Rising College Mergers and Rural America
Is this a sign of more to come? We often hear that college closure risk is at an all-time high. This is particularly true with smaller privileged colleges, but State systems are also not immune to financial challenges. Georgia is the next state to consider streamlining university operations.
Several state systems have already implemented or announced consolidation plans. The Pennsylvania State System of Higher Education, Vermont State University System, and Connecticut State Colleges and Universities system have announced or already pursued mergers to mitigate financial challenges.
Unfortunately, rural and regional public colleges tend to be most vulnerable. What is more staggering is that only 19% of rural adults have bachelor's degrees compared to 35% in urban areas. Time will tell if this continues to widen.
Why?
Some of these risks reflect the macroeconomic experience of the higher education sector. These include:
The Demographic Cliff - many regions face a shrinking college-age population
Financial pressures on state budgets result in reduced public funding
Increasing competition from online programs, alternative credentials, and trade schools.
Rising operational costs and deferred infrastructure maintenance.
Experts such as United Educators and Deloitte have highlighted these risks extensively over the years. The question is what can be done to mitigate these risks. Per Hanover Research's 2025 Trends in Higher Education, there are five trends that their experts believe are the most important to pay attention to as higher education leaders navigate the financial and socio-political challenges in the current environment. I have listed them below:
Trends in Higher Education
Academic Program Innovations Reflect the Demand for a Stronger Career‑Aligned Return on Investment
Institutions Refine Strategies to Increase College Access and Aid for Students
Higher Education Leaders Face Stark Financial Realities and Significantly Reshape Budgets
Student Support Resources Evolve with a Deeper Understanding of Retention Challenges
Campuses Lean on Brand Strength in a Skeptical and Tight Market
Many of these trends are not new, but one of the sobering statistics that I read in the report is:
"37% of Americans who are critical of higher education are so because colleges and universities don't teach relevant skills or help graduates find employment."
Could this opinion help mitigate the trend and escalating risk of college closures and mergers?
For this article, I will focus on Hanover Research-Trend 1 as to me, it is the most impactful. I have also selected this trend because it offers actionable insights into strategies that could encourage greater college participation in rural communities.
Trend 1 - Academic Program Innovations Reflect the Demand for a Stronger Career‑Aligned Return on Investment
Analyze and leverage labor market data to identify workforce trends and identify the skills needed to obtain employment.
Create a micro-credential framework with employer input.
Develop short-term, skill-focused courses (under 6 months) that stack toward credit credentials
Centralize experiential learning opportunities on a single web hub with clear career outcomes.
Streamline undergraduate general education to 42-47 credits with multi-requirement fulfillment options.
Implement accelerated academic terms with robust support systems for student success.
Bridging the Divide
The college/career alignment gap is critical and the one that stands out to me when reading the report. Over a third of higher education critics believe that some degrees result in poor employment outcomes. However, this belief presents both a risk and an opportunity.
Leaders should consider these insights to help build more relevant and sustainable academic offerings that can not only reduce cost but also provide the much needed tools and skills that employees and employers demand in a shorter timeframe.
Institutions that are flexible can bridge this divide. Implementing workforce-oriented strategies that reflect the needs of the community will not only bring in more learners but also enhance regional economic growth.
Bottom Line:
Boards, academics, and administrators must be willing to question and reimagine traditional educational models. Institutional leaders who balance program offerings with academic excellence and career relevance will be best positioned to combat these risks and thrive. The consolidations and closure stories may be unpleasant news, but they also create space for innovation to strengthen higher education's value proposition for students, employers, and communities.
The question is no longer whether change will come but which institutions will lead that change—and which will be left behind.
