December 23, 2025
Colleges and universities across the United States are navigating one of the most challenging enrollment environments in decades. Shifting demographics, rising financial pressures, changing student perceptions of higher education, and declining international enrollment are converging to create an urgent need for strategic adaptation. For many institutions, market research has become a critical tool not just for growth but for long-term survival.
According to a recent Forbes report, many U.S. colleges may face closure without immigrant and international students sustaining enrollment levels. This reality underscores a broader trend: the traditional enrollment model is under strain, and institutions must rethink how they understand, attract, and retain students.
As Jenny Karubian, Owner and Founder of Ready to Launch Research, explains, colleges and universities are operating in a very rapidly changing climate. The institutions that are thriving are the ones that truly understand their communities, their students, and how perceptions of higher education are evolving.
One of the most significant challenges facing higher education today is a noticeable decline in student interest. Jenny goes on to highlight that Gen Z and Gen Alpha are increasingly questioning whether a four-year degree is worth the cost, particularly when student loan debt looms large and alternative career pathways appear more accessible.
Concerns around affordability are compounded by demographic shifts. Due to lower birth rates following the last major financial crisis, there are simply fewer college-aged students entering the pipeline while the number of institutions competing for them remains largely unchanged.
‘The idea of going straight from high school to college has been disrupted,’ Jenny notes. Many younger students are rethinking the value proposition of higher education, especially if they don’t see a clear return on investment.
International and immigrant students have historically played a vital role in sustaining enrollment numbers and institutional revenue. In 2025, however, universities have seen a sharp decline in these populations. The consequences are already visible.
Several institutions with branch campuses have announced closures due to lower enrollment, including the high-profile decision by Penn State to close seven of its satellite locations. These closures reflect how deeply enrollment declines affect not only admissions but also infrastructure, staffing, and regional access to education.
Universities rely on international and immigrant students far more than many people realize, Jenny explains. When those numbers drop, it creates a ripple effect that impacts budgets, research, and even whether certain campuses can remain open.
Enrollment declines rarely occur in isolation. Reduced student numbers often exacerbate existing budget gaps, funding shortfalls, and staffing challenges. Research funding, in particular, has become less reliable, placing additional strain on institutions that depend on grant-supported scholars and programs.
At the same time, colleges are grappling with persistent retention issues. One of the most well-documented challenges is ‘summer melt, a phenomenon in which students who are accepted and commit to enrolling ultimately fail to matriculate between high school graduation and the start of the fall term.
Jenny shares that, summer melt disproportionately affects first-generation students. ‘A lot of them will get accepted to school, accept the enrollment and then between high school graduation and the fall, something happens and they end up not enrolling and we call that ‘Summer Melt’ and there’s a variety of factors that lead to it.’
The result is lost enrollment that institutions often do not have the time or resources to replace.
In this complex environment, Market Research provides colleges and universities with actionable insights to guide decision-making. Rather than relying on assumptions, institutions can use data to understand who their students are, what they value, and how they make enrollment decisions.
One common approach is conducting Demographic Reports and Competitive Analyses. These studies allow institutions to evaluate their positioning relative to competing schools, including tuition structures, fees, academic offerings and key differentiators.
Market Research helps universities understand how to position themselves in a way that’s both competitive and authentic, Jenny explains. It gives them clarity around what makes them different and why that difference matters to students.
Focus Groups also play a critical role. By speaking directly with high school seniors, families, and prospective applicants, institutions gain insight into what students are truly looking for in a college experience. These conversations inform everything from messaging to program development.
Creative Testing is another powerful tool. By evaluating marketing assets such as advertisements, websites, and recruitment materials, schools can identify which messages resonate most effectively with their target audiences.
Increasingly, universities are also turning their attention to transfer students, many of whom begin their education at community colleges to reduce costs. understanding how these students perceive four-year institutions is essential for building strong transfer pipelines.
Beyond traditional research methods, Social Listening has emerged as a valuable source of insight. By analyzing online discourse across platforms like Reddit, Quora, Instagram, Discord, and other social spaces, institutions can better understand how they are being discussed and perceived by students and families.
When we look at social discourse, we’re able to see unfiltered opinions, Jenny says. It helps universities understand their reputation in real time and address concerns they may not hear through official channels.
While the enrollment challenges facing colleges and universities are significant, they are not insurmountable. Institutions that invest in understanding their audiences, refining their positioning, and adapting their strategies are far better equipped to navigate uncertainty.
Market Research does not offer a one-size-fits-all solution, but it does provide clarity helping institutions identify where to focus resources, how to communicate value, and what changes will make the greatest impact.
For colleges and universities seeking to stabilize and grow enrollment in an increasingly competitive landscape, tailored Market Research can be the foundation for a sustainable turnaround.
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