Smaller colleges are adopting side hustles to keep their doors open

Smaller US colleges have faced more problems than a math student in recent years, with flagging enrollment and falling revenue straining the finances of schools nationwide.

In response, a growing number of colleges are looking to boost revenues by hosting non-degree-related activities on campus:

• Virginia’s Sweet Briar College recently began offering lessons on horse riding and winemaking, along with an annual arts and writing retreat.
• The Rhode Island School of Design is now hosting weddings, conferences, memorial services, and corporate events across the school’s architecturally diverse campus.
• California’s Whittier College recently opened its doors for regular yoga sessions, wellness workshops, and Jane Austen Society brunches.
• Endicott College in Massachusetts earns ~5% of its total operating revenue, or $9 million/year, from auxiliary activities like hosting on-campus weddings and summer camps.

These side hustles come as many smaller US colleges are feeling the heat. Over the first half of this year, roughly one higher education institution per week has announced it would close or merge, a pace ~2x higher than 2023. Overall, at least 62 public or nonprofit colleges have closed or merged since March 2020, largely due to factors like declining enrollment/revenues, FAFSA issues, and pandemic losses.

👀 Looking ahead… Roughly 200 small US colleges (enrollment < 5,000) currently show signs of being under strong financial pressure, per a recent Bloomberg analysis of federal data.