Smaller colleges and universities are confronting significant financial pressures driven by enrollment declines, macroeconomic shifts, and changing student demographics. Many small institutions report operating deficits with budget shortfalls reaching up to 50%. Challenges include changes in visa policies restricting international student enrollment and rising operational costs due to inflation and interest rates. This financial strain compels difficult decisions and may precipitate closures or transformations within the sector, highlighting the need for strategic adjustments and new revenue models to sustain educational missions.