Higher education in the U.S. is inching toward a recovery, with the latest National Student Clearinghouse data reporting a 3.2% year-over-year increase in total enrollment, driven by gains in graduate schools, certificate programs, and community colleges. Yet, undergraduate enrollment remains 2.4% below pre-pandemic levels. Amid these shifts, graduate and business schools are confronting especially acute challenges that illuminate broader structural issues across the sector.
The Enrollment Headwinds Facing Business Schools
- The Demographic Cliff
A looming drop in the number of traditional college-aged students, in developing countries and the US specifically, threatens to shrink applicant pools. According to a Poets & Quants survey, 34% of business school deans identify this demographic decline as the top threat to business education. - Endowment Taxation and Policy Risks
Political proposals to increase taxes on university endowments have created financial uncertainty. Such changes could affect institutions’ abilities to fund scholarships and innovative programming. - Dependency on International and Immigrant-Origin Students
Nearly 45% of full-time MBA students in the U.S. are international. Any disruption in immigration policies or global perceptions of the U.S. can severely impact tuition revenue. NFAP data project that, without immigrant-origin students, the U.S. undergraduate population could shrink by one-third by 2037. - Rising Competition from Employers
Companies, like those working with Guild, are training their employees with nimble, highly relevant programs. These “education-as-a-benefit” initiatives often outpace traditional master’s programs in both flexibility and ROI.
Turning Challenges into Opportunities: Strategic Solutions
- Microcredentials with Academic Pathways
Institutions like ASU are pioneering stackable credentials—from microcertificates to full master’s degrees—that respond to learner and employer needs alike. These options appeal to learners looking for career-aligned, bite-sized educational units that can build toward more substantial qualifications. - Stronger Industry Partnerships
From Northeastern University’s apprenticeship programs to ASU’s CareerCatalyst, collaborative models are emerging. Such partnerships create direct pathways from classroom to career, ensuring graduates are workplace-ready and boosting enrollment through clear ROI. - Targeted, Inclusive Marketing
Post-affirmative action, enrollment marketers are more crucial than ever. Strategies include outreach to underserved communities, leveraging alumni networks, and revising messaging to highlight inclusive campus environments and support systems. - Online Expansion and AI Integration
Online programs have fueled enrollment growth, especially among adult learners. AI in admissions and advising—from quicker application reviews to personalized learning paths—can further differentiate institutions and enhance student experience. - Website Optimization and SEO
In an era where students make decisions digitally, poor online presence equals lost opportunity. Institutions should ensure their .edu domains are search-optimized and their program pages compelling and informative. - Engage Current Undergraduate Students
Many institutions overlook their own undergraduates as potential graduate students. Proactive engagement and guidance can increase graduate enrollment by nurturing internal pipelines.
Final Thought: Redefining Higher Ed’s Value
In a landscape fraught with disruption, institutions must redefine their value proposition not only to prospective students but to society at large. This means championing innovation, strengthening ties with industry, and aligning educational offerings with real-world demand. As Scott Galloway noted, “Higher education is a $2 trillion industry sticking its chin out to be disrupted.” Now is the time to innovate, adapt, and, perhaps most importantly, better tell the story of higher education’s value.