Higher Education at a Crossroads: Closures, Cuts and Competitors

In the span of one week, three headlines shook the higher education world:

• Siena Heights University announced its closure after the 2025–26 academic year. Sadly, others are sure to soon follow.

• Michigan State University (MSU) confirmed job cuts amid a 9% budget reduction.

• Indiana’s public colleges revealed plans to eliminate over 400 degree programs.

These events reflect a growing reality: higher education institutions must adapt to survive. From shifting student (and parent) expectations to increased competition from online learning platforms like Coursera and edX, the traditional college model is under pressure.

The Shrinking College Landscape

Siena Heights University Closure: A Sign of the Times

Siena Heights, a private Catholic university in Michigan, cited declining enrollment and unsustainable financial challenges as reasons for closing. It's a story becoming all too familiar among small private colleges struggling to compete in today’s market.

Even Flagships Are Feeling the Squeeze

MSU Budget Cuts Signal Deeper Systemic Issues

Michigan State University, an leading public research (R1) university, announced job reductions and operational cuts to offset rising costs and declining revenue. This follows national trends of budget cuts in higher education and highlights that even well-established institutions are not immune to financial pressures.

Indiana Streamlines Degree Programs

In Indiana, public colleges like Purdue, Indiana University, and Ivy Tech are cutting or consolidating 400+ academic programs to align with new state efficiency metrics. The goal: reduce low-enrollment programs and strengthen career-aligned offerings. But at what cost to liberal arts education?

The Competitive Threat: Online Learning Platforms

While traditional institutions are scaling back, non-traditional education providers are gaining ground. Platforms like Coursera, edX, and Google Career Certificates offer:

• Flexible, self-paced learning

• Shorter, affordable credentials

• Job-ready skills aligned with industry demand

Students now ask: Why pay for a four-year degree when I can learn job-specific skills online in six months?

Reinvention or Retrenchment? The Future of Higher Ed

This is more than a funding crisis—it’s a transformational moment for higher education. Students and families are demanding relevance, ROI, and flexibility. Colleges must respond with:

• Workforce-aligned program development

• Stackable credentials and certificates

• Adult learner marketing strategies

• Flexible online and hybrid learning models

Actionable Steps Colleges and Universities Can Take to Survive

The higher education landscape is changing fast—and institutions that want to stay competitive must quickly rethink old models. Below are seven strategic steps colleges and universities can take to not only survive but grow in this era of disruption:

1. Right-Size and Refocus Academic Programs

Analyze program performance data to phase out under-enrolled offerings and invest in high-demand fields like healthcare, cybersecurity, data science, and trades. Align curricula with employer needs and workforce trends. At the same time, it’s important to remember what students are interested in. You may have programs that meet workforce trends, but if you leave students out of the equation, you’re missing part of it.

2. Launch Stackable Credentials and Micro-Certifications

Offer short-term, credit-bearing credentials that can stack into degrees—especially in fields with evolving skill demands. These attract adult learners, upskillers, and career changers. Many institutions I’ve worked with are already doing this. Kudos to them.

3. Invest in Digital Transformation

Embrace digital tools and platforms that enhance learning delivery, marketing, and student services. This includes hybrid learning models, online advising, and CRM-driven communications e.g. Slate, Salesforce, etc.. If an institution hasn’t yet implemented digital delivery, get there. Quick. Also, it’s not enough to tell people you have fully online, hybrid, or whatever modality is available. Show them the value of taking your digital programs and why they should choose your offerings compared to so many others.

4. Double Down on Enrollment Marketing and Brand Differentiation

Clarify your institution’s value proposition. Your value proposition needs to be strong, compelling and uniquely position you against your competition. Use integrated marketing campaigns to reach specific audiences—first-gen students, adult learners, online students—with personalized messaging across channels. Students expect you to communicate with THEM, not the masses. Make sure your messaging speaks to individual students (and parents) and addresses their needs, concerns, fears, hopes, etc.

5. Forge Industry and Employer Partnerships

Develop academic programs and experiential learning opportunities in partnership with local and national employers. This improves student outcomes and boosts post-graduation employment rates. I cannot stress enough how important industry and employer partnerships are to institutions, as well as routinely telling the stories of students who have benefitted from these partnerships.

6. Strengthen Student Success and Retention

Build robust support systems—academic coaching, mental health services, career advising—to improve retention and student satisfaction. Every retained student is a saved investment. Institutions already know this, but it needs to be said again. Put in the hard work on retention, graduation, and career placement.

7. Pursue Flexible Revenue Streams

Explore continuing education, corporate training, dual enrollment, and online program management (OPM) partnerships. Diversifying revenue makes institutions more resilient.

Move Forward with Confidence

In a time of disruption, institutions need more than just ideas—they need strategic marketing support that drives action, innovation, and enrollment growth.

At Villa Marketing, we specialize in helping colleges and universities:

·       Launch and promote career-aligned academic programs

·       Build brand visibility and strengthen market position

·       Develop integrated marketing campaigns that reach the right students

·       Create flexible, on-demand strategies that deliver results

Whether you’re facing declining enrollment, launching a new credential, or rethinking your value proposition, we’re ready to help you navigate change—and lead with confidence.

Let’s connect to explore how Villa Marketing can support your institution’s goals.