By Robin McLay, Global Nexus
Higher education is undergoing profound changes across North America, and while the contexts of the United States and Canada differ, there are striking similarities in the challenges and opportunities each faces. A closer look at these dynamics reveals common trends in public opinion, funding, technology, and demographics that are reshaping the educational landscape in both countries.
Americans’ Waning Confidence in Higher Education
The United States has long viewed higher education as a pathway to opportunity, yet public confidence is eroding. According to New America’s 2024 Varying Degrees survey, only 36% of Americans believe higher education is functioning well as it is, down significantly from previous years. While 75% still view higher education as offering a good return on investment, this is a notable decline from nearly 80% in 2019.
The survey underscores Americans’ frustrations with rising costs, with over 80% identifying affordability as the primary barrier to enrollment. Despite this, there remains a strong belief in the value of postsecondary credentials, with more than 70% wanting their family members to pursue higher education. Policymakers and institutions face mounting pressure to innovate, whether through increased funding, need-based grants, or tuition-free public education programs.
Canada’s Unique Higher Education Challenges
In Canada, KPMG’s analysis paints a similarly challenging picture but with unique twists. Like their American counterparts, Canadian institutions are grappling with rising costs and student debt. However, Canadian universities are also confronting demographic shifts, including an aging population and lower fertility rates. While international students have historically bolstered enrollment numbers, the pandemic and increasing competition from global institutions are forcing Canadian universities to reassess their reliance on these students.
Moreover, Canadian institutions must address technological disruption, which has enabled the rise of affordable online education alternatives. Traditional institutions face pressure to modernize their operations and create more digitally integrated, student-centric experiences. The risk is clear: institutions that fail to adapt may find themselves at a disadvantage in an increasingly competitive global education market.
Shared Challenges and Opportunities
Across both countries, several themes emerge:
Affordability and Funding: Rising tuition and student debt dominate discussions in both the U.S. and Canada. While Americans debate the role of federal and state governments in subsidizing education, Canadian institutions are exploring how to balance cost efficiencies with the need for additional revenue streams.
Technological Disruption: Online education is reshaping higher education globally. U.S. and Canadian institutions must innovate to remain relevant, whether by adopting hybrid learning models or utilizing advanced digital frameworks like KPMG’s Connected Enterprise for Higher Education.
Demographic Shifts: Both countries face declining domestic enrollment, with Canada particularly vulnerable due to its aging population. Institutions in both nations must attract international students while diversifying recruitment strategies.
Public Trust and Institutional Accountability: Americans’ declining confidence in higher education signals the need for institutions to rebuild trust. Canadian universities must similarly articulate their value propositions, ensuring alignment with evolving societal and student priorities.
Navigating a Transformative Era
The future of higher education demands bold action and innovative thinking. U.S. institutions must work to restore public trust by making education more affordable and accountable. Meanwhile, Canadian universities must decide whether to transform their operating models entirely or optimize existing structures to achieve efficiency and competitiveness.
The “new reality” of higher education is not without hope. By leveraging technology, addressing affordability, and adapting to demographic and cultural shifts, institutions on both sides of the border can position themselves for long-term success. Policymakers, university leaders, and stakeholders must collaborate to ensure that higher education remains a beacon of opportunity and a driver of societal progress in an increasingly complex world.
As we move forward, the imperative for transformation is clear: higher education must evolve to meet the demands of a fast-changing global environment. Whether in the U.S., Canada, or beyond, the lessons of this moment offer valuable insights for shaping a brighter future for education worldwide.
