HIGHER EDUCATION BUBBLE UPDATE: Broke Colleges Resort to Mergers for Survival: Takeovers increase as a shakeup in higher education leaves schools in trouble.

Students continue to pack into flagship universities and brand-name colleges. Less-prestigious schools are struggling. The number of colleges closing down in the past 10 years, around 200, has quadrupled compared with the previous decade.

And in the past four years, there have been 95 college mergers, compared with 78 over the prior 18 years, according to data compiled by the consulting group EY Parthenon. In the past two months, St. Joseph’s University in Philadelphia absorbed the crosstown University of the Sciences, and Boston College announced it will absorb Pine Manor College, also in the Boston area.

Schools merge to broaden their enrollment base, diversify programs, expand facilities and create efficiencies of scale. About 40% of mergers involve private, nonprofit schools, and the majority involve schools within the same state and with fewer than 5,000 students. Public university systems with excess capacity have made or are considering mergers in Pennsylvania, Georgia and Wisconsin.

The stress they face is driven by rising costs for college and uneven return on investment, which has diminished public confidence in higher education, opened the door to competitors and led to falling enrollment.

In 2019, 51% of American adults considered a college degree to be “very important,” down from 70% in 2013, according to a Gallup poll. Positive perceptions of college among adults 18 to 29 fell the fastest of any group, to 41% from 74%.

All is proceeding as I have foreseen.