What happens when a university closes its doors for good?

Welcome! The existential threat many universities face is not purely hypothetical. According to several reports, at least 20 colleges closed last year in the US, with more predicted to follow. Here in Singapore, meanwhile, a joint venture between the National University of Singapore and Yale University closed its doors just last month.

In this week’s edition of the QS Midweek Brief, we look at what happened when a university shuts down, the holes it leaves in academia and the community, as well as its impact on students and alumni. In our second piece, we look at what’s next after the MBA.

Stay insightful,
Anton John Crace
Editor, QS Insights Magazine, QS

The Ghosts of Lost Knowledge

By Michelle Zhu

In brief

• Universities are facing unprecedented closures due to a shrinking student pipeline and severe financial challenges. This trend is leaving a lasting void in higher education, impacting students, staff, and communities.
• Declining birthrates are shrinking student numbers, with US undergraduate enrolments down 15% since 2010. Coupled with rising costs and funding cuts, this leads to widespread financial distress and accreditation loss, exemplified by numerous closures globally.
• Beyond closures, the sector faces an irreversible loss of expertise and unique programmes, like Yale-NUS’s initiatives. However, alumni are now keeping these legacies alive.

The higher education industry is staring down a demographic cliff: a shrinking pool of high-school graduates that is expected to plummet after 2025. This crisis stems from a century of declining birthrates which has hollowed out the pipeline of traditional college-age students.

Historical data points to accelerating declines on the horizon. According to the National Center for Education Statistics in the US, undergraduate enrolments already slid 15 percent from 2010 to 2021.

Now, a December 2024 Federal Reserve Bank of Philadelphia working paper warns the next five years could see another 15 percent decline — potentially triggering up to 80 additional university closures, 142 percent above the annual average in the US.

But dwindling enrolment figures are not the only threat. Fiscal turmoil is perhaps the most glaring factor, fuelled by ballooning inflation, rising operating costs and significant post-COVID government funding cuts.

Siena Heights University, a private Catholic institution, recently announced that the 2026 academic year would be its last after operating for 105 years in Michigan, citing financial and operational challenges.

“The reality is, colleges and universities across America have been impacted by shifts in demographics, declining enrolment, and rising costs… We’re not the first college and university to close, nor will we be the last,” says Douglas Palmer, President of Siena Heights University, in a June 30 video statement.

The fallout from such financial distress lingers long after institutions shut down. Consider the now-defunct Notre Dame College, which faces a slew of lawsuits while its 50-acre South Euclid campus remains unsold. Another instance is Limestone University, which abruptly closed in May this year after a failed fundraising effort, leaving hundreds of students and staff fighting for at least six figures worth of unpaid tuition and back wages, respectively.

A less discussed but equally critical cause of closure is the loss of accreditation, which is often triggered by financial instability, governance lapses, or failure to meet academic standards. Alliance University made headlines in late 2023 when the Middle States Commission on Higher Education revoked its accreditation, sealing the fate of the Christian liberal arts school which had already been operating in the red for years.

Even elite institutions aren’t immune. Though still standing, Ivy League names like Columbia University and Harvard University face accreditation threats from the Trump administration over allegations of federal anti-discrimination violations.

From Shredded Books to Defunct Policies

When a university shuts its doors, the void it leaves behind can linger for decades, if it’s ever filled at all. The damage is not just educational. Jobs are lost; displaced students struggle with insurmountable financial and emotional distress; vacant campuses become monuments to abandoned potential; and centuries of research go up in flames.

A particularly visceral example for Singaporeans would be the demise of Yale-National University of Singapore College (Yale-NUS), touted as the city state’s first and only liberal arts college.

As the institution shuttered this year, some 500 library books were shredded — until public outcry saved the rest. The incident serves as a metaphor for a larger tragedy beyond just empty lecture theatres and hallways: the irreversible loss of expertise, niche programmes, traditions and bonds.

In August 2021, the National University of Singapore (NUS) announced that its partnership with Yale University would cease in 2025, just 12 years after its founding. While no official reason was announced at the time, Singapore’s education minister later remarked that the college did not reach its fundraising target “through no fault of its own”.

Yale-NUS closed its doors for good after its final cohort graduated in June 2025. In its place today stands NUS College: an honours college lacking the full liberal arts programme offered by its predecessor.

“I was definitely sad to hear of the closure, as I felt Yale-NUS had become very stable and was thriving,” recalls former faculty member Andrew McGeehan, who served at Yale-NUS for over five years before leaving in December 2020 to start his own business.

“It's unfortunate that a lot of what made Yale-NUS unique and exciting have been re-evaluated and potentially discarded,” says McGeehan.

While a Singapore parliamentary response assured that all Yale-NUS faculty members hired before August 2021 were offered positions at NUS, McGeehan notes that many chose to leave after the school’s closure.

“Some folks didn't want to transition to much-larger departments, some didn't have an exact match for their subject at NUS, others just preferred the small-scale experience of Yale-NUS,” he elaborates.

“Of course, for foreigners there is always worry about whether work passes would continue to be issued. For staff, the jobs [offered at NUS] were definitely not analogous, so if folks got placed into a department that wasn't of interest to them, they would look for other employment elsewhere.”

Michelle Zhu is a former correspondent at breaking news desk at The Business Times in Singapore, where she mainly covered corporate announcements including financial earnings, mergers & acquisitions, and board changes. Prior to that, she was part of the editorial team at the Singapore arm of The Edge, a Malaysia-headquartered financial weekly. She holds a Bachelor of Arts in communications and new media from the National University of Singapore.

Beyond the MBA

By Niamh Ollerton

In Brief

• While MBA enrolment dips, Specialised Master's applications are surging, driven by student demand for focused skills and evolving employer needs for technical expertise. It's reinvention, not decline.
• Students seek faster, high-ROI programmes and technical skills, often earlier in their careers. Master’s in Analytics and Finance lead this surge, attracting employers seeking specific expertise, including international students valuing STEM designations for job market access.
• Business schools must innovate with flexible, diversified programs to meet evolving student and employer demands. Differentiate offerings and foster adaptability for a thriving, skill-driven future.

The graduate business education landscape has undergone a dramatic shift in recent years.

According to the AACSB 2025 State of Business Education report, MBA enrolment has declined by 13 percent since 2019, while applications to specialised Master’s programmes have more than doubled.

At first glance, this could signal waning of interest in the MBA, once the gold-standard qualification for aspiring business leaders. But beneath the headline, a more complex story awaits.

Students’ preferences are changing and employer needs are evolving. Business schools are responding by redesigning their programme portfolios for a more flexible, skills-driven future.

Financial pressures, global shifts and technological advances have all contributed to the change, too.

New learner expectations, geopolitical events, changing demographics and advancements in AI and digital technology all play their part in the evolution of business education as we know it.

This means traditional business school models and programmes need to adapt to stay ahead of the curve.

Business education in decline, it’s in reinvention.

A Shift in the Student Mindset

Today’s graduate business students are not always looking for the traditional, two-year, full-time MBA experience. Many are younger, earlier in their careers and seeking fast, focused programmes that deliver tangible ROI.

“I often think of it as a pendulum,” says Dr Michelle Wieser, QS Graduate Management Education (GME) Proposition Director, former Dean of St. Mary's University of Minnesota in the US and long-time higher education leader.

“The MBA offers a general business toolkit; it’s about elevating people into leadership roles. Specialised Master’s, on the other hand, are tightly aligned to specific job functions and career outcomes. They’re often quicker to complete and provide highly marketable, technical skills.”

This divergence in student intent is a key reason why MBAs and Specialised Master’s degrees shouldn’t be viewed as competing credentials. They serve different audiences at different stages of their professional journey.

According to Nalisha Patel, Regional Director for the Americas and Europe at GMAC: “It’s not so much a direct trade-off. Specialised Master’s typically attract candidates with less work experience, while MBAs are sought later in a career.

“These shorter, focused programmes offer deep technical or function‑specific skill development; ideal for pre‑experienced students or those pivoting into areas like finance, analytics or AI.”

Dr Wieser agrees, highlighting the growing demand among younger learners for faster, more focused pathways to employment.

“Many students, especially those with limited work experience, want to be able to tell a compelling story to employers. In the absence of a long CV, a specialised degree gives them depth in a high-demand field and a strong narrative for interviews.”

What’s Driving the Growth of Specialised Programmes?

According to AACSB data, Master’s in Business Analytics and Finance are leading the surge, followed closely by Management and Accounting.

The higher enrolment numbers demonstrate, and align with, employer demand for analytical, financial and functional expertise among the workforce.

GMAC’s Corporate Recruiters Survey confirms this trend, noting a growing willingness among employers to hire Specialised Master’s graduates, particularly in data-intensive and finance-focused roles.

Patel explains: “Our data shows that these graduates are more attractive to employers than ever before, especially in fields like analytics, which are now core to business decision-making. This is a significant shift from pre-pandemic years.”

Visa and work eligibility is another factor driving student enrolment. In the US, for example, many Specialised Master’s degrees are STEM-designated, which allows international students to stay and work for up to three years after graduation.

“For international students, that STEM designation is a game-changer,” Dr Wieser says. “It increases the ROI of their degree and opens up opportunities in the US job market that wouldn’t be available with other credentials.”

The Importance of the Diversification of Programmes

Dr Wieser launched several Specialised Master’s programmes during her time as Dean of St. Mary's University of Minnesota: “It was a strategic decision. Specialised Master’s programmes allowed us to attract a different demographic, younger students, more international applicants, people looking for a very specific skill set. And they also diversified our revenue streams.”

This kind of programmatic innovation is accelerating across the globe, according to AACSB.

Business schools are adding micro-credentials, executive education, dual degrees and industry-aligned certifications to meet diverse student and employer needs.

“We expect the MBA to deepen its integration of technology, sustainability, and inclusion across the curriculum,” says Patel. “It will diversify in delivery, fast‑track, hybrid, modular, and retain its place as a high-impact, high‑ROI option for mid‑career and career‑transition students.”

Schools need to be proactive rather than reactive to be competitive in the market.

“The schools that are going to win are the ones that embrace creativity, innovation and speed,” says Dr Wieser.

“It’s important to be creative, think about new modular ways of offering education and launch things that are directly aligned with market needs and then do what you can to grow or speed up processes for introducing new things to prospective students.”

Niamh Ollerton is a Press Association NCTJ trained journalist and has been a writer, content creator and editor for 10 years for organisations within Higher Education, startups and scaleups and tech industry spaces including QS, Tech Nation and MSN. A storyteller by trade and a people person by nature, Niamh enjoys learning about the inner workings of businesses and what makes the people who run and grow them tick - bringing their stories to life both online and in print.