The most recent Inside Greater Ed/Hanover Analysis Survey of School and College Chief Enterprise Officers, launched immediately, reveals issues about near-term uncertainty and monetary sustainability—buoyed by confidence within the longer-term outlook.
One of the vital findings is that federal coverage uncertainty has created difficulties in conducting primary monetary planning because the Trump administration has launched a flurry of adjustments impacting federal funding for greater training, worldwide college students, how college students pay for faculty and extra.
That uncertainty, consultants famous, has had a palpable impact on the sector.
“Chief enterprise officers like certainty, whether or not it’s certainty about income streams or potential prices,” mentioned Kara Freeman, president and CEO of the Nationwide Affiliation of School and College Enterprise Officers. “And proper now they only will not be getting it and that results in anxiousness.”
The annual Survey of School and College Chief Enterprise Officers, now in its fifteenth yr, gives insights from monetary leaders at 169 establishments in 2025, each private and non-private nonprofits. Responses had been gathered in April and Could.
Amid the uncertainty, about three in 5 CBOs (58 p.c) charge their establishment’s monetary well being pretty much as good or wonderful, with variations by establishment kind.
Strain Exams
In final yr’s survey, 56 p.c of CBOs anticipated that their establishment could be in higher monetary form a yr later. That quantity fell to 43 p.c on this yr’s survey, which requested the identical query.
CBOs who imagine their establishment shall be worse off financially subsequent yr cited issues concerning the federal coverage/funding surroundings for the sector (82 p.c), potential will increase to nonlabor working prices (67 p.c), rising labor prices (67 p.c) and normal financial issues (62 p.c).
Extra on the Survey
On Wednesday, Aug. 20 at 2 p.m. E.T., Inside Greater Ed will current a free webcast to debate the outcomes of the survey, with consultants who can reply your most urgent questions on greater training finance—together with how you can plan successfully amid the present monetary and coverage uncertainty. Please register right here.
The 2025 Survey of School and College Chief Enterprise Officers was made doable by assist from Strata Resolution Know-how and CollegeVine.
Inside Greater Ed’s fifteenth annual Survey of School and College Chief Enterprise Officers was performed by Hanover Analysis. The survey included chief enterprise officers, principally from private and non-private nonprofit establishments, for a margin of error of seven p.c. The response charge was 7 p.c. A duplicate of the free report might be downloaded right here.
Larry Ladd, an issue specialist at AGB Consulting, famous that schools are taking quite a few measures to guard themselves within the brief time period, resembling delaying constructing tasks, freezing hiring and/or journey, and pulling different levers to guard themselves this coming fall.
“You’re seeing faculties do all the things they’ll to protect their liquidity,” Ladd mentioned. “The most important motive to try this after all is that they don’t know what their fall enrollment shall be.”
Of explicit concern, he famous, is the potential for disruption to federal monetary support funds, given mass layoffs on the Training Division, which has raised issues about disbursement. Simply 12 p.c of CBOs assist the elimination of the division.
Different doable indicators of warning: On deferred upkeep, 63 p.c of respondents mentioned that their establishment was poised to fund lower than 1 / 4 of recognized wants within the then-current fiscal yr. Some 24 p.c mentioned their establishment was freezing hiring to manage prices for college kids; one other 62 p.c mentioned their establishment would contemplate doing this.
Regardless of these challenges, respondents had been far more assured of their establishment’s five- to 10-year outlooks, with 73 p.c believing their faculty or college shall be financially secure over the following 5 years and 71 p.c expressing that very same degree of confidence over the following decade. For reference, in 2024, 85 p.c of CBOs had been assured within the five-year outlook, and 73 p.c within the 10-year outlook.
Some 11 p.c of CBOs say senior directors at their establishment have had critical inner discussions within the final yr about merging with one other faculty or college, about the identical as final yr’s survey. Most of those CBOs point out such conversations are about proactively guaranteeing the establishment’s monetary stability relatively than threat of imminent closure.
One other 16 p.c of CBOs report critical inner discussions about consolidating some packages or operations with one other faculty or college. Two in 5 (42 p.c) say it’s extremely doubtless that that their faculty will share administrative features with one other establishment inside 5 years. CBOs within the Northeast, with its relative focus of establishments, are particularly more likely to say so, at 63 p.c.
Past the Fog
Ruth Johnston, vp of NACUBO consulting, mentioned that whereas enterprise officers could also be confused by the instant pressures, they’re assured of their situation planning for the longer term.
“I believe we’ll determine it out. Greater ed, even when it’s gradual to vary, is resilient. So I count on that we’re going to see new, inventive options that can assist bolster greater training,” Johnston mentioned.
That mentioned, simply 28 p.c of CBOs described themselves as very or extraordinarily assured of their establishment’s present enterprise mannequin. One other third expressed reasonable confidence.
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High points for these CBOs with just a few or no confidence of their establishment’s enterprise mannequin: lack of various income streams (64 p.c of this group), ineffective price containment and/or operational effectivity (54 p.c), and inadequate money reserves for “wet days” or strategic investments (50 p.c).
Tuition discounting is one other standing concern. Amongst all CBOs, greater than half (54 p.c) are at the very least reasonably involved concerning the monetary sustainability of their establishment’s tuition low cost charge; two in 10 (21 p.c) are extremely involved. Equally, 50 p.c of CBOs are at the very least reasonably involved concerning the sustainability of their establishment’s tuition sticker value will increase. In each instances, personal nonprofit CBOs are essentially the most involved, by sector.
Respondents additionally noticed authorities efforts to affect institutional technique and coverage as an growing threat to their establishments, with 71 p.c registering this as a priority. That quantity is up barely from final yr’s 65 p.c.
CBOs in 2025 had been a lot much less involved about donor efforts to affect institutional technique, with 16 p.c worrying that this quantities to an growing monetary threat to their faculty or college.
Internally, at the very least, some 81 p.c of CBOs agree that they’ve adequate company affect inside their establishment to make sure its monetary stability. Most additionally report a powerful working relationship with their president, and understanding amongst trustees of the monetary challenges going through their establishment.
Survey respondents had been notably involved about federal pupil support insurance policies, overwhelmingly choosing that as the highest federal policy-related threat over the following 4 years, at 68 p.c. Some consultants counsel that issues about different federal coverage issues might have been heightened if the survey had been administered after the One Large Lovely Invoice Act handed earlier this month. It included main adjustments for greater training in addition to cuts to different public packages that would have downstream results on the sector.
“There are each direct and oblique implications of the invoice, a few of which haven’t totally been explored by faculties and universities,” Ladd mentioned. “I consider the Medicaid cuts—even these can have implications for faculties and universities.”
When requested about normal monetary dangers to their establishment over the following 5 years, many CBOs—particularly these at publics—flagged state and federal coverage adjustments, together with state and federal funding reductions. Enrollment declines, rising personnel prices and infrastructure and deferred upkeep prices additionally registered.
As for what would most enhance their establishment’s monetary state of affairs and sustainability, CBOs’ prime responses from an inventory of choices had been: rising enrollment via focused recruitment and improved retention packages; optimizing operational effectivity via course of enchancment and strategic price administration; and—in a extra distant selection—forming strategic partnerships with employers, group organizations and/or different instructional establishments. Slicing college and reducing workers had been particularly unpopular choices.
Requested about worth and affordability, CBOs largely agreed that their establishment gives good worth for what it prices for an undergraduate diploma (93 p.c) and that its web value is inexpensive (88 p.c). Two in three (65 p.c) mentioned their establishment has elevated institutional monetary support/grants within the final yr to deal with affordability issues.
The survey additionally discovered that CBOs are more and more utilizing synthetic intelligence. Almost half of respondents—46 p.c—indicated that AI helps them make extra knowledgeable choices of their position. That quantity is up from 33 p.c in final yr’s survey.
Regardless of that uptick, respondents at most establishments aren’t all-in on synthetic intelligence but. Solely 6 p.c reported that their faculty has made a complete, strategic funding in AI. However many are experimenting: 39 p.c of CBOs famous that their establishment is within the early exploration part with AI, whereas one other 28 p.c are piloting such instruments in choose departments.
“AI is right here to remain,” Johnston mentioned.
