An analysis reveals that there will be increase in the closure of private colleges in the USA in upcoming year compared to 2017. Moody’s Investor Services predicted in 2015 that the number of small the USA colleges that would close annually would triple by year 2017 and they still expects that number of colleges forced to face closure will reach up to 15 colleges per year as of 2019 or 2020. Prevailing demographic and labour market have raised the issues like rising costs, declining public funding, and lower enrollment and tuition revenue. As a response of a survey, 44% of the chief financial officers at four-year under graduate colleges say that they are confident about their financial stability of their institution over coming decade. The gap between costs and tuition revenues is growing and the tuition discount rates are no longer sustainable for the institutions. The most US colleges are indicating that they will reduce tuition discount rates, expand enrolment, and introduce new revenue generating programs.