Financial pressure, plunging enrollment force wave of US college closures

Detailed summary

A growing number of long-established colleges and universities across the U.S. are shutting down amid financial difficulties and declining enrollment, with experts warning that more closures are likely.

The board of trustees at the University of Providence in Montana voted in late October to end academic operations at the conclusion of the 2026-2027 academic year.

The institution will continue administrative and academic services to finalize grades and assist students, it announced on Oct. 27.

Its enrollment fell 23.5% between 2019 and 2024 to just 763 students, according to Higher Ed Dive.

Public records show the 94-year-old private university in Great Falls, Montana, ran a deficit in nine of the past 10 years.

The loss of a major healthcare partnership ultimately triggered its downfall, according to Inside Higher Ed.

Providence St. Joseph Health had provided the school with up to US$8.5 million annually since 2017 to support new medical programs.

Facing internal budget constraints, the health network recently began cutting that funding and mandated the university achieve financial independence by December 2027.

"Over the past several years, the university has sought a sustainable path forward in response to continued enrollment decline and increasingly significant financial pressures. Those efforts included restructuring academic programs, reducing operating expenses, pursuing new enrollment and revenue strategies, and exploring potential partnerships with other institutions. These actions eased immediate pressures but did not produce a viable long-term operating model," the university said.

Part of the University of Providence in Montana, U.S. Photo courtesy of the university's Facebook page

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