Why Are Some Colleges Growing While Others Struggle?

11 minutes ago

4 min read

If you've been following this fall's enrollment announcements, you may have noticed something interesting. Some colleges and universities are celebrating record enrollment or significant gains. Others are struggling to maintain their numbers.

And all of this is happening against a backdrop of demographic challenges, affordability concerns, and questions about the value of a college degree.

So what's going on? Why are some institutions growing while others aren't?

The answer isn't as simple as better marketing or stronger recruitment. The enrollment landscape is changing, and understanding those changes may be the key to future growth.

First, not all enrollment growth is the same.

According to the National Student Clearinghouse Research Center, undergraduate enrollment increased nationally in fall 2025, but growth wasn't evenly distributed.

Community colleges saw a 3% increase, while public four-year institutions grew 1.4%. Private nonprofit four-year institutions, meanwhile, experienced a 1.6% decline.

Those differences tell us something important: Students are still pursuing higher education, but where and how they're enrolling is changing.

And when institutions announce enrollment gains, it's worth looking beyond the headline.

Are they enrolling more first-year students?
Is growth coming from transfer, graduate, or online students?
Are more students returning for another semester?
Is dual enrollment contributing to the increase?
Are enrollment gains translating into additional net tuition revenue?

These distinctions matter because a larger student population doesn't necessarily mean stronger financial performance or long-term enrollment stability. At one institution, Fall 2026 enrollment was higher but was due to an increase in part-time vs. students, resulting in the institution missing its forecast by $2M.

Students are looking for different things.

One possible explanation for enrollment gains is that some institutions are better positioned to meet changing student interests.

Consider the growing interest in shorter credentials and career-connected education. National Student Clearinghouse data for spring 2026 showed undergraduate certificate enrollment increasing 10.2%, compared with 1% growth in bachelor's degree enrollment.

That's a meaningful difference.

It doesn't mean students have stopped wanting bachelor's degrees. But it does suggest that institutions need to pay close attention to what prospective students want from their education.

For higher education executives, that raises several questions:

Are our academic programs aligned with student interests and workforce opportunities?
Are we reaching adult learners and other audiences we may have overlooked?
Do we offer flexible pathways that accommodate different student needs?
Are we investing in programs with demonstrated demand?

Marketing can help answer these questions before institutions invest in new programs or campaigns.

Market research, competitive analysis, and prospective student insights can reveal opportunities that aren't always apparent from internal enrollment reports.

Affordability matters, but value may matter more.

Students and families are concerned about the cost of college. That's hardly surprising.

But price is only part of the decision.

Prospective students also want to know what they'll receive in return for their investment.

Will they develop marketable skills? Can they graduate on time? Will their credits transfer? What career opportunities might follow?

Many colleges emphasize affordability, academic excellence, and personalized attention. Those are worthwhile attributes, but they're also messages students hear from nearly every institution.

The challenge is explaining what makes your institution different.

Instead of simply saying a program prepares students for successful careers, show them how.

Highlight graduate outcomes and career pathways.
Explain opportunities for internships and hands-on learning.
Make program costs and financial assistance easy to understand.
Share specific examples of student and alumni success.

The goal isn't just to tell students your institution offers value. It's to help them see that value for themselves.

Sometimes the problem isn't marketing.

An institution might have an effective advertising campaign but lose prospective students because of slow follow-up, confusing financial aid information, or limited course availability.

Another might have excellent admissions counselors but struggle because its academic offerings aren't attracting enough interest.

And sometimes, the biggest opportunity isn't recruiting additional students. It's retaining more of the students already enrolled.

That's why looking at enrollment performance across the entire student journey matters.

Before increasing advertising spending, ask:

Are we reaching students who are likely to enroll?
Where are prospective students dropping out of the process?
Are admissions and marketing working from the same information?
Are academic or financial barriers affecting enrollment?
What are students telling us about their experience?

Marketing can identify opportunities and help communicate solutions. But sustainable enrollment growth requires collaboration across the institution.

What can we learn from colleges that are growing?

It's tempting to look at an institution reporting enrollment gains and ask, "What are they doing that we're not?"

That's a reasonable question, but copying another college's tactics isn't necessarily the answer.

What works in one market may not work in another.

A better approach is to understand your own institution's opportunities:

Study your market. Where is student demand increasing or declining?
Examine your academic portfolio. Which programs have growth potential?
Understand your competition. Why are students choosing other institutions?
Evaluate your positioning. Are you giving students a compelling reason to choose you?
Follow the student journey. Where are you losing prospective or continuing students?

These are strategic questions, not simply marketing questions.

Growth starts with understanding your market.

Some institutions will continue to grow while others face difficult enrollment decisions. Geography, demographics, competition, and economic conditions all play a role.

But institutions aren't powerless.

They can better understand prospective students, evaluate program demand, strengthen recruitment, and communicate their value more effectively.

And that's where marketing can contribute something beyond campaigns and advertising.

Marketing can help institutional leaders understand where opportunities exist, why students make the choices they do, and how to position their institution for sustainable growth.

Because the question isn't just why some colleges are growing.

It's what your institution can learn from those gains—and what you should do next.