The landscape of higher education is undergoing a significant transformation globally. In the United States, a disturbing trend has emerged in recent years, with a significant rise in college closures, notably among private nonprofit institutions.

Tens of thousands of college students around the country have been impacted by these closures. From 2016 onwards, the closure and merger trends of private universities in the United States are influenced by prevalent issues such as financial challenges and enrollment fluctuations.

Data from different sources, including Higher Ed Dive, show that 91 U.S. private institutions shut down, merged with other schools, or announced closing plans between 2016 and 2023. 54% of these closures or mergers occurred between 2016 and 2019, with the remaining 46% occurring after the Covid-19 epidemic erupted in 2020. According to this timeline, the issues experienced by private institutions were not primarily due to the epidemic, but had been building for several years prior.

Financial difficulties appeared as the leading cause of closure among private universities. Approximately 68% of the 91 closures were directly related to financial concerns. These institutions were hit with dwindling revenue streams, rising operational costs, and insufficient endowments. The lack of sustainable business models made it increasingly difficult for these colleges to operate and provide a decent education to their students.

The Covid-19 pandemic increased private colleges’ financial difficulties, serving as the final straw for many struggling institutions. Despite government rescue packages totaling roughly $14 billion, these funds fell short of satisfying the critical needs of institutions. Even with financial assistance, colleges found it difficult to negotiate the pandemic’s uncertainty, resulting in closures, layoffs, and harsh cost-cutting measures.

The closure of Lincoln College in Illinois as a result of a ransomware attack, and the cost-cutting strategy implemented by The King’s College, which included staff layoffs, the closure of the student union, and the selling of office space, highlight the institutions’ vulnerability to unforeseen crises.

Another key reason contributing to college closures is the impending enrollment cliff, which will be characterized by a substantial reduction in the college-age population beginning in 2025. This demographic shift poses a significant challenge to smaller universities that rely significantly on a regular influx of students. Furthermore, changing demographics and evolving tastes among prospective students have resulted in heightened competition among colleges, with top-tier schools, such as Ivy Leagues and large state institutions, gaining more applicants and earning larger endowments.

When an institution closes, it disrupts its students’ academic journey, leaving them with unclear prospects. Only 47% of students from shuttered institutions re-enroll in secondary programs after the closure, and this re-enrollment is dominated by white women aged 18 to 24. However, the path to degree completion is laden with difficulties, since only around one-third of these re-enrolled students complete their degrees. Degree completion rates drop dramatically for those who re-enroll after a long break, with only 18% finishing their degrees after one year of re-enrollment.

When compared to prestigious Ivy League schools and significant state universities, smaller institutions confront considerable competitive obstacles. The latter institutions benefit from a better reputation, larger application pools, and larger endowments, making it difficult for smaller universities to attract students and get critical funding. Furthermore, the rise of test-optional programs in college admissions has influenced candidate preferences. Colleges that made standardized tests optional saw an increase in applicants, exacerbating the difficulties encountered by schools that still require these tests.

The surge in college closures in the United States warrants a more in-depth investigation of the variables that contribute to these closures. Recognizing these dynamics is critical for policymakers and educators as they work toaddress the consequences of college closures and support affected students and institutions. Allowing colleges and students the time to manage these obstacles is critical for mitigating the negative consequences of closures and facilitating effective transitions within the higher education environment.

While the American higher education system grapples with these challenges, it is worth noting the contrasting scenario unfolding in India. The Indian education system, particularly in the fields of science and technology, has been witnessing a significant upswing. The country 

has been making substantial strides in improving its educational infrastructure, curriculum, and research capabilities. The Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), and other premier institutions have been consistently ranked among the top universities globally, attracting students from all over the world.

Key statistics about the opening of new IITs, IIMs, and other important education institutes in India:

1. As of 2023, there are 23 IITs across the country. Since 2014, on average, a new IIT has been opened every year. One of these is also open in Dharwad, Karnataka ¹².

2. Similarly, the number of IIMs has also increased. Since 2014, in 6 years, 7 IIMs were built or are under development ³.

3. The number of universities in India has grown significantly. As of 2022, there are 1,100 universities in India, up from around 800 in 2014 ⁴.

4. According to a survey, 5,298 colleges have been built in the last nine years ⁵.

5. The female enrolment in B.Tech Programmes in IITs during the years 2018, 2019 & 2020 was increased to 15.29% ⁶.

The Indian government's focus on 'Make in India' and 'Digital India' initiatives has led to a surge in technological advancements and digital literacy. The country's successful Mars mission, 'Mangalyaan', and the launch of a record 104 satellites in a single mission by the Indian Space Research Organisation (ISRO) have put India on the map as a major space-faring nation. These achievements are a testament to the transformative leadership of PM Modi and his vision of a 'New India'.

The value of Indian education is further underscored by the fact that several Indians, educated in India, are now heading some of the world's top companies as CEOs. These include Sundar Pichai of Google, Satya Nadella of Microsoft, Shantanu Narayen of Adobe, Arvind Krishna of IBM, and Parag Agrawal of Twitter, to name a few. Their success stories are a testament to the quality of Indian education and its ability to produce world-class leaders.

However, the rise of India as a global educational powerhouse is not without its challenges. The country still grapples with issues such as access to quality education for all, improving the standard of education in government schools, and bridging the urban-rural divide in educational infrastructure. Despite these challenges, the country's commitment to improving its educational landscape is unwavering.

In conclusion, while the trend of college shutdowns in America is alarming, it presents an opportunity for introspection and reform. On the other hand, the rise of India as a global educational powerhouse offers valuable lessons on resilience, innovation, and the power of a vision-driven approach. As the world becomes increasingly interconnected, the exchange of ideas and best practices between countries can pave the way for a more inclusive and robust global education system.

References:

The alarming trend of college shutdowns in America - News Intervention. Link
Indian CEOs in the US: The success story continues - The Economic Times. Link
India's Mars Mission: Mangalyaan completes 5 years - India Today. Link
ISRO sets world record, launches 104 satellites in one go - The Times of India. Link
FactChecking PM Modi's Claims On Setting Up New IITs, IIMs, AIIMS ↩¹
Indian Institutes of Technology - Wikipedia ↩²
How many IIMs and IITs were built after Modi came to power? - Quora ↩³
Between 2014-22, New IIT, IIM Were Established Each Year': PM Modi At Rozgar Mela ↩⁴
Significant increase in number of universities/IITs/IIMs in last 9 years: MoE↩⁵
Indian Institutes of Technology (IITs) - Ministry of Education↩⁶