U.S. College Enrollment Falls as Smaller Institutions Face Closures

Total post-secondary enrollment in the U.S. rose 1% in fall 2025, down from a 4% increase the year before, according to the National Student Clearinghouse Research Center. Private four-year institutions recorded a 1.6% decline during the same period.

Several universities have already missed enrollment targets for fall 2026 and announced budget adjustments. Syracuse University reported it would run a deficit after falling short of its undergraduate target. The University of Vermont projected a $12 million shortfall after a 15% drop in freshman enrollment.

The University of Wyoming cited a $15 million gap linked to enrollment, inflation, and investment returns.

College announced in April it would close after the fall semester, citing enrollment shortfalls. Thirty-two four-year colleges in New England have closed or merged in the past decade, with more than a third of those actions occurring since 2020. The Federal Reserve has recorded roughly 60 college closures per year, almost all involving small private institutions.

A 17% decline in birth rates after 2007 is projected to reduce the number of college-aged Americans by 576,000 between 2025 and 2029, according to RC Strategy. Undergraduate enrollment had already fallen 15% between 2010 and 2021.

International undergraduate enrollment grew 3.2% last fall, less than half the prior year’s rate, while graduate international enrollment declined nearly 6%. Foreign student enrollment dropped 20% year-on-year last spring, according to NAFSA. Out-of-state domestic enrollment at flagship universities has remained steady.

Sandy Baum, a senior fellow at the Urban Institute, said the decline stems from fewer high school graduates rather than short-term policy shifts. The University of Oregon announced $30 million in cuts and warned its deficit could reach $65 million if trends continue.