As the Trump administration tightens visa restrictions for international students, American universities—many already teetering on the brink of financial collapse—face exacerbated crises. The policy shift comes amid a growing wave of college closures across the nation.
College Closures Reach Alarming Rates
In late May 2024, Cabrini University, a private institution in Radnor Township, Pennsylvania, announced its permanent closure. Interim President Helen Drinan described the decision as “heartbreaking news” in a video statement. The university, known for its small class sizes and personalized education, had warned of financial difficulties a year prior.
Similar abrupt closures occurred nationwide. The University of the Arts in Philadelphia, one of America’s oldest arts institutions, shut down just one week after its announcement, leaving newly admitted students in shock. Throughout 2024, shutdowns swept through higher education: Wells College, Birmingham-Southern College, and Eastern Gateway Community College all closed their doors, alongside historic institutions like Green Mountain College (founded in 1834).
According to the nonprofit “Hechinger Report,” one U.S. college closed per week on average in 2024. Data from the State Higher Education Executive Officers Association (SHEEO) reveals that over 500 private nonprofit four-year institutions have folded in the past decade—triple the previous decade’s rate.
Even elite universities aren’t immune. On February 26, 2025, Pennsylvania State University announced plans to shutter several satellite campuses. The Federal Reserve Bank of Philadelphia predicts 80 more colleges could close within five years.
Dual Crisis: Shrinking Enrollment and Budget Shortfalls
The late Harvard Business School professor Clayton Christensen predicted in 2017 that half of America’s 4,000 colleges would fail within 15 years. His forecast gains credibility as enrollment plummets and deficits balloon.
From 2010 to 2021, U.S. college enrollment dropped from 21 million to 18 million. Cabrini University saw a 60% enrollment decline over a decade, while the University of the Arts’ student body shrank 44% to just 1,149—smaller than most local high schools.
With 95% of colleges reliant on tuition, dwindling admissions cripple budgets. Even elite schools face strain: Brown University confronts a $46 million deficit that could reach $90 million, while the University of Chicago carries $481 million in variable-rate debt.
Desperate Measures: Cuts, Layoffs, and Bond Issuance
Institutions are scrambling to survive. Some eliminate liberal arts programs for career-focused degrees; others lease campus space or merge with larger universities. Mass layoffs have hit Penn State, the University of New Hampshire, and Johns Hopkins University (cutting 2,000+ jobs).
Meanwhile, federal and state funding shrinks. The Trump administration withdrew billions from Cornell, Northwestern, and Ivy League schools over alleged inadequate antisemitism policies. Harvard lost $2.2 billion in grants, prompting emergency $750 million bond issuances—mirrored by Yale ($850 million) and MIT ($750 million). In Q1 2025 alone, U.S. colleges issued $11.6 billion in municipal bonds.
Students Caught in the Crossfire
Freshman Marshall attended Mount Ida College for one semester before its abrupt closure. When she transferred to Newbury College—which soon also collapsed—she was left with partial credits and mounting debt. Her story reflects a growing crisis: 42% of students from closed schools don’t re-enroll, per the National Student Clearinghouse.
Rachel Burns of SHEEO estimates 1.25 million students have been affected. While some, like Cabrini’s students, land at better schools like Villanova University, others face dead ends. Prospective students now must vet institutions’ financial health alongside academics.
International Student Exodus Compounds Problems
On May 27, 2025, the State Department suspended visa interview waivers and intensified social media screening for international applicants. Over 1,800 student visas have already been revoked across 280 schools.
The consequences are stark: U.S. international student numbers fell 11.3% year-over-year in March 2025, with Chinese student visas down 42.5%. Many are redirecting to the UK, Australia, or Hong Kong.
This exodus threatens a vital lifeline. International students contributed $43.8 billion to the U.S. economy in 2023-24, supporting 378,000 jobs. With domestic enrollment projected to drop by 5 million by 2037, experts warn that alienating global talent could accelerate higher education’s collapse.
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