Why Colleges Are Merging

COLLEGE MERGERS AN AN 1311 F1 From 2018-2022 , there were 95 college mergers up by 21 % vs the previous 18 years COLLEGES FAILING ? Financial Strain The US government invested $ 76 billion to help colleges survive In 2020 , the COVID - 19 pandemic closed colleges and created a short - term crisis Shrinking Enrollment Undergrad enrollment dropped by 9.4 % since the pandemic * NEARLY 1.4 MILLION STUDENTS ●●● АААААААААА UP TO 40 % OF PROSPECTIVE STUDENTS are delaying college plans due to financial strain or preference for in - person instruction Sources Each institution's board of trustees Shifting Sentiment Fewer US adults consider a college degree " very important " Immediate college enrollment for high school graduates fell 4 - year colleges 6 % DECLINE 2013 WHY ARE 2 - year colleges 16 % DECLINE 70 % The value of a college degree is falling Even after working 10 years , 1/6 of college grads earn less than high school grads Proposed mergers must be approved by The college's accrediting bodies Hiring Woes == HOW COLLEGE MERGERS WORK Loss of identity Smaller schools are at greater risk of closure , but many also offer a unique student experience not found anywhere else WHILE SOME COLLEGES CLOSE , OTHERS CHOOSE TO MERGE WITH OTHER COLLEGES TO FIND A PATH FORWARD Local Nearby mergers bring economies of scale and help campuses expand locally 2 - year colleges In 2022 , Connecticut's community colleges plan to merge into a single college with a dozen campuses Most deals involve same - state schools with less than 5,000 students In 2021 , Delaware State University announced plans to acquire neighboring Wesley College , the first time ever that a historically black college has taken over another institution Online Universities can expand through small online institutions In 2018 , Purdue University took over Kaplan University in order to expand its online offering سال The Process In the near future , as many as 500 4 - year colleges and universities are at risk of closure of US colleges are worried about serving 56 % ) students with current staffing levels Types Of Mergers AFTER NORTHEASTERN AND MILLS COLLEGE ANNOUNCED MERGER PLANS , MILLS COLLEGE ALUMNAE FILED A LAWSUIT TO STOP IT Universities were forced to furlough employees during pandemic shutdowns Many found new positions or took early retirement offers 3 4 Business Not having faculty partnerships are a support could result valuable resource in high turnover 2019 From 2020-2022 , more than 10 % of Americans with low - wage positions shifted to highly - skilled jobs Smaller , less prestigious private schools are seeing higher than average declines in enrollment 51 % This puts colleges at risk of noncompliance with federal and state rules Loss of voice Many worry merging into larger universities will take away the voices of students and faculty leaders People You ShouldKnow in Most did this without a degree , getting online certifications instead 4 - year colleges In 2022 , 6 of Pennsylvania's institutions will merge into 2 new universities Higher Education According to the Influence Ranking Engine at AcademicInfluence.com thehustle.co/07222022-college-mergers-and-acquisitions Consolidation Restructuring can help streamline operations and reduce competition for students : Other stakeholders have a strong influence * as of March 2022 ! THE FUTURE OF COLLEGE MERGERS Which Schools Are Most At - Risk ? 1 Cross - country Can help colleges expand across the country In 2021 , Boston's Northeastern University acquired Mills College , a historic women's college near Oakland , CA International Joint - ventures with foreign universities can serve international students and expand study abroad In 2012 , NYU Shanghai became the first Sino - US research university , formed by parent schools New York University and East China Normal University 5 79 % of college funding comes from alumni and private sources FROM 2016 TO 2021 , ABOUT 43 % OF CLOSING OR MERGING INSTITUTIONS WERE CHRISTIAN - AFFILIATED SCHOOLS Long - Term Effects Mergers can save small colleges from permanent closure , but many still have concerns Dual mission In 2018 , the University of Wisconsin system restructured its 2 - year colleges to better serve students planning to eventually transfer to one of its universities In Spring 2022 , public colleges and universities faced the highest enrollment declines Community colleges Public , 4 - year Overall 7.8 % 5 % 4.7 % were private 40 % and non - profit schools == Loss of support Increased costs Minority students struggle to find their place in larger universities and equity is easily overlooked when planning a merger wbur.org/news/2019/10/22/small-schools-merger-hampshire-wheelock aacsb.edu/insights/articles/2022/01/joining-forces-why-universities-merge academic.oup.com/oep/article-abstract/72/3/606/5825809?redirectedFrom=PDF iias.asia/the-newsletter/article/sino-foreign-joint-venture-universities-introduction highereddive.com/news/mills-college-alumnae-sue-to-halt-possible-merger/602949 fool.com/investing/2022/07/19/colleges-emerge-as-hot-market-for-mergers-and-acqu jamesgmartin.center/2021/08/did-you-know-college-closures-and-mergers-since-2016 forbes.com/sites/michaeltnietzel/2021/02/15/university-mergers-on-the-rise/?sh=611af10b2709 insidehighered.com/news/2022/06/10/saint-josephs-absorbs-struggling-institution-across-town insidehighered.com/news/2022/03/09/accreditor-approves-connecticut-community-colleges-merger usnews.com/news/education-news/articles/2022-05-26/college-enrollment-declines-are-here-to-stay rbtcpas.com/thought-leadership-articles/education/the-pros-and-cons-of-college-mergers-acquisitions sr.ithaka.org/publications/public-college-and-university-consolidations-and-the-implications-for-equity eab.com/insights/expert-insight/enrollment/the-demographic-cliff-is-already-here-and-its-about-to-get-worse College mergers and acquisitions lead to an average tuition and fee increase of between 5 and 7 % Dr. Shaun R. Harper Expert on diversity , equity , and inclusion in business and education Miguel Cardona 12th U.S. Secretary of Education Arne Ducan 9th U.S. Secretary of Education Colleges must adapt to the times . Being leaner and meaner may mean it's time for a college merger . IS YOUR COLLEGE NEXT ? Lauro Cavazos Secretary of Education & First hispanic member of US Cabinet Suniya S. Luthar , Ph.D. Expert in child development and fostering resilience among children , families , and adults in high - achieving , high - pressured communities MI COLLEGE CLIFFS DEVELOPED BY NNOWSOURCING wpxi.com/news/top-stories/board-governors-approves-merger-6-pennsylvania-universities/LTJ5JHHOOZC5HL32A6F5VY4CKM brookings.edu/blog/brown-center-chalkboard/2022/05/10/how-has-the-pandemic-affected-high-school-graduation-and-college-entry