Wave of Small College Closures in US: Labouré, Lourdes, and Providence Christian Announce Shutdowns Amid Enrollment Crisis

In recent weeks, the higher education landscape in the United States has been shaken by announcements from three small colleges—Labouré College of Healthcare in Massachusetts, Lourdes University in Ohio, and Providence Christian College in California—that they will cease operations by the end of the 2025-2026 academic year. These closures highlight a growing crisis among small private institutions grappling with persistent enrollment declines and mounting financial pressures. As demographic shifts reduce the pool of traditional college-age students and operating costs soar, more small colleges are reaching a tipping point where sustainability becomes impossible without drastic measures.

This wave of small college closures is not isolated but part of a broader trend affecting nonprofit private colleges, particularly those with faith-based missions or niche focuses like healthcare and liberal arts. According to data from the National Student Clearinghouse, while overall U.S. postsecondary enrollment rose 1% in fall 2025 to over 19.4 million students, private four-year nonprofit institutions saw declines, exacerbating vulnerabilities for schools with fewer than 1,000 students.

Labouré College of Healthcare: A 130-Year Legacy Ends

Founded in 1892 as a nurse training school by the Sisters of Charity of Nazareth, Labouré College of Healthcare in Milton, Massachusetts, specialized in degrees for adult learners entering healthcare fields. Serving a diverse student body—44% Black or African American, 31% White, and 13% Hispanic or Latino in fall 2024—the college focused on underserved communities, with half its students raising young families.

However, enrollment plummeted 37% from 2018 to 2024, reaching just 530 students. Financial strains were compounded by a modest $9.4 million endowment and past regulatory issues, including a 2023 warning from Massachusetts nursing regulators over low licensure pass rates, which temporarily limited admissions. President Susan H. Hsu announced on February 12, 2026, that the college would cease academic operations on August 31, 2026, pending approvals.

In a proactive step, Labouré reached an agreement with neighboring Curry College, four miles away. Curry will absorb the nursing programs (Associate of Science in Nursing and RN-to-BSN), establishing the Labouré Center for Advancing Healthcare Opportunity on its Milton campus. Students can transfer seamlessly with credits honored and 2026-27 tuition rates frozen. Curry plans to hire about 15 faculty and 20 staff from Labouré, preserving much of the expertise. Respiratory care and other programs have articulation agreements for transfers elsewhere. Hsu emphasized, "This will not prevent you from reaching your goal," underscoring commitment to student success.

Lourdes University: Franciscan Mission Fades Amid Deficits

Lourdes University, a Catholic institution in Sylvania, Ohio, sponsored by the Sisters of St. Francis, announced its closure on February 11, 2026, effective at the end of the spring 2026 semester. Established to provide accessible education rooted in Franciscan values, it offered undergraduate and graduate programs in business, education, nursing, and social work.

Enrollment has eroded dramatically: down more than 13% from 2021 to 964 students in fall 2024, about one-third from 2018 levels, and nearly two-thirds since 2011 peak. The fiscal year 2024 operating deficit hit $2.8 million, with net tuition revenue dropping over 7% year-over-year. Liabilities totaled $18.1 million, including $13.9 million in long-term debt, against a $9.4 million endowment largely restricted by donors. The Sisters could no longer subsidize at prior levels, declaring the funding model unsustainable.

The board committed to normal operations through the year, with teach-out plans for students to complete degrees elsewhere. Faculty and staff transition support is promised, though specifics are forthcoming. Lifelong learning programs and the Franciscan Center for events will continue unaffected. This closure disrupts the Toledo-area community, where Lourdes employed hundreds and contributed economically.

Providence Christian College: Young Institution Succumbs to Competition

Opened in 2005 in Pasadena, California, Providence Christian College aimed to blend Reformed theology with liberal arts for a diverse student body, earning Hispanic-Serving Institution status in 2023. Yet, with only 168 students in fall 2024, an endowment of $25,322, and a nearly $1 million loss in fiscal 2024, it proved unsustainable.

Announced February 7, 2026, the closure cites declining enrollments, rising costs, stricter accreditation, lost federal grants (including a $3 million Department of Education award halted under policy shifts), donor shifts, and competition. Half of current students are on track to graduate by May 16, 2026. Teach-out agreements ensure seamless transfers to partners like Biola University, Concordia University Irvine, and The Master’s University, with automatic admission, credit acceptance, and comparable costs. A dedicated transfer team aids underclassmen.

Prospective students receive deposit refunds, and staff/faculty job search support is offered. Transcripts remain accessible via National Student Clearinghouse.

Photo by Joshua Rodriguez on Unsplash

Root Causes: Enrollment Cliff and Financial Squeeze

These closures stem from intertwined challenges. The "enrollment cliff"—a 15% drop in U.S. high school graduates projected from 2026 to 2041—hits small privates hardest, reliant on tuition (often 80-90% of revenue). National Student Clearinghouse data shows private nonprofit four-year undergrad enrollment declining amid overall growth driven by public sectors.

• Demographics: Fewer 18-year-olds, especially in Midwest/Northeast; rising non-traditional students prefer flexible options.
• Costs: Inflation outpaces tuition hikes; facilities, staffing, compliance burdens small budgets.
• Competition: Online programs, community colleges, workforce entry siphon students.
• Regulation: Tighter accreditation, federal aid rules add expenses.

Fitch Ratings notes no relief in 2025 pressures, predicting tripled closure rates for small colleges.

Broader Trends: Dozens More at Risk

2025 saw 16 nonprofit closures; 2026 already claims California College of the Arts among others. Experts forecast hundreds vulnerable, especially rural/faith-based schools under 1,000 students. New England lost 32 four-year colleges in a decade. Moody's warns of mergers tripling.

Private colleges lost share as publics gained; for-profits down sharply historically.

Impacts on Stakeholders and Communities

Students face disrupted education, transfer stresses; many first-gen or low-income. Faculty/staff lose jobs—hundreds affected here. Local economies suffer: Toledo, Milton, Pasadena lose payroll, vendors. Reduced access to niche programs like faith-based or healthcare training.

Yet, orderly closures mitigate chaos via teach-outs.

Survival Strategies: Mergers, Partnerships, and Innovation

Labouré's Curry merger exemplifies success: preserves mission, jobs, students. Others pursue shared services, online expansion, niche pivots. Recommendations include:

• Early mergers with complementary partners.
• Cost-sharing consortia for admin/IT.
• Targeted recruitment: adult learners, internationals.
• Government aid, endowments growth.

For faculty eyeing new roles, check higher ed faculty jobs or admin positions on AcademicJobs.com.

Photo by Kelly Sikkema on Unsplash

What This Means for Students, Faculty, and the Future

Prospective students: Research financial health via university rankings; consider transfers. Current students: Leverage teach-outs. Faculty: Update CVs with our free resume template; explore higher ed career advice.

Outlook: More consolidations, but innovation could save some. Public policy on aid/enrollment cliffs crucial. AcademicJobs.com positions as your guide—rate your professor, find university jobs.