Drexel University's new president, Antonio Merlo, has a tall order ahead of him: tackling a budget deficit and reversing declining enrollment. But Merlo sees this as an opportunity for 'reinvention,' drawing inspiration from the university's past resilience.
A Moment of Reinvention
Merlo's inaugural address referenced a similar period of adversity over a century ago, when Drexel emerged stronger thanks to its signature co-op program. Now, as many colleges face similar challenges in a competitive higher education market, Drexel is poised to reinvent itself once more.
Enrollment and Academic Overhaul
Drexel has experienced a significant drop in enrollment over the last decade, with a notable 19% decrease in freshmen last fall. Merlo attributes this, in part, to a misguided strategy of lowering the admittance rate, a decision he aims to rectify for the upcoming fall 2026 class.
The university is restructuring financial aid, offering more merit-based scholarships to families with higher incomes, a move Merlo believes will attract more students. He anticipates an increase in the percentage of admitted students who enroll, citing promising signs from recent shifts in enrollment management.
Financial Challenges and Ratings
Moody's recent report projects Drexel to run deficits through fiscal year 2028, a plan Merlo acknowledges but remains confident in. He points to S&P Global's stable outlook and higher rating for Drexel, contrasting it with Moody's downgrade, which he attributes to a change in analysts.
In 2024, Drexel implemented cost-cutting measures, including layoffs and salary reductions, as part of its deficit reduction plan. Merlo assures there are no plans for additional layoffs but acknowledges a reallocation of personnel as academic program changes are completed.
Academic Consolidation and Experiential Learning
Drexel's academic overhaul includes the consolidation of several colleges and schools. The College of Engineering and the College of Computing and Informatics, along with the School of Biomedical Engineering, Science, and Health Systems, are merging into the new College of Engineering and Computing. This consolidation is part of a broader academic transformation that aims to enhance Drexel's focus on experiential education, a cornerstone of the university's identity.
A New Direction
Merlo's leadership brings a fresh perspective and a commitment to improving the student experience. While the challenges are significant, Drexel's history of resilience and innovation, coupled with Merlo's strategic vision, position the university for a successful transformation.
In my opinion, Drexel's ability to adapt and reinvent itself is a testament to its strength and resilience, and I'm excited to see how Merlo's leadership guides the university through this period of change.
