Is The Higher Ed Bubble Deflating?
The beginning of the fall?
Bryan Alexander started grappling with the idea of “peak higher education” in 2013—inspired by the notion of “peak car,” “peak oil,” and other so-called “peaks.” At the time, there were signs that the industry was already struggling. The number of students enrolled in higher education had dropped by a little over 450,000 after years of booming growth, the proportion of part-time faculty—more commonly referred to as adjuncts—had steadily become a more significant part of the professorship, and there was a general skepticism about the skyrocketing costs of college and concerns over whether a degree was worth it. Taken individually, he said, each sign was troubling enough. But when looked at together, they represented the outlines of a bleak future for higher education. Alexander, a self-described higher-education futurist and a former English professor, came to the conclusion that after nearly a half century of growth, higher education might be as big as it could get. It would, he reasoned, only get smaller from there.
Now, five years on, he says the “depressing” hypothesis is playing out. In the spring of 2013, there were 19,105,651 students enrolled in higher ed; this spring, there were 17,839,330, according to recently released data from the National Center for Education Statistics. That represents a roughly 7-percent decrease—and is driven largely by declining enrollments in the for-profit and community-college sectors, as well as stagnant enrollments among four-year non-profit public and private institutions. And the trend of declining enrollment in higher education is likely to continue, he argues, for a couple of reasons, but most notably, a declining birth rate means that there will be fewer 18-year-olds entering academe, and there are fewer international and immigrant students to fill those seats.
A lot of universities have bet a lot of money on ever-increasing enrollment. I don’t know what happens if things really do go in this direction. Non-elite private schools would be the hardest hit, I would imagine and it’s not out of the question to see a lot of them collapse. I’m not sure about state universities.