The rising challenge of university and college closures

The Hindu

a day ago

Global higher education is undergoing a paradoxical shift. On the one hand, student enrolment is booming, with over 254 million currently enrolled in higher education institutions. This figure has more than doubled over the past two decades and is projected to rise. On the other hand, despite this growing demand, university closures and mergers loom large in many countries. Much more attention needs to be focused on these failures, which affect students, staff, and society.
There are many reasons for this unhappy situation — population declines, a growing scepticism about the return on investment from a university degree, populist opposition to science and higher education, shifts in government funding to higher education institutions, predatory private providers, technological disruption, rise of online learning, and others.
The consequences are already visible: a wave of campus closures and mergers that is reshaping the higher education map in many countries. In many cases, closures and mergers are not signs of strategic innovation, but rather responses to institutional distress. While exact figures are difficult to determine, it is estimated that hundreds of universities and colleges worldwide have shut down or merged in recent years.
The Indian case
India is not immune to these trends — but at the same time is an unusual case since its population continues to grow and the number of young people seeking post-secondary education is expanding as well. While the number of universities and colleges in India continue to expand, smaller institutions, especially private engineering and management colleges, are facing closure.
The National Education Policy (NEP), 2020 sets an ambitious road map for improving access in the sector. One of the most significant targets set by the NEP is to raise the Gross Enrolment Ratio (GER) in higher education to 50% by 2035. Another key recommendation is the expansion of higher education institutions into underserved regions. However, recent developments reveal a contrasting reality on the ground.
The All India Council for Technical Education (AICTE) imposed a two-year moratorium on the establishment of new engineering colleges in traditional areas of engineering in 2020-21. This was lifted only in 2023-24. In the current academic year, the AICTE approved the closure of 27 private colleges nationally. These institutions have stopped accepting new students — current students can complete their programmes. Furthermore, many affiliated colleges under the supervision of State universities are quietly being phased out. For example, in 2024 alone, 14 colleges affiliated with Mahatma Gandhi University in Kerala shut down due to declining enrolment and financial difficulties. The Karnataka government is currently reviewing the continuation of nine newly established public universities in the State. Similarly, in 2024, Anna University in Tamil Nadu decided to close down 12 of its affiliated engineering colleges due to very low enrolment rate. Unfortunately, national agencies such as the University Grants Commission or State government data do not provide an accurate picture of college closures nationally. Only the AICTE provides detailed data on closures.
Global phenomenon
Universities and colleges in many countries are struggling to stay viable amid shifting demographics, rising operational costs, and evolving societal perceptions of higher education's value. Countries facing significant demographic declines, such as Japan, South Korea, and Taiwan, face especially serious problems — and in these countries the large majority of students are in private universities. And in all three countries, the government has considerable power over private institutions. In Japan, 33 universities have closed in the past few years and another 29 have merged with other institutions — and these numbers will significantly grow. A similar number have closed in South Korea, and others, called 'zombie' universities, are kept alive through government funding. In both South Korea and Japan, most failed institutions are in provincial areas where population decline is especially evident.
In the U.S., 79 universities have closed in the past five years and at least another 80 are in imminent danger. Most of these schools are private and in rural areas with declining populations, and enrolments have declined precipitously. Mergers are also increasingly common though accurate statistics are unavailable. But a few are public — for example, in the state of Pennsylvania, which has a large number of small public colleges, the State government is merging these institutions to reduce costs.
In the U.K., a majority of the non-elite universities have fiscal deficits and have been firing large number of academic and other staff. A decline in the number of overseas students, stimulated by more restrictive government policies, will exacerbate financial problems. Similar issues are evident in Canada and to a less extent in Australia. In the Canadian case, many vocationally oriented colleges, some of which have engaged in shady academic policies, have deep financial problems —estimates are that more than 80 public or non-profit colleges have already closed.
Globally, closures and mergers do not affect research intensive universities but rather institutions at the lower end of the academic hierarchy. Top institutions, such as those in the U.K. and those targeted in the U.S. under the Trump administration, may face crises, but not existential threats.
Early warning
Competition and institutional closures are natural in any sector, including higher education. However, ignoring warning signs make the situation worse. India currently benefits from a large youth population, but changing birth rates will lead to a demographic decline in the future, similar to the East Asian and U.S. experience. This potential shift emphasises the need for sustainable strategies to ensure the stability and quality of higher education institutions.
A college or university in crisis typically shows many early warning signs. In India, common indicators include a consistent drop in student admissions over time, which affect both public and private institutions. Over-reliance on tuition fees can also be considered a sign of crisis.
Academically, signs of trouble include the reduction or closure of programmes, non-renewal of faculty contracts, and the resignation of prominent faculty members without proper replacements. Governance issues, such as frequent leadership changes, and reputational challenges such as poor campus infrastructure, unpaid electricity bills and inadequate student support services, further signal decline.
The public, including students, parents, and faculty, should observe early warning signs of a college or university in crisis to avoid long-term harm to them. Practical steps to identify these signs include reviewing publicly available data, such as enrolment figures over the past few years. To enhance transparency, displaying this data on the institution's website should be made mandatory. Government authorities have a responsibility for tracking institutional performance and financial stability as well.
(Eldho Mathews is programme officer (internationalisation) at the Kerala State Higher Education Council. Philip G. Altbach is professor emeritus and distinguished fellow, Center for International Higher Education, Boston College, United States; views are personal)