Over the past five years, the American higher education landscape has undergone profound structural changes, as financial pressures, demographic shifts, and political headwinds have forced dozens of colleges and universities to consider mergers, consolidations, or outright closures. Among the most significant and telling of these developments is the proposed merger of two of New Jersey’s public institutions: New Jersey City University (NJCU) and Kean University—a deal emblematic of the broader realignment reshaping higher education across the country.
The New Jersey Merger: A Case Study in Crisis and Adaptation
In March 2025, NJCU and Kean University signed a letter of intent to merge, a move that drew praise from financial watchdogs and marked a pivotal step in NJCU's long road to fiscal recovery. NJCU, with approximately 5,500 students, had faced a steep financial decline over several years, prompting the state of New Jersey to direct the institution to find a fiscally sound partner by April 1, 2025. Kean University, with around 17,000 students and a more stable balance sheet, emerged as that partner.
Just four days after the announcement, Moody’s Investors Service upgraded NJCU’s financial outlook from “stable” to “positive,” citing the planned merger as a major factor. This marked the university’s second ratings boost in just over a year; Moody’s had previously raised its outlook from “negative” to “stable” in early 2024. The credit agency’s report highlighted NJCU’s improved financial strategy, risk management, and leadership credibility—factors that strengthened its standing as a viable merger partner.
NJCU interim president AndrĂ©s Acebo called the upgrade “a powerful affirmation of what is possible when a university chooses resilience over retreat, and purpose over paralysis.” Under the terms of the proposed merger, NJCU would be renamed “Kean Jersey City,” and Kean University would assume its assets, liabilities, and executive oversight. A newly appointed chancellor would lead the Jersey City campus.
While the merger is still pending regulatory and accreditation approvals, it could take up to 24 months to finalize. The universities have not yet disclosed whether staffing cuts will be part of the consolidation.
A National Trend Accelerated by Crisis
The NJCU–Kean merger is part of a larger wave of institutional consolidation across the United States—a trend driven by declining enrollment, rising operational costs, shrinking public investment, and demographic shifts, particularly in the Northeast and Midwest.
In Pennsylvania, the state’s system of higher education launched a major consolidation effort in 2021, combining six universities into two new institutions: Commonwealth University of Pennsylvania (a merger of Bloomsburg, Lock Haven, and Mansfield) and PennWest University (California, Clarion, and Edinboro). These mergers, finalized in 2022, were seen as necessary to stem the financial bleeding in a system that had lost nearly 25% of its enrollment over the prior decade.
Similarly, in Georgia, the University System of Georgia has continued its consolidation trend that began in the 2010s. By 2023, the number of public institutions in the state had been reduced from 35 to 26 through various mergers—moves aimed at cutting administrative overhead and reallocating resources.
Private Colleges Under Pressure
Private institutions, particularly small liberal arts colleges with modest endowments, have also been swept up in the merger wave. Mills College in California, a historically women’s college, merged with Northeastern University in 2022 after years of financial instability. The new institution, Mills College at Northeastern University, maintained some of Mills’ legacy programming while benefiting from Northeastern’s expansive infrastructure and global brand.
Similarly, Vermont’s Goddard College and the School of the Museum of Fine Arts in Boston have either merged or been absorbed into larger institutions as stand-alone viability faltered.
In many cases, mergers have been cast as “strategic alliances” or “transformations,” but the underlying impetus has often been survival.
The Role of Credit Agencies and Political Climate
Credit rating agencies like Moody’s, S&P, and Fitch have played an increasingly influential role in shaping merger activity. By downgrading institutions at financial risk and upgrading those pursuing sound partnerships, they are guiding policy decisions and shaping public narratives.
Moody’s March 2025 sector-wide downgrade of U.S. higher education from “stable” to “negative” reflects broader concerns: cuts to research funding, increasing scrutiny of endowments, policy shifts around foreign students, and partisan attacks on academic freedom and diversity initiatives. In this context, even public institutions—once considered relatively safe—are under heightened pressure to demonstrate fiscal responsibility and political neutrality.
The Future of Mergers in Higher Ed
While mergers offer a path forward for some institutions, they are not without risk. Critics point to potential job losses, cultural clashes, mission dilution, and loss of community identity. Supporters argue that, if done thoughtfully, mergers can preserve academic programs, improve financial health, and extend access to underserved populations.
The proposed NJCU–Kean University merger, backed by both state officials and financial markets, may serve as a model—or a cautionary tale—for similar efforts across the country. In an era when higher education is being reshaped by economics, politics, and evolving student needs, mergers are likely to remain a defining feature of the post-pandemic academic landscape.
This story is part of the Higher Education Inquirer’s continuing coverage of structural changes in U.S. higher education. For more on campus mergers, closures, and the future of public institutions, follow our investigative series on higher ed austerity.