Colleges need innovative leadership
Mount Ida College in Newton was not the first college to close in Massachusetts, but the suddenness of its demise and the way the closure left students in the lurch last year have had an oversized effect on the debate about financial transparency in higher education.
New England is home to a disproportionate number of colleges, including many of the nation’s finest, and can draw students from all over the globe to its tree-lined campuses. Yet, for every Harvard University and MIT, Massachusetts has dozens of smaller institutions like Mount Ida lacking a significant endowment to weather a downturn. The Massachusetts legislature is working on a bill to significantly increase financial reporting requirements for private colleges. While this could deter students from enrolling in colleges lacking deep financial resources, the transparency is important for the industry moving forward. The state got surprised by the Mount Ida closure and does not want another institution to leave students scrambling.
Central Massachusetts is a college hotbed with 17 different higher ed institutions with a campus in our region – 11 of those being private institutions, the other six part of the state’s higher ed system. These institutions are not only major contributors to the economic development of the region, but each is an important community player in its hometown, with campuses playing a vital role in their surrounding neighborhoods. While it’s hard to imagine any one of these institutions going away, the demographics of the New England region tell another story. Population declines in college-age children are projected to continue through 2030, and statewide college enrollment in Massachusetts already has dropped 6% in the last five years, according to trade organization National Student Clearinghouse.
If you’re an elite institution with a big endowment and a large geography to draw from, like College of the Holy Cross or Worcester Polytechnic Institute, this is not a big issue. Nor is it one for the state university system. But for smaller private colleges largely dependent on in-state students, this trend presents a challenge. Nichols College in Dudley, Becker College in Worcester and Anna Maria College in Paxton all rely on less than 2,000 full-time students, with endowments of less than $20 million.
However, schools are responding to the challenge. Nichols is extending the school’s reach to include more non-traditional students, particularly those several years into their career. Becker has been differentiating itself by specializing in video-game design majors and a new e-sports program, and Anna Maria has carved out a strong niche with its criminal justice program.
These are the early years of what looks to be a long dip in college-aged students in Massachusetts. In that environment, the state does have a role in ensuring our colleges can back up their promise to students, without overreaching with its reporting requirements. Mergers and acquisitions in the college arena seem likely, but as long as college presidents think outside the box and focus on differentiating their programs and strengthening their brand, our higher education economy should be able to weather the storm.
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