffeted. The sheer number of colleges and universities that have ceased to exist at all, or have been merged to various extents with others, or are currently teetering on the brink, appears in news stories almost every day. The root causes are legion and often woven together: financial shortfalls, a shrinking number of students, reductions in state and federal support, the disappearance of many international students, families, and prospective students increasingly unable to justify the cost of a degree, the “value” of which is seriously questioned. The list goes on.
Of the three large “types” of higher education in the United States—public (state) colleges and universities, private not-for-profit colleges and universities, and for-profit entities—the vast majority are struggling in meaningful ways.
If you find yourself in a leadership role in this age of crisis, what are some key things you can do to keep becoming a better leader and more effectively serve your institution and your colleagues? Here are three suggestions that you may find helpful.
First, don’t panic.
And even if you do feel panic welling up inside you, do your best to keep it from becoming obvious. Phil Slott, who was involved in the Dry Idea marketing campaign in the 1980s, seems to have coined a relevant phrase: “Never let them see you sweat.” It just stresses you out more and does little to inspire confidence in those who are looking to you for leadership.
Once you’ve steadied yourself, the next critical realization is that leadership in crisis cannot be solitary work.
Second, remember every day, you can’t do this alone.
A 19th-century lawyer by the name of Abe Lincoln is credited with the adage: “A person who represents himself in court has a fool for a client.” That rings true for any leader who tries to do everything and assumes they have sufficient knowledge (or wisdom or experience or insight) to solve every problem on their own. No one does—no matter how experienced.
So where do you turn for help? The answer is two-fold: internally and externally. You need to draw on both circles and find confidential, experienced, and reliable counsel.
Choose very carefully with whom you share the issues internally. Depending on the nature of the problem you’re trying to address, success might well be thwarted if there is a lapse of absolute confidentiality. At the starting point of the process, you need to be able to rely on one other person, or perhaps a very small circle, with which you will be able to expand bit by bit as the timeline moves along.
There are difficult audiences and stakeholders in the life of an academic institution, and ultimately, all must be included in the process of working through a crisis. The sequencing of sharing information and inviting input, though, must be very carefully structured. If you’re a president, oftentimes the first person you seek is a senior member of the administration—a provost, vice president, or someone in a similar position. At times, it could be the chair of the board or a wise and thoughtful alum. But whoever the person(s) may be, the timing of sharing the situation and seeking input for solutions is everything.
It’s very important not to neglect external assistance as well. It is all but impossible to generate a sufficient perspective on a crisis from only one (your) vantage point, or even from that of your small, trustworthy group. You’re very likely not the first institution to face these problems, and consulting with trusted external leaders can provide not only perspective but also ideas you may not have thought of on your own.
Some of these leaders may be in academic institutions, but not necessarily. It is always helpful to have relationships with leaders in other professional fields as well, who may be particularly helpful in providing fresh perspectives and ideas. For example, in my own experience, I’ve found such people in leadership of non-profit organizations or boards, key corporate positions, government at various levels, and experienced friends with whom I served long ago, and could provide input on both my institution’s situation and also my own strengths and weaknesses. In addition, external folks don’t have the same emotional investment as someone internal, so the chances of a more neutral observation point are increased significantly.
There is a temptation—and often a prudent one—to seek external input from lawyers. There are, of course, a fair number of attorneys and firms with expertise in higher education, which can be a plus. Higher education is a very specialized field, and, frankly, most lawyers have a huge knowledge deficit in terms of the operational realities of a college or university. Their tendency is to think, “Well, I know higher ed—after all, I went to college and law school” (or maybe even taught a course or two). Beware the well-intentioned lawyer who does not have directly relevant practice experience.
This, of course, does not at all preclude seeking competent legal advice for certain aspects of the problems you may be facing. For example, most institutions have or will need counsel in employment matters. Even if not the center of your challenge, these issues will likely arise as part of the need for a solution to your challenges. If it appears you will have to make difficult financial decisions that might impact faculty or staff, you should seek excellent employment counsel much sooner rather than later. With students, Title IX requirements, for example, may dictate the need for specialized counsel, as might certain types of accreditation issues.
Third, leadership is not “one size fits all.”
Every leader has different abilities and personalities. Even though many institutions experience similar types of crises, the circumstances of each call for a bespoke solution.
However, some very important leadership characteristics can increase the probability of success in these situations. In part two, we’ll examine these and how to cultivate them.
Dr. Barry Ryan invested the first half of his career in higher education in teaching and the second half in administration. During that same timeframe, he pursued a parallel career in law and legal education. He served as the Supreme Court Fellow in the chambers of Chief Justice William H. Rehnquist and is a member of numerous federal and state bars. He has been appointed as the president of five universities and provost and chief of staff at three others. Among the institutions he served have been state, private non-profit, and private for-profit universities. Included in his academic experience were two terms as a Commissioner of the regional accreditor WASC (WSCUC).
He has been appointed as the president of five universities and provost and chief of staff at three others. Among the institutions he served have been state, private non-profit, and private for-profit universities. Included in his academic experience were two terms as a Commissioner of the regional accreditor WASC (WSCUC). Dr. Ryan has led institutions through mergers, acquisitions, and affiliations that have preserved academic quality, expanded access, and strengthened long-term viability. His leadership has been marked by transparency, shared governance, and a commitment to stakeholder engagement at every stage of these processes.
He earned his Ph.D. from the University of California, Santa Barbara, his J.D. from the University of California, Berkeley, and his Dipl.GB in international business from the University of Oxford.
Edu Alliance Journal provides expert commentary and practical insights on U.S. and international higher education, focusing on innovation, policy, and institutional growth. Published by Edu Alliance, a consulting firm with offices in the United States and the United Arab Emirates, the Journal reflects the organization’s mission to help colleges, universities, and educational organizations achieve sustainable success through strategic partnerships, market intelligence, and program development.
July 28, 2025, by Dr. Chet Haskell: The headlines are full of uncertainty for American higher education. “Crisis” is a common descriptor. Federal investigations of major institutions are underway. Severe cuts to university research funding have been announced. The elimination of the Department of Education is moving ahead. Revisions to accreditation processes are being floated. Reductions in student support for educational grants and loans are now law. International students are being restricted.
These uncertainties and pressures affect all higher education, not just targeted elite institutions. In particular, they are likely to exacerbate the fragility of smaller, independent non-profit institutions already under enormous stress. Such institutions, some well-known, others known only locally, will be hard hit particularly hard by the combination of Trump Administration pressures and the developing national demographic decline for traditional-age students.(https://www.highereddive.com/news/decline-high-school-graduates-demographic-cliff-wiche-charts/738281/) These small colleges have been a key element of the American higher education scene, as well as for numerous local communities, for many decades.
It is widely understood that the vibrancy of American higher education comes, in part, from the diversity of its institutions and educational goals. The rich mixture of American colleges and universities is a strength that many other nations lack. Students have opportunities to start and stop their educations, to change directions and academic goals, to move among different types of institutions.
Smaller undergraduate colleges play important roles in this non-systemic system. They provide focused educational opportunities for younger adults, where they can build their lives on broad principles. Impressively large percentages of small college graduates go on to graduate education for various professions. Small colleges provide large numbers of graduates who enter PhD programs and eventually enter the professorate.
There are approximately 1179 accredited private institutions with enrollments of fewer than 3000 students. Of these, 185 have between 3000 and 2000 students. Another 329 have enrollments below 2000 but above 1000. A final 650 institutions have enrollments below 1000. These 1179 institutions students include few wealthy colleges such as Williams, Amherst, Carleton or Pomona, as well as numerous struggling, relatively unknowns.
A basic problem is one of scale. In the absence of significant endowments or other external support, it is very difficult to manage small institutions in a cost effective manner. Institutions with enrollments below 1000 are particularly challenged in this regard. The fundamental economics of small institutions are always challenging, as most are almost completely dependent on student enrollments, a situation getting worse with the coming decline of traditional college age students. There are limited options available to offset this decline. Renewed attention to student retention is one. Another is adding limited graduate programs. However, both take investment, appropriate faculty and staff capacity and time, all of which are often scarce.
These institutions have small endowments measured either in total or per student value. Of the 1179. There are only 80 with total endowments in excess of $200 million. While a handful have per student endowments that rival the largest private universities, (Williams, Amherst and Pomona all have per student endowments in excess of $1.8 million), the vast majority have per student endowments in the $40,000 range and many far less.
Most of these schools have high tuition discount rates, often over 50%, so their net tuition revenue is a fraction of posted expense. They are all limited by size – economies of scale are difficult to achieve. And most operate in highly competitive markets, where the competition is not only other small schools, but also a range of public institutions.
So, what is the underendowed, under resourced small college to do?
The most common initiatives designed to address these sorts of challenges are consortia, collaborative arrangements among institutions designed to increase student options and to share expenses. There are numerous such arrangements, examples being the Colleges of the Fenway in Boston, the Five Colleges of Western Massachusetts, the Washington DC Metropolitan Area Consortium, and the Claremont Colleges in California, among others.
The particulars of each of these groups differ, but there are commonalities. Most are geographically oriented, seeking to take advantage from being near each other. Typically, these groups want to provide more opportunities for students through allowing cross-registrations, sharing certain academic programs or joint student activities. They usually have arrangements for cost-sharing or cost reductions through shared services for costs like security services, IT, HR, risk management options, pooled purchasing and the like. In other cases (like the Claremont Consortium) they may share libraries or student athletic facilities. Done well, these arrangements can indeed reduce costs while also attracting potential students through wider access to academic options.
However, it is unlikely that such initiatives, no matter how successful, can fundamentally change the basic financial situation of an independent small college. Such shared services savings are necessary and useful, but usually not sufficient to offset the basic enrollment challenge. The financial impact of most consortia is at the margins.
Furthermore, participating institutions have to be on a solid enough financial basis to take part in the first place. Indeed, a consortium like Claremont is based on financial strength. Two of the members have endowments in excess of $1.2 billion (Pomona’s is $2.8 billion.) The endowments of the others range from a low of $67 million (Keck Graduate with 617 students) to Scripps with $460 million for 1100 students.) The Consortium is of clear value to its members, but none of these institutions is on the brink of failure. Rather, all have strong reputations, a fact that provides another important enrollment advantage.
One important factor in these consortia arrangements is that the participating institutions do not have to give up their independence or modify their missions. Their finances, alumni and accreditation are separate. And while the nature of the arrangement indicates certain levels of compromise and collaboration, their governance remains basically unchanged with independent fiduciary boards.
At the other end of the spectrum are two radically different situations. One is merging with or being acquired by another institution. Prep Scholar counts 33 such events since 2015. (https://blog.prepscholar.com/permanently-closed-colleges-list). Lacking the resources for financial sustainability, many colleges have had no choice but to take such steps.
Merging or being acquired by a financially stronger institution has many advantages. Faculty and staff jobs may be protected. Students can continue with their studies. The institution being acquired may be able to provide continuity in some fashion within the care of the new owner. Endowed funds may continue. The institution’s name may continue as part of an “institute” or “center” within the new owner’s structure. Alumni records can be maintained. Real estate can be transferred. Debts may be paid off and so forth. There are multiple examples of the acquiring institution doing everything possible along these lines.
But some things end. Independent governance and accreditation cease as those functions are subsumed by the acquiring institution. Administrative and admissions staffs are integrated and some programs, people and activities are shed. Operational leadership changes. And over time, what was once a beloved independent institution may well fade away.
The end of a college is a very sad thing for all involved and, indeed, for society in general. Often a college is an anchor institution in a small community and the loss is felt widely. The closure of a college is akin to the closure of a local factory. As Dean Hoke and others have noted, this is a particular problem for rural communities.
Are there other possible avenues, something between a consortium and a merger or outright closure?
One relatively new model has been organized by two quite different independent institutions, Otterbein University and Antioch University, that came together in 2022 to create the Coalition for the Common Good. Designed to be more than a simple bilateral partnership, the vision of the Coalition is eventually to include several institutions in different locations linked by a common mission and the capacity to grow collective enrollments.
At its core, the Coalition is based on academic symbiosis. Otterbein is a good example of the high-quality traditional undergraduate residential liberal arts institution. It has been well-run and has modest financial resources. Facing the demographic challenges noted earlier (in a state like Ohio that boasts dozens of such institutions), it developed a set of well-regarded graduate programs, notably in nursing and health-related fields, along with locally based teacher education programs and an MBA. However, despite modest success, they faced the limitations of adult programs largely offered in an on-campus model. Regardless of quality, they lacked the capacity to expand such programs beyond Central Ohio.
Antioch University, originally based in Ohio, had evolved over the past 40 years into a more national institution with locations in California, Washington State and New Hampshire offering a set of graduate professional programs to older adults mostly through distance modalities in hybrid or low-residency forms. Antioch, however, was hampered by limited resources including a very small endowment. It had demonstrated the capacity to offer new programs in different areas and fields but lacked the funds necessary for investment to do so.
Within the Coalition, the fundamental arrangement is for Antioch to take over Otterbein’s graduate programs and, with Otterbein financial support, to expand them in other parts of the country. The goal is significant aggregate enrollment growth and sharing of new revenues. While they plan a shared services operation to improve efficiencies and organizational effectiveness, their primary objective is growth. Antioch seeks to build on Otterbein’s successes, particularly with nursing programs. It already has considerable experience in managing academic programs at a distance, a fact that will be central as it develops the Otterbein nursing and health care programs in a new Antioch Graduate School of Nursing and Health Professions.
It is assumed that additional new members of the Coalition will resemble Otterbein in form, thus further increasing opportunities for growth through enhanced reach and greater scale. New members in other geographic locations will provide additional opportunities for expansion. One early success of the Coalition has been the capacity to offer existing Antioch programs in Central Ohio, including joint partnerships with local organizations, health care and educational systems. Crucially, both institutions remain separately accredited with separate governance and leadership under a Coalition joint “umbrella” structure.
This is not to assert that this model would work for many other institutions. First, many schools with limited graduate programs will be reluctant to “give up” some or all these programs to another partner in the same fashion as Otterbein has with Antioch. Others may not fit geographically, being too remote for expansion of existing programs. Still others may not wish to join a group with an avowed social justice mission. Finally, as with some consortia, the Coalition arrangement assumes a certain degree of institutional financial stability – it cannot work for institutions on the brink of financial disaster, lest the weakest institution drag down the others.
Are there other organizational variants that are more integrated than consortia, but allow the retention of their independence in ways impossible in a merger or acquisition model? What can be learned from the Coalition initiative that might help others? How might such middle-ground collaboration models be encouraged and supported?
How can philanthropy help?
This is an opportunity for the segments of the philanthropic world to consider possible new initiatives to support the small college elements of the education sector. While there will always be efforts to gain foundation support for individual colleges, there will never be enough money to buttress even a small portion of deserving institutions that face the financial troubles discussed above
Philanthropy should take a sectoral perspective. One key goal should be to find ways to support smaller institutions in general. Instead of focusing on gifts to particular institutions, those interested in supporting higher education should look at the multiple opportunities for forms of collaborative or collective action. Central to this effort should be exploration of ways of supporting diverse collaborative initiatives. One example would be to provide sufficient backing to a struggling HBCU or women’s college to enable it to be sufficiently stable to participate in a multi-institutional partnership.
As noted, institutional consortia are well established as one avenue for such collaboration. Consortia have existed for many years. There are consortia-based associations that encourage and support consortia efforts. However, every consortium is unique in its own ways, as participating institutions have crafted a specific initiative of a general model to meet their particular situations and need. Consortia can be important structures for many institutions and should be encouraged.
But there is a large middle ground between consortia arrangements and mergers and acquisitions. The Coalition for the Common Good is but one such arrangement and it is still in its early stages. What has been learned from the experience thus far that might be of use to other institutions and groups? How might this middle ground be explored further for the benefit of other institutions?
One thing learned from the Coalition is the complexity of developing a new model for collective action. Antioch and Otterbein separately pursued individual explorations of options for two or more years before determining that their partnership together should move forward. It then took a full year to get to the point of announcing their plans and another year to complete negotiations and sign completed legal documents and to obtain the necessary accreditor, regulator and Department of Education approvals. The actual implementation of their plans is still in a relatively early stage. In short, it takes time.
It also takes tremendous effort by leadership on both sides, as they must work closely together while continuing to address the daily challenges of their separate institutions. Everyone ends up with at least two major jobs. Communication is vital. Boards must continue to be supportive. The engagement of faculty and staff takes time and can be costly.
What is often referred to as “fit” – the melding of cultures and attitudes at both the institutional and individual levels – is essential. People must be able to work together for shared goals. The burdens of accreditation, while necessary, are time-consuming and multifaceted. There are many things that can go wrong. Indeed, there are examples of planned and announced mergers or collaborations that fall apart before completion.
Philanthropic institutions could support this work in numerous ways, first for specific initiatives and then for the sector, by providing funding and expertise to facilitate new forms of coalitions. These could include:
Providing financial support for the collaborative entity. While participating institutions eventually share the costs of creating the new arrangement, modest dedicated support funding could be immensely useful for mitigating the impact of legal expenses, due diligence requirements, initial management of shared efforts and expanded websites.
Providing support for expert advice. The leaders of two institutions seeking partnership need objective counsel on matters financial, legal, organizational, accreditation and more. Provision of expertise for distance education models is often a high priority, since many small colleges have limited experience with these.
Funding research. There are multiple opportunities for research and its dissemination. What works? What does not? How can lessons learned by disseminated?
Supporting communication through publications, workshops, conferences and other venues.
Developing training workshops for boards, leadership, staff and faculty in institutions considering collaborations.
Crafting a series of institutional incentives through seed grant awards to provide support for institutions just beginning to consider these options.
These types of initiatives might be separate, or they might be clustered into a national center to support and promote collaboration.
These and other ideas could be most helpful to many institutions exploring collaboration. Above all, it is important to undertake such explorations before it is too late, before the financial situation becomes so dire that there are few, if any, choices.
Conclusions
This middle ground is not a panacea. The harsh reality is that not all institutions can be saved. It takes a certain degree of stability and a sufficient financial base to even consider consortia or middle ground arrangements like the Coalition for the Common Good. Merging with or being acquired by stronger institutions is not a worst-case scenario – there are often plenty of reasons, not just financial, that this form of change makes great sense for a smaller, weaker institution.
It is also important for almost all institutions, even those with significant endowment resources, to be thinking about possible options. The stronger the institution, the stronger the resistance to such perspectives is likely to be. There are examples of wealthy undergraduate institutions with $1 billion endowments that are losing significant sums annually in their operating budgets. Such endowments often act like a giant pillow, absorbing the institutional challenges and preventing boards and leaders from facing difficult decisions until it may be too late. Every board should be considering possible future options.
In the face of likely government rollbacks of support, the ongoing demographic challenges for smaller institutions and the general uncertainties in some circle about the importance of higher education itself, independent private higher education must be more creative and assertive about its future. Also, it is essential to remember that the existential financial challenges facing these institutions predate the current Presidential Administration and certainly will remain once it has passed into history.
Just trying to compete more effectively for enrollments will not be sufficient. Neither will simply reducing expense budgets. New collaborative models are needed. Consortia have roles to play. The example of the Coalition for the Common Good may show new directions forward. Anyone who supports the diversity of American higher education institutions should work to find new ways of assuring financial stability while adhering to academic principles and core missions.
Chet Haskell is an independent higher education consultant. Most recently, he was Vice Chancellor for Academic Affairs and University Provost at Antioch University and Vice President for Graduate Programs of the Coalition for the Common Good.
June 8, 2025, by Dean Hoke: Intercollegiate athletics occupy a powerful and unique place in American higher education—something unmatched in any other country. From the massive media contracts of Division I football to the community pride surrounding NAIA and NJCAA basketball, college sports are a defining feature of the American academic landscape. Unlike most nations, where elite athletic development happens in clubs or academies, the U.S. integrates competitive sports directly into its college campuses.
This model is more than tradition; it’s an engine of opportunity. For many high school students—especially those from underserved backgrounds—the chance to play college sports shapes where they apply, enroll, and succeed. According to the NCAA, 35% of high school athletes say the ability to participate in athletics is a key factor in their college decision [1]. It’s not just about scholarships; it’s about identity, community, and believing their talents matter.
At smaller colleges and two-year institutions, athletics often serves as a key enrollment driver and differentiator in a crowded marketplace. International students, too, are drawn to the American system for its academic-athletic fusion, contributing tuition revenue and global prestige. Undermining this model through sweeping changes to federal financial aid, without considering the downstream effects, risks more than athletic participation. It threatens a distinctively American approach to education, access, and aspiration.
A New Threshold with Big Impacts
Currently, students taking 12 credit hours per semester are considered full-time and eligible for the maximum Pell Grant, which stands at $7,395 for 2024-25 [2]. The proposed House budget raises this threshold to 15 credit hours per semester. For student-athletes, whose schedules are already packed with training, competition, and travel, this shift could be devastating.
NCAA academic standards require student-athletes to maintain full-time enrollment (typically 12 hours) and make satisfactory academic progress [3]. Adding another three credit hours per term may force many to choose between academic integrity, athletic eligibility, and physical well-being. In sports like basketball, where teams frequently travel for games, or in demanding STEM majors, completing 15 credit hours consistently can be a formidable challenge.
Financial Impact on Student-Athletes
Key Proposed Changes Affecting Student-Athletes:
Pell Grant Reductions: The proposed budget aims to cut the maximum Pell Grant by $1,685, reducing it to $5,710 for the 2026–27 academic year. Additionally, eligibility criteria would become more stringent, requiring students to enroll in at least 15 credit hours per semester to qualify for full-time awards. These changes could result in approximately 700,000 students losing Pell Grant eligibility [4].
Elimination of Subsidized Loans: The budget proposes eliminating subsidized federal student loans, which currently do not accrue interest while a student is in school. This change would force students to rely more on unsubsidized loans or private lending options, potentially increasing their debt burden [5].
Cuts to Work-Study and SEOG Programs: The Federal Work-Study program and Supplemental Educational Opportunity Grants (SEOG) are slated for significant reductions or elimination. These programs provide essential financial support to low-income students, and their removal could affect over 1.6 million students [6].
Institutional Risk-Sharing: A new provision would require colleges to repay a portion of defaulted student loans, introducing a financial penalty for institutions with high default rates. This could strain budgets, especially at smaller colleges with limited resources [7].
Figure 1: Total student-athletes by national athletic organization (NCAA, NAIA, NJCAA).
While Figure 1 highlights the total number of student-athletes in each organization, Figure 2 illustrates how deeply athletics is embedded in different types of institutions. NAIA colleges have the highest ratio, with student-athletes comprising 39% of undergraduate enrollment. Division III institutions follow at approximately 8.42%, and the NJCAA—serving mostly commuter and low-income students—relies on athletics for 8.58% of its total student base [8].
Even Division I, with its large student populations, includes a meaningful share (2.49%) of student-athletes. These proportions underscore how vital athletics are to institutional identity, especially in small colleges and two-year schools where athletes often make up a significant portion of campus life, retention strategy, and tuition revenue.
Figure 2: Percentage of student-athletes among total undergraduate enrollment by organization (NCAA Divisions I–III, NAIA, NJCAA).
The Pell Grant Profile: Who’s Affected
Pell Grants support students with the greatest financial need. According to a 2018 report, approximately 31.3% of Division I scholarship athletes receive Pell Grants. At individual institutions like Ohio State, the share is even higher: 47% of football players and over 50% of women’s basketball players. In the broader NCAA system, over 48% of athletes received some form of federal need-based aid in recent years [9].
There are approximately 665,000 student-athletes attending college. The NCAA reports that more than 520,000 student-athletes currently participate in championship-level intercollegiate athletics across Divisions I, II, and III [10]. The National Association of Intercollegiate Athletics (NAIA) oversees approximately 83,000 student-athletes [11], while the National Junior College Athletic Association (NJCAA) supports around 60,000 student-athletes at two-year colleges [12].
The NAIA and NJCAA systems, which serve many first-generation, low-income, and minority students, also have a high reliance on Pell Grant support. However, exact figures are less widely published.
The proposed redefinition of “full-time” means many of these students could lose up to $1,479 per year in aid, based on projections from policy experts [13]. For low-income students, this gap often determines whether they can afford to continue their education.
Fewer Credits, Fewer Dollars: Academic and Athletic Risks
Another major concern is how aid calculations based on “completed” credit hours will penalize students who drop a class mid-semester or fail a course. Even if a student-athlete enrolls in 15 credits, failing or withdrawing from a single 3-credit course could drop their award amount [14]. This adds pressure to persist in academically unsuitable courses, potentially hurting long-term academic outcomes.
Athletic departments, already burdened by compliance and recruitment pressures, may face added strain. Advisors will need to help students navigate increasingly complex eligibility and aid requirements, shifting focus from performance and development to credit-hour management.
Disproportionate Effects on Small Colleges and Non-Revenue Sports
The brunt of these changes will fall hardest on small, tuition-dependent institutions in the NCAA Division II, Division III, NAIA, and NJCAA. These colleges often use intercollegiate athletics as a strategic enrollment tool. At some NAIA schools, student-athletes comprise 40% to 60% of the undergraduate population [8].
Unlike large Division I schools that benefit from lucrative media contracts and booster networks, these institutions rely on a patchwork of tuition, modest athletic scholarships, and federal aid to keep programs running. A reduction in Pell eligibility could drive enrollment declines, lead to cuts in athletic offerings, and even force some colleges to close sports programs or entire campuses.
Already, schools like San Francisco State University, Cleveland State, and Mississippi College have recently announced program eliminations, citing budgetary constraints [15]. NJCAA institutions—the two-year colleges serving over 85,000 student-athletes—also face a precarious future under this proposed budget.
Economic Importance by Division
Division I: Athletics departments generated nearly $17.5 billion in total revenue in 2022, with $11.2 billion self-generated and $6.3 billion subsidized by institutional/government support or student fees [16]. Many Power Five schools are financially resilient, with revenue from TV contracts, merchandise, and ticket sales.
Division II: Median revenue for schools with football was around $6.9 million, but generated athletic revenue averaged only $528,000, leading to significant deficits subsidized by institutional funds [17].
Division III: Division III schools operate on leaner budgets, with no athletic scholarships and total athletics budgets often under $3 million per school. These programs are typically funded like other academic departments [18].
NAIA and NJCAA: These schools rely heavily on student-athlete enrollment to sustain their institutions. Athletics are not profit centers but recruitment and retention tools. Without Pell Grants, many of these athletes cannot afford to enroll [11][12].
Figure 3: Estimated number of NAIA, Division III, and NJCAA programs by state.
Unintended Tradeoffs: Equity and Resource Redistribution
Attempting to offset lost federal aid by reallocating institutional grants could result in aid being shifted away from non-athletes. This risks eroding equity goals, as well as provoking internal tension on campuses where athletes are perceived to receive preferential treatment.
Without new revenue sources, institutions may also raise tuition or increase tuition discounting, potentially compromising their financial stability. In essence, colleges may be forced to choose who gets to stay in school.
The High-Stakes Gamble for Student-Athletes
Figure 4: Estimated impact of Pell Grant changes on student-athletes, including projected dropouts and loan default rates.
For many student-athletes, especially those from low-income backgrounds, the Pell Grant is not just helpful—it’s essential. It makes the dream of attending college, competing in athletics, and earning a degree financially feasible. If the proposed changes to Pell eligibility become law, an estimated 50,000 student-athletes could be forced to drop out, unable to meet the new credit-hour requirements or fill the funding gap [19]. Those who remain may have no choice but to take on additional loans, risking long-term debt for a degree they may never complete. The reality is sobering: Pell recipients already face long-term student loan default rates as high as 27%, and for those who drop out, that figure climbs above 40% [20]. Stripping away vital support will almost certainly drive those numbers higher. The consequences won’t stop with individual students. Colleges—particularly smaller, tuition-dependent institutions where athletes make up a significant share of enrollment—stand to lose not just revenue, but the very programs and communities that give purpose to their campuses.
Colleges, athletic associations, policymakers, and communities must work together to safeguard opportunity. Student-athletes should never be forced to choose between academic success and financial survival. Preserving access to both education and athletics isn’t just about individual futures—it’s about upholding a uniquely American pathway to achievement and equity.
Dean Hoke is Managing Partner of Edu Alliance Group, a higher education consultancy. He formerly served as President/CEO of the American Association of University Administrators (AAUA). With decades of experience in higher education leadership, consulting, and institutional strategy, he brings a wealth of knowledge on small colleges’ challenges and opportunities. Dean is the Executive Producer and co-host for the podcast series Small College America.
Congressional Budget Office. (2025). Reconciliation Recommendations of the House Committee on Education and the Workforce. Retrieved from https://www.cbo.gov/publication/61412
NJCAA, NAIA, and NCAA. (2023). Student-Athlete Participation Reports.
May 19, 2025, by Dean Hoke: In my recent blog series and podcast, Small College America, I’ve highlighted the essential role small colleges play in the fabric of U.S. higher education. These institutions serve as academic homes to students who often desire alternatives to larger universities, and as cultural and economic anchors, especially in rural and small-town America, where, according to IPEDS, 324 private nonprofit colleges operate. Many are deeply embedded in the towns they serve, providing jobs, educational access, cultural life, and long-term economic opportunity.
Unfortunately, a wave of proposed federal budget cuts may further severely compromise these institutions’ ability to function—and in some cases, survive. Without intervention, the ripple effects could devastate entire communities.
Understanding the DOE and USDA Budget Cuts
The proposed reductions to the U.S. Department of Education (DOE) and U.S. Department of Agriculture (USDA) budgets present a two-pronged threat to small colleges, particularly those in rural areas or serving low-income student populations.
Department of Education (DOE)
The most significant concerns center on proposed changes to Pell Grants, a vital financial resource for low-income students. One House proposal would redefine full-time enrollment from 12 to 15 credit hours per semester. If enacted, this change would reduce the average Pell Grant by approximately $1,479 for students taking 12 credits. Students enrolled less than half-time could become ineligible entirely.
Additionally, the Federal Work-Study (FWS) and Supplemental Educational Opportunity Grants (SEOG) programs face serious threats. The House Appropriations Subcommittee has proposed eliminating both programs, which together provide over $2 billion annually in aid to low-income students.
Programs like TRIO and GEAR UP, which support first-generation, low-income, and underrepresented students, have been targeted in previous proposals; however, current budget drafts maintain level funding. Nonetheless, their future remains uncertain as negotiations continue.
The Title III Strengthening Institutions Program, which funds academic support services, infrastructure, and student retention efforts at under-resourced colleges, received a proposed funding increase in the FY 2024 President’s Budget, though congressional appropriations may differ.
Department of Agriculture (USDA)
The USDA’s impact on small colleges, while less direct, is nonetheless critical. Discretionary funding was reduced by more than $380 million in FY 2024, reflecting a general pullback in rural investment.
Programs like the Community Facilities Direct Loan & Grant Program, which supports broadband access, healthcare facilities, and community infrastructure, were level-funded at $2.8 billion. These investments often benefit rural colleges directly or indirectly by enhancing the communities in which they operate.
While some funding has been maintained, the broader trend suggests tighter resources for rural development in the years ahead. For small colleges embedded in these communities, the consequences could be substantial: delayed infrastructure upgrades, reduced student access to services, and weakened town-gown partnerships.
Why Small Colleges Are Particularly Vulnerable
Small private nonprofit colleges—typically enrolling fewer than 3,000 students—operate on thin margins. Many are tuition-dependent, with over 80% of their operating revenue derived from tuition and fees. They lack the substantial endowments or large alumni donor bases that buoy more prominent institutions during hard times.
What exacerbates their vulnerability is the student profile they serve. Small colleges disproportionately enroll Pell-eligible, first-generation, and minority students. Reductions in federal financial aid and student support programs have a direct impact on student enrollment and retention. If students can’t afford to enroll—or stay enrolled—colleges see revenue declines, leading to cuts in academic offerings, faculty, and student services.
Additionally, small colleges are often located in areas experiencing population decline. The so-called “demographic cliff”—a projected 13% drop in the number of high school graduates from 2025 to 2041 will affect 38 states and is expected to hit rural and non-urban regions the hardest. This compounds the enrollment challenges many small colleges are already facing.
Economic and Social Impact on Rural Towns
The closure of a small college doesn’t just mean the loss of a school; it signifies a seismic shift in a community’s economic and social structure. Colleges often rank among the top employers in their towns. When a college closes, hundreds of jobs disappear—faculty, staff, groundskeepers, maintenance, food services, IT professionals, and more.
Consider Mount Pleasant, Iowa, where the closure of Iowa Wesleyan University in 2023 cost the local economy an estimated $55 million annually. Businesses that relied on student and faculty patronage—restaurants, barbershops, bookstores, and even landlords—felt the immediate impact. Community organizations lost vital volunteers. Town officials were left scrambling to figure out what to do with a sprawling, empty campus in the heart of their city.
Colleges also provide cultural enrichment that is often otherwise absent in small towns. Lectures, concerts, art exhibitions, and sporting events bring together diverse groups and add vibrancy to the local culture. Many offer healthcare clinics, counseling centers, or continuing education for adults—services that disappear with a campus closure.
USDA investments in these communities are often tied to colleges, whether in the form of shared infrastructure, grant-funded development projects, or broadband expansions to support online learning. As these federal investments diminish, so too does a town’s ability to attract and retain both residents and employers.
Real-Life Implications and Stories
The headlines tell one story, but the real impact is felt in the lives of students, faculty, and the surrounding communities.
Presentation College in Aberdeen, South Dakota, ceased operations on October 31, 2023, after citing unsustainable financial and enrollment challenges. Hundreds of students, many drawn to its affordability, rural location, and nursing programs, were forced to reconsider their futures. The college quickly arranged teach-out agreements with over 30 institutions, including Northern State University and St. Ambrose University, which offered pathways for students to complete their degrees. The Presentation Sisters, the founding order, are now seeking a buyer for the campus aligned with their values, while local officials explore transforming the site into a technical education hub to continue serving the community.
Birmingham-Southern College in Alabama, a 168-year-old institution, closed its doors on May 31, 2024, after a $30 million state-backed loan request was ultimately rejected despite initial legislative support. The college had a $128 million annual economic impact on Birmingham and maintained partnerships with K–12 schools, correctional institutions, and nonprofits. The closure triggered the transfer of over 150 students to nearby colleges like Samford University, but left faculty, staff, and the broader community facing economic and cultural losses. A proposed sale of the campus to Miles College fell through, leaving the site’s future in limbo.
Even college leaders who have weathered the past decade worry they’re nearing a breaking point. Rachel Burns of the State Higher Education Executive Officers Association (SHEEO) has tracked dozens of recent closures and warns that many institutions remain at serious risk, despite their best efforts. “They just can’t rebound enrollment,” she says, noting that pandemic aid only temporarily masked deeper structural vulnerabilities.
Potential Closures and Projections
College closures are accelerating across the United States. According to the State Higher Education Executive Officers Association (SHEEO), 467 institutions closed between 2004 and 2020—over 20% of them private, nonprofit four-year colleges. Since 2020, at least 75 more nonprofit colleges have shut down, and many experts believe this pace is quickening.
A 2023 analysis by EY-Parthenon warned that 1 in 10 four-year institutions—roughly 200 to 230 colleges—are currently in financial jeopardy. These schools are often small, private, rural, and tuition-dependent, serving large numbers of first-generation and Pell-eligible students. Even a modest drop of 5–10% in tuition revenue can be catastrophic for colleges already operating on razor-thin margins.
Compounding the challenge, the Federal Reserve Bank of Philadelphia released a 2024 predictive model forecasting that as many as 80 additional colleges could close by 2034 under sustained enrollment decline driven by demographic shifts. This figure accounts for closures only—not mergers—and spans public, private nonprofit, and for-profit sectors.
Layered onto these economic and demographic vulnerabilities are the potential impacts of proposed federal education funding cuts. The Trump administration’s FY 2026 budget blueprint once again targets student aid programs, proposing the elimination or severe reduction of subsidized student loans, TRIO, GEAR UP, Federal Work-Study, and the Supplemental Educational Opportunity Grant (SEOG). Although similar proposals from Trump’s first term (FY 2018–2021) were rejected by Congress, the renewed push signals ongoing political pressure to curtail support for low-income and first-generation students.
To assess the potential impact of these policy shifts, a policy stress test was applied to both the Philadelphia Fed model and the historical closure trend. The analysis suggests that if these cuts were enacted, an additional 50 to 70 closures could occur by 2034.
Philadelphia Fed model baseline: 80 projected closures
With policy cuts: Up to 130 closures
Historical average trend (2020–2024): ~14 closures/year
10-year projection (status quo): ~140 closures
With policy cuts: Up to 210 closures
In short, depending on the scenario, anywhere from 130 to 210 additional college closures may occur by 2034. Institutions most at risk are those that serve the very populations these federal programs are designed to support. Without intervention—through policy, partnerships, or funding—the number of closures could rise sharply in the years ahead.
These scenario-based projections are summarized in the chart below.
Why Should Congress Care
According to the National Association of Independent Colleges and Universities (NAICU), a private, nonprofit college or university is located in 395 of the 435 congressional districts. These institutions are not only centers of learning but also powerful economic engines that generate:
$591.5 billion in national economic impact
$77.6 billion in combined local, state, and federal tax revenue
3.4 million jobs supported or sustained
1.1 million people are directly employed in private nonprofit higher education
1.1 million graduates are entering the workforce each year
As such, the fate of small private colleges is not just a higher education issue—it is a national economic and workforce development issue that should command bipartisan attention.
Strategies for Resilience and Policy Recommendations
There are clear, actionable strategies to reduce the risk of widespread college closures:
Consortium and shared governance models: Small colleges can boost efficiency and sustainability by sharing administrative functions, faculty, academic programs, technology infrastructure, and enrollment services. This allows institutions to reduce operational costs while maintaining their distinct missions and brands. In some cases, these arrangements evolve into formal mergers. An emerging example is the Coalition for the Common Good, a new model of mission-aligned institutions that maintain individual identities but operate under shared governance. This structure offers long-term financial stability without sacrificing institutional purpose or community impact.
Strategic partnerships: Collaborations with community colleges, online education providers, regional employers, and nonprofit organizations can expand reach, enhance curricular offerings, and improve student outcomes. These partnerships can support 2+2 transfer pipelines, workforce-aligned certificate programs, and hybrid learning models that meet the needs of adult learners and working professionals, often underserved by traditional residential colleges.
State action: States should establish stabilization grant programs and offer targeted incentive funding to support mergers, consortium participation, and regional collaboration. Policies that protect institutional access in rural and underserved areas are especially urgent, as closures can leave entire regions without viable higher education options. States can also play a role in convening institutions to plan for shared services and long-term viability.
Federal investment: Continued and expanded funding for Pell Grants, TRIO, SEOG, Title III and V, and USDA rural development programs is essential to sustaining the institutions that serve low-income, first-generation, and rural students. These investments should be treated as critical infrastructure, not discretionary spending, given their role in expanding educational equity, enhancing workforce readiness, and promoting rural economic development. Consistent federal support can help stabilize small colleges and enable long-term planning.
College leaders, local governments, and community groups must advocate in unison. The conversation should move beyond institutional survival to one of community survival. As the saying goes, when a college dies, the town begins to die with it.
Conclusion
Small colleges are not expendable. They are vital threads in the educational, economic, and cultural fabric of America, especially in rural and underserved communities. The proposed federal budget cuts across the Departments of Education and Agriculture represent a direct threat not only to these institutions but to the communities that depend on them.
If policymakers fail to act, the consequences will be widespread and enduring. The domino effect is real: reduced funding leads to fewer students, tighter budgets, staff layoffs, program cuts, and eventually, campus closures. And when those campuses close, entire towns are left to absorb the fallout—economically, socially, and spiritually.
We have a choice. We can invest in the future of small colleges and the communities they anchor, or we can stand by as they vanish—along with the promise they hold for millions of students and the towns they call home.
References
U.S. Department of Education, FY 2025 Budget Summary and Justifications
National Association of Student Financial Aid Administrators (NASFAA), Analysis of Proposed Pell Grant and Campus-Based Aid Reductions
State Higher Education Executive Officers Association (SHEEO) and Higher Ed Dive, Data on College Closures and Institutional Viability Trends
Fitch Ratings, Reports on Financial Pressures in U.S. Higher Education Institutions
Iowa Public Radio and The Hechinger Report, Case Studies on Rural College Closures and Community Impact
Council for Opportunity in Education (COE), Statements and Data on TRIO Program Reach and Effectiveness
Federal Reserve Bank of Philadelphia, Predictive Modeling of U.S. College Closures (2024)
EY-Parthenon, 2023 Report on Financial Vulnerability Among Four-Year Institutions
U.S. Department of Agriculture (USDA), Rural Development and Community Facilities Loan & Grant Program Summaries
Interviews and commentary from institutional leaders, TRIO program directors, and SHEEO policy staff
Integrated Postsecondary Education Data System (IPEDS), Data on Enrollment, Institution Type, and Geographic Distribution
Dean Hoke is Managing Partner of Edu Alliance Group, a higher education consultancy. He formerly served as President/CEO of the American Association of University Administrators (AAUA). With decades of experience in higher education leadership, consulting, and institutional strategy, he brings a wealth of knowledge on small colleges’ challenges and opportunities. Dean is the Executive Producer and co-host for the podcast series Small College America.
May 5, 2025, by Dean Hoke: For years, there have been conversations among many higher education podcasters asking: Why isn’t there a podcasting conference just for us? This question lingered, raised in passing at virtual meetups, in DM threads, and on campuses where faculty and staff were creating podcasts with little external support or collaboration.
Last winter, a group of us decided it was time to do something about it.
Joe Sallustio and Elvin Freytes of The EdUp Experience, Dean Hoke of Small College America, and Gregg Oldring and Neil McPhedran of Higher Ed Pods took a leap of faith and began planning a first-time national gathering. We believed there was a clear void. Podcasting in higher education was growing rapidly, but most lacked a community outside of their home institution to network with, share ideas, and be inspired.
That leap of faith is now a reality. On Saturday, July 12, 2025, we will convene in Chicago for the inaugural HigherEd PodCon—the first conference built by and for higher education podcasters and digital media creators.
Hosted at the University of Illinois, Chicago
This one-day event will bring together over 40 presenters, 15 sessions, and 25+ institutions and organizations from across North America. Whether you’re a faculty innovator, student producer, tech strategist, or communications pro, HigherEd PodCon offers an immersive, hands-on experience designed to elevate the impact of campus-based podcasting.
Sessions run from 8:30 a.m. to 6:00 p.m., which includes networking opportunities and a reception closing out the day. The program is structured across three practical and dynamic tracks:
Strategy, Growth & Discovery
Content & Production
Tech, Tools & Analytics
The keynote speaker is Matt Abrahams, lecturer in Strategic Communication at Stanford Graduate School of Business and host of Think Fast, Talk Smart. His insights on clarity, message delivery, and audience engagement will set the tone for a day of meaningful exploration.
A National Cross-Section of Institutions
HigherEd PodCon showcases participation from institutions of all sizes and types, including:
Purdue University
Stanford University
University of South Carolina Beaufort
Lansing Community College
Brigham Young University
Penn State University
Whether it’s a faculty-led series, a student-led network, or an advancement-focused production, you’ll hear how campuses are using podcasts to educate, engage, and amplify their stories.
Session Spotlights
Here are three sessions you won’t want to miss:
1. Podcasting, Social Media, and Video: Oh My! Kate Young and Maria Welch, Purdue University With more than 130 episodes and thousands of monthly downloads, This Is Purdue is among the country’s top university podcasts. In this session, Kate and Maria walk through their formula for success, including social media workflows, video strategy, and content optimization.
2. Why Podcasts Fail (And How to Make Sure Yours Doesn’t) Dave Jackson, Podpage; Podcast Hall of Fame Inductee Dave Jackson has helped hundreds of shows succeed—and watched others fall flat. This session offers practical guidance for anyone launching or relaunching a podcast with purpose. Topics include budget-friendly production, YouTube distribution, and sustainable growth.
3. From 5 to 30: Growing a Podcast Network That Speaks Higher Ed Daedalian Lowry and Layne Ingram, Lansing Community College What started as five faculty shows grew into a 30+ program podcast network that engages the entire campus and community. Learn how Lansing Community College scaled LCC Connect with collaboration, creativity, and cross-departmental buy-in.
Why Attend HigherEd PodCon?
Whether you’re just starting out or looking to take your podcast to the next level, this is the community you’ve been waiting for. Here are three reasons not to miss it:
Network with your peers: Build meaningful relationships with fellow higher ed podcasters and digital media innovators.
Gain tools and templates you can use immediately: From show planning to promotion, walk away with actionable strategies you can implement on Monday.
Stay ahead of the curve: Learn how leading institutions are using podcasts to engage students, alumni, donors, and the public.
Save the Date
HigherEd PodCon 2025 is your opportunity to help shape the future of podcasting in higher education—and to find your people in the process.
Learn more and register at www.higheredpodcon.com. We have room for only 200 attendees in this inaugural event. Early bird rate of $249 available until the end of May
Dean Hoke is Managing Partner of Edu Alliance Group, a higher education consultancy, and a Senior Fellow with the Sagamore Institute. He formerly served as President/CEO of the American Association of University Administrators (AAUA). With decades of experience in higher education leadership, consulting, and institutional strategy, he brings a wealth of knowledge on small colleges’ challenges and opportunities. Dean, along with Kent Barnds, is a co-host for the podcast series Small College America.
