2025 Annual Higher Education Outlook from Forvis Mazars focuses on financial health, value proposition, and change management
NEW YORK–(BUSINESS WIRE)–Forvis Mazars, one of the largest public accounting and consulting firms in the United States, today released its 2025 Annual Higher Education Outlook. Among the key insights: although nearly 75% of colleges and universities believe their value proposition is clear, less than 10% of schools say they have built a reliable tracking process to ensure their perceived value is actually delivered.
“The amount of disruption to higher education over the last several years has been unprecedented, and 2025 has not produced any relief,” said Rachel Pauletti, director and national practice leader for Higher Education Consulting at Forvis Mazars. “Because we find ourselves suddenly in a highly dynamic industry, it’s critical to acknowledge all of the other issues that may affect financial health or require conversations about value, and that may require new and effective responses. Colleges and universities need to understand why students are choosing them and lean in.”
This and other findings are part of the 2025 Annual Higher Education Outlook, released today. The survey responses were collected through a web-based survey tool, and covered all regions of the U.S. and all sectors except for-profit higher education institutions. Most respondents were small- to medium-sized schools (up to 20,000 students).
This year’s Outlook addresses three major topics in higher education: financial health, the institutional value proposition, and change management.
Key findings include:
- Revenue diversification concerns – Private and federal grant funding (23%) and general philanthropy (27%) were the two most frequent areas of revenue improvement during the past year. Given recent activities at the federal level, institutions are likely re-evaluating their strategies for grant funding.
- Expense management challenges – While most schools (71%) made expense reductions in all areas of operation (academic, administrative, and other), only a few schools (5%) made academic cost reductions alone.
- Lack of forecasting – Schools conducting financial forecasts (95%) chose forecast time frames from three to seven years. Only 2% conducted forecasts in excess of seven years, and 3% did not do any financial forecasting work.
- Value proposition in question – The value proposition in higher education is in question, and this will affect the ability of individual institutions to attract and retain students.
- Concerns over loans and grants – Recent actions at the federal level may make it more difficult for students to take out loans or receive grants, and these changes may affect some programs more than others.
- Lack of cohesion – Institutional leaders recognize that they must earn buy-in from all constituencies and that some constituencies are less receptive to change than others.
- Change management is often ignored – While many institutions recognize the need for change, many are struggling to implement effective change management strategies.
“Schools today are seeking to create financially sustainable operations; project attractive value propositions for students, parents, and donors; and develop effective change management approaches,” said Nick Wallace, higher education consultant and director at Forvis Mazars, and lead author of the Outlook report. “As institutions develop long-term strategic plans, they need to be mindful of these three focal areas.”
Forvis Mazars ranks among the largest public accounting firms in the country and its higher education practice is a leading provider of assurance, tax, and consulting services to hundreds of client institutions nationwide.
The 2025 Annual Higher Education Outlook is available for download now.
A webinar about the Outlook survey results will take place at 11 a.m. ET, Wednesday, April 30. The webinar is geared toward college presidents, chief financial officers, provosts, boards, and accounting professionals.
About Forvis Mazars
Forvis Mazars, LLP is an independent member of Forvis Mazars Global, a leading global professional services network. Ranked among the largest public accounting firms in the United States, the firm’s 7,000 dedicated team members provide an Unmatched Client Experience® through the delivery of assurance, tax, and consulting services for clients in all 50 states and internationally through the global network. Visit forvismazars.us to learn more.
Contacts
Andy Baron, Pierpont Communications
[email protected]
