A recent working paper from the Federal Reserve Bank of Philadelphia paints a stark picture for U.S. higher education: nearly 80 colleges could face closure within the next five years. Factors such as declining enrollments, rising operational costs, and the impending “demographic cliff” are creating a perfect storm of financial distress. For institutions serving as economic and cultural anchors in their communities, closure has devastating consequences not just for students and staff, but for entire regions.

For institutions facing these challenges, innovative strategies are essential. Retaining students, streamlining operations, and adapting to modern educational demands are not only solutions—they’re survival mechanisms. Upswing’s holistic platform empowers colleges to address these issues head-on, with measurable outcomes that stabilize institutions and support their students. With resources like the ROI Savings Calculator, institutions can quantify the financial benefits of improved retention and operational efficiencies, providing a clear path to sustainability.

The Demographic Cliff and Declining Enrollment

The “demographic cliff” refers to the shrinking number of high school graduates in certain regions, a trend exacerbated by falling enrollment rates among adult learners and declining public trust in higher education. According to the Federal Reserve Bank of Philadelphia, from 2010 to 2021, college enrollment dropped by 15%, and recovery remains uncertain. This enrollment decline directly impacts tuition revenue, a critical source of funding for many colleges.

Retention offers a way forward. Research consistently shows that retaining current students is more cost-effective than recruiting new ones. By fostering deeper student engagement, colleges can stabilize enrollment and tuition revenue. Ana, Upswing’s SMS engagement tool, can play a pivotal role in this effort, providing timely interventions that keep students on track academically and emotionally. Through Ana, institutions can proactively connect with students, offering reminders, encouragement, and resource referrals that keep them on track to graduate. Administrators also gain access to data-driven insights, enabling timely interventions for at-risk students, which improves persistence and reduces dropout rates. 

Panola College partnered with Upswing to improve retention during the pandemic. By implementing proactive engagement strategies and 24/7 academic support, Panola retained over 130 students, saving an estimated $500,000 in tuition revenue​.

Addressing Operational Inefficiencies and Financial Strain

The Federal Reserve working paper highlights that colleges are struggling to manage rising costs while maintaining essential services. Administrative staff often face burnout, and resources are stretched thin, leading to inefficiencies that compound financial distress. Financial pressures have also driven colleges to reduce staff and cut back on services. However, these cost-cutting measures often undermine the very student support systems that drive retention, creating a vicious cycle of financial distress.

Modernizing and centralizing support systems is one way to break this cycle. A unified platform that integrates academic tutoring, mental health resources, and assignment review can reduce administrative burdens while enhancing the student experience. For example, automated tools like Ana can handle routine tasks such as reminders and resource referrals, freeing staff to focus on high-value student interactions. Colleges that embrace this approach, like Panola College, often see immediate cost savings and improved efficiency, which are critical during times of financial strain.

Upswing streamlines operations by consolidating student support services into a single platform. Key benefits include:

• Cost Reduction: Upswing integrates tutoring, mental health resources, assignment review, and advising, eliminating the need for multiple vendors and systems.
• Administrative Efficiency: Ana automates routine tasks like appointment reminders and resource referrals, freeing staff to focus on high-impact student engagement.
• Measurable ROI: Using the ROI Savings Calculator, institutions can project financial savings and retention-driven revenue gains, providing a compelling case for stakeholders to invest in Upswing.

The Shift to Online Education: Adapting to the Digital Era

As online education becomes a permanent fixture in higher education, many institutions, particularly those serving nontraditional learners, are struggling to meet the needs of remote students. Without accessible, flexible resources, students in online programs are more likely to disengage and are at a higher risk of dropping out, leaving institutions vulnerable.

Expanding access to academic and mental health support is essential for institutions looking to retain these students. This is particularly valuable for nontraditional and adult learners, whose numbers are declining yet whose needs are pivotal for long-term institutional viability. A commitment to equity in digital education not only supports students but also reinforces an institution’s reputation as a leader in accessibility and innovation. 

Upswing is designed to support online learners with services tailored for flexibility and accessibility:

• 24/7 Academic Support: Students have access to online tutors at any time, ensuring support is available when they need it most.
• Mental Health Resources: Upswing offers teletherapy and on-demand wellness videos, addressing students’ holistic needs regardless of their location or schedule.
• Equity in Access: Upswing’s platform ensures that students from underserved and marginalized communities receive the resources they need to thrive, bridging the equity gap in online education.

Measurable Impact on Sustainability

Retention isn’t just an educational goal—it’s a financial imperative. The Federal Reserve working paper highlights how declining enrollment leads directly to financial instability, but improving retention even slightly can generate significant revenue. For instance, retaining just 50 additional students in a year could yield hundreds of thousands in additional tuition revenue for many colleges.

Panola’s success illustrates this potential. Since partnering with Upswing in 2021, the college has saved over $500,000 in tuition revenue and provided personalized support to over 7,000 students​. These results highlight how holistic student support not only improves outcomes but also stabilizes finances. 

Upswing’s ROI Savings Calculator offers a practical way for institutions to understand the financial benefits of investing in student retention and operational efficiencies. By entering key metrics such as enrollment size and tuition rates, colleges can see how improvements in persistence rates translate to revenue growth. This data-driven tool empowers decision-makers to align institutional goals with measurable outcomes, reinforcing Upswing’s value as a strategic partner.

Charting a Path Forward

The challenges facing U.S. higher education are undeniable, but they are not insurmountable. Upswing equips struggling colleges with the tools they need to increase retention, streamline operations, and adapt to the evolving demands of online education. From proactive engagement through Ana to comprehensive support services, Upswing’s solutions are designed to empower institutions and their students alike.

To see how Upswing can make a difference for your college, try the ROI Savings Calculator today and start building a sustainable future for your institution.