The Coming Wave of Mergers in Higher Education
Are you ready for the wave?
BY JONATHAN WEXLER, ED.D.
Between 1897 and 1904, the United States experienced what is often referred to as the Great Merger Movement — the first significant wave of corporate consolidation. This period saw widespread mergers across a variety of industries. Since then, virtually every major sector has gone through similar periods of consolidation:
Financial services consolidated heavily from the mid-1980s through the late 1990s.
Airlines experienced multiple waves of mergers, with the most recent between 2008 and 2013.
Hospitality saw over $100 billion in mergers between 2003 and 2007.
Health care underwent significant consolidation in the late 1990s and early 2000s, leaving many community hospitals folded into larger systems.
Higher education, however, has remained one of the last major industries to resist widespread consolidation — even while facing mounting financial, demographic, and competitive pressures.
The Higher Education Crisis
Today, 40% of U.S. colleges and universities enroll fewer than 1,000 students. Across the country, institutions are posting deficits, cutting programs, and implementing austerity measures. Even wealthier institutions are not immune. Harvard University, with its $53 billion endowment, recently acknowledged financial pressures — a sobering reminder that if the most well-resourced institution in the world feels strain, the outlook for the rest is deeply concerning.
More than 60% of U.S. colleges have endowments under $50 million, leaving little to no cushion for long-term stability. Many of these schools are located in rural or economically struggling regions, where attracting and retaining students is even more difficult.
The Demographic and Market Cliff
Perhaps the most significant challenge is demographic. Beginning in 2025, the number of high school graduates in the U.S. will decline for the first time since World War II. By 2041, the country is projected to have 3.4 million fewer graduates — a dramatic loss of potential college enrollees.
But the challenge is not just fewer students; it is also different students. Adult learners, online and hybrid delivery, shorter credentials, and workforce alignment are shaping demand. Traditional, tuition-dependent liberal arts colleges — especially those in shrinking regions — are least equipped to adapt.
Why Mergers Must Be on the Table
Given these realities, higher education can no longer avoid the playbook that reshaped other industries. Mergers and consolidations should not be viewed as a last resort, but as a strategic necessity.
The benefits are clear:
Broader and stronger academic portfolios.
Greater geographic reach and access to new student markets.
Shared services and reduced overhead.
Improved eligibility for federal and state funding.
Stability for athletic programs, community commitments, and alumni networks.
Examples already exist. In 2017, Philadelphia University merged with Thomas Jefferson University, combining professional programs with health sciences and creating a stronger financial base. In 2018, Wheelock College merged into Boston University, preserving key academic strengths while stabilizing finances. In 2021, Vermont State Colleges consolidated three institutions into one, maintaining access across rural communities while cutting duplicative costs.
These moves demonstrate that mergers are not only about survival — they can position institutions for growth.
The Leadership Imperative
For boards of trustees and presidents, the window for deliberation has closed. What once could be debated over years must now be decided in months. To delay is itself a decision — one that often ends in sudden closure, stranded students, and broken trust.
Yes, mergers are difficult. They require leadership transitions, governance restructuring, and cultural adaptation. But the alternative — financial decline, accreditation loss, and outright closure — is far worse.
As Benjamin Franklin reminded his contemporaries: “We must all hang together, or, most assuredly, we shall all hang separately.”
The same is true today. The future of higher education depends on leaders willing to act with courage and creativity — not in service of self-preservation, but in pursuit of mission. The institutions that thrive in the next decade will be those that face reality with clear eyes and bold resolve, reshaping themselves to meet the needs of tomorrow’s students.