2 minute read 7 Apr 2023
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How liberal arts colleges and universities can reassert their value

Authors
Kasia Lundy

EY-Parthenon Principal, US Higher Education, Ernst & Young LLP

Strategist. Education industry thought leader. Wife. Mother.

Haven Ladd

EY-Parthenon US Education Partner, Ernst & Young LLP

Innovative thinker. Practical advisor. Trusted navigator through stormy seas.

2 minute read 7 Apr 2023
Related topics Education Strategy by EY-Parthenon Strategy and Transactions
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  • Making the grade: can liberal arts institutions reclaim their value proposition to students and families? (pdf)

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As higher education continues to face both financial and perception head winds, liberal arts institutions need new strategies to stand out.

Enrollment pressure, financial stress and lessening public confidence in the value of higher education continue to be head winds for higher education institutions. Liberal arts colleges and universities have experienced these trends more significantly than other private, not-for-profit institutions and public institutions.

Change in total applicants and first-time enrollment by institution type, FY 2013-FY 2022

  • Chart description

    A split bar chart comparing enrollment trends across institution segments. Enrollment at liberal arts colleges has declined at a rate of 0.6% per year between FY 2013 and FY 2022. In contrast, private, not-for-profit and public institutions have seen an overall 1%–2% increase in enrollment over the same period. Source: The Integrated Postsecondary Education Data System and EY-Parthenon analysis.

However, even within the liberal arts segment, trends vary substantially. For example, the most selective liberal arts institutions have not experienced the same enrollment declines and enhanced discounting of their less selective peers. Even among the selective institutions, some have performed better than others and are better able to retain pricing power. This variation may be explained by the ability and willingness of some institutions to adopt strategies to differentiate in the market, enhance the student experience, and deliver on the promise of value made to students and families.

To assert their position in an increasingly competitive landscape and in view of Gen Z student needs and preferences, liberal arts institutions also need to carefully consider how best to incorporate responses to these changing needs in their long-term strategies. What transformative strategies should liberal arts institutions adopt to differentiate in a crowded market and to build out their value proposition to students and families?

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Summary

Liberal arts colleges and universities that employ strategies to differentiate themselves and meet the needs of the Gen Z population may be better positioned to overcome financial and enrollment head winds that are plaguing higher education institutions.

About this article

Authors
Kasia Lundy

EY-Parthenon Principal, US Higher Education, Ernst & Young LLP

Strategist. Education industry thought leader. Wife. Mother.

Haven Ladd

EY-Parthenon US Education Partner, Ernst & Young LLP

Innovative thinker. Practical advisor. Trusted navigator through stormy seas.

Related topics Education Strategy by EY-Parthenon Strategy and Transactions
Upvote