Another year in the higher education industry comes to a close. As we wrap up 2024, we’re looking back at the news and events that got us talking, made us think, and changed our industry.
The FAFSA
The Free Application for Federal Student Aid (FAFSA) is a crucial tool for students and colleges alike. Last year, a new version of the form debuted and made headlines for all the wrong reasons.
Background
In December 2020, Congress passed the FAFSA Simplification Act—a massive overhaul to federal financial aid policy. The goal was to create a form that matched the modern era, would be easier to fill out, and help more students fund their education. The target date for implementation was delayed several times and by several years, with the new form not launching until December 31, 2023.
The Story
The new form launched, and with it, a breadth of issues. Not only was the form behind schedule but it was also plagued with technical issues on launch. The Government Accountability Office identified over 40 unique issues, including some that broke the form completely. Four million phone calls to the Department of Education’s help center were left unanswered. Because the form was late, the timeline for students, their families, and the schools they were applying to was squeezed, resulting in late and incomplete offers. All in all, 9% fewer students filled out the form this year, which, it’s theorized, was a big part of the reason for a drop in freshman enrollment.
Looking Ahead
A cataclysmic moment for higher ed this year that we’ll be talking about for years to come. With confidence in the sector waning, this extremely high-profile blunder did no one any favors. While colleges are mostly blameless in how this all went down—they did the best they could in a bad situation—they will now bear the burden of laundering higher ed’s reputation.
The 2025-2026 form launched on November 22 after an extensive clean-up job with no reported issues.
Closures and Cuts
The enrollment cliff is coming and drops in enrollment are leading schools to drastic decisions to make ends meet. Despite an overall rise in enrollment this year, many schools are still struggling.
Background
In 2020, the Higher Education Emergency Relief Fund was established to help post-secondary institutions continue educating students amid disruptions caused by the COVID-19 pandemic. Billions of dollars were made available to schools, many of whom were facing major drops in enrollment. While this funding provided critical support at the time, those financial packages have come to an end over the past two years.
The Story
Many schools are operating with big financial deficits, and funding is not keeping pace with drops in enrollment. In this year alone, 28 degree-granting institutions have closed—that’s nearly two schools a week. At other schools, righting the ship has meant cuts to programs and staff. Programs most likely to be cut are those that are deemed to be underperforming, usually those in the humanities.
Looking Ahead
Martin Looney, president of the Connecticut state senate said of proposed program cuts at UConn: “Walmart takes items off the shelf if they think they’re not selling enough […] A major university can’t be run that way.” For colleges, the post-enrollment cliff years will require innovative solutions that achieve a humanistic balance between business and educational goals.
The Rise of the Credential
The conversation around the importance of a college education is shifting. Where the four-year degree once reigned unchallenged, the focus has shifted to the value of a credential—particularly for non-traditional students.
Background
In 1896, the University of Chicago founded the first junior college in the United States. It was originally intended as a feeder school: students would spend two years at the junior college and work their way up to the main university. The concept morphed during the Great Depression into something closer to what we know it as now: an alternative to a four-year degree that was shorter and cost less. Today, community colleges, continuing education, and credential programs make up an important chunk of the higher education industry.
The Story
Amid economic insecurity, rising costs, and concerns about student loan debt, more students are seeking alternatives to the four-year degree. Data from the National Student Clearinghouse shows sizable enrollment increases this year at community colleges, PABs, and for-profit programs. Meanwhile, a Gallup poll showed that 59% of unenrolled adults have considered enrolling in additional education in the past two years, an increase of 15 percentage points since 2021.
Looking Ahead
Community colleges are having a moment. They’ve long been an important component of the higher education system but maybe haven’t always gotten the respect they deserve. With over 34 million Americans with some college but no degree and growing interest in shorter programs, community colleges have a good opportunity to meet the moment. Four-year schools need not count themselves out: dual enrollment and credential programs could help fill some enrollment cliff-sized gaps.
Campus Protests
The political climate in the U.S. is divisive, to say the least. In an election year, it only got worse. Colleges have often served as epicenters of political and social movements, but this year was unique for how broad the conversation got and who, ultimately, paid the price.
Background
Since the start of the war in Gaza in October 2023, there have been (an estimated) 1360 campus protests on the subject. Though no two were exactly alike, common demands included divesting from certain companies and better protecting minority students from harassment. Methods were largely peaceful but disruptive—mainly encampments, some numbering hundreds of students, on school property.
The Story
At some schools, the tension boiled over, resulting in police calls and arrests of students. It all heaped pressure onto college leaders to navigate a maze where the walls are closing in and it’s all dead ends. Protect students on all sides of the issues, answer to lawmakers, keep the peace, find the right words for a statement, and, on top of all of it, make sure classes keep happening. The situation led to a series of hearings on Capitol Hill where presidents sat in the hot seat to answer for their institution’s conduct. By the end of the year, four Ivy League presidents had resigned.
Looking Ahead
The tenure of a college president is getting shorter. In 2006, the average tenure was 8.6 years, in 2022 it was just 5.9. Students are demanding more from their institutions and lawmakers are increasingly scrutinizing what happens on college campuses. Politics can influence where students choose to apply and attend—understanding these trends will be critical in 2025.
Higher education is a dynamic industry of ups and downs, so staying in the know is critical. 2025 is sure to bring us more events, stories, and industry-changing moments. Sign up to stay in the know about the content we’re publishing such as blogs, webinars, and research.
If you’re looking for a partner who will help you meet the moment and build meaningful connections with your audiences, Carnegie offers a suite of solutions to do just that. If you’d like to learn more, reach out and start a conversation.