Smaller colleges and universities are leveraging technology in new ways to stay resilient and fiscally healthy, beating federal funding woes.

How tech helps smaller colleges overcome budgeting woes and federal funding gaps


Faced with unprecedented volatility and economic headwinds, smaller colleges and universities are leveraging technology in new ways to stay resilient and fiscally healthy

Key points:

Higher education is going through a period of extreme disruption and uncertainty. From turmoil surrounding the U.S. Department of Education and federal funding pauses to the pending enrollment cliff and ongoing issues with FAFSA, smaller colleges and universities across the country are navigating unprecedented economic headwinds. Small and mid-sized institutions are especially vulnerable, with many closures in recent years citing financial pressures and declining enrollment as the root cause.

Yet schools that have encountered these same challenges have been able to sustain and grow during turbulent times. What sets them apart? A willingness to leverage technology and data in new ways.

Maximizing the value of readily available data

Colleges and universities already have access to a wealth of highly valuable data. Institutional student datasets are vast and can provide insights into areas such as course and major selections, enrollment trends, financial history, and graduation rates–insights that can help leaders understand their student demographics, anticipate needs, and adapt to meet or exceed expectations.

The challenge lies in putting this information to use. Student data often lives in silos, spread across different storage systems and formats. When data is fragmented or outdated, it becomes difficult to access, analyze, and act on, limiting its potential impact.

By consolidating this information into a single system, administrators can ensure data is current, actionable, and strategically applied. Strong data integration allows institutions to streamline analysis, identify risks and opportunities, and strengthen student success initiatives. Because it’s more cost effective to retain an existing student than it is to enroll a new one, maximizing the value of readily available data ultimately helps schools to maintain a healthy student population.

Adapting to and supporting the needs of a new student population

Student demographics are shifting rapidly and in a variety of ways. Adult learners are now the fastest growing student population. Additionally, there has been an increase in the number of learners who are either returning to school after entering the workforce, balancing full-time jobs, or raising families while pursuing their degree. This reality is reshaping expectations of what colleges and universities must provide.

Meeting the needs of this evolving population can be difficult. Institutions face pressure to design flexible pathways that align with students’ lives, while also responding to declining enrollment trends. With the overall student population potentially on the cusp of a significant decline and less than 5% of adult learners re-enrolling after a year’s worth of classes, colleges and universities can overcome external pressures by knowing what the next generation of learners wants and adapting accordingly.

Technology and data offer practical ways to get this information. Gathering feedback directly from students–via survey platforms, automated text messages and emails, and even interactions with AI chatbots–can provide institutions with real-tine insights into what learners want. Acting on this information helps schools prioritize students’ needs, tailor services to their circumstances, and ultimately improve both retention and long-term success.

It’s not JUST about technology: Empowering CIOs and technology champions

Technology alone isn’t the answer; leadership matters just as much. Smaller institutions must empower their technology champions to leverage technology and data in new ways. To lead technological change, the CIO needs to be an evangelist who can work across departments and demonstrate how using data and technology benefits everyone.

Equally important: CIOs need to act as translators. This means packaging and presenting information in a way that allows everyone on campus to understand how technology and data support the institution’s mission. Tools like dashboards and visualization platforms can demystify data, making it easier for everyone to apply insights to decisions that affect students. 

Staying resilient through change

While uncertainty in higher education will continue, institutions that embrace technology strategically are better positioned to weather financial pressure and demographic shifts. By optimizing existing datasets, adapting to the needs of new learners, and backing technology leaders, smaller colleges can withstand persistent headwinds, strengthen student success, and chart a sustainable path forward.

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