Many universities are facing growing financial strain, with nearly one-third showing weak financial resilience by 2020, while fewer than one in five were financially strong, continuing a decline that began well before the pandemic. Between 2010 and 2020, about 100 institutions closed or merged, highlighting deep structural challenges across both public and private universities. Financial pressure stems from deteriorating balance sheets and income statements, with average equity ratios falling and expense ratios rising sharply. Falling revenues, rising costs, and new competitive pressures have eroded stability, pushing institutions to rethink traditional models and take decisive steps to strengthen financial sustainability for the future.

Join for free to read