The journey to college is already challenging, but today’s rapidly changing landscape in higher education adds new layers of complexity. Economic uncertainties, shifting policies, and evolving institutional priorities are reshaping the sector, leaving many parents of college-bound teens wondering how to make informed decisions. Here’s how you can evaluate colleges amidst these uncertainties to ensure your teen’s future remains bright.
Why Financial Stability Matters More Than Ever
Higher education institutions face mounting challenges:
- Rising Costs: Operating expenses like salaries, campus safety, and technology are skyrocketing.
- Declining Enrollment: Across U.S. colleges, a 10% drop in enrollment between 2012 and 2022 highlights the “enrollment cliff” affecting (and even closing) many colleges.
- Federal Funding Uncertainty: Shifts in government policies and priorities, including potential cuts to student loans and financial aid programs, are creating ripple effects across campuses.
These factors underscore the importance of choosing a financially stable institution. Colleges with strong financial resources are better equipped to weather economic storms while maintaining quality education, modern facilities, and robust student support services.
Evaluating Financial Health Amid Broader Uncertainties
One reliable metric is the endowment per student ratio, which reflects the resources available for each student. Schools with higher ratios tend to offer:
- Greater investment in academic programs and faculty.
- More scholarships and financial aid options.
- Resilience during economic downturns.
However, financial health is just one piece of the puzzle. Parents should also consider:
- Retention Rates: High retention indicates student satisfaction and institutional stability.
- Stable Entering Class Sizes: Stability (or steady modest growth) in freshman class sizes signals sound strategic planning and healthy demand.
- Long-Term Viability: Rising operating deficits—even at well-resourced schools—signal challenges that could affect your teen’s experience.
Navigating Uncertainties in Higher Education
Beyond finances, parents must contend with broader shifts in higher education:
- Policy Changes: Federal funding cuts, tax reforms on endowments, and debates over diversity initiatives are reshaping institutional priorities.
- Student Preparedness: Pandemic-related learning disruptions have left many incoming students less prepared academically, affecting retention rates.
- Mental Health Needs: Colleges are grappling with increased demand for wellness services amid tighter budgets.
These uncertainties make it vital to ask questions about how institutions are adapting. For example:
- How is the school addressing federal funding challenges?
- What strategies are in place to support students academically and emotionally?
Taking Action
To navigate this shifting landscape:
- Research Financial Metrics: Review endowment size, enrollment trends, and budget reports.
- Ask Tough Questions: During campus visits or admissions interviews, inquire about how institutions are responding to current challenges.
- Review Common Data Sets: Google recent Common Data Sets for each college you’re seriously considering so that you can glean intelligence about their admissions practices, enrollment patterns and financial aid distribution.
- Minimize Loans: Push your teen to fully explore all options for merit scholarships.
- Explore Alternatives: Consider a broad range of colleges with innovative partnerships that offer affordability and stability.
While higher education faces unprecedented uncertainty, parents can empower their teens by focusing on institutions that prioritize resilience and adaptability. By evaluating financial health alongside broader trends, you can make a confident choice that supports your teen’s success—even in turbulent times.
Fitz has dedicated the entirety of his 28 year career to encouraging higher education opportunities. He worked in the Vanderbilt, Duke Law and St. Lawrence admissions offices prior to serving as an enrollment management consultant for 200+ selective colleges around the country. He created Find The Right College to make trustworthy college counseling more accessible. Fitz is also the father of two teens so he also understands first-hand the challenges associated with a college search.
