Colleges Set to Fail as Birthrate Falls

The Ministry of Education, Science and Technology has upped its estimate from 2009 to 2007 of when the number of applicants to universities and junior colleges will equal the number of places available. Less prestigious universities are expected to face economic difficulties as insufficient numbers of students apply.

To alleviate the danger, both public and private sectors are taking steps such as taking out bankruptcy insurance so that enrolled students would be able to graduate. Mergers and acquisitions of private universities and colleges are also being considered.

The falling birthrate in Japan has meant that already about 30% of private universities and 40% of private junior colleges failed to fill their student quotas last spring.