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Monday, August 25, 2025

Can College Presidents Tell Us the Truth?

“Truth? You can’t handle the truth!” Jack Nicholson’s Colonel Jessup in A Few Good Men captures the tension at the heart of American higher education: can college presidents confront veritas—the deep, sometimes uncomfortable truths about their institutions—or will they hide behind prestige, endowments, and comforting illusions?

At the foundation of academia lies veritas, Latin for truth or truthfulness, derived from verus, “true” or “trustworthy.” Veritas is not optional decoration on a university crest; it is a moral and intellectual obligation. Yet 2025 reveals a system where veritas is too often sidelined: institutions obscure financial mismanagement, exploit adjunct faculty, overburden students with debt, and misrepresent outcomes to the public.

The Higher Education Inquirer (HEI) embodies veritas in action. In “Ahead of the Learned Herd: Why the Higher Education Inquirer Grows During the Endless College Meltdown,” HEI demonstrates that truth-telling can thrive outside corporate funding or advertising. By reporting enrollment collapses, adjunct exploitation, and predatory for-profit practices, HEI holds institutions accountable to veritas, exposing what many university leaders hope will remain invisible.

Leadership failures are a direct affront to veritas. Scam Artist or Just Failed CEO? scrutinizes former 2U CEO Christopher “Chip” Paucek, revealing misleading enrollment tactics and financial mismanagement that serve elite universities more than consumers. These corporate-style decisions in a higher education setting betray the very principle of veritas, prioritizing appearance and profit over educational integrity and human outcomes.

Student journalism amplifies veritas further. Through Campus Beat, student reporters uncover tuition hikes, censorship, and labor abuses, demonstrating that veritas does not belong only to administrators—it belongs to those who seek to document reality, often at personal and professional risk.

Economic and political realities also test veritas. In “Trumpenomics: The Emperor Has No Clothes,” HEI exposes how hollow economic reforms enrich a few while leaving the majority behind. Academia mirrors this pattern: when prestige is elevated over substance, veritas is discarded in favor of illusion, leaving students and faculty to bear the consequences.

Structural crisis continues. In “College Meltdown Fall 2025,” HEI documents federal oversight erosion, AI-saturated classrooms with rampant academic misconduct, rising student debt, and mass layoffs. To honor veritas, leaders would confront these crises transparently, but too often they choose comforting narratives instead.

Debt remains one of the clearest tests of institutional veritas. HEI’s The Student Loan Mess: Next Chapters shows how trillions in student loans have become instruments of social control. The Sweet v. McMahon borrower defense cases illustrate bureaucratic inertia and opacity, directly challenging the principles of veritas as thousands of debtors await relief that is slow, incomplete, and inconsistently applied.

Predatory enrollment practices further undermine veritas. Lead generators, documented by HEI, exploit student information to drive enrollment into high-cost, low-value programs, prioritizing revenue over truth, clarity, and student welfare. “College Prospects, College Targets” exposes how prospective students are commodified, turning veritas into a casualty of marketing algorithms.

Through all of this, HEI itself stands as a living testament to veritas. Surpassing one million views in July 2025, it proves that the public demands accountability, clarity, and honesty in higher education. Veritas resonates—when pursued rigorously, it illuminates failures, inspires reform, and empowers communities.

The question remains: can college presidents handle veritas—the unflinching truth about student debt, labor exploitation, mismanagement, and declining institutional legitimacy? If they cannot, they forfeit moral and public authority. Veritas is not optional; it is the standard by which institutions must be measured, defended, and lived.


Sources

HEI Resources Fall 2025

 [Editor's Note: Please let us know of any additions or corrections.]

Books

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Activists, Coalitions, Innovators, and Alternative Voices

 College Choice and Career Planning Tools

Innovation and Reform

Higher Education Policy

Data Sources

Trade publications

Saturday, August 23, 2025

Throwing the Flag for the Fourth Time: U.S. College Students Are Still Gambling with Student Aid

In this fourth installment of our continuing investigation into student gambling, one issue looms larger than ever: the misuse of student financial aid to fund risky betting behavior. This is not an isolated anomaly or a cautionary footnote. It is a widespread and worsening crisis that reveals the vulnerabilities in a higher education system increasingly entangled with digital addiction and financial exploitation.

An estimated one in five U.S. college students has used student aid—whether federal loans, Pell Grants, or other education funds—to place bets, often through mobile sports betting platforms. These findings, confirmed in recent surveys by Intelligent.com and state gambling councils, expose a troubling truth: higher education is not just failing to prevent this behavior; it may be silently enabling it.

Since the 2018 Supreme Court decision that overturned the federal ban on sports betting, online gambling has exploded in popularity. Students can now place bets with a few taps on their phones, often encouraged by targeted promotions, social media ads, and campus culture. A 2023 NCAA survey showed that nearly 60 percent of 18- to 22-year-olds had engaged in sports betting, with as many as 41 percent betting on their own school’s teams. What was once considered deviant is now normalized.

Financial aid, originally intended to help students pay for tuition, housing, and books, has become a silent reservoir for gambling losses. Students who misuse these funds often do so quietly, making it easy for the behavior to go undetected until academic or financial disaster strikes. This is not only a matter of personal irresponsibility but of systemic neglect. With little oversight of how aid money is spent after disbursement, students can easily divert those funds toward high-risk activities without triggering institutional red flags.

The consequences are severe. Students who gamble with loan money frequently fall behind on rent and tuition. Some accumulate additional credit card debt. Many report heightened levels of anxiety, depression, and academic disengagement. A subset drops out entirely—often with thousands of dollars in nondischargeable debt and no degree to show for it. What we’re witnessing is the transformation of long-term educational debt into a form of speculative entertainment, with young people bearing the cost and the state underwriting the risk.

Colleges and universities, for the most part, have done little to stop this. Fewer than a quarter have any formal gambling policy in place. Counseling centers are often underfunded and untrained in gambling-specific treatment. Awareness campaigns are limited and usually reactive. Meanwhile, the gambling industry continues to rake in profits and expand its reach on college campuses, sometimes through sponsorship deals or targeted advertisements that blur the lines between athletics, student identity, and wagering.

The NFL Foundation’s $600,000 commitment to gambling awareness may be well-intentioned, but it’s woefully insufficient when compared to the scale of the problem and the profits at stake. While a handful of schools have taken steps to limit advertising or incorporate gambling risk into financial literacy programs, these measures remain the exception rather than the rule.

This is not a moral panic. It is a public health crisis driven by the same factors that have fueled other digital addictions: rapid technological change, corporate lobbying, student precarity, and institutional inaction. It is part of a broader shift toward what we’ve described in previous articles as “digital dope”—a system in which tech companies engineer compulsive behaviors for profit, and colleges quietly adjust to a reality where student attention, money, and mental health are fair game.

The normalization of gambling, especially among male students, mirrors other troubling trends we’ve reported: rising alcohol abuse, declining classroom engagement, and growing alienation from educational institutions. Many of these students are not just gambling because it’s fun—they are using it to escape a deeper sense of disconnection, uncertainty, and despair.

To meaningfully address this crisis, institutions must confront the uncomfortable truth that financial aid is being used to subsidize digital addiction. That means enforcing clear restrictions on gambling app promotions, integrating gambling screening into student health protocols, rethinking how aid is distributed and monitored, and establishing formal policies that treat gambling risk with the same urgency as alcohol or drug abuse.

In publishing our fourth report on student gambling, The Higher Education Inquirer again asks: how many warnings are needed before the problem is acknowledged at scale? How many more students must drop out, spiral into debt, or fall into addiction before administrators, lawmakers, and the Department of Education take this seriously?

The answers are not hard to find. What’s missing is the will to act.

Sources:
Intelligent.com (2022, 2023), College Student Gambling Surveys
NCAA (2023), Sports Betting Participation Data
Nevada Council on Problem Gambling (2024)
Florida Council on Compulsive Gambling (2023)
CollegeGambling.org
Time Magazine (2024), “An Explosion in Sports Betting Is Driving Gambling Addiction Among College Students”
Kindbridge (2025), “Is America in the Middle of a College Student Gambling Addiction Crisis?”
Addiction.Rutgers.edu (2024), “The Rise of Sports Betting Among College Students”
HigherEducationInquirer.org (2025), “Student Aid and Student Gambling: Risky Connection”

Friday, August 22, 2025

The Case Against Higher Education Reform (Glen McGhee)

For decades, critics and policymakers have argued that American higher education could be “fixed” through better management, new credentials, accountability systems, or market competition. But the evidence now points to a sobering reality: the time for meaningful reform has passed. What remains is a structurally inert system staggering toward collapse, incapable of adapting in ways that would meaningfully serve students, faculty, or the broader society.

Too Late: The System Has Already Crystallized

Sociologists Michael Hannan and John Freeman warned in 1984 that organizations often fall prey to “structural inertia,” creating a form of lock-in that makes real transformation virtually impossible. Today’s higher education sector exemplifies their theory.

Since 2010, undergraduate enrollment has declined by more than 15%, representing 2.7 million fewer students nationwide. The FAFSA fiasco of 2024–25 alone is expected to result in hundreds of thousands fewer freshmen, according to Brookings. This is not gradual adjustment but systemic breakdown occurring within institutions whose structures are too rigid to respond.

The so-called “demographic cliff” beginning in 2025 will accelerate these failures. The Philadelphia Federal Reserve predicts that 1 in 10 U.S. colleges faces “significant financial distress” in the next decade. Closures are already mounting: Birmingham-Southern College in Alabama shut its doors in 2024 after 168 years, despite political lobbying and emergency funding attempts. In Vermont, the Vermont State Colleges System closed three campuses in 2020, citing declining enrollment and unsustainable costs. In Massachusetts, Mount Ida College collapsed in 2018, leaving students stranded. These are not isolated cases—they are signs of a broader unraveling.

No Power, No Resources: Reform Advocates Lack Institutional Leverage

Those demanding reform—students burdened by debt, adjuncts trapped in precarity, or concerned citizens—lack meaningful power within entrenched governance structures. Administrative hierarchies create what organizational theorists call “hierarchical inertia”: resistance to bottom-up change.

Between 2010 and 2018, spending on administrative services grew by 25%, compared with only 16% growth in instructional spending. Administrative salaries rose faster than faculty pay, and presidents of elite private universities now routinely earn over $1 million annually, while the median adjunct pay per course hovers around $3,500.

Meanwhile, the faculty workforce has stratified into a rigid caste system: 48% of all faculty are adjuncts, compared with only 33% who are tenure-track. Nearly one in four adjuncts qualifies for some form of public assistance, according to the American Federation of Teachers.

Higher Education as a Caste System

The metaphor of higher education as a caste system is not rhetorical exaggeration—it is sociological description.

  • Academic labor: Adjuncts teach 60–70% of all undergraduate courses at some public universities, yet lack benefits, job security, or office space.

  • Institutional prestige: The top 20 U.S. universities control nearly $400 billion in endowment wealth, while the median endowment across all institutions is less than $200 million—a disparity that drives inequality in faculty hiring, research opportunities, and student aid.

  • Student access: Federal data show that students from the top income quartile are five times more likely to attend a selective university than students from the bottom quartile.

As one adjunct professor bitterly described it: “I guess I am in the Sudra—servant—class.”

Path Dependence and the Logic of Lock-In

American higher education is path dependent: historical decisions have created self-reinforcing mechanisms that are now nearly impossible to undo.

The feedback loops are obvious. Average tuition has tripled (in real dollars) since 1980, while total student loan debt now exceeds $1.7 trillion, owed by more than 43 million borrowers. Tuition hikes fuel administrative growth, which requires even higher tuition. Federal student loans underwrite rising costs, which then justify further loan expansion.

Even when institutions attempt reform, history traps them. Consider New College of Florida, a small public liberal arts institution: under political pressure in 2023, its governance was remade to align with a conservative ideological agenda. The result has been turmoil, plummeting enrollment, and national headlines—but no structural fix to the deeper financial instability.

The sector has reached what economists call “quasi-irreversibility”: a point beyond which reform cannot meaningfully occur without collapse.

The Futility of Cosmetic Solutions

The reforms most commonly floated today—cost containment, program elimination, or alternative credentials—misunderstand structural inertia.

In 2025, West Virginia University cut 28 academic programs, including its entire foreign language department, as part of an effort to address a projected $45 million deficit. Dozens of other universities, from regional publics to small privates, have announced similar cuts. These moves balance budgets temporarily but hollow out educational missions.

Calls for universities to spend more of their endowments overlook the fact that even elite institutions already average spending rates around 4.5%, which is close to what financial managers consider sustainable. Meanwhile, 90% of U.S. colleges have endowments under $100 million, meaning they cannot rely on them for meaningful financial rescue.

Alternative credentials face similar structural limits. A 2022 SHRM survey found that while 48% of employers expressed interest in microcredentials, only 20% actually considered them in hiring decisions. Applicant tracking systems are built to screen for traditional degrees, not experimental certificates.

The Iron Law of Institutional Preservation

Sociologists describe “institutional isomorphism”—the tendency for organizations to mimic each other in ways that resist innovation. In higher education, this has created an “iron law” of institutional preservation.

When faced with crisis, universities respond with defensive maneuvers: hiring freezes, program eliminations, and lobbying for more federal support. In 2025 alone, more than 100 institutions announced cuts to majors, from classics to physics, while maintaining administrative and athletic spending.

The overriding purpose of universities is no longer the pursuit of knowledge or the education of students, but the preservation of their own bureaucratic forms.

Collapse Before Reform

The conclusion is stark but unavoidable: American higher education has passed the point of meaningful reform. Its rigid hierarchies, path dependence, and preservation instincts make internal change impossible. Demographic decline and financial pressures will likely force widespread collapse before adaptation occurs.

Hannan and Freeman’s theory predicted this outcome: organizational change is rarely the product of internal reform. Instead, it comes through environmental selection—the replacement of existing institutions by new ones better suited to survive.

The American university may not disappear entirely, but the form it has taken since the mid-20th century is unsustainable. Collapse is not only likely—it may already be underway.


Sources:
Hannan & Freeman (1984); BestColleges (2025); Brookings (2025); Philadelphia Fed (2024); Forbes (2025); Inside Higher Ed (2023); Academe Blog (2013); Governing (2023); AFT (2020); SHRM (2022); Al Jazeera (2025); ERIC (2020); Birmingham-Southern (2024); WVU (2025); Mount Ida (2018); Vermont State Colleges (2020).

The Right-Wing Roots of EdTech

The modern EdTech industry is often portrayed as a neutral, innovative force, but its origins are deeply political. Its growth has been fueled by a fusion of neoliberal economics, right-wing techno-utopianism, patriarchy, and classism, reinforced by racialized inequality. One of the key intellectual architects of this vision was George Gilder, a conservative supply-side evangelist whose work glorified technology and markets as liberating forces. His influence helped pave the way for the “Gilder Effect”: a reshaping of education into a market where technology, finance, and ideology collide, often at the expense of marginalized students and workers.

The for-profit college boom provides the clearest demonstration of how the Gilder Effect operates. John Sperling’s University of Phoenix, later run by executives like Todd Nelson, was engineered as a credential factory, funded by federal student aid and Wall Street. Its model was then exported across the sector, including Risepoint (formerly Academic Partnerships), a company that sold universities on revenue-sharing deals for online programs. These ventures disproportionately targeted working-class women, single mothers, military veterans, and Black and Latino students. The model was not accidental—it was designed to exploit populations with the least generational wealth and the most limited alternatives. Here, patriarchy, classism, and racism intersected: students from marginalized backgrounds were marketed promises of upward mobility but instead left with debt, unstable credentials, and limited job prospects.

Clayton Christensen and Michael Horn of Harvard Business School popularized the concept of “disruption,” providing a respectable academic justification for dismantling public higher education. Their theory of disruptive innovation framed traditional universities as outdated and made way for venture-capital-backed intermediaries. Yet this rhetoric concealed a brutal truth: disruption worked not by empowering the disadvantaged but by extracting value from them, often reinforcing existing inequalities of race, gender, and class.

The rise and collapse of 2U shows how this ideology plays out. Founded in 2008, 2U promised to bring elite universities online, selling the dream of access to graduate degrees for working professionals. Its “flywheel effect” growth strategy relied on massive enrollment expansion and unsustainable spending. Despite raising billions, the company never turned a profit. Its high-profile acquisition of edX from Harvard and MIT only deepened its financial instability. When 2U filed for bankruptcy, it was not simply a corporate failure—it was a symptom of an entire system built on hype and dispossession.

2U also became notorious for its workplace practices. In 2015, it faced a pregnancy discrimination lawsuit after firing an enrollment director who disclosed her pregnancy. Women workers, especially mothers, were treated as expendable, a reflection of patriarchal corporate norms. Meanwhile, many front-line employees—disproportionately women and people of color—faced surveillance, low wages, and impossible sales quotas. Here the intersections of race, gender, and class were not incidental but central to the business model. The company extracted labor from marginalized workers while selling an educational dream to marginalized students, creating a cycle of exploitation at both ends of the pipeline.

Financialization extended these dynamics. Lenders like Sallie Mae and Navient, and servicers like Maximus, turned students into streams of revenue, with Student Loan Asset-Backed Securities (SLABS) trading debt obligations on Wall Street. Universities, including Purdue Global and University of Arizona Global, rebranded failing for-profits as “public” ventures, but their revenue-driven practices remained intact. These arrangements consistently offloaded risk onto working-class students, especially women and students of color, while enriching executives and investors.

The Gilder Effect, then, is not just about technology or efficiency. It is about reshaping higher education into a site of extraction, where the burdens of debt and labor fall hardest on those already disadvantaged by patriarchy, classism, and racism. Intersectionality reveals what the industry’s boosters obscure: EdTech has not democratized education but has deepened inequality. The failure of 2U and the persistence of predatory for-profit models are not accidents—they are the logical outcome of an ideological project rooted in conservative economics and systemic oppression.


Sources

Thursday, August 21, 2025

Iron Cage or Golden Handcuffs? (Glen McGhee and Dahn Shaulis)

Max Weber’s “iron cage” described a world where bureaucratic rationality and capitalist structures governed life so thoroughly that individuality and freedom were diminished. Today, Americans still live in that cage, bound by debt, hierarchy, and rules that channel human energy into impersonal systems. Alongside the cage sits another metaphor: the “golden handcuffs.” Unlike the coercion of bureaucracy, golden handcuffs represent the comfort and stability of jobs, mortgages, and benefits that discourage mobility. Taken together, iron and gold shape a society increasingly stuck in place.

Nowhere is this more visible than in the experience of younger generations. Student loan debt has become one of the most powerful bars of the iron cage. For decades, policymakers sold higher education as the ticket to mobility, yet the financing model has left tens of millions of Americans burdened with obligations that stretch across lifetimes. Parents still paying their own loans now watch their children borrow again, creating a cycle of indebtedness that limits family formation, delays homeownership, and stifles geographic mobility. College graduates often cannot take risks—whether by starting a business, moving to a new city, or pursuing meaningful but lower-paid work—because debt service makes such choices impossible. The American promise of education as liberation has become, for many, education as shackles.

Layered onto this cage is the massive growth of what anthropologist David Graeber called “bullshit jobs”—roles that exist less to create value than to maintain bureaucratic appearance and control. Whole sectors of the economy are filled with paper-pushers, compliance officers, middle managers, and customer service agents who know that their work adds little or nothing to society. Yet these jobs proliferate because they keep the system running, providing salaries and benefits that workers can’t easily abandon. Here lie the golden handcuffs: people remain in unfulfilling work not because they love it, but because the alternative—losing health insurance, defaulting on loans, or risking homelessness—is too dangerous. In effect, workers trade freedom for security, their ambitions dulled by the constant calculation of what can be risked and what cannot.

The Wall Street Journal recently documented how job-switching and geographic mobility have fallen to historic lows. For many, the causes are high housing costs, limited relocation packages, and rising mortgage rates. But behind those immediate factors lie deeper structures. Student loan debt reduces the willingness to gamble on uncertain opportunities. Bullshit jobs, however empty, offer just enough stability to keep people locked in place. Older generations, insulated by home equity or pensions, may experience the golden handcuffs as a form of protection, but their children and grandchildren feel more of the iron cage, inheriting debts and diminished opportunities while being funneled into roles that drain meaning from their labor.

The intergenerational effect is stark. Families once imagined that each generation would surpass the last, but mounting evidence shows downward mobility as the norm. Debt and immobility mean that the youngest workers face worse prospects than their parents, often despite higher levels of formal education. The cage has become hereditary, reinforced by golden handcuffs that reward those already inside while barring others from entry.

The consequences reach far beyond individual frustration. A society of debt-burdened, risk-averse workers chained to meaningless jobs loses dynamism, creativity, and the possibility of real progress. Economic innovation falters when people cannot afford to move, switch jobs, or challenge existing hierarchies. Civic life suffers when millions are too tired or precarious to participate fully. What Weber described as the cold rationality of bureaucracy now fuses with financialization and corporate incentives to produce both stagnation and quiet despair.

The question is not only whether Americans are trapped in iron cages or bound by golden handcuffs, but who profits from these arrangements. Student loan servicers, corporate employers, and real estate interests all benefit from a population too indebted, too constrained, and too risk-averse to push back. Unless there is structural change—through debt relief, meaningful labor reform, and a housing policy that restores mobility—the chains will only tighten, passed from one generation to the next.

The iron cage and the golden handcuffs are not metaphors in tension; they are metaphors in partnership, binding Americans simultaneously by force and by comfort. Together they describe a society that promises freedom while delivering entrapment, and a generation that is learning the hard way that education, work, and home are less ladders to opportunity than carefully designed systems of control.


Sources

Max Weber, The Protestant Ethic and the Spirit of Capitalism (1905).
“Understanding Max Weber’s Iron Cage,” ThoughtCo. https://www.thoughtco.com/understanding-max-webers-iron-cage-3026373
“Nobody’s Buying Homes, Nobody’s Switching Jobs—and America’s Mobility Is Stalling,” Wall Street Journal, August 14, 2025. https://www.wsj.com/economy/american-job-housing-economic-dynamism-d56ef8fc
David Graeber, Bullshit Jobs: A Theory (2018).
Steven J. Davis and John Haltiwanger, “Dynamism Diminished: Housing Markets and Business Formation,” AEA Research (2024). https://www.aeaweb.org/research/charts/dynamism-diminished-housing-markets
“The Intergenerational Burden of Student Loan Debt,” Brookings Institution, October 2021. https://www.brookings.edu/research/the-intergenerational-burden-of-student-loan-debt/

Wednesday, August 20, 2025

College Meltdown Fall 2025

The Fall 2025 semester begins under intensifying pressure in U.S. higher education. Institutions are responding to long-term changes in enrollment, public funding, demographics, technology, and labor markets. The result is a gradual disassembly of parts of the postsecondary system, with ongoing layoffs, program cuts, and institutional restructuring across both public and private sectors.


The Destruction of ED

In a stunning turn, the U.S. Department of Education has undergone a massive downsizing, slashing nearly half its workforce as part of the Trump administration’s push to dismantle the agency entirely. Education Secretary Linda McMahon framed the move as a “final mission” to restore state control and eliminate federal bureaucracy, but critics warn of chaos for vulnerable students and families who rely on federal programs. With responsibilities like student loans, Pell Grants, and civil rights enforcement now in limbo, Higher Education Institutions face a volatile landscape. The absence of centralized oversight has accelerated the fragmentation of standards, funding, and accountability—leaving colleges scrambling to navigate a patchwork of state policies and shrinking federal support.

AI Disruption: Academic Integrity and Graduate Employment 

Artificial Intelligence has rapidly reshaped higher education, introducing both powerful tools and profound challenges. On campus, AI-driven platforms like ChatGPT have become ubiquitous—92% of students now use them, and 88% admit to deploying AI for graded assignments. This surge has triggered a spike in academic misconduct, with detection systems struggling to keep pace and disproportionately flagging non-native English speakers Meanwhile, the job market for graduates is undergoing a seismic shift. Entry-level roles in tech, finance, and consulting are vanishing as companies automate routine tasks once reserved for junior staff. AI-driven layoffs have already claimed over 10,000 jobs in 2025 alone, and some experts predict that up to half of all white-collar entry-level positions could be eliminated within five years. For recent grads, this means navigating a landscape where degrees may hold less weight, and adaptability, AI fluency, and human-centered skills are more critical than ever.

Unsustainable Student Loan Debt and Federal Funding 

A recent report from the American Enterprise Institute (AEI) highlights the depth of the crisis: more than 1,000 colleges could lose access to federal student aid based on current student loan repayment rates—if existing rules were fully enforced. The findings expose systemic failures in accountability and student outcomes. Many of these colleges enroll high numbers of low-income students but leave them with unsustainable debt and limited job prospects.

Institutional Cuts and Layoffs Across the Country

Job losses and cost reductions are increasing across a range of universities.

Stanford University is cutting staff due to a projected $200 million budget shortfall.
University of Oregon has announced budget reductions and academic restructuring.
Michigan State University is implementing layoffs and reorganizing departments.
Vanderbilt University Medical Center is eliminating positions to manage healthcare operating costs.
Harvard Kennedy School is reducing programs and offering early retirement.
Brown University is freezing hiring and reviewing academic offerings.
Penn State University System is closing three Commonwealth Campuses.
Indiana public colleges are merging administrative functions and reviewing low-enrollment programs.

These actions affect not only employees and students but also local communities and regional labor markets.

Enrollment Decline and Demographic Change

Undergraduate enrollment has fallen 14.6% since Fall 2019, according to the National Student Clearinghouse Research Center. Community colleges have experienced the largest losses, with some regions seeing more than 20% declines.

The “demographic cliff” tied to declining birth rates is now reflected in enrollment trends. The Western Interstate Commission for Higher Education (WICHE) projects a 15% decline in high school graduates between 2025 and 2037 in parts of the Midwest and Northeast.

Aging Population and Shifts in Public Spending

The U.S. population is aging. By 2030, all baby boomers will be over 65. The number of Americans aged 80 and older is expected to rise from 13 million in 2020 to nearly 20 million by 2035. Public resources are being redirected toward Social Security, Medicare, and elder care, placing higher education in direct competition for limited federal and state funds.

State-Level Cuts to Higher Education Budgets

According to the State Higher Education Executive Officers Association (SHEEO), 28 states saw a decline in inflation-adjusted funding per student in FY2024.

The California State University system faces a $400 million structural deficit.
West Virginia has reduced academic programs in favor of workforce-focused realignment.
Indiana has ordered cost-cutting measures across public campuses.

These reductions are leading to fewer courses, increased workloads, and, in some cases, higher tuition.

Closures and Mergers Continue

Since 2020, more than 100 campuses have closed or merged, based on Education Dive and HEI data. In 2025, Penn State began closing three Commonwealth Campuses. A number of small private colleges—especially those with enrollments under 1,000 and limited endowments—are seeking mergers or shutting down entirely.

International Enrollment Faces Obstacles

The Institute of International Education (IIE) reports a 12% decline in new international student enrollment in Fall 2024. Contributing factors include visa delays and tighter immigration rules. Students from India, Nigeria, and Iran have experienced longer wait times and increased rejection rates. Graduate programs in STEM and business are particularly affected.

Increased Surveillance and Restrictions on Campus Speech

Data from FIRE and the Electronic Frontier Foundation (EFF) show increased use of surveillance tools on campuses since 2023. At least 15 public universities now use facial recognition, social media monitoring, or geofencing. State laws in Florida, Texas, and Georgia have introduced new restrictions on protests and diversity programs.

Automated Education Expands

Online Program Managers (OPMs) such as 2U, Kaplan, and Coursera are running over 500 online degree programs at more than 200 institutions, enrolling more than 1.5 million students. These programs often rely on AI-generated content and automated grading systems, with minimal instructor interaction.

Research from the Century Foundation shows that undergraduate programs operated by OPMs have completion rates below 35%, while charging tuition comparable to in-person degrees. Regulatory efforts to improve transparency and accountability remain stalled.

Oversight Gaps Remain

Accrediting agencies continue to approve closures, mergers, and new credential programs with limited transparency. Institutions are increasingly expanding short-term credential offerings and corporate partnerships with minimal external review.

Cost Shifts to Students, Faculty, and Communities

The ongoing restructuring of higher education is shifting costs and risks onto students, employees, and communities. Students face rising tuition, fewer available courses, and increased reliance on loans. Faculty and staff encounter job insecurity and heavier workloads. Outside the ivory tower, communities will lose access to educational services, cultural events, and local employment opportunities tied to campuses.

The Higher Education Inquirer will continue to report on the structural changes in U.S. higher education—grounded in data, public records, and the lived experiences of those directly affected.

Sources:
National Student Clearinghouse Research Center, Western Interstate Commission for Higher Education (WICHE), U.S. Census Bureau, State Higher Education Executive Officers Association (SHEEO), Institute of International Education (IIE), Foundation for Individual Rights and Expression (FIRE), Electronic Frontier Foundation (EFF), Government Accountability Office (GAO), The Century Foundation, Stanford University, University of Oregon, Penn State University System, Harvard Kennedy School, Vanderbilt University Medical Center, Education Dive Higher Ed Closures Tracker, American Enterprise Institute (AEI).