This is a thoughtful essay on a crucial problem: shrinking enrollments in higher education and the budget cuts to meet them. Julian Vasquez Heilig lays out the problem and the typical response. He thinks there is a better way and he describes it.
Heilig is on the faculty of Michigan State University and is a national expert on topics such as diversity, equity and inclusion.
He writes:
The warning signs are no longer theoretical. Schools are closing. Colleges are preparing layoffs. Faculty buyouts are spreading. Academic programs are disappearing. Dorm beds are sitting empty. Classrooms are thinning out. Tax revenue is weakening. State appropriations are uncertain. Consultants are being hired and paid millions to identify “efficiencies.” Boards are quietly discussing mergers and closures. American education is entering a period of deep instability.
This is not only a crisis for presidents and superintendents. It is a crisis for communities. When a school closes, a neighborhood loses more than a building. When a college cuts faculty and staff, a region loses jobs and opportunity. When families question whether education is worth the price, the consequences ripple through local economies and democracy itself.
In this article, I first define the problem. Enrollment pressure, funding instability, demographic change, and political attacks are converging across K-12 and higher education. These pressures are already producing closures and painful restructuring. But this is not only a warning. At the end, I turn to what communities can do through politics, public pressure, local organizing, accountability, and leadership selection before the choices become narrower.
The Warning Signs Are Already Here
At my own institution, public projections suggest new student enrollment could decline somewhere between 3 and 5 percent this year. If those projections hold, that would mark a return to consecutive enrollment declines after the gains achieved during my years as provost. During that period, we reversed an almost decade-long enrollment slide.
That is alarming because this moment was supposed to be the “high water mark” before the demographic cliff. WICHE projects that the total number of high school graduates will peak around 2026 and then decline steadily through 2041. Universities were supposed to be maximizing enrollment now. Instead, some are struggling while the student pool remains historically large.
In many ways, education is being pushed into an arena where resources are shrinking and the odds are being rewritten before many institutions understand the rules.
The Old Survival Strategies Are Running Out
Much of higher education survived the past several years through strategies that are becoming unsustainable. Institutions poured millions into financial aid discounting. They leaned harder into full-pay families. They expanded retention offices and predictive analytics systems. They built student success centers and advising infrastructure. They spent heavily on marketing and enrollment staff.
Ironically, retention and enrollment strategy helped save some institutions from earlier financial pressure. During my time in executive leadership, we understood that higher education had entered a new era of competition. Universities were no longer competing only over prestige. They were competing over affordability and survival.
Financial aid, student success infrastructure, and community partnerships became essential tools. Institutions that moved aggressively like Arizona State and Georgia State often stabilized themselves. Institutions that remained complacent fell further behind.
But even enrollment growth stories now face new threats. Federal research funding is unstable. State appropriations remain uncertain. Inflation is pressuring budgets. Some states like Michigan have seen stronger FAFSA activity. Yet many families are questioning the value of higher education. Political attacks have also weakened public trust while threatening research capacity and institutional autonomy.
Please open the link to read Heilig’s creative proposals for meeting the crisis.

I am sorry to hear about declining enrollment at Temple University since it is a school that charges more affordable tuition fees that provide opportunity to working class students. When I attended in the late 1960s, the total enrollment including the graduate schools was about 56,000, and today its enrollment is less than 30,000. Colleges and universities are going to have to become more collaborative and creative, particularly if they intend to continue to offer an array of liberal arts courses.
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Lived this story in the classroom and with my own children.
The school where I taught was part of a three school merger in 1999. (Rural, Upstate NY)
There were classes of 150+ students at one point after the merger. When I retired a few years ago it was down to 80 or even fewer.
Both our own children went to colleges with sinking enrollment; one college has since shut down.
The school district where I live is now wrestling with a merger study. Wonderful students, faculty and staff…it’s a tough call.
Of course, catastrophic decisions made in D.C. since January 2025 are only going to make this disaster worse.
I’m trying think through how the suggested strategies in the article might be applied to my hometown. Thanks for putting me in that specific space this morning. Nice piece, Julian.
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Heilig suggests going after the 38% of high school grads who are entering neither 2yr nor 4yr colleges [vs the 62% who do]. It is true that if you look over the last 30 yrs, you can find a few yrs when that # was between 63% – 67%, but they were short-lived.
I do not think much will come of that effort. The cost of college is stabilizing somewhat, but still is so out-of-reach that it contributes majorly to trend of young folks postponing or never owning homes/ raising kids due to the squeeze of student debt + housing/ childcare costs + stagnant wages.
My understanding of the enrollment cliff is this. In 2007 US had the highest birth rate bar none—even higher than baby boom peak in 1957. The rate began plummeting the following year [financial collapse], and has continued declining. 2023 was the lowest birth rate in our history.
The babies born in biggest birth-rate year ever graduated hisch in 2025, entered college in 2026. Considering the drop in birth rate alone, expect 2% less enrollment each year for college enrollment 2027, 2028, & 2029. It plateaus for a bit, starts dropping again; the overall ave decline is 1% per year. A 16% decline in 16 yrs. [Then plateaus from 2023-2025].
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