Since the 2010's there has been an uptick in closures of colleges across the country. In face, since 2016, 91 private colleges have closed, merged with another, or announced plans for closing. Almost half of those closed after the COVID-19 pandemic in 2020.
CEO of College Prep Genius Jean Burk says that is no surprise, especially with how financially incompetent some of them have been.
"They definitely have a history of mismanaging finances," she says. "Including the COVID money...having state funding cut, then not budgeting correctly with what they do have."
About 95% of colleges around the country rely on tuition as their main source of operaiton funds. So, it can be a problem when kids simply choose to not attend college.
It may sound crazy to most, but plenty of Generation Z have the idea in their heads that they do not need educaiton.
"I think this generation plays a part in the problem...this is the Tik Tok generaiton, where kids want that instant fame," she says. "They want to do a few videos, and get famous, and think maybe education is not so important."
Another issue, according to Burk, is the failing education system, and lack of desire.
"I do not think they are being prepared in high school for the rigors of higher education," she says.
That opinion backed up by the fact that the dropout rate in the US is around 40 percent, with 30 percent of that coming from kids leaving before their sophomore year.
All of this closure may be bad for the colleges themselves, but spells a very good thing, potentially, for trade and vocational schools.
"There is a draw to them...the ability to not have a ton of debt, and also start a job right away in a needed field," she says.
Recently, one of the top schools in the nation, Stanford University, announced they are offering a semester long course dedicated to music sensation Taylor Swift. Yes, you read that right. A parent could pay upwards of $60,000 a year, to have their child learn about a pop singer.
"Now...kids will look at that and think 'wow, she did not go to college, and makes hundreds of millions of dollars,'" she says. "I think a lot of fields are lacking in applicants because of this society we live in."
So, the million-dollar question: does this continue? Indeed.
"I think you will see the trend of colleges merging, or some of the bigger schools absorbing some of the smaller colleges," she says.
Most recently in Texas, Stephen F. Austin State University became part of the University of Texas system, after years of financial issues. The school will get at least $1 million per year as a member of the system.
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