street. LOUIS — Colleges across the St. Louis region are facing questions about their long-term sustainability amid a nationwide higher education crisis.
A smaller pool of potential students means tougher competition between universities. Public funding is difficult to obtain, while education and employment costs continue to rise. Perhaps most troubling is the shift in public opinion about the value of higher education, which has led more students not to attend college.
Universities across the country already faced challenges due to long-term declines in birth rates when the coronavirus pandemic exacerbated declining enrollment rates.
Every university in the St. Louis area saw fewer students enroll for the fall 2020 semester, according to a Post-Dispatch review of enrollment data. The pandemic has widened the gap between struggling small colleges and large, established universities.
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Experts believe that many of these faltering institutions will not survive for a long time.
“The reality is that we have excess capacity in higher education. It is impossible to imagine a future in which every institution will be able to survive,” said Richard Stisloff, founder of rpk GROUP, a higher education consulting firm based in Annapolis, Maryland. “This downturn will be painful.” “It will certainly affect people, their jobs, and the communities in which these institutions are located.”
Nationally, enrollment has declined 16% from its peak in the 2010-2011 school year to the 2021-2022 school year, according to the most recent data available from the National Center for Education Statistics, the main federal entity for collecting and analyzing education-related data. .
On an annual basis, enrollment decreased by 1.8% in the 2021-2022 academic year.
But the declines were worse than average in Missouri.
Enrollment fell 3.5% in Missouri from the 2020-2021 school year to 2021-2022 — accounting for most of the decline the entire Midwest region saw that year, according to the National Student Clearinghouse, which provides data and analysis to universities and policymakers.
By comparison, Illinois saw only a 0.5% decline in enrollment over the same period. Between 2017 and 2022, Illinois’ losses totaled 12%, compared to 16.2% in Missouri.
Setbacks at St. Louis Colleges
This decline has implications for university revenues, which are typically linked to enrollment rates. Over the past five years, about 60% of U.S. colleges ran deficits due to insufficient tuition, according to a 2023 report from FORVIS, a national accounting firm.
Webster University has seen a 50% decline in enrollment and a loss of $128 million over the past decade. Its longtime leader, Chancellor Beth Strobel, announced her resignation last month after the Post-Dispatch reported that Webster’s Board of Trustees gave her and her deputy significant salary increases despite the financial turmoil.
Moody’s last month downgraded Webster’s bonds, suggesting the private university was at greater risk of default due to its $100 million deficit and weak financial reserves, according to the report. Webster has secured more than $60 million in bonds to pay for new high-tech buildings on its main campus in suburban Webster Groves, in an effort to attract and retain students.
Webster leaders praised the university’s new strategies to attract international students and focus on health and STEM programs to increase enrollment this fall.
Fontbonne University’s revenues have declined by more than $14 million over the past decade, recently leading to the elimination of 21 academic programs and 19 faculty positions. Efforts to boost enrollment by launching a new football program largely failed when half the team withdrew from the Catholic institution in Clayton. Enrollment this fall reached 874 students, up from 2,000 a decade ago.
Harris-Stowe State University, one of two historically black colleges in the state, faces a crucial test this spring, when the Higher Education Commission visits the school. The commission placed Harris-Stowe’s accreditation “on notice” last year due to a late audit of the school for fiscal year 2021, inadequate tracking of student academic outcomes and a lack of strategies to improve retention and graduation rates. The Missouri State Board of Education will also decide in February whether to accredit Harris-Stowe College of Education, which is not bound by the state. The university was founded in the 19th century as a teachers’ college.
Enrollment at Harris-Stowe, a public university, has fallen by a third since the pandemic began — falling to 1,098 students last year from 1,630 students in fall 2019.
At Lindenwood University, enrollment has dropped 39 percent over the past decade, from just over 12,000 students to 7,288 this fall. Officials at St. Charles County College attribute the decline to the closing of its Belleville campus and the phasing out of satellite sites.
Last week, the school announced it would eliminate 10 athletic programs at the end of the school year, affecting 280 students, as part of a “rebalancing” to match the number of sports offered by its peers in the Ohio Valley Conference, said Joe Sallustio, senior vice president.
“It’s been a growth strategy for a lot of institutions, to add more sports and attract more students,” Sallustio said. “(But) this is not a sustainable strategy.”
In recent years, the school has focused on expanding its online classes and creating flexible programs for non-traditional students that allow them to start mid-semester. Sallustio said the strategies are working: Enrollment this fall was higher than it had been in the past two years, marking the first time in a decade that enrollment has risen.
“If you are not available to serve that student with a starting opportunity at that point, that student will look elsewhere,” he said. “Part of that is making sure the institution is ready to serve these students when the student is ready.”
Cathy Osborne, former vice chancellor at the University of Missouri St. Louis, said colleges can’t count on students coming in anymore. Lewis and the current leader of the Regional Business Council.
There are more career and training options available that do not require a four-year college degree. The Regional Business Council has made more efforts to connect K-12 school counselors and administrators from low-income communities with businesses in the region to show students potential career paths. Some will not need a traditional college degree; Other careers may inspire students to pursue a degree years later.
She added that colleges will have to think creatively and be proactive to survive.
“Small universities and colleges may be facing challenges right now,” Osborne said. “But I think universities that are larger, well-funded, and very smart about the actions they take will continue to do well in our community.”
Some schools are growing
There are some bright spots in the enrollment data.
Saint Louis University has more students than ever before, with a total of 15,204 students this fall, including 8,502 undergraduates. International students also achieved a record enrollment of 3,183 students, an increase of 141% over last year. Most of it came through SLU’s Global Alumni Initiative, which was launched in 2020 to attract international students to programs in business, engineering, health and technology, according to a spokeswoman.
Maryville University of Town & Country increased enrollment more than 9% over last year, marking the 17th consecutive year of growth. The university’s growth is largely due to an increase in the number of online students, who make up more than 60% of the total enrollment of 10,000 students.
Two small private schools in southern Illinois have bulked up their classes in part by attracting students from across the United States and internationally.
This fall Quincy University welcomed its largest class of new students in 50 years. The total enrollment of 1,011 undergraduates at the Catholic liberal arts university is up 2% from last year. The freshman class of more than 500 students at McKendree University in Lebanon is the second largest in the school’s nearly 200-year history. Nearly half came from 28 foreign countries and 34 states other than Illinois.
Colleges that make these kinds of strategic moves can overcome the economic and demographic challenges ahead, said Rachel Politi, senior advisor for higher education at FORVIS.
“It’s really important to remember that boards and administrators can go a long way to improving their financial situation by being careful about where they invest and where they cut costs,” Politi said. “Optimism really comes from a place of opportunity.”
Colleges are seeing a rebound in enrollment, representing a positive turnaround after the challenges of COVID-19. New data from the National Student Information Exchange Research Center, as reported by The Hill, shows a 2.1% increase in college enrollment this fall, with community colleges leading by 4.4%. Veuer’s Maria Mercedes Galupo has the story.
As the St. Louis area colleges and universities continue to navigate the challenges brought on by the COVID-19 pandemic, they now face additional financial hurdles. With decreased enrollment, reduced state funding, and rising operational costs, these institutions are forced to make tough decisions in order to maintain financial stability. As they strive to provide quality education and resources to their students, they are exploring various strategies to address their budget challenges and ensure their long-term sustainability. This is a critical time for the higher education sector in the St. Louis area, and the decisions made by these institutions will have a significant impact on the future of education in the region.