Higher education is at a tipping point. In 2025, institutions will navigate a landscape defined by rapid technological innovation, shifting student priorities, and increasing pressure to prove their value. How will they adapt?  

Our higher education team share their predictions for the year ahead. From structural and funding pressures on institutions to evolving student priorities and success, these hot takes capture the challenges and opportunities shaping the future of the sector. Which perspective do you agree with—and where do you see the biggest surprises? 

Structural and Funding Pressures

1) The Push to Demonstrate Value Will Increase Private Lenders’ Role in Student Loans

Hadley Dorn, Principal

FAFSA’s troubled rollout has drawn comparisons to HealthCare.gov, with the new administration viewing financial aid as a taxpayer investment rather than student relief. In 2025, uncertainty around federal loans and grant packages may lead some students to forgo college, while others will demand clearer evidence that their degree will lead to swift loan repayment. With this, institutions may find new ways to track and market outcomes like job placement rates and starting salaries to stay competitive. 

2) Short-Term Pell Will Reshape Skills-Based Learning Pathways

Gates Bryant, Partner

Institutions will blend their for-credit and non-credit learning offerings to support students’ desire to acquire skills alongside their foundational coursework. If short-term Pell passes, then institutions will have a new and robust funding source to chase. 

3) The 90-Credit Bachelor’s Degree Will Impact Traditional 4-Year Programs the Most 

Kate Sutherland, Managing Director

The recent approval of a 90-credit bachelor’s degree at Johnson and Wales University signals a significant shift in accreditors’ willingness to change the definition of the degree, memorialized in the early 1900’s by the Carnegie Unit/120-credit structure. This is the most linear path we’ve seen to shortening the time-and-expense-to-degree, avoiding nuances and administrative overhead that come with competency-based credits, AP courses, and dual enrollment. I predict that traditional residential programs will see this as a needed differentiator and will take the lead in adopting it, but that its impact on non-traditional adult learners will be muted by likely restrictions on credit transfer and competency-credit. 

4) Consolidation Will Create the Coca-Cola Company of Higher Education 

Chris Ostwald, Senior Principal

As expensive, less-selective schools struggle to meet rapidly growing budgets, we are likely to see more closures or acquisitions of these institutions in 2025. Since its founding in 1892, the Coca-Cola Company has acquired over 500 brands by organizing around its scale advantage in marketing and distribution. There is a flavor for every personal preference from single company.  In 2025, we will see the emergence of a house of brands concept in higher education. 

Generative AI Innovation and Impact

5) Generative AI Will Challenge Content Providers to Adapt 

Chris McVety, Director

Generative AI will increasingly enable faculty to develop high-quality, tailored instructional content efficiently and affordably. With this, in 2025, paid content and courseware providers will continue striving to increase their value proposition––and justify their price tag––with a robust feature set and user-friendly functionality. 

6) Generative AI Will Transform How Holistic Student Support Is Provided 

Catherine Shaw, Managing Director

High student caseloads have remained a challenge for frontline student support providers. In 2025, GenAI will be a catalyst in tackling this perennial capacity constraint. GenAI users believe the technology can improve student retention and persistence. Next year, we will see more GenAI features, partnerships, and staff training come out to help automate advisor tasks, like scheduling and follow-ups and augment student abilities to self-serve. This will help advisors focus on what matters most: personal connection and problem solving, which will improve student retention and engagement.  

Evolving Student Priorities and Success

7) How Institutions Will Measure Their Value 

Mikaela Hammel, Principal

The execution and nuances of gainful employment may be controversial, but at its core, it measures if institutions and programs are providing significant value to their students relative to program cost. In 2025 all higher education institutions and programs will have to increasingly defend their value, with “value” being defined around employment outcomes. Institutions will be forced to self-reflect on concrete, tangible, outcomes; for example, “When students leave our program, what is their financial quality of life?” 

8) High School Students Will Play an Increasingly Important Role in Postsecondary Institutions’ Success 

Dan Brennan, Principal

Dual Enrollment participation has reached record highs, with early data from NSC indicating high school students’ participation in postsecondary courses increased by 7% from Fall 2023 to 2024, and 16% since 2022. 

For institutional leaders seeking to fill both current seats and future year pipelines, there are few better places to turn than to high schools, where dually-enrolled students can accommodate both needs in one fell swoop. As institutions face continued enrollment pressures, expect local high schools to play an increasingly critical role in supporting their enrollment strategies. 

9) Institutions Can Create Value with More Specialized Career Pathways 

Annie Malone, Senior Associate

In 2025, political leaders will continue backing workforce development initiatives and funding, prompting K-12 educators to expand their career education, pathway programs, and internships. This movement will give graduating students a clear picture of their postsecondary pathway, making them some of our savviest college searchers to date.  

Meanwhile, traditional four-year liberal arts institutions face declining enrollment as students prioritize postsecondary options that provide specialized, workforce-ready skills––or skip college altogether. To stay relevant, these institutions will overhaul norms, practices, and marketing to offer clear career pathways.   

10) A More Integrated and Holistic Approach to Mental Health on Campuses 

Nicole Lin, Senior Principal

In 2025, mental health will take center stage in higher education as institutions expand services like counseling and peer networks, following examples from schools like University of Michigan, Stanford, USC, and UC Berkeley.  

Preventative care programs, such as stress management workshops and resilience training will also gain more traction, with Yale’s “Science of Well-Being” course leading the way. With this, faculty and staff training will likely play a key role in identifying and supporting students in distress. This holistic approach not only fosters student well-being but also builds a more engaged campus community—a major goal for institutions.

11) New Education Policies Will Reshape International Student Enrollment  

Nicole Lin, Senior Principal

The Trump administration’s policies could reshape international recruitment and retention strategies for U.S. postsecondary institutions in 2025. Attracting international students not only enhances campus diversity but also bolsters institutional revenue and fosters global collaboration. Stricter immigration and visa regulations might deter prospective students, pushing universities to strengthen support services, forge partnerships with foreign institutions, and expand scholarships to stay competitive. Geopolitical tensions could also further sway student decisions, underscoring the need for institutions’ agility in responding to policy shifts. 

Rise to the Challenge

The future of higher education in 2025 will be shaped by those willing to think creatively and act boldly. Whether it’s leveraging GenAI, addressing mental health more holistically, or finding creative ways to prove value, the decisions made now will shape the path forward for institutions, students, and educators alike. What’s certain is that the only constant is change—and higher education must continue to rise to the challenge.  

We welcome your perspective on these hot takes. Please reach out below to give us your opinion.