Higher education is undergoing radical shifts. Political pressures, demographic cliffs, and evolving student expectations are forcing institutions to adapt. In this piece, Eduvantis leaders share data-driven insights and actionable strategies to help universities rethink outdated models, embrace innovation, and prepare for long-term stability.
Higher education is at a pivotal crossroads. Political uncertainty, demographic shifts, and rapid technological change are upending long-held models. For institutions to thrive, business-as-usual thinking won’t cut it. Leaders must embrace new strategies that meet the moment—and build for the future.
In this piece, Eduvantis higher education experts share their insights into how higher ed can adapt, evolve, and lead. Hear from CEO David Mulligan, Vice President and Partner Steve Shriberg, and Associate Vice President of Digital Marketing and Marketing Strategy Emily McMahon as they unpack current challenges and offer actionable strategies to build resilient, future-ready institutions.
Navigating Political Uncertainties and a Changing Market Economy
Colleges and universities are confronting seismic shifts—not just in enrollment numbers, but in funding models, public sentiment, and regulatory pressures. As these forces converge, the traditional ways of operating in higher ed are being challenged like never before.
According to Mulligan, one of the greatest threats to higher education comes from the unpredictable and extremely challenging federal environment. Similar to the onset of the COVID-19 pandemic, there is no point of reference from which to navigate and anticipate the future.
“We’re in uncharted territory,” Mulligan says. “There’s no roadmap for this level of federal unpredictability. There is an unprecedented level of uncertainty regarding the funding sources and governing environment in which schools operate.”
Funding sources are uncertain. DEI programs and academic freedom are under scrutiny. Research budgets are tightening. These forces are creating an environment that few campus leaders have dealt with before.
At the same time, the long-anticipated “enrollment cliff” is here. Fewer high school graduates means fewer undergraduates, presenting a serious financial risk to the long-term sustainability of most U.S. colleges and universities.
“We’re looking at a fundamental supply-and-demand imbalance,” explains Mulligan. “Higher education’s cost structure was built during a very different time: a post-WWII economy with unlimited demand and a supply that was not driven by price competition or efficiency.”
“We’re in uncharted territory. There’s no roadmap for this level of federal unpredictability.”
David Mulligan, CEO
What About Graduate Education and International Student Recruitment?
Graduate programs have long served as a safety valve, but those gains are flattening too. While many institutions look to graduate enrollment as a solution, any gains will be short-lived as those populations continue to decline as well.
“When grad enrollment drops, so does your pool of TAs and GAs,” Shriberg notes. “That impacts research, teaching, and the academic support structure. Institutions need to rethink how to support these areas with more limited TA and GA support.”
International recruitment? Increasingly competitive, and increasingly uncertain. Current fears around visa delays, shifting immigration policies, and the broader political climate are creating real barriers for prospective students considering U.S. institutions.
“The downstream impacts of all of this go farther than just revenue generation,” Shriberg adds. “They impact student services and resource allocation choices, as well as course delivery decisions.
These changes will change how many institutions function at a core level, forcing them to rethink their entire operating model. “The moment we are in has sweeping implications, and ultimately, higher education is going to have to reimagine many, many parts of their operating model.”
Transforming for Success: Innovation Isn’t Optional
Once institutions recognize the depth of the challenges they face, the next question becomes: how do we move forward? The answer lies in innovation—not as a buzzword, but as a necessary response to a changing reality. Whether in program design, delivery models, or operational strategy, creativity and agility are now prerequisites for survival.
“Yes, the pressures are real,” Mulligan acknowledges, “but moments of disruption are also moments of opportunity. When industries are faced with risks, there are opportunities for institutions to serve as visionaries.”
See Innovation in Action: Arizona State University
Historically, higher education has followed a model of scarcity and selectivity, which limits the number of students who can be admitted. Arizona State University challenges this traditional model.
By focusing instead on accessibility and affordability—particularly for first-gen students—ASU has flipped the script. The result? A stronger brand, broader reach, and a growing reputation as a national leader in innovation and student success.
Beyond Enrollment: Alternative Paths to Sustainable Growth
Growth for growth’s sake isn’t the answer—and it’s not the only lever institutions can pull to achieve a competitive edge.
“Enrollment increases often come with higher operating costs,” Shriberg says. “It’s not always the most effective way to drive sustainable success.”
Institutions can explore alternative strategies, such as:
- Retention-focused approaches
- Increasing transfer students
- Outreach to nontraditional learners and non-degree seekers
- Expanding online and hybrid learning options
“I anticipate a continued increase in demand from traditional college-aged students for fully online programs,” Shriberg adds. “The traditional four-year residential model isn’t a given anymore.”
“Enrollment increases often come with higher operating costs. It’s not always the most effective way to drive sustainable success.”
Steve Shriberg, VP & Partner
The future may also see fewer traditional majors. More students are choosing programs based on workforce relevance rather than academic discipline. The way students navigate their higher education experience is therefore likely to become more skills based, resulting in a different approach to the traditional “majors” structure around which undergraduate students have operated.
Shifting Student Priorities and Perceptions
Today’s students are asking different questions. They’re less interested in prestige and more focused on outcomes: “What skills will I graduate with? Will this investment pay off?”
“There is a much greater focus from prospective students on the actual applicable skills that are being taught and how they transfer to the workforce in an information economy,” notes Mulligan.
ROI and long-term financial security are driving enrollment decisions more than ever. They are more skeptical about higher education than previous generations, weighing the high cost of tuition against its value as the best pathway to long-term economic prosperity. Many students are now comparing traditional degrees with alternatives.
“It’s this interesting moment when many people don’t look to higher education first for their professional development,” says McMahon. “Instead, they consider other options, such as Coursera and a variety of certificate programs.”
Employers are responding to this shift as well. Some are finding that even advanced-degree holders lack job-ready skills, prompting them to build their own training infrastructure. That mindset—”we can do it better ourselves”—threatens the value of higher education to the job market.
To stay competitive, institutions must rethink not only what they teach, but how. That means:
- incorporating tech fluency across disciplines,
- investing in faculty with expertise in rapidly advancing areas (e.g., analytics, machine learning, and computation thinking), and
- repositioning academic programs for a skills-based economy.
Rebranding degree programs will also help rebuild confidence. Leading institutions are already making moves; for example, Harvard recently reclassified its MBA as a technology degree.
These strategic shifts send a clear message: Higher education is adapting to the needs of a digital-first workforce.
Smarter Marketing for a More Competitive Environment
As student expectations shift, marketing strategies have to evolve with them.
“Today’s students are ROI-focused,” Mulligan explains. “They want to know what skills they’ll gain and how they’ll apply in the job market.”
McMahon agrees: “Many prospective students are comparing traditional degrees to alternatives and choosing the option that provides the highest return on their investment — often, in the shortest timeframe. They’re asking, ‘What’s the payoff?’”
And employers are asking questions, too. Some have found that master’s grads still require internal training—fueling a DIY mindset that sidelines higher ed.
To stay relevant and competitive, institutions need to rethink not just what they offer, but how they communicate value, engage prospective students, and deliver on outcomes.
Leveraging AI to Drive Smarter Recruitment
As student recruitment becomes more competitive, emerging technologies present an opportunity for those with the requisite skills. Technology—especially AI—can help institutions respond. But only with the right strategy.
Marketing strategies that incorporate tried-and-true techniques while testing emerging technologies are key to success.
“Recruitment teams need to make smarter, faster investment decisions,” McMahon says. “AI can support everything from media planning to real-time engagement. But you have to think both short- and long-term to stay competitive.”
“Recruitment teams need to make smarter, faster investment decisions… You have to think both short- and long-term to stay competitive.”
Emily McMahon, AVP Digital Marketing
And while AI offers exciting potential, institutions must also ensure their digital infrastructure can support it. As Eduvantis President Tim Westerbeck explores in this piece on technical debt, many colleges are trying to layer new technology onto outdated systems—a short-term fix that risks long-term failure if not addressed strategically.
Rethinking the Business Model: Strategies for Long-Term Viability
As the political and economic environment rapidly evolve, higher education institutions need to react quickly. At a time of disruption, maintaining the status quo may be the riskiest move of all.
“Institutions need to get more agile,” says McMahon. “Many universities are exploring the centralization of services with one contract at the institutional level.”
In practice, that means universities are consolidating previously siloed functions—such as marketing and communications—under a unified strategy, often managed by a central team or through a single institution-wide contract. This approach enables consistency, cost-efficiency, and better coordination across departments, helping institutions respond more quickly to market demands.
These budget-tightening measures will only accelerate given the current climate. Institutions will be forced to become more revenue stable—or make some difficult choices.
With so many variables to consider, decision-makers will need reliable data, clear insights, and the ability to act decisively. Validating new strategies with the right data and expertise can prevent costly detours.
“As resources shrink, you can’t afford to guess,” Shriberg emphasizes. “Better decisions come from better information.”
That means:
- Streamlining operations and spending
- Validating hypotheses before major investments
- Prioritizing strategic flexibility over tradition
What Higher Ed Leaders Should Do Now
The path forward isn’t about finding a one-size-fits-all solution. It’s about making bold, informed choices.
Institutions that take proactive steps now will be better positioned to weather uncertainty and lead with purpose. The following priorities can help higher ed leaders focus their efforts where they’ll have the most immediate and lasting impact.
- Audit your cost structure. Identify where legacy expenses no longer serve strategic goals.
- Invest in innovation. From program design to tech infrastructure, prioritize what drives relevance.
- Rethink the student journey. Focus on flexibility, affordability, and skill-based outcomes.
- Upgrade your marketing. Weave data and automation into your marketing strategy to align with evolving student expectations.
- Challenge tradition. Ask hard questions about what still works—and what doesn’t.
Higher education has reached an inflection point. Those who adapt with clarity, speed, and creativity will not just survive: They’ll pave the path forward.
For many institutions, having an experienced partner makes all the difference.Looking for deeper insight into how your institution can evolve? Let’s start a conversation. Our team of experts at Eduvantis are ready to help you explore what’s possible.