Even as 'Ivy Plus' schools see an application surge, more colleges are expected to shut down by 2025.

• With declining enrollment, more institutions are facing financial difficulties.
• While smaller schools have been hit hardest, elite universities remain unaffected.

The financial strain on many colleges is causing them to show signs of distress.

According to Implan, an economic software and analysis company, at least 20 colleges closed in 2024, and more are expected to shut down after the current academic year.

Since 2020, over 40 colleges have shut down, as reported by Best Colleges.

Some colleges now charge nearly $100,000 a year, which is causing teens to lose faith in college.

With private college tuition approaching six figures, students are increasingly choosing public schools or alternative education options like trade programs or apprenticeships.

The decline in the number of college-age students is also known as the "enrollment cliff."

Financial aid applications have decreased due to ongoing issues with the new Free Application for Federal Student Aid form, which may also lead to declining enrollment, as warned by experts.

"Small private, often liberal arts, schools have been left in a bind due to the departure of some colleges and universities," said Candi Clouse, a vice president at Implan.

Meanwhile, the country's most elite institutions are thriving.

College applications jump

Universities, particularly those in the Ivy League, saw a surge in applications following the pandemic, according to reports.

In the previous year, Yale University admitted 3.73% of the 57,465 students who applied to the Class of 2028.

Despite a flatlining enrollment, the number of college applicants increased by 11% in the 2023-24 school year, according to the latest data from the Common Application, indicating that more students are applying to the same schools.

For over five years, there has been a paradox in higher education, according to Hafeez Lakhani, founder and president of Lakhani Coaching in New York.

"While you face an enrollment crisis, there is a record volume of applications at selective schools," he stated. "The general agreement is that college is only worth attending if it significantly changes one's life."

Less prestigious private colleges that are equally expensive are facing challenges in attracting applicants, according to him.

Lakhani stated that for many students, the costs are not reasonable.

He stated that if you're not a major corporation, you face a significant challenge.

Other reports indicate that college is increasingly becoming a path exclusive to those who can afford it.

According to the National Bureau of Economic Research, children from families in the top 1% are more likely to attend an Ivy Plus school than those from middle-class families with comparable SAT or ACT scores.

The Ivy Plus group, which consists of the eight private colleges that make up the Ivy League, includes Brown, Columbia, Cornell, Dartmouth, Harvard, University of Pennsylvania, Princeton, and Yale, as well as the University of Chicago, Duke, Massachusetts Institute of Technology, and Stanford.

While the majority of Americans believe a college education is beneficial for career advancement, only half think the economic benefits justify the costs, according to a report by Public Agenda, USA Today, and Hidden Common Ground.

The report found that the increasing cost of college and growing student loan balances have influenced negative views about the higher education system, which many believe favors the wealthy.

And costs are still rising.

In the 2023-24 school year, the average cost of tuition, fees, room, and board at a four-year private college was $56,190, while at four-year in-state public colleges, it was $24,030, according to the College Board.

According to the Common Application, the majority of applicants come from affluent zip codes.