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The number of colleges that close each year is expected to increase significantly as schools deal with a deceleration of incoming students.
Researchers have reportedly developed simulations to determine the likelihood future closures, finding that the worst case scenario shows schools experiencing a one-time 15 percent drop in new students, which would result in 80 more colleges closing, affecting more than 100,000 students and 20,880 staff members. This significant drop in students seeking higher education is known as the “demographic cliff.
The report — authored by University of Tennessee professor Robert Kelchen and Fed researchers Dubravka Ritter and Douglas Webber — added that if the expected student decline were to continue over the next five years, it would mean yearly closures go up by nearly five schools. Notably, the value of a college or university degree — amid skyrocketing tuition prices — has larger number of prospective students questioning if taking on significant debt is worth it.
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