A new Hechinger Report projection finds that over 25% of private nonprofit colleges in the United States face significant financial risk of closure in the coming years. Sixteen private nonprofits closed their doors in 2025 alone, including Northland College in Wisconsin, Sterling College in Vermont, and Trinity Christian College in Illinois. Credit ratings agencies have cited federal policy shifts, rising costs, and increased competition for a shrinking pool of students.
Why It Matters: The risk is not evenly distributed. Highly selective schools with large endowments are insulated. Smaller regional and tuition-dependent private colleges — often the schools families turn to as financial safety options or as alternatives to flagship public universities — are the most exposed. Families building college lists this summer should weigh institutional financial health alongside fit and cost. A school that closes during a student’s sophomore year is a much larger problem than a slightly less selective school that doesn’t.