As universities cope with Trump, NC's smaller colleges face ‘difficult choices'

Yahoo

02-03-2025

North Carolina's large public and private universities are in the news as they adjust to Trump administration policies opposing diversity programs and cutting back federal research funding.
But that's not the only story of struggle in the state's higher education circles. North Carolina's smaller private colleges are facing broader and longer term challenges, some of which are likely to be aggravated by the new administration's policies.
The largest schools have enough resources to navigate shifting demographics and changes in student financial aid, but many of the smaller schools are scrambling to stay afloat.
The collective enrollment in North Carolina's 36 private colleges and universities peaked 12 years ago at approximately 90,000. Today, despite the state's growth, total enrollment is 83,000.
'There's no question enrollment now is a challenge, as it is for everybody, public and private,' said Hope Williams, who is in her 33rd year as president of North Carolina Independent Colleges & Universities, a group representing 36 institutions.
The challenges are coming from several directions. The UNC System is drawing students with tuition that hasn't risen for eight years and more students are going out of state for college, some drawn by big public universities offering them in-state tuition.
North Carolina's independent colleges and universities range from larger institutions such as Duke, Wake Forest, Davidson and Elon University, to historically Black colleges and universities and liberal arts schools.
The challenges facing North Carolina's smaller colleges are part of a national trend, said Kyle Southern, associate vice president for higher education quality at The Institute for College Access & Success in Washington. 'Nationally, we're seeing one school close a month, which is really alarming,' he said.
What's driving the trend is a decline in the number of students coming out of high schools and changing attitudes about the value of a college degree.
There is also a looming loss of Pell grants. Half of North Carolina's private college students receive the need-based federal grants, but the program is now $2.7 billion in the red and facing a potential $10 billion shortfall next year. There also could be a cutback in all federal aid if Congress carries through with Trump's desire to dismantle the Department of Education.
'We have this sort of perfect storm,' Southern said. 'Smaller schools are going to have to make some difficult choices.'
Those choices are being made in North Carolina. St. Augustine's University in Raleigh lost its accreditation because of financial and governance problems. It's seeking to return to solvency by leasing a portion of its campus to a developer.
Guilford College, founded in Greensboro by Quakers in 1837, has been put on probation by its accrediting agency until it improves its finances. Guilford spokesman Ty Buckner said the school is realigning its spending to fit a smaller enrollment. 'It's challenging, but we're not alone in that,' he said.
Lynn Morton, president of William Peace University in Raleigh, said, 'Nationally, independent colleges are navigating a shifting enrollment landscape, and North Carolina is no exception.' But she said the school's enrollment 'is recovering from the volatile COVID years.'
Warren Wilson College, a liberal arts college near Asheville, has trimmed costs and eliminated some majors. But its finances have been helped by a record $10 million gift and a payment for putting a portion of its sprawling mountain campus under a conservation easement. That has allowed the school to also lower its advertised tuition from $40,480 to $25,500 to enhance its appeal.
'Although the headwinds are real, we have been decisive and bold in crafting a plan for renewal,' said the school's president, Damián Fernández. 'We will always be small, but mighty.'
Such resolve may keep smaller colleges as options in North Carolina. Williams thinks the General Assembly could also help by giving private colleges a share of money generated by the state lottery and sports wagering. The state does provide private college students with about $91 million in need-based scholarships.
Despite the challenges, Williams said, the state's smaller private colleges and universities are worth protecting.
'We have an incredible history,' she said, 'that is entwined with our local towns and counties and regions in a way that is a major part of who we are in North Carolina.'
Associate opinion editor Ned Barnett can be reached at 919-404-7583, or [e-mail]