The rising challenge of university and college closures Premium

Global higher education faces challenges with rising student enrolment but also closures and mergers, requiring attention and sustainable strategies.

Global higher education is undergoing a paradoxical shift. On the one hand, student enrolment is booming, with over 254 million currently enrolled in higher education institutions. This figure has more than doubled over the past two decades and is projected to rise. On the other hand, despite this growing demand, university closures and mergers loom large in many countries. Much more attention needs to be focused on these failures, which affect students, staff, and society.

There are many reasons for this unhappy situation — population declines, a growing scepticism about the return on investment from a university degree, populist opposition to science and higher education, shifts in government funding to higher education institutions, predatory private providers, technological disruption, rise of online learning, and others.

The consequences are already visible: a wave of campus closures and mergers that is reshaping the higher education map in many countries. In many cases, closures and mergers are not signs of strategic innovation, but rather responses to institutional distress. While exact figures are difficult to determine, it is estimated that hundreds of universities and colleges worldwide have shut down or merged in recent years.

India is not immune to these trends — but at the same time is an unusual case since its population continues to grow and the number of young people seeking post-secondary education is expanding as well. While the number of universities and colleges in India continue to expand, smaller institutions, especially private engineering and management colleges, are facing closure.

The National Education Policy (NEP), 2020 sets an ambitious road map for improving access in the sector. One of the most significant targets set by the NEP is to raise the Gross Enrolment Ratio (GER) in higher education to 50% by 2035. Another key recommendation is the expansion of higher education institutions into underserved regions. However, recent developments reveal a contrasting reality on the ground.

The All India Council for Technical Education (AICTE) imposed a two-year moratorium on the establishment of new engineering colleges in traditional areas of engineering in 2020-21. This was lifted only in 2023-24. In the current academic year, the AICTE approved the closure of 27 private colleges nationally. These institutions have stopped accepting new students — current students can complete their programmes. Furthermore, many affiliated colleges under the supervision of State universities are quietly being phased out. For example, in 2024 alone, 14 colleges affiliated with Mahatma Gandhi University in Kerala shut down due to declining enrolment and financial difficulties. The Karnataka government is currently reviewing the continuation of nine newly established public universities in the State. Similarly, in 2024, Anna University in Tamil Nadu decided to close down 12 of its affiliated engineering colleges due to very low enrolment rate. Unfortunately, national agencies such as the University Grants Commission or State government data do not provide an accurate picture of college closures nationally. Only the AICTE provides detailed data on closures.

Universities and colleges in many countries are struggling to stay viable amid shifting demographics, rising operational costs, and evolving societal perceptions of higher education’s value. Countries facing significant demographic declines, such as Japan, South Korea, and Taiwan, face especially serious problems — and in these countries the large majority of students are in private universities. And in all three countries, the government has considerable power over private institutions. In Japan, 33 universities have closed in the past few years and another 29 have merged with other institutions — and these numbers will significantly grow. A similar number have closed in South Korea, and others, called “zombie” universities, are kept alive through government funding. In both South Korea and Japan, most failed institutions are in provincial areas where population decline is especially evident.