Addressing Enrollment Challenges at Small to Mid-Sized Colleges
Diversity of institutions is a defining characteristic of higher education in the United States. Students have a broad range of options, spanning community colleges, trade schools, HBCUs, and private and public four-year institutions, providing choice not only in the field of study, but also the location, learning environment, and teaching modality.
Smaller institutions are a crucial—and too often overlooked—part of this ecosystem. In fact, it has been reported that as many as 80% of institutions in the United States have a student population of 5000 or less, demonstrating the huge influence that smaller colleges have on the lives of many thousands of learners, and on the broader economy and society as a consequence. Students choose small and mid-sized colleges for a variety of reasons, including geography, particular areas of specialism, and smaller class sizes.
As the higher education sector grapples with enrollment declines, it is often smaller institutions that bear the brunt. With freshman numbers decreasing, growing skepticism around the value of a degree, and increased study options outside of what is traditionally classed as higher education, small to mid-sized institutions find themselves in an increasingly competitive market, trying to stand out and attract new learners despite reduced budgets and resources. The outcome is often steep enrollment declines; in small, private institutions, for example, there have been reported enrollment declines of up to 60% over the last decade, with liberal arts colleges in particular facing significant challenges.
The threat that this poses to financial wellbeing is serious—in extreme cases, it’s existential. Twenty-four institutions closed in the first nine months of 2024 alone, bringing the total since the 2008 financial crash to nearly 300. In their detailed study on the financial health of smaller institutions, Bloomberg found that as many as 170 colleges across the country meet at least three of five established criteria indicating a high risk of closure, a number which again is worsening over time. For many institutions, particularly those without large endowments, it isn’t hyperbolic to think of an enrollment strategy as a fight for survival.
This paper looks at five key challenges that are hampering enrollment efforts at small to mid-sized institutions. These are:
- Low brand awareness
- Resource and budget restrictions
- A reduced pool of freshmen students
- Yield (conversion from admitted to enrolled)
- Financial aid clarity
After briefly reviewing each challenge and the associated factors and data, we’ll then outline practical steps that institutions can take to address them, as well as provide examples of schools that are doing this well.