Temple University Has Lost $200 Million a Year as Enrollment Slid 27% — and Retention Is Getting Worse

Temple University is facing what its president calls a "painful" financial crisis — one that an internal report obtained by The Philadelphia Inquirer reveals is more severe than previously disclosed publicly.

The report, compiled by Temple leaders and shared last month with deans and the president's cabinet, shows the North Philadelphia university has lost 27% of its U.S. enrollment over the last eight years — amounting to an average of more than $200 million in lost revenue every year. Enrollment has fallen from 40,240 students in fall 2017 to 29,503 in fall 2025, a drop of approximately 11,000 students.

But the enrollment decline is only part of the story. The internal report also reveals a worsening retention crisis that threatens to compound Temple's financial challenges even as it has enrolled its largest freshman classes in history in the past two years.

The Retention Problem

A decade ago, 90% of Temple freshmen returned for their sophomore year. By 2024, that figure had declined to 82%. Early projections now show it will likely slide below 80% this fall.

The mid-year attrition numbers are equally alarming. This year, 14% of Temple's freshmen who enrolled in the fall did not return for the spring semester — compared with 9% from fall to spring last school year. Among students across all class years, the share leaving between semesters rose from 6.7% last school year to 8.2% this year.

Interim provost David Boardman said financial reasons are the primary driver of student attrition, though academic performance is also a factor in some cases — particularly in math and among STEM majors, which he noted is a national challenge. He added that even with the decline, Temple's retention rates remain above the national average for large public universities.

Temple president John Fry put the problem plainly: "If you can attract them but you can't retain them, that not only impacts young lives but that also impacts the financial future of the institution."

The Budget Projections

The financial picture is severe. Temple anticipates finishing the current fiscal year with a $27 million deficit in its $1.3 billion budget (excluding the health system) and plans to draw down $26.8 million from reserves to cover it.

Looking ahead, earlier enrollment growth projections for 2027 through 2030 have been significantly revised downward. Temple now forecasts enrollment growth of 5.3% — or 1,552 additional students — over that period, compared with a prior projection of 11%, or 3,347 additional students. That revision alone represents $150 million in lost projected revenue over five years.

Earlier this month, Fry told the campus community that Temple "must act decisively and with a sense of urgency" to address a projected deficit of approximately $85 million for next fiscal year.

What Temple Is Doing — and What's Still Under Consideration

Temple has already taken several steps to reduce costs. In July 2025, the university laid off 50 employees, less than 1% of its workforce. A faculty retirement incentive program this year drew 77 participants — 3% of full-time faculty — who will leave by June 30, ultimately saving about $15 million annually.

More layoffs of staff are planned in the coming months. Fry said the exact number is still under consideration.

Additional measures being evaluated include hiring freezes, travel restrictions, consolidation of some of Temple's 17 schools and colleges, cuts to the athletic budget (though not of individual sports), discontinuation of under-enrolled academic programs, and potentially selling or repurposing its Ambler campus, where enrollment has plummeted.

A Temple-commissioned study by the National Association of College and University Business Officers found that the vast majority of undergraduate students who earn degrees at Temple are concentrated in about 20% of the university's 197 programs. Specifically, 41 programs enroll more than 75% of graduating students, while 120 programs serve about 10%. Thirty-four programs had no students graduating at all. There are 181 undergraduate, master's, and doctoral programs with five or fewer degree completers. Boardman said deans and faculty are reviewing programs to determine whether low enrollment reflects lack of demand or insufficient marketing, and that programs are more likely to be consolidated than eliminated.

"All possibilities are on the table given the magnitude of the financial challenge," Fry said.

A New Budget Model and a Push on Retention

Two structural changes are also underway that Fry hopes will reshape Temple's financial trajectory. First, the university is abandoning its "responsibility center management" budget model — a decentralized system in use for over a decade that gives individual units control over their own revenue and expenses — in favor of a centralized approach that the report says should reduce internal competition and allow resources to be shifted more easily to priorities. The new model will be rolled out over three years.

Second, Temple is investing significantly in student support and retention infrastructure. The university is using technology tools to identify students missing classes and other warning signs. It hired a new vice provost for undergraduate education from Purdue University this month — citing Purdue's track record on student success. A new orientation and first-year support system will launch in the fall. And an audit by the National Institute for Student Success is underway, expected to yield recommendations spanning recruitment to career planning.

Temple also plans to continue increasing its financial aid budget, likely to more than $200 million this year. A major fundraising campaign expected to begin its public phase within the next year will focus in part on financial aid funding.

Fry estimated it will take three years to improve finances and reach the goal of a 2% to 6% operating surplus that can be reinvested in academic and student success. "We're dealing with it," he said. "Dealing with it is painful. But it will be more painful if we don't."

The Broader Philadelphia and National Context

Temple's situation is severe, but it is not unique — either in Philadelphia or nationally. Drexel University has lost about 20% of its enrollment in a little over a decade. The Pennsylvania State System of Higher Education recorded a 30% enrollment decline since 2010-11, though it posted an increase this year. La Salle University's freshman-to-sophomore retention rate dipped to 66% last fall, down from 73% the year before.

The combination of declining retention and enrollment volatility is playing out at institutions across the country — particularly at urban commuter universities and regional public institutions that serve large numbers of first-generation and lower-income students, who are disproportionately affected by financial pressures, the transition to college, and the opportunity costs of staying enrolled when financial stress mounts.

What Students Should Know

For current Temple students, the university has committed that students already enrolled in any programs under review will be able to complete their degrees. The university is also increasing its financial aid budget and adding student support infrastructure specifically designed to address the retention crisis.

For prospective students, the picture at Temple has two sides. The report reveals significant institutional stress. But Temple also received three record philanthropic gifts in the last year, including a historic gift to establish an honors college. Applications and deposits for fall 2026 freshmen and transfer students are well ahead of prior years — deposits are up 26.5% — and the university has maintained solid financial ratings.

The enrollment decline that created this crisis does not mean Temple is in danger of closing. It means Temple is a large, complex urban public university that is navigating the same demographic and financial forces reshaping higher education nationally — with the added challenge that its particular enrollment model, drawing heavily from a regional commuter population, leaves it especially vulnerable to mid-year attrition driven by financial hardship.