The Looming Enrollment Cliff: Are American Universities Selling Out to Global Cash?

How Will ASU Solve the Problem?

American universities are facing an existential crisis: the so-called "enrollment cliff." This demographic downturn, driven by declining birth rates and changing economic priorities, means that fewer American students are enrolling in college. Many universities are on the brink of bankruptcy, and the rest aren't far behind. They have overextended themselves in growth during the years of plenty. But rather than addressing the underlying issues—such as the rising cost of education, the diminishing value of certain degrees, or the ideological rigidity that alienates potential students—many university leaders are looking elsewhere to fill the gap. Their solution? International students.

Michael Crow, president of Arizona State University and a leading voice in higher education, gave his solution to the enrollment cliff in a speech on Feb 14th. ASU has long positioned itself as a global institution, aggressively recruiting students from around the world. In his recent State of the University report to the Arizona Board of Regents (ABOR), Crow emphasized this approach, stating, "The future of higher education is in embracing a global perspective. We must expand access to learners worldwide, ensuring that ASU remains competitive and financially sustainable." This sentiment reflects the broader trend among universities across the country, which are relying on international students to sustain enrollment numbers and, more importantly, revenue.

Why international students? The answer is simple: money. International students typically pay full tuition, often at higher rates than domestic students. They are less likely to qualify for financial aid and more likely to enroll in STEM and business programs, which are profitable for universities. With fewer American students entering college, institutions see international recruitment as a financial lifeline. Crow quantified this in his report: "We need $2 billion more in the next five fiscal years to advance our interests."

But this strategy raises important questions about the future of American higher education. First, it underscores the degree to which universities have become businesses, prioritizing revenue over their educational mission. Rather than reforming curricula, reducing administrative bloat, cutting ideologically driven degrees and offices, and making degrees more relevant to the job market, universities are doubling down on a model that depends on a continuous influx of high-paying international students.

Second, it highlights the extent to which universities are disconnected from the needs of American society. If the purpose of higher education is to prepare citizens for participation in a self-governing republic, then shifting focus toward a non-citizen student body that will return to their countries after graduation (or who attend online in the first place) is a significant departure from that mission. The more universities depend on international students, the less incentive they have to reform in ways that benefit American students. The American taxpayers in each state support these institutions, which then put their efforts into international education.

Third, it places institutions in a precarious position geopolitically. These universities make connections to governments like China that are at odds with the United States. When a university is financially tied to a foreign government, it is susceptible to misuse and even actions contrary to what is best for the United States. We already know that the majority of secular professors teach radical social justice theories that portray the United States as structurally racist—propaganda echoed (or even originated) by these foreign governments. Universities are already facing scrutiny over their relationships with foreign governments, particularly in research fields with national security implications.

The reliance on international students to patch over the enrollment crisis is a short-term fix that does not address the fundamental issues facing American universities. University leaders are betting that globalization will solve their financial problems, but in doing so, they are making higher education even more detached from its original purpose. Rather than rethinking their business model, universities are simply shifting to serve a new customer base.

As the enrollment cliff deepens, the question remains: will universities reform to serve the needs of American students, or will they continue chasing international dollars, no matter the long-term consequences? Should America keep supporting these so-called "American Universities?"

https://news.asu.edu/20250214-university-news-expanding-opportunities-president-crow-board-regents-presentation