Cabrini University in Pennsylvania, USA, will welcome its final graduating class in May 2024 before closing its doors. Founded in 1957, this Catholic institution has faced significant financial pressure due to a more than 60% decline in enrollment since 2016, as reported by CNN.
Helen Drinan stepped in as interim president of the university in May 2022 and recognized the financial crisis despite efforts to streamline personnel and operations at Cabrini University.
According to CNN’s report, Drinan emphasized the importance of creating new revenue streams to address the institution’s financial challenges. She highlighted the necessity of generating income rather than solely relying on cost-cutting measures.
Previously serving as the honorary president of Simmons University, Drinan successfully navigated a similar financial crisis through layoffs and seeking new revenue sources, stabilizing the institution’s finances over an 18-month period, as documented by the Association of Governing Boards of Universities and Colleges.
With dwindling enrollments, financial constraints, the end of federal assistance during the pandemic, and rising operational costs, Cabrini University faced insurmountable challenges leading to its closure.
Cabrini University has forged partnerships with other Pennsylvania institutions, offering transfer options and financial aid arrangements for students affected by the closure. This tragic turn of events mirrors a growing trend among U.S. higher education institutions grappling with financial instability.
Rachel Burns, a senior policy analyst at the State Higher Education Executive Officers Association, noted a rise in closures of non-profit institutions since 2017, following a period of temporary reprieve in the early 2020s post the COVID-19 pandemic and federal aid.
The declining birth rates contributing to a plummet in student enrollment, alongside escalating tuition costs, have further exacerbated the situation for higher education institutions, leading to a 15% decrease in undergraduate enrollments from 2010 to 2021, according to the National Center for Education Statistics.
Private liberal arts colleges have especially suffered in regions like the Northeast and Midwest, with multiple closures observed since 2020, including Cazenovia College in New York, underscoring the diminishing opportunities for college graduates.
Burns highlighted the shift towards job opportunities not mandating a college degree while underscoring the importance of adult education credentials in the changing job market landscape.
As institutions catering to adult learners and first-generation college students like Hodges University in Myers, Florida, face closure due to financial challenges despite efforts to sustain operations, the impact reverberates across communities lacking access to higher education opportunities.
Amidst closures like Hodges University and The College of Saint Rose in Albany, New York, educators and policymakers are grappling with the implications of a shifting educational landscape, aiming to allocate limited resources to institutions best poised to deliver quality education.
In the face of continued enrollment declines and closures of non-profit institutions, the higher education sector braces for further transformations, signaling a necessary realignment of resources to uphold educational standards for present and future generations.